Basic Rules

Question 1

GROSS INCOME

Answer 1

Income from ALL sources

not just wages from primary job

Question 2

ADJUSTED GROSS INCOME

Answer 2

Gross Income
- all eligible deductions
= AGI
(lower base-line to start with)

Question 3

TAXABLE INCOME

Answer 3

Adjusted Gross Income (AGI)

• any Personal Exemptions
• itemized OR standard Deduction

Question 4

ADDITIONAL STANDARD DEDUCTION

Answer 4

Given to taxpayer who is 65+ or blind

Question 5

STANDARD DEDUCTION AMOUNTS:

MFS and SINGLE

Answer 5

MFS: $6350 (SD); $1250 (Additional Deduction)
SINGLE: $6350 (SD); $1550 (AD)

Question 6

SD & AD for HEAD OF HOUSEHOLD

Answer 6

SD: $9350
AD: $1550

Question 7

SD & AD:

Qualifying W/Widower and MFJ

Answer 7

MFJ: $12,700 (SD); $1250 (AD)
QW: SAME

Question 8

MUST FILE IF:

Answer 8

1) Gross Income is above above threshold for your Standard Deduction status
2) Net earnings from self-employment is $400
3) Dependent with UNEARNED INCOME over $1050
4) Dependent with more income than SD

Question 9

KIDDIE TAX

Answer 9

Net Unearned Income for dependent under 19 (or under 24 for full-time students) is taxed at marginal rate

Question 10

MFJ and Exemptions

Answer 10

Married people who file jointly can claim two personal exemptions, one for each spouse, plus exemptions for each of their dependents.

Question 11

MFS and Exemptions

Answer 11

You can claim exemption for spouse only if spouse has no gross income