 Income tax 2021-2022 software example, certain business expenses of reservists performing artists and fee-based government officials. Get ready to get refunds to the max, dive in into income tax 2021-2022. Lassert tax software, you don't need access to tax software to follow along, but you might want to have access to the form 1040, which you can find on the IRS website at irs.gov, irs.gov, starting point here, single filer Adam Smith, living in Beverly Hills 90210 100,000, the W2 income, the 12,550 standard deduction, getting us down to the 87,450 at the taxable income, mirroring that on our equation, income, the standard deduction, 87,450 taxable income back on over tax calculation in the software at the 1515, which we populated into our formula here as well. We're now going to go to the schedule one page number two, focused in on the adjustments to income, which will flow into the first page of the form 1040 as the above the line, the deduction, the adjustments to income. We're looking at line 12, certain business expenses for reservists performing artists and fee based government officials. So we're going to attach 2106. So these are, this is one that you're not as likely to see this one down here. We have another moving kind of related item as well, moving expenses for members of the armed forces attached form 3903. So they're in the past, we had a deduction for like moving in general. So if someone needed to move for a job, then then if certain qualifications were met, then you might be able to deduct some of the moving expenses. So people might still ask about those those things. And you would inform them that they kind of restricted those kind of things so that there's more restrictions based on where what's your actual work is. In this case, the armed forces, the reservists up top. Note that if you're working with people that are in the military in general, there's going to be different types of deductions for them. Oftentimes, so you want to just be aware of them if that's part of your clientele so you can make sure you're taking those into consideration. So we've got the form 2106. So like I said, it's less likely that you're going to see this kind of deduction or adjustment. But if you do, then then you can dig more deeply into it by looking at the instructions for the form 2106. So I'll just do a quick kind of thing here. We're going to jump into it. I can jump in and let's say it was a reservist. That's probably the most common. So now I'm in the data input form for 2106. The occupation might reflect, you know, this in in when you put the occupation for the for the person involved. And then we could say down here, we have the qualified performing artists or handicapped fee based government official. I'm going to put down here that they are a reservist. So I'm going to say everything in this form is related to a reservist will say, and then you can have some of the items that would be applicable on 2106. So it could most likely be some kind of travel. Also note that if they were reimbursed for the travel, which is another reason a lot of these if you work for the government in some way, then oftentimes the travel that you have is reimbursed. So it's another reason why these deductions are not often, you know, as used because the government's usually pretty good about that about reimbursing people in some way shape or form, which means that any kind of income that would need to be reported or deductions or whatnot, hopefully will be basically taken care of with the W2 reporting of the income. But in any case, we got the 1000 here. Let's put 1000, pull it on over to the form 1040. There's the 1000. It flows down to the bottom here. The 1000 is going to pull on over to the 1040. So the 1040 now we've got the 100,000 line 10 adjustments to income is the 1000. That gives us the 99,000 for the adjustments to income. If I was to mirror that on my equation, I can go on over to the adjustments to income. Is there some way I can abbreviate this? That's not just hugely long like line 12 here. So we're going to say this is page number two, certain business expenses for reservists. Let's keep it at that. Certain business expenses, expenses, let's do a dot dot dot for that. And I'll make this a little bit longer. And I'll say that this is going to be that I could kind of recalculate it here, but I'm just going to put the 1000 right there. I'm going to say that this is going to be blue. Let's make that blue. It's not sad. It's just blue. It's happy blue. So there we got it. Let's go ahead and see if we if is our spelling. Okay. No, it's not your spelling. It's horrible. Your spelling is horrible. I hope you know. I know. I know it's horrible. And then we're going to go to the first page, the first page, the 100,000 minus the 1000, the 99 standard deduction 12,550 gets us to the 86,450. So I can mirror that over here saying that pulls over to the 1040. So there we have it. The 99 12,550 gets us to the 86,450 tax calculated on page two at the 14,757 14,775. So this would be 14,775 and so on. So also note, if I go back on over, you might have like a mileage calculation or something that could be related if this would be applicable. So you might end up adding a vehicle where you might get into the mileage method versus versus a actual write off kind of method. Again, less likely that you'll see this here more likely that you would see it on something like a schedule C business where we will go into those methods in more detail. But just to get a general idea here, if you were going to use like a mileage method, then you might populate the miles in here. So description. It was like a truck. It was placed in service. Let's say 01.0121. And the mileage, let's say was let's say the total, the total mileage was 10,000 and the business mileage that we that we had here was that's applicable. We're going to say is like 500 commuting commuting. I'll keep that see if I can not put that. And so if I come back on over now and I go to page number or schedule one page two, we've got the calculation of the 250 that has been calculated. It's pulling in also note the form 2106. So there's the 2106 vehicle expense from line 22 or line 29 being calculated. And then if I go to page two, we've got our mileage calculation. So so we'll get more into detail on the mileage calculation later, like a mileage method versus a direct method and so on. Because it's more likely that that will be the case and come into play with the schedule C. So just be you know, you can kind of be aware of that here. And then we'll get into it in more detail in future presentations. But in any case, there's the 280 now bringing the adjusted gross income to the 99 720 standard deduction still up to 12 550. And that gives us the 87 170 down below. Notice in our worksheet over here, we could get more detailed into doing more data input like the mileage method and what and so on. Or we can try to get less detailed and kind of summarize it and depend on the software more as we do our double check over here. And it's just a trade off between more verification by double checking the calculation versus time it takes to do more of a verification by double checking the calculation. So that's going to be the general idea.