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21 Cards in this Set
- Front
- Back
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R1, P4
What are the items of Gross Income? |
Wages, Interest, Dividends, State Tax Refunds, Alimony Received, Business Income, Capital Gain/Loss, IRA Income Pension & Annuity, Rental Income/Loss, K-1 Income/Loss, Unemployment Compensation, SS Benefits, Other Income
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R1, P4
What are the items of Adjustments? |
Educator Expenses, IRA Contributions, Student Loan Interest Expense, Tuition & Fee deduction, Health Savings Account, Moving Expenses, One Half Self-Employment FICA, Self-Employment Health Insurance, Self-Employment Retirement, Interest Withdrawal Penalty, Alimony Paid
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RI, P4
What are the Itemized Deductions? |
Medical(7% above AGI), Taxes-State/Local(Inc/Sales/Prop), Interest Expense(Home & inv.), Charity(50% of AGI), Casualty/Theft(10% above AGI), Misc.(2% above AGI), Other Misc.
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R1, P7
Tax Due Date vs. Filing Date |
Tax is due on or before April 15th. Return can be filed at any time after tax year, but tax is due April 15. Automatic 6-month Extension is to file and not to pay tax.
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R1, P8
What are the Filing Status'? |
Single(S)
Married Filing Jointly(MFJ) Married Filing Separately(MFS) Qualifying Widower(QW) Head of Household(HH) |
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R1, P8
Filing Status, if one spouse dies during the year and the taxpayer can use the dead spouse exemption? |
MFJ
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R1, P9
Qualifying Widower requirements? W=whole year |
1) For 2 years after Spouse's Death, but can't remarry during the period; use of MFJ deduction & rates, but not exemption
2) Principal Residence for Dependent Child, son, stepson, daughter, stepdaughter |
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R1, P9
Head of Household Table |
Dependent Lives With
Child Yes Yes Parent Yes No Relative Yes Yes |
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R1, P10
Personal Exemption details |
1) Persons eligible to be claimed as a dependent on a taxpayer's return can't take the personal exemption for themselves
2) Each spouse receives a personal exemption 3) Spouse can claim other Spouse's exemption 4) MFS can claim in no gross income and not claimed by other taxpayer 5) Even is someone dies, your entitled to an exemption |
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R1, P11
Qualifying Child Reqs. C.A.R.E.S. |
C lose Relative
A ge Limit (19,24) R esidency & Filing Requirements (>50%) E liminate Gross Income Test S upport Test Changes |
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R1, P11
Qualifying Relative Reqs. S.U.P.O.R.T. |
S upport (>50%) "Multi Test >10%
U nder specific taxable AGI P recludes dependent filing MFJ O nly Citizens R elative Test (All) T axpayer lives with whole year(cousins & foster parents) |
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R1, P16
Taxable vs. Nontaxable; Income & Basis |
Event Income Basis
Taxable FMV FMV Nontaxable N-0-NE NBV |
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R1, P16
Realization vs. Recognition? |
Realization "Real World"(IRS) is accrual basis "GAAP"
Recognition "Date of Record" is cash basis, but allot of stipulations |
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R1, P17
Salareis & Wages? |
Money
Property(FMV) Cancellation of Debt Bargain Purchases Taxable Fringe Benefits Portion of Life Insurance Premiums >$50K Nontaxable Fringe Benefits |
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R1, P21
Types of Interest Income |
General Rule: All Interest is Taxable
Federal Bonds Individual Development Bonds Corporate Bonds New Banking Account Installment Sale Federal & State Obligations(tax refund) |
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R1, P21
Tax-Exempt Interest |
"Reportable but not Taxable"
1) State & Local Gov. Bonds/Obligations 2) Bonds of US Possession 3) Series EE Bonds(used for EE, taxpayer or joint ownership, >age 24) |
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R1, P21
Kiddie Tax Table |
Child's Tax
Unearned Income Rate 0-$950 0% $950-1,900 Child's >$1,901 Parent |
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R1, P22
Dividend Income: Taxable Amt, Lower Tax Rate, Tax Rates |
Taxable Amt
Cash=Received Prop=FMV Lower Tax Rate Stock must be held 60 days prior and after ex-dividend date Tax rates Most-15% Low-income-0% |
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R1, P23
Types of Tax Free Distributions General Rule: Tax Free means "No Cash" |
1) Return of Capital (return w/ no earnings)
2) Stock Split 3) Stock Dividend 4) Life Insurance (Premium Return) |
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R1, P23
State/Local Tax Refunds: Taxable vs. Nontaxable |
Itemized=Taxable
Standard=Nontaxable |
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R1, P24
Alimony Requirements |
1) Written agreement
2) Payments in cash or equivalent 3) Payments can't extend beyond death 4) Can't live in same household 5) Must be for alimony only 6) Can't file joint return *Property Settlement is while married are nontaxable |
