 Income tax 2022-2023, jury duty pay, tax software example, let's do some wealth preservation with some tax preparation. Here we are in our example Form 1040, populating it with LeCert 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. The website renewal, dip, and then stock. IRS.gov, IRS.gov. So our starting point like normal single file or Mr. Anderson, we've got the 100 support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website broken out by category further broken out by course. Each course then organized in a logical reasonable fashion, making it much more easy to find what you need than can be done on a YouTube page. We also include added resources such as Excel practice problems, PDF files and more like QuickBooks backup files when applicable. So once again, click the link below for a free month membership to our website and all the content on it. $12,950 for the standard deduction $87,050 for the taxable income we can mirror that on our worksheet where we have let's let's fix it here so we got $100,000, $12,950, $87,050. Page two doing the calculation in the tax software $14,774, $15,000 of the W-2 withholdings gets us down to the 225 and that's mirrored over here as well. Okay, back to the software we're mainly focused on page one looking at that calculation getting down to the taxable income. So we're looking at jury duty now. So if we go to jury duty, then the general concept would be well if you got paid by the jury duty, then you'd have to include it in income. And so we saw that in the income section. But then you might say, well, yeah, but if I had to pay that money back to my employer because my employer was paying me as I went to jury duty and they were like, since we're already paying you, we want you to give us the jury duty money because we're just paying you your normal salary or something like that. Then you end up in a situation where you might have to include it in income because the IRS tax code says that everything that is income needs to be included unless there's an exception. But then you may also be able to remove it back out so that the adjusted gross income will go back down to zero. So the net effect will typically be then we're going to be increasing the income line by the jury duty pay and then we'll adjust it back out with the adjustment to income. So that it doesn't mess up the IRS. They can see it included in the income line. If they have that information on their side, it won't mess anything up. And then we're going to remove it back out because we didn't actually get to keep the income. So there's no net effect on the adjusted gross income. That's what we're looking for. So let's see what that might look like. We're going to go to schedule one and say there was jury duty income. That's line H here. Line H we're going to say boom. It was a horrible case. I've been traumatized by it. They should be paying me way more. So there it is. There's 1000. That's going to be included over here on first page of the form 1040. So now we've got the 1000 included and then we're going to remove it back out with the adjustment. So let's do this in our worksheet too just for the joy of it, the simple joy of it. So we're going to say that schedule income is going to be increased. I should have jury duty because I, well maybe not. I don't know. I'm going to set, let's add it. Jury, jury duty. Is that how you spell it? Let's say 1000. 1000 from jury duty. There's one R in jury. I named my dog jury. So that's, this is jury's jury duty, jury duty. That's what I have to pick up when I go walk dog jury duty. In any case, if I sum that up, let's sum it up. Let's actually just put that on the outside here. Why don't I put that out here and then it sums up to 1000 pulling that over to page one. There, there it is now being included. Now we're going to take it out of the adjustment. So I'm going to say, all right, let's go back on over here. Schedule one page number two. And we're going to say we had to pay that jury duty to our employer because they paid us the normal salary, which would be better because normally, of course, jury duty doesn't pay you that much. So I'd rather, if my employer will pay me, then I would rather take the employer's normal salary money or hourly money oftentimes. So I'm going to put the 1000 here and the jury duty given to employer box. So now that's going to be adding up down in line 26, pulling back on over to the page 40. So now we've increased our income by 1000 and then we pulled it back out by the thousand, bringing us back to where we started at the adjusted gross income. I can mirror that over here on our worksheet with the adjustments to income. This is going to be then the jury duties. Let's just add like another line. Insert a line, jury duty, jury duty, jury duty. The employer paid reimbursed or paid jury duty, let's say paid to employer. And that's going to be, let's just put it out on the outside 1000 and boom. Let's make that bordered. Let's make this blue and that'll pull in because it's summing up to the first page. And so now it's been included here. And then we took it back out in our formula back to the 100,000 on the adjusted gross income. So there it is. So that might not come up all the time. But if there's questions about jury duty, some of those are some of the kinds of questions that could come up. Do I have to include jury duty and income? It's usually fairly insignificant amount unless they were there for a long time. But then the question will be, well, yeah, you typically do, but what if my employer is paid me for jury duty and then I gave the jury duty to my employer? Well, then why would you do this? Because why don't you just not include it in there at all? Because we want to tell the IRS that if the IRS, for example, had documentation of your jury duty, then we want to be able to match it just like within any kind of 1099 situation and say, hey, yeah, I got jury duty. There it is. I know it has to be included in income. So I'm doing it. And then I'm also telling you that it's not really something that I got to hold on to. It's not really income. So I had pulled it back out again so that there's no net impact on the adjusted gross income. So kind of showing the audit trail there.