1.1 Filing Requirements Flashcards
What items from the prior-year return for items affecting future returns may be needed to complete the current-year return?
- Income Tax Refund
- AMT for credit
- Gain or loss carryover
- Charitable gift carryover
- Schedule D
- Form 8801
Questions to ask for taxes paid for the First-Time Homebuyer Credit
- Did the house cease to be the main home, either by change in use or disposable/sale?
- What was the total amount of the original credit received?
- How much of the credit has already been repaid?
Report of Foreign Bank and Financial Accounts (FBAR) requirements
- Filed for anyone in the US who has ownership interest in aggregate value in excess of $10,000 at anytime during the calendar year.
- Must be filed by 4/15
- It is not filed with income tax return, must be filed online with the Financial Crimes Enforcement Network by 4/15.
Head of Household Filing Status
- Filed a separate return.
- Paid more than half the cost of keeping up the home for the tax year
- Spouse did not live in the home during the last 6 months of the tax year
- Home was, for more than half the year, the main home of the TP’s child, stepchild, or adopted child whom the TP or the noncustodial parent can properly claim as a dependent.
- TP must be able to claim the child as a dependent.
Qualifying individual for purposes of filing as head of household
TP must maintain a household that constitutes the principal place of abode for more than half of the taxable year at least one qualifying individual who is:
1. Unmarried son/daughter, unmarried grandchild, or unmarried stepchild
OR
2. Any other relative eligible to be claimed as a dependent, except for those eligible under a multiple-support agreement.
What are the qualifying expenses to maintain a household for federal filing status purposes?
- Property tax
- Mortgage interest
- Rent
- Utilities
- Upkeep
- Repair
- Property insurance
- Food consumed in-home
2020 Standard Deduction Amounts
MFJ + Qualifying Widow - $24,800
Head of Household - $18,650
Single/Married Filing Separately - $12,400 (increases by $1,650 if over 65)
Exception - gross income exceeds $5 for married filing separately
What is the due date for a US citizen or resident who is on military or naval duty outside the US or Puerto Rico?
They are given an automatic 2-month extension without filing Form 4868.
When is the due date for a nonresident alien who is engaged in business in the US?
June 15
What is the minimum requirement for an individual who is claimed as a dependent on another’s tax return for them to file an income tax return?
If unearned income exceeds $1,100 or total income exceeds the standard deduction.
Standard deduction is limited to the greater of $1,100 OR earned income + $350.
What 4 tests must be met for a qualifying child?
- Relationship test - TP’s child/step child, sibling/step sibling. Adopted individuals an eligible foster children.
- Age test - under 19 or a FT student under 24. FT student (5 months of enrollment/registration).
- Principal Residence - same principal place of abode with TP for more than half of the year.
- Not Self-Supporting - must not have provided over half of their own support.
What 4 tests must be met for a qualifying relative?
- Residence/Relationship - required for individual who resides with TP for the entire tax year.
- Gross income must be less than $4,300.
- Support
- Must not be a qualifying child.
What are support items that qualify for the support requirement?
- Food, clothing, shelter, utilities
- Medical and dental care and insurance.
- Education
- Child care, vacations, etc.
EXCLUDED: scholarships, taxes, life insurance premiums, purchase of capital items (furniture, appliances, cars).
What is the minimum allowed reduction in unearned income that a dependent is eligible to receive?
A dependent is allowed at least a $2,200 ($1,100 + 1,100) reduction in unearned income.
Kiddie tax
Net unearned income of a dependent under 19 (under 24 for FT students) is taxed to the dependent at the parent’s marginal rate.
