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15 Cards in this Set

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  • Back
The abandoned spouse provision enables a married taxpayer with a dependent child whose spouse did not live in the taxpayer’s home during the last six months of the tax year to file as a head of household rather than as married filing separately.
Abandoned spouse
A tax credit based solely on the number of qualifying children under age ____. The maximum credit available is _____ per child through _____. A qualifying child must be claimed as a dependent on a parent’s tax return in order to qualify for the credit. Taxpayers who qualify for the child tax credit may also qualify for a supplemental credit.
17;$1000;2010; child tax credit
A special type of capital asset, the gain from which is taxed at a maximum rate of ____ percent if the holding period is more than one year. Examples include art, rugs, antiques, gems, metals, stamps, some coins and bullion, and alcoholic beverages held for investment.
The electronic filing of a tax return. The filing is either direct or indirect. As to direct, the taxpayer goes online using a computer and tax return preparation software. Indirect filing occurs when a taxpayer utilizes an authorized IRS e-file provider. The provider often is the tax return preparer.
An unmarried individual who maintains a household for another and satisfies certain conditions set forth in §2(b). Such status enables the taxpayer to use a set of income tax rates [see §1(b)] that are lower than those applicable to other unmarried individuals [§1(c)] but higher than those applicable to surviving spouses and married persons filing a joint return [§1(a)]. See also tax rate schedules.
Head of household
Certain personal expenditures allowed by the Code as deductions from adjusted gross income
Itemized deductions
Examples of Itemized deductions include
certain medical expenses, interest on home mortgages, state income taxes, and charitable contributions
Itemized deductions are reported on Schedule ? of Form 1040
a taxpayer whose adjusted gross income exceeds $? ($? for married filing separately) must reduce the itemized deductions by ? percent of the excess of adjusted gross income over $?
?, ?, ?, and ? deductions are not subject to the 3 percent reduction on itemized deductions for persons whos AGI exceeds $100,000
Medical, casualty and theft, and investment interest deductions
To reduce the tax savings that result from shifting income from parents to children, the net unearned income of a child under age ? is taxed at the marginal tax rate of the parent(s). For the provision to apply, the child must have __ and unearned income of more than $___for the tax year. §1(g). See also unearned income.
14,at least one living parent,1,700
The additional tax liability that results for a married couple compared with what their tax liability would be if they were not married and filed separate returns.
Marriage penalty
Where no one person provides more than 50 percent of the support, a multiple support agreement enables a tax payer to still qualify for the dependency exemption. Any person who contributed more than 10 percent of the support is entitled to claim the exemption if each person in the group who contributed more than 10 percent files a written consent
Multiple support agreement
An individual who, as to the tax payer, satisfies the relationship, abode, and age tests. To be claimed as a dependent, such an individual must also meet the citizenship and joint return tests and not be self-supporting.
Qualifying child
Also referred to as investment income, it includes such income as interest, dividends, capital gains, rents, royalties, and pension and annuity income.
Unearned income