by Turquoise Tax Systems | Jun 17, 2026 | Individual Tax
Concise Takeaway The Child Tax Credit (CTC) is $2,200 per qualifying child in 2025, with up to $1,700 refundable as the Additional Child Tax Credit (ACTC). A $500 nonrefundable credit is available for other dependents (ODC). Credits phase out at $200,000 MAGI...
by Turquoise Tax Systems | Jun 17, 2026 | Individual Tax
Concise Takeaway When a child has more than $2,700 of unearned income in 2025, part of that income may be taxed at the parents’ tax rates. Parents may elect to report the child’s income on their own return, or the child may file using Form 8615. Purpose of the Kiddie...
by Turquoise Tax Systems | Jun 17, 2026 | Individual Tax
Concise Takeaway Tax‑favored accounts receive special tax benefits, but excess contributions, early distributions, and missed required minimum distributions can trigger additional taxes calculated on Form 5329. Tax‑Favored Accounts Covered Additional taxes may apply...
by Turquoise Tax Systems | Jun 17, 2026 | Individual Tax
Concise Takeaway A household employee exists when a taxpayer hires someone to perform household work and controls what work is done and how it is done. Employers may owe Social Security, Medicare, and FUTA taxes, reported on Schedule H. Who Is a Household Employee A...
by Turquoise Tax Systems | Jun 17, 2026 | Individual Tax
Concise Takeaway The Additional Medicare Tax is a 0.9% tax on high‑income earners. It applies to Medicare wages, self‑employment income, and RRTA compensation above filing‑status thresholds. What the Additional Medicare Tax Is The Additional Medicare Tax applies in...
by Turquoise Tax Systems | Jun 17, 2026 | Individual Tax
Concise Takeaway Self‑employment tax is the Social Security and Medicare tax paid by individuals who work for themselves. It is calculated on net earnings from self‑employment using Schedule SE. What Counts as Self‑Employment Income Net income from self‑employment is:...
