Income Tax - Enrolled Agent Exam Rewrite And Misc

Front 1

Who Must file in 2013-- SINGLE income levels

Back 1

2013 - Under 65=10K (1 sd plus 1 per exemp)
65+ $11.5K ($1.5 more)

Front 2

Who Must file in 2013-- MFJ income levels

Back 2

2013
Under 65= $20K (2x S or MFJ plus 2 pers exmp)
One spouse 65 $21.2 ($1.2 more)
Both spouse 65 $22.4 (2x $1.2K)

Front 3

Who Must file in 2013-- MFS income levels

Back 3

2013
All ages $3.9K

Front 4

Who Must file in 2013--HH income levels

Back 4

2013
Under 65= $12.850 (HHSF+1 pers. exemp)
65+ $14350 ($1.5 more)

Front 5

Who Must file in 2013--QW income levels

Back 5

2013
Under 65= $16.1K (=MFJ plus 1 pers. exemp)
65+ $17.3K ($1.2 more)

Front 6

What is personal exemption amount for 2013

Back 6

$3.9K (same as income wherein MFS must file)

Front 7

When must a dependent Single and dependent married--and under 65 and not blind file

Back 7

UEI=$1000 and EI=$6.1K 9EI plus $350

Front 8

When must a dependent Single and 65+ OR blind file

Back 8

UEI=$2.5 and GI=$7.1 add additional $1.5 if both

Front 9

What are the standard deductions for 2013

Back 9

S and MFS $6.1K
MFJ and QW $12.2
HH $8950

Front 10

What is additional standard deduction for 65+ or blind

Back 10

S, HH. $1.5K
MFJ, QW and MFS $1.2

Front 11

What is dependent standard deduction

Back 11

either $1Kor EI plus $350 (not to exceed $6.1K

Front 12

When are standard deductions disallowed

Back 12

MFS and spouse itemizes (unless HH)
Filing for a short accounting period because of change in accounting period
nonresident alien
dual status aliens

Front 13

What type of awarded damages are NOT taxable

Back 13

Awards for physical damages Damages awarded for emotional distress are taxable but medical care related to emotional distress is not taxable

Front 14

How long does tp have to replace principal residence in an involuntary conversion in a federally declared disaster area

Back 14

4 years

Front 15

What is the max an EE can exclude from ER financed flex account

Back 15

$5K unless MFS than $2.5K

Front 16

What are options for non spouse beneficiary distributing an inherited IRA

Back 16

Lump sum distribution or minimum distributions over lifetime of beneficiary
NOT subject to early 10% w/d penalty

Front 17

What amount of mutual fund capital gain must be reported by recipient

Back 17

The amount reported by the mutual fund--regardless of the amount distributed

Front 18

What is the distance test for deducting moving expenses

Back 18

New job is at least 50 miles further from former HOME than old job.

Moving expenses include moving (including in transit or foreign move storage expenses), and traveling including lodging but not meals. Can include storage if 30 days b4 or after moving day.

Front 19

What is the holding period of a stock dividend

Back 19

It has the same holding period as the original stock owned.

Front 20

Is itemization required in order to claim a deduction for a penalty on early withdrawal of savings

Back 20

No Deduction can be claimed on 1040EZ, 1040 or 1040A

Front 21

Must employment taxes be paid out of FSAs

Back 21

Neither income tax nor employment taxes are required

No reporting requirements like there are on HSA or Archer MSAs (reported on 1040)

Front 22

Can a qualifying child provide more than half of his support

Back 22

No. If QC provides more than half of his support, QC is NOT a QC nor qualifying relative.

Front 23

Who qualifies for child tax credit

Back 23

Under 17
child or descendant of child includes foster children, niece or nephew, grand child
child Not provided over 1/2 of "child's" support
child lived with tp for more than 6 months
child must be citizen or resident alien

Front 24

What is included in taxable earned income for EIC

Back 24

wages, salaries, tips, union strike benefits, LT disability benefits prior to minimum retirement age
Self employment
nontaxable combat pay

Does not include gambling income

Front 25

What is max amount of investment income allowed in EIC

Back 25

2013 = $3.3K

Front 26

What 15 types of income are generally not taxable?

Back 26

CAP M WEST WORK
1.Life insurance proceeds
2.IRA and Pension rollovers
3.Child support payments
4.Inheritances
5.Gifts
6.Workers Compensation
7.Disability payments if you paid the premiums on the policy. If your employer paid the policy, then the disability payments are taxable. If you paid part of the policy, then part of the disability payments you paid are nontaxable.
8.Court damages for personal physical injuries or physical sickness. Punitive payments are taxable.
9.Health and accident benefits
10.State income tax refund (if you took the standard deduction last year)
11.Most scholarships, fellowships, and Pell grants
12.Foster care payments (certain restrictions for individuals over age 18 in foster care)
13.Gain on the sale of your personal residence is usually nontaxable. The gain might be taxable if you lived in the residence less than two years or if the residence has ever been used as a rental property or home office
14.Roth IRA qualified distributions
15.Welfare

Front 27

What 14 more types of income are generally not taxable?

Back 27

16.Welfare payments
17.Supplemental Security Income (SSI)
18.Social security benefits are either nontaxable or partially taxable.
19.Cancellation of debt because of bankruptcy or insolvency.
20.Veterans Administration disability benefits
21.Pay-for-Performance Success Payments that reduce the principal balance of your home mortgage under the Home Affordable Modification Program
22. Black lung benefits
23. Cash rebates. For example, if you receive a cash rebate of $100 after you purchase a new washing machine
24.Insurance proceeds for theft or damage to your property
25.Utility rebates
26.Long-term care insurance benefits
27.Military allowances
28.Peace Corps living allowances
29.Reimbursement for medical care

Front 28

Generally what is the rule for EIC based on dependent child.

Back 28

Generally noncustodial parent cannot claim EIC. If noncustodial parent qualifies to claim the dependency exemption for a child, he may claim the Child Tax Credit if other requirements are met. The child tax credit can ONLY be claim by the parent claiming the dependency exemption

Front 29

When must schedule B be used to report interest or dividends

Back 29

when it exceeds $1.5K