by Turquoise Tax Systems | Jun 17, 2026 | Individual Tax
Self‑employed individuals may claim several adjustments to income on Schedule 1 (Form 1040). These adjustments reduce AGI and are available to sole proprietors, independent contractors, partners, and certain S corporation shareholders. Deductible Part of...
by Turquoise Tax Systems | Jun 17, 2026 | Individual Tax
A U.S. citizen or resident alien is taxed on worldwide income, even while living abroad. However, qualifying taxpayers may exclude foreign earned income and certain foreign housing amounts. For 2025, the foreign earned income exclusion is limited to the smaller of:...
by Turquoise Tax Systems | Jun 17, 2026 | Individual Tax
Certain payments received because of sickness, injury, or death are excluded from income when they meet statutory requirements. The exclusions below frequently appear on the EA exam. Workers’ Compensation Workers’ compensation is fully excluded when: Paid under a...
by Turquoise Tax Systems | Jun 17, 2026 | Individual Tax
Education benefits can be excluded from income when they meet specific statutory requirements. These exclusions apply to scholarships, savings bond interest, education savings accounts, qualified tuition programs, and ABLE accounts. Scholarships and Fellowships A...
by Turquoise Tax Systems | Jun 17, 2026 | Individual Tax
Certain disability pensions paid by government services are excluded from income when the disability is connected to active service. These exclusions apply to pensions, annuities, or similar allowances paid for personal injury or sickness arising from service in:...
