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27 Cards in this Set
- Front
- Back
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Standard Deduction
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SD(MFJ/QW) = 10,700
SD(S/MFS) = 5,350 SD(HH) = 7,850 |
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Additional Standard Deduction; if > age 65 or blind.
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ASD(MFJ) = 1300 Per (up to 2)
ASD(S/MFS) = 1050 Per (up to 4) ASD(HH) = 1300 Per (up to 2) |
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Child and Dependent Care Credit
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-For qualifying child < age 13, your disabled spouse/qualifying-relative (but income rules don't apply).
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If you take the EIC even though you are not eligible and it is determined that your error is due to reckless or intentional disregard of the EIC rules, you will not be allowed to take the credit for __a___ years even if you are otherwise eligible to do so. If you fraudulently take the EIC, you will not be allowed to take the credit for __b__ years.
who must file, on page 47. You may also have to pay penalties. |
a.) 2
b.) 10 |
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EIC AGI Limit
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w/ 2 children, $37,783 (or $39,783 if MFJ)
w/ 1 child, $33,241 (or $35,241 if MFJ) w/ 0 children, $12,590 (or $14,590 if MFJ) |
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If you're MFS, can you take the EIC?
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No
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If you have more than $2,900 in Schedule-B income and are not filing Form 4797 (relating to the sale of businss property) can you claim EIC?
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No
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Qualifying Child Relationship test for EIC purposes:
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Son, daughter, stepchild, foster child, brother, sister,stepbrother, stepsister, or a descendant of any of them (for example, your grandchild, niece, or nephew).
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Qualifying Child Age test for EIC purposes:
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-Under age 19 at the end of 2007
-Under age 24 at the end of 2007 and a student -Any age and permanently and totally disabled |
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Qualifying Child Residency Test for EIC purposes:
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Lived with you in the United States for more than half of 2007.
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EIC
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ARR
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The _____ is a credit for certain people who work. The credit may
give you a refund even if you do not owe any tax. |
EIC
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"Earned Income" for EIC =
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Form 1040 Line 7
- taxable scholarships . - prison/inmate pay . - pension or annuity pay . + nontaxable combat pay . + [statutory EEs only] Schedule C income |
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For EIC purposes, if you're a dependent on someone else's tax return, can you take the EIC?
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No.
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For EIC purposes, if you're a dependent on someone else's tax return, can you take the EIC?
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No.
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A child is considered to have lived with you the entire year if the child _____ in 2007.
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was born or died
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Qualifying children can be claimed by only 1 taxpayer in the following tax-items:
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Dependency exemption .
Child tax credits . HH filing status . Child & Dependent care credit. Earned Income Credit . |
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A Qualifiying Child for EIC purposes is your child, sibling, issue of either who is (a) under age __a__ in 2007, (b) under age ___b___ and a full-time student, or (c) permanently and totally disabled; and who lived with you for greater than ___c__ the year.
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a.) 19
b.) 24 c.) 1/2 |
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You may also be able to take the additional child tax credit if your child (a) was under age _____ at the end of 2007, and (b) is a U.S. citizen or resident alien.
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17
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EIC
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The Earned Income Tax Credit (EITC) sometimes called the Earned Income Credit (EIC), is a refundable federal income tax credit for low-income working individuals and families.
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Most common EIC errors tax preparers make:
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1.) Claiming a child who is not a qualifying child
2.) Filing as single or head of household when married 3.) Reporting income incorrectly; and 4.) Using incorrect Social Security numbers |
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IRC Section 6695(g) imposes a $______ penalty for each failure by an income tax return preparer to meet the due
diligence requirements set forth in regulations prescribed by the Secretary. |
$100
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EIC Due-Dilligence Requirements:
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1.) Complete Form 8867, paid Preparer's EIC Checklist, or your own equivalent form.
2.) Complete the appropriate EIC worksheet found in the Form 1040, 1040a, 1040EZ instructions, or in Publication 596, or your own equivalent form. 3.) You must not know or have reason to know that any information used by the taxpayer in determining the taxpayer's eligibility for EITC is incorrect. 4.) Retain for 3 years after June 30th following the date the return was presented to the taxpayer for signature. |
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EIC
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The earned income credit (EIC) is a tax credit for certain people who work and have earned income under $39,783.
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Your filing status is MFS. You have a qualifying child for EIC. Can you take the EIC?
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No. MFS cannot take EIC.
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If you have $3,000 in investment income, and wages of $10,000; can you take the EIC?
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No. YOu have to have investment income of $2,900 or less in order to take the EIC.
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proposed tax rebate.
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economic growth package - advanced payments to payers. final details unavailable. Congress is now considering it.
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