TAX- Indiv 1
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| show | Itemized deductions of (personal expenses) (below AGI) (COmMITT) (if your an employee)
C- Charitable contributions
Om-Other misc.
M- Medical ex
I- Interest
T- Taxes
T- Theft or casualty loss (disasters only)
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| show | Interest & Dividend income
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| show | Profit and loss from a business (Employer expenses / 1099 Income) (if you are the employer) - If you have a unincorporated business
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| Schedule D | show 🗑
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| Schedule E | show 🗑
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| show | Profit and Loss from Farming
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| For AGI adjustments (before AGI) | show 🗑
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| show | if their income is greater than their standard deduction, have net self employed income of $400 or more, are claimed as a dependent on another individual return & have income more than the dependent standard deduction($1,100 in 2019), if earned income X
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| How is income recorded for tax purposes | show 🗑
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| show | When employers pays $50,000 or less for an employees life insurance plan the premiums are tax free. EX: if employer pays $75000 in life insurance & the premiums are $300 then $100 of premiums are taxable income for employee (25/75=1/3*300=100)
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| show | Non-qualified or Qualified
Non-Qualified(Not qualified for any kind of special deal so taxable when exercised)
Qualified (ISO incentive stock option- taxable not when you exercise stock but when you sell stock unless an AMT trigger)
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| show | If U itemized last yr then your refund is taxable. If you didn't itemize last yr then your refund isn't taxable this yr. BC if U itemize it is considered a benefit if you don't itemize it's not considered a benefit U R just getting the $ U overpaid back
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| State tax refund form name | show 🗑
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| Federal tax refund taxable this yr? | show 🗑
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| What is a capital asset? | show 🗑
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| Long term capital gain | show 🗑
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| Gain on asset held for 1 year or less | show 🗑
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| Net Capital losses - How much can we deduct per year? | show 🗑
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| show | Amended individual tax return
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| show | Is the net loss of individuals net income and net business income/losses. We can't carry loss backwards but we can carry loss forward indefinitely to offset income
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| For NOL- include all taxable income & all deductions except: (therefore may have to add these specific items back to loss to calc actual NOL) | show 🗑
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| show | - RRF=(rent, royalties,Flow thrugh) COP(types of royalties(copyright, Oil/Gas leases, Patents)
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| Form 1040X | show 🗑
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| show | Foreign Tax Credit
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| Form 4562 | show 🗑
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| show | Sale of L/T business property (not inventory or receivables – Schedule C)- (If we sold items on the 1231- non current business assets)
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| Schedule SE | show 🗑
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| 1231 | show 🗑
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| Student Loan interest | show 🗑
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| Self employment Tax | show 🗑
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| Self employment Tax CONT. | show 🗑
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| If rental Income is full time job | show 🗑
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| show | Income/deductions captured on Schedule E
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| Flow through entities | show 🗑
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| show | $10,000 ($5,000 MFS) for 2018 through 2025
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| show | Not Tax deductible
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| Theft & Casualty Losses, how much is deductible / Itemized? | show 🗑
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| Child Tax Credit | show 🗑
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| show | $500 credit for other dependents(Qualifying child & Qualifying relative)
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| show | If tax liability isn't big enough to claim(use up/deduct) the child tax credit up to $1400(per qualifying child) can be refundable
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| Child & Dependent Care credit | show 🗑
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| Adoption Credits | show 🗑
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| Education credit- (PMTS tuition/fees) Hope scholarship credit (renamed the “American Opportunity Tax Credit”— AOTC) | show 🗑
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| Education credit- (PMTS tuition/fees) lifetime learning credit | show 🗑
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| show | Can only take one of the credits either American Opportunity Tax Credit(per individual) or lifetime learning credit(per family) per kid *also can't be MFS*
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| show | credit is up to $1K($2K MFJ) for making contributions to IRA /retirement plan. claimed by: -MFJ income up to $64K HH income up to $48K, Single & MFS income up to $32K in 2019. The amount of the credit can range from 10-50% of the amount of contribution
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| Credit for the elderly or disabled | show 🗑
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| Earned Income Credit (EIC) | show 🗑
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| show | rate is inc. by 0.9% for indiv earning in excess of income ($250,K MFJ & $200Kothers) 4 employees, the new rate is 2.35% (1.45% + 0.9%) on amounts in excess income 4 self-employed indiv, rate is inc. from 2.9% to 3.8% on amounts in excess of income levels
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| show | if U have unearned income of indivs, estates, & trusts, the surtax is 3.8% of the lesser of: net investment income or The excess of MAGI over the threshold amount ($250K 4 MFJ/SS), $125K 4 MFS), & $200K 4 all others)*Lessor of the 2#'s*3.8%=Surtax
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| MADI | show 🗑
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| show | In general, employee discounts do not result in taxable income to the recipient. The amount that may be excluded in relation to services purchased by employees, however, is limited to 20% of the amount normally charged to nonemployee customers.
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| Taxpayers required to use the accrual method are | show 🗑
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| A distribution from a qualified profit-sharing plan is excluded from income to the extent that it is | show 🗑
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| State tax refunds are generally included in gross income if the taxpayer itemized deductions in the prior year and took a deduction on Schedule A for state taxes paid. The amount included in income in the current year is limited to | show 🗑
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| If the personal use of a dwelling unit held out for rent exceeds the greater of 14 days or 10% of the days rented, the unit is considered a home. | show 🗑
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| show | If the operation did not yield a profit in at least 3 of the preceding 5 years, it generally is considered a hobby rather than a business and losses are not deductible.
