Catalog / Corporate & Personal Taxation Cheatsheet
Corporate & Personal Taxation Cheatsheet
A comprehensive cheat sheet covering key aspects of corporate and personal taxation, including income tax, deductions, credits, and compliance. Designed for quick reference and understanding of complex tax concepts.
Income Tax Basics
Taxable Income Calculation
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Gross Income: All income from whatever source derived, including wages, salaries, interest, dividends, rents, and royalties. |
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Adjusted Gross Income (AGI): Gross income less specific above-the-line deductions (e.g., IRA contributions, student loan interest). |
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Taxable Income: AGI less itemized deductions or the standard deduction, and less qualified business income (QBI) deduction (if applicable). |
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Tax Liability: Taxable income multiplied by the applicable tax rate(s) based on the tax bracket. |
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Tax Credits: Direct reduction of tax liability (e.g., child tax credit, education credits). |
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Total Tax Due: Tax liability less tax credits. |
Personal Income Tax Rates (Example)
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Tax Rate |
Single Filers (Example) |
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10% |
Up to $10,275 |
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12% |
$10,276 to $41,775 |
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22% |
$41,776 to $89,075 |
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24% |
$89,076 to $170,050 |
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32% |
$170,051 to $215,950 |
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35% |
$215,951 to $539,900 |
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37% |
Over $539,900 |
Standard Deduction (Example)
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Filing Status |
Standard Deduction (Example) |
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Single |
$12,950 |
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Married Filing Jointly |
$25,900 |
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Head of Household |
$19,400 |
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Married Filing Separately |
$12,950 |
Corporate Taxation
Corporate Income Tax Calculation
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Gross Income: Total revenue less cost of goods sold (COGS). |
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Taxable Income: Gross income less allowable deductions (e.g., operating expenses, depreciation, interest expense). |
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Tax Liability: Taxable income multiplied by the corporate tax rate. |
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Tax Credits: Direct reduction of tax liability (e.g., research and development credit). |
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Total Tax Due: Tax liability less tax credits. |
Common Corporate Deductions
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Depreciation |
Allowance for the decline in value of assets due to wear and tear, obsolescence, or other factors. |
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Operating Expenses |
Expenses incurred in the normal course of business operations (e.g., salaries, rent, utilities). |
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Interest Expense |
Cost of borrowing money. |
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Research and Development (R&D) Expenses |
Costs associated with developing new products or processes. |
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Charitable Contributions |
Donations to qualified charitable organizations (subject to limitations). |
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Business Losses |
Losses incurred in the operation of a business. |
Corporate Tax Rates (Example)
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A flat rate of 21% applies to corporate taxable income for federal income tax purposes. (This is a simplified example and may vary based on jurisdiction and specific tax laws.) |
Tax Credits & Deductions
Personal Tax Credits
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Child Tax Credit |
Credit for each qualifying child under age 17. |
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Earned Income Tax Credit (EITC) |
Credit for low-to-moderate income individuals and families. |
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Education Credits |
Credits for qualified education expenses (e.g., American Opportunity Tax Credit, Lifetime Learning Credit). |
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Retirement Savings Contributions Credit (Saver's Credit) |
Credit for low-to-moderate income taxpayers who contribute to retirement accounts. |
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Energy Credits |
Credits for investments in energy-efficient property (e.g., residential clean energy credit). |
Personal Tax Deductions
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Itemized Deductions |
Deductions for specific expenses, such as medical expenses, state and local taxes (SALT), home mortgage interest, and charitable contributions. |
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Above-the-Line Deductions |
Deductions taken before calculating AGI, such as IRA contributions, student loan interest, and health savings account (HSA) contributions. |
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Qualified Business Income (QBI) Deduction |
Deduction for eligible self-employed individuals, small business owners, and certain pass-through entities. |
Corporate Tax Credits
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Research and Development (R&D) Credit |
Credit for qualified research expenses. |
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Work Opportunity Tax Credit (WOTC) |
Credit for hiring individuals from specific target groups. |
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Energy Credits |
Credits for investments in renewable energy and energy-efficient property. |
Tax Compliance & Planning
Tax Filing Deadlines
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Individual Income Tax |
April 15 (unless extended) |
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Corporate Income Tax |
15th day of the 4th month following the end of the corporation's tax year (unless extended) |
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Estimated Taxes |
Quarterly payments due throughout the year |
Tax Planning Strategies
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Maximize Retirement Contributions: Contribute to tax-advantaged retirement accounts (e.g., 401(k), IRA) to reduce taxable income. |
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Tax-Loss Harvesting: Sell investments that have decreased in value to offset capital gains. |
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Utilize Health Savings Accounts (HSAs): Contribute to an HSA for tax-deductible healthcare savings. |
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Consider Tax-Efficient Investments: Invest in assets that generate tax-exempt or tax-deferred income. |
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Properly Time Income and Deductions: Strategically time income and deductions to minimize tax liability. |
Common Tax Forms
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Form 1040 |
U.S. Individual Income Tax Return |
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Form 1120 |
U.S. Corporation Income Tax Return |
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Schedule C (Form 1040) |
Profit or Loss From Business (Sole Proprietorship) |
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Form W-2 |
Wage and Tax Statement |
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Form 1099 |
Information returns for various types of income (e.g., dividends, interest, self-employment income) |