Taxation
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      How do you determine total taxable income in Tax Clarity?

      Take the total Adjusted Gross Income (AGI) minus deductions/exemptions and the Qualified Business Deduction (QBI).

      To validate the results of the software against the client’s tax return and to determine at what point capital gains becomes taxable, you need to know the total taxable income.

      Add the capital gains. Take the total Adjusted Gross Income (AGI), minus deductions/exemptions and the Qualified Business Deduction (QBI).  The result is the total taxable income.  This can be compared to Line 15 on the 2021 IRS Form 1040.  

      1. Click the on the "Details" button below the Tax Map for the scenario you'd like to validate.

      2. Calculate total taxable income using the AGI, Deductions and Exemptions, and QBI figures found in the details section. 

      3. Compare to Line 15 of the client's tax return.