by Turquoise Tax Systems | Jun 17, 2026 | Individual Tax
Alimony refers to payments made to or for a spouse or former spouse under a divorce or separation instrument. Only payments that meet specific requirements qualify as alimony for tax purposes. Voluntary payments not required by an instrument do not qualify. Not all...
by Turquoise Tax Systems | Jun 17, 2026 | Individual Tax
Education‑Related Adjustments Education‑related adjustments reduce AGI and are available even if the taxpayer does not itemize. Two primary adjustments are the educator expense deduction and the student loan interest deduction. Educator Expenses An eligible educator...
by Turquoise Tax Systems | Jun 17, 2026 | Individual Tax
An Individual Retirement Arrangement (IRA) is a tax‑favored personal savings vehicle that allows individuals to set aside money for retirement. Taxpayers may contribute to traditional IRAs or Roth IRAs, subject to annual limits and eligibility rules. IRA Contribution...
by Turquoise Tax Systems | Jun 17, 2026 | Individual Tax
A Health Savings Account (HSA) is a tax‑favored account used to pay or reimburse qualified medical expenses for the account beneficiary, spouse, or dependents. An HSA must be established with a qualified trustee and is available only to individuals covered by a High...
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:...
