Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
30 Cards in this Set
- Front
- Back
|
How much may an eligible educator deduct for qualified classroom expenses as an adjustment to income?
|
Up to $250
|
|
|
Who is an eligible educator?
|
Someone who worked 900 hours during the school year as a teacher, teacher’s aide, counselor or administrator in grades K-12
|
|
|
Which expenses qualify for this deduction?
|
Ordinary and necessary expenses for books, equipment, computer software, classroom supplies, and other supplemental instructional materials and services used in the classroom
|
|
|
Do homeschooling expenses qualify for this deduction?
|
No.
|
|
|
What happens to the expenses in excess of $250?
|
They may be taken as an itemized deduction on Schedule A (subject to limitations)
|
|
|
Who may deduct student loan interest?
|
A taxpayer who paid qualified higher education expenses at an eligible institution for an eligible student.
|
|
|
Who may not claim the student loan interest deduction?
|
Someone who is claimed as a dependent or whose filing status is MFS
|
|
|
What is a qualified student loan?
|
Any type of loan used to pay qualified expenses (including credit card debt) Money borrowed from a related person is not a qualified loan.
|
|
|
What are some of the qualified expenses?
|
Course-related books, transportation, room and board.
|
|
|
What is the student loan interest deduction limit?
|
$2,500
|
|
|
What two general requirements must be met before moving expenses can be deducted?
|
Distance and work time
|
|
|
What are the requirements of the distance test?
|
New job location must be at least 50 miles farther from old residence than the distance between the old residence and old job location
|
|
|
What are the requirements of the work time test?
|
Employee must work full time in the general vicinity of the new location for 39 weeks during the 12 months after the move
|
|
|
What additional requirements related to work time must self employed persons meet?
|
They must work full time for 78 weeks out of 24 months following the move
|
|
|
What is meant by closely related to the start of work?
|
Generally moving expenses incurred no later than one year after beginning a new job may be deducted unless the taxpayer can show that circumstances prevented the move
|
|
|
What are some deductible moving expenses?
|
The actual cost of moving household goods, personal possessions, vehicles, pets. Transportation of the taxpayer and family to the new residence. Storage for 30 days after the move and before delivery to new home
|
|
|
What is an HSA and what form is used to report contributions?
|
A tax advantaged savings account to pay current and future medical expenses. Form 8889
|
|
|
What are three requirements to be eligible to contribute to an HSA?
|
Be in a high deductible health plan
Not be covered by any other insurance Not be eligible to be claimed as a dependent |
|
|
What is a high-deductible health plan (HDHP)?
|
A health insurance plan with a minimum annual deductible of $1,150 for self-only coverage or $2,300 for family coverage and maximum out of pocket expenses not exceeding $5,800 for self-only coverage and $11,600 for family coverage (for 2009
|
|
|
What is a Tenancy by the Entirety?
|
A tenancy by the entirety is a marital estate. it is just like a JT with the addition of a requirement to be married. 4 unities + marriage
|
|
|
What form is used to report HSA contributions and determine any allowable deduction?
|
Form 8889
|
|
|
What happens if a taxpayer receives a nonqualified distribution from an HSA?
|
Taxpayer may be subject to a 10% penalty. It is waived if the taxpayer is 65 or older, becomes disabled or dies
|
|
|
For full-year OR residents, are any additions or subtractions necessary to the adjustments to income allowed on the federal return?
|
No, they flow through in AGI
|
|
|
In general, how does Oregon treat the adjustments to income of a part-year resident?
|
Oregon allows a deduction for what was paid while an Oregon resident plus any deduction allowed while a nonresident of Oregon
|
|
|
For part-year residents, how much of any deduction is allowed for alimony, student loan interest or HSA deductions?
|
Oregon allows an adjustment for amounts paid/contributed while an Oregon resident
|
|
|
The formula for the deduction for nonresidents is basically the same for all adjustments. Using alimony as an example, what is the formula to compute the partial alimony deduction?
|
Oregon source income divided by total income received times the alimony paid while a nonresident
|
|
|
Does Testamentary Disposition cause a severance?
|
A will is ineffective to work a severance because at death the testator's interest vanishes. Not true in NY!
|
|
|
How much of a deduction is allowed on the Oregon return for moving expenses?
|
Oregon allows a deduction for all eligible moving expenses provided they were connected to employment that will be taxable in Oregon
|
|
|
When completing manual entries on the first page of Form 40P, what rule of thumb applies?
|
Use amounts earned and/or paid while an Oregon resident or prorate based on time in Oregon
|
|
|
Which three credits are not prorated by the Oregon percentage?
|
Retirement Income Credit
Loss of Use of Limbs Political Contribution Credit |
