 Here we are in our example, Form 1040, populating it with LASERT tax software. You don't need tax software to follow along, but it's a great tool to run scenarios with. You can also get access to the Form 1040 related schedules and forms at the IRS website, irs.gov, irs.gov. Our normal starting point, single filer, Mr. Anderson, got no dependence to start with W2 income 100,000. We've got the standard deduction 12,950, getting us to the taxable income 87,050. If we mirror that in our income tax equation in Excel, 100,000, 12,950, there's the 87,050. We then allow the tax software to calculate the tax on page two, that being 14774. We said there was 15,000 of withholding to get us to the 226 down below, but our major focus right now is on the income lines up top and then getting down to this taxable income as we think about the other income categories. So note and remember that everything that you get is basically income, everything that you receive unless exempt by the IRS. That's their general rule. So a lot of that line items are up here on page one of the Form 1040. And then we have other income, if we hit the plus or the check mark in the Schedule One. And we've gone through some of these Schedule One additional income and adjustments to income. Now we're looking at line number eight, which is gonna be the other income line down below. Now, first just realize that when you get a form that's gonna be indicating that it's possibly income such as a 1099 form, that oftentimes if you get like a 1099, the IRS might expect to see a Schedule C. And there's a big difference between reporting something unlike a Schedule C and then putting it over here as like other income, that being the Social Security and the Medicare. So let's just give a quick look at that. If you get a 1099 form, you're gonna have to show it somewhere, have some income that's equal to or greater than the 1099, or you would expect to get an audit of some kind. If you had it as income that's subject to self-employment, possibly that would be the Schedule C. Let's just do a quick recap. Recap the mission for us, Conor. Of what that looks like even though we took a look at this before and we'll dive into Schedule C in more detail later, let's just imagine you had a 20,000 schedules, 1099 that's subject you believe to Social Security and Medicare. The reason there's a big difference here is that if I go back on up and say, now I've got my form 1040, I've got the 100,000, I've got the 20,000 here, that populated into Schedule One up top which we looked at before line three, the 20,000 and then that pulls into the 1040 here. But then there's also an impact with the self-employment which is you can see on the self-employment schedule which is calculating other taxes of 200862. That is significant. That's not income taxes but we have to calculate it on the 1040 calculations because we don't have any W-2 or employer doing the calculation for us. Therefore on page two, we see that we have the normal tax calculation and then we also have this other tax that's been calculated, which again, that's painful, that hurts, that's significant and then you've also got an impact of the adjustment which is half of that and then on page one you could have possibly be subject to this credit and we looked at all those big differences and changes if you add a Schedule C. Now if you're adding something, let's remove the Schedule C now. I'm gonna say let's take that away and if instead it's not subject to self-employment then you might have it somewhere in here as like an other income line item and we'll go through a couple of them down here and in that case, then you might not have that added complication of course of the self-employment. That's a significant difference. Okay, let's go through a few of them. We've got the net operating losses. So we saw with the Schedule C, it's possible to have basically losses that would be accumulated. You would think that oftentimes from like a business type of activity, losses, the IRS doesn't wanna actually pay you for losses oftentimes in the year that you incur the losses. So if you do have a loss, possibly you can take that against your other taxable income in this case, W2 income, but oftentimes if you're full time as a Schedule C business, then you don't have any other income. You might have a loss and then the question is can you, the IRS is gonna say, I don't wanna pay you for the loss. We only want part of your gains, not your losses, but you might be able to get some benefit for the losses by possibly carrying them forward or something like that. And in that case, that's when it might be populated down here. Now note that if you have a situation where there's Schedule C income and especially if there's any carryover of losses or anything like that, then if this was a new client, I would suggest entering the tax return that was from the prior period into the prior year tax software and then rolling it over in the tax software because then the tax software can help you out with those rollover calculations, rolling it into the current year. That might cost more to do that because then it depends on how you're paying for the software. But if you wanna get off on the right foot and you have a more complex client, then it might be worth doing and then you can kind of deconstruct how the software is treating this rollover and see if that's an appropriate calculation. So if I jump over here and go to the NOL and I populate it, there's the net operating loss. We've got another schedule that is gonna be shown here. And remember losses are things that the IRS is gonna be more skeptical of because they're kind of good from a tax standpoint because although it's on the income line, it's a loss and therefore it's pulling into the 1040 as a negative income line. So it'd be like your income statement when you have those contra income accounts, like a negative income account here, pulling down the total income, which is obviously a good thing for taxes. So there's that one.