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| show | $4 per item
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| How may taxes paid by an individual to a foreign country be treated? | show 🗑
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| the special considerations for Code Sec. 1244 stock | show 🗑
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| The deductible contribution to a Keogh plan by a self-employed taxpayer is limited to | show 🗑
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| show | is not a deductible medical expense
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| Contributions to a Roth IRA are not deductible | show 🗑
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| show | $25M gross receipts test. but doesn't apply 2 farming bus. & qualified personal service corpors(PSCs), where 95% of stock is owned by owner-employees (i.e., ownership test) and 95% of activities R N certain fields, such as health, law, acct, etc. (i.e., f
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| show | Gains on the sale of livestock raised for sale, A farmer is in the business of growing livestock, produce, or grains for sale. Profits are considered earnings from self-employment
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| show | FMV of service rec. (even if bartering still include FMV of service or product rec. as income)
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| show | provided the couple qualified to file a joint return for the yr of death,taxpayer provided over 50% of the cost of maintaining the principal residence of a dependent child or stepchild& taxpayer hasn't remarried as of the end of the current yr.
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| tax treatment of a business’s research and experimental (R&E) expenditures | show 🗑
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| Portfolio income | show 🗑
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| Non-qualified stock options are taxable when | show 🗑
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| Gertie owns an apartment building. Out of the rents received each month, she pays herself a management fee. Where should she report her income? | show 🗑
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| show | combine several tax credits: the low-income housing credit, the alcohol fuel credit, & the targeted jobs credit. The purpose of the combination is 2 provide uniformity related 2 the deduction of the credit 4 the current, carryback, & carryover yrs
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| Under the 12-month test, a cash-basis taxpayer may deduct prepaid expenses in the year they are paid only when the prepayment creates a right or benefit that does not last beyond the earlier of: | show 🗑
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| Short-term capital losses may be used to offset | show 🗑
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| show | they use the same accting period, although they may use diff acct methods. While a couple generally can't file a joint return if either is a nonresident alien @ any time during the tax yr, if 1 of the spouses is a U.S. citizen or resident of the U.S, an e
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| Wages and interest on U.S. Treasury obligations, other than Series EE U.S. savings bonds used to pay qualifying higher education expenses, are included in gross income. | show 🗑
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| Under pmt penalties | show 🗑
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| Under TCJA, gambling expenses are deductible, except for 50% of meals, even for a non-professional individual gambler(losses are deductible up t gambling winnings) | show 🗑
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| A C corporation that has more than $25 million in sales on average for the 3-year period ending with the tax year must use the accrual method. | show 🗑
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| Service businesses with gross receipts of $10M or below may use the cash basis. | show 🗑
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| show | 2 avoid underPMT penaly, a taxpayer must pay a safeharbor $ PMT rule t is 100% of the prior yrs tax liab oR90% of the current yr tax liab(whichever is lower), if INDIV AGI is > $150K in the prior yr, safe harbor amount incs to 110% of prior yrs tax liab.
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| How to include employee service discounts | show 🗑
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| AMT credits may be carried forward to future tax years. | show 🗑
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| A gain on the sale of the taxpayer's personal residence is eligible for an exclusion from gross income if the taxpayer owned and used the home as his or her personal residence for two of the five years prior to the sale. | show 🗑
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| payments made by an employer on behalf of an employee for an employee's educational expenses | show 🗑
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| Interest on Series EE Savings Bonds(education bonds)is tax-exempt when these certain conditions are met: | show 🗑
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| Exemption of 10% penalty when taking a distribution for IRA if following are met: | show 🗑
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| show | 30% of adjusted taxable income, which is taxable income excluding interest income, interest expense deduction, and depreciation deduction.
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| The IRC defines gross income as | show 🗑
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| show | damages rec. 4 personal physical injury/physical sickness. This exclusion applies 2 court-awarded damages as well as 2 workers comp.
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| State sales taxes are deductible in lieu of | show 🗑
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| To qualify as married filing jointly (MFJ), taxpayers generally must: | show 🗑
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| show | yes
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| show | no
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| Pension benefits | show 🗑
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| show | is actually a reduction in the interest earned. As a result, it is a deduction for AGI deducted on Page 1 of Form 1040.
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| Union dues | show 🗑
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| show | are considered a personal expense under IRC §262 and are thus not deductible on individual income tax returns. Note: Funeral expenses can be deducted on an estate tax return in determining the taxable estate if such expenses were paid out of the estate.
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| show | an itemized deduction may be taken for federal estate taxes paid on that income without limitation.
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| show | Low income tax payers = MFJ AGI exceeding $25K will be not et the disabled credit even if both taxpayers are disabled
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| AMT credits may be carried forward to reduce | show 🗑
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| Regulation §1.262-1(b)(2) specifies that homeowner's insurance on a principal residence is an example (ex: premium for homeowner's insurance policy on principle residence) | show 🗑
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| continuing education courses and was not reimbursed by her employer. | show 🗑
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| In a multiple support agreement(ex: children provide combined support for mom or dad)- who can claim parent as dependent? | show 🗑
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| An employee who has had social security tax withheld in an amount greater than the maximum for a particular year may | show 🗑
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tiffany17ann