CFP Individual Taxation

Question 1

I EAT GROSS DINNER ALL SATURDAYS QUITE TERRIBLE

Answer 1

Income
Exclusions
Gross Income
Deductions
AGI
Standard (or itemized)
QBI deduction
Taxable Income

Question 2

If a taxpayers want to change their tax year they must file form

Answer 2

Form 1128

Question 3

Head of Household filing status

Answer 3

Either unmarried or considered unmarried:
-paid more than half the cost of keeping up home
-spouse did not live in taxpayer’s home during the last 6 months of the year
-main home for the child for more than half the year
-“qualifying person” must have lived with the taxpayer for more than half the year

Question 4

Qualifying widower is eligible

Answer 4

For taxpayer with a qualified child for two years following the year of death

MFJ
QW
QW
HOH

Question 5

Additional standard deduction amounts for age

Answer 5

65 and older

Question 6

What qualifies you for an additional standard deduction amount

Answer 6

Age 65

AND/OR

Blind (additional deduction)

Question 7

If MFS and one spouse itemizes,

Answer 7

then the other spouse must itemize as well.

Not eligible for the standard deduction.

Question 8

A taxpayer who is claimed as a dependent of another taxpayer has a limited standard deduction of:

Answer 8

GREATER OF

$1,250

OR

$400 + earned income

not to exceed $13,850

Question 9

4 tests for “Qualifying Child”

Answer 9

-relationship test
-abode test
-age test
-support test

Question 10

“Qualifying Child” relationship test

Answer 10

Must be a :

-descendant of the taxpayer

-taxpayer’s sibling

-descendant of the taxpayer’s sibling

-natural, step, adopted or foster child

Question 11

“Qualifying Child” abode test

Answer 11

must live with the taxpayer for MORE than half the year

(special circumstances: illness, education, business, vacation, military)

Question 12

“Qualifying Child” age test

Answer 12

Either under 19 as of end of the year

OR

under 24 and a student as of the end of the year

(student = full-time for at least 5 mos)

Question 13

“Qualifying Child” support test

Answer 13

If a qualifying child does not provide more than one-half of his or her own support during the year

(scholarships do NOT equal support)

Question 14

Custodial parent signs a statement saying they will not claim the child and non-custodial parent files form

Answer 14

Form 8332

unless it was already specified by the divorce decree

Question 15

Qualifying relative 4 tests

Answer 15

Relationship test
Gross income test
Support test
Not a qualifying child test

Question 16

Qualifying relative relationship test

Answer 16

Child
Grandchild
Parent (or step-parent)
Grandparent
Sibling
Aunt/Uncle
SIL, DIL, FIL, MIL
Or abode

Question 17

Qualifying relative gross income test

Answer 17

Dependent’s gross income must be less than the personal exemption ($4700)

Scholarships/Fellowships excluded from income

Question 18

Qualifying relative Support Test

Answer 18

Must provide more than one-half of the support of a dependent

Question 19

Student loan interest is deductible

Answer 19

up to $2,500

Question 20

What kind of deduction is a contribution to an HSA?

Answer 20

Above the line (FOR AGI)