by Turquoise Tax Systems | Jun 17, 2026 | Individual Tax
Concise Takeaway NIIT is a 3.8% tax on net investment income for individuals, estates, and certain trusts whose modified AGI exceeds statutory thresholds. Who NIIT Applies To NIIT applies to: U.S. citizens U.S. residents Estates and certain trusts NIIT does not apply...
by Turquoise Tax Systems | Jun 17, 2026 | Individual Tax
Concise Takeaway AMT is a parallel tax system that removes certain deductions and preferences. If the tentative minimum tax is higher than regular tax, the taxpayer pays AMT. Purpose of AMT AMT applies when certain income or deductions receive favorable treatment...
by Turquoise Tax Systems | Jun 17, 2026 | Individual Tax
Concise Takeaway Federal income tax moves through a simple sequence: taxable income → tax → credits → additional taxes → total payments → refund or balance due. Tax Calculation Overview Federal income tax is based on taxable income using a progressive rate system....
by Turquoise Tax Systems | Jun 17, 2026 | Individual Tax
The One Big Beautiful Bill Act created four temporary additional deductions available from 2025 through 2028. These deductions apply whether the taxpayer itemizes or claims the standard deduction and are claimed on Schedule 1‑A, Additional Deductions. All four...
by Turquoise Tax Systems | Jun 17, 2026 | Individual Tax
The Section 199A deduction (QBI deduction) allows eligible taxpayers to deduct up to 20% of qualified business income, plus 20% of qualified REIT dividends and PTP income. The deduction applies to individuals, certain trusts, and estates—not corporations. Originally...
by Turquoise Tax Systems | Jun 17, 2026 | Individual Tax
Personal casualty and theft losses are deductible only when attributable to a federally declared disaster. This rule, temporary under the TCJA, is now permanent under the One Big Beautiful Bill Act. A casualty is damage, destruction, or loss of property from a sudden,...
