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Garden Grove California online Form 8883: What You Should Know
A. Application. A properly completed application will help you qualify to participate in and receive federal income tax benefits based on your business's financial performance for tax years ending after December 31, 2015. Before you apply, check to verify that your business meets all the eligibility conditions and that you qualify to use the income-tax-free status of a qualified small business. The IRS also requires businesses to be able to provide documentation demonstrating that they are eligible to receive tax benefits from Section 338 in order to be eligible for federal income tax benefits. B. Business. Form 8883 is a paper form. For online use, you will need to open the PDF file containing all the instructions under IRS.gov in order to complete this form. A PDF version of Form 8883 is also available for download. (See also: The IRS forms PDF instructions, which are designed specifically for use by you. Note that the online instructions are designed for use by the United States government and not by you). Fill out the section on the “Business.  Income and Expenses. Report income and expenses as follows and in the order specified in the instructions, each separate line item or page. When a line item is required, indicate the column where it is entered. Report all income as follows: 1) Your net income (if there is any). This is the portion of income that is not itemized deductions. Generally, this includes salary, wages, tips, and commissions. 2) Your net expenses (if there is any). This is the portion of your gross income that is not itemized deductions. Usually, this includes your gross rental income and investments. 3) The taxable income in your entire filing status. 4) Your self-employment income. Include your earnings from self-employment for the calendar year in which you file your return. If your self-employment income is subject to federal taxation, include amounts in box 2a, “Total self-employment income,” for that year in the last columns. See Regulations section 1.1461-1(b)(3). If your income is subject to a state tax, include amounts in box 2a, “Total state self-employment income,” for that year in the last columns of the Schedule C instructions (or in the second “Statement under 'Line 11' and 'Line 21' of the self- employment income return”). 5) The gross total of self-employment deductions.
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