Filing Requirements

Question 1

Generally, any U.S. citizen, resident, or person doing business in the United States who has an ownership interest in, or signatory authority or other authority over, a financial account (or several accounts) in a foreign country with an aggregate value in excess of $10,000 at any time during the calendar year must file?

Answer 1

Form FinCEN Report 114, Report of Foreign Bank and Financial Accounts (commonly referred to as an FBAR), reporting certain information with respect to that account by April 15 of the subsequent year or the extension due date of October 15

Question 2

Income Tax Due Date

Answer 2

15th day of 4th month after end of tax year (April 15th)

Question 3

Filing Status Choices

Answer 3

Single
Head of Household
Married Filing Jointly
Married Filing Separately
Qualifying Widow(er)

Question 4

Two individuals are treated as legally married for the entire tax year if, on the last day of the tax year, they are

Answer 4

1. ) Legally married and cohabiting as spouses
2. ) Legally married and living apart but not separated pursuant to a valid divorce decree or separate maintenance agreement
3. ) Separated under a valid divorce decree that is not yet final

NOTE: If a spouse dies, status for each spouse is determined when the spouse dies, unless the surviving spouse remarries before the end of the tax year (in which case the decedent files married filing separate).

Question 5

To be considered an injured spouse, the taxpayer must

Answer 5

a. File a joint return,
b. Have reported income (such as wages, interest, etc.),
c. Have made and reported tax payments (such as federal income tax withheld from wages or estimated tax payments) or claimed the Earned Income Credit or other refundable credit,
d. Not be required to pay a past-due amount, and
e. File Form 8379.

Question 6

Married Filing Jointly

Answer 6

Taxpayers can choose married filing jointly as their filing status if they are considered married and both spouses agree to file a joint return.

Question 7

Married Filing Separately

Answer 7

Each spouse accounts separately for items of income, deduction, and credit.

Question 8

Qualifying Widow(er)

Answer 8

This status is available for 2 years following the year of death of a spouse and may be elected if

a. The surviving spouse did not remarry during the tax year.
b. The surviving spouse qualified (with the deceased spouse) for married filing joint return status for the tax year of the death of the spouse.
c. The surviving spouse maintained a household for the taxable year. Household maintenance means the spouse furnishes more than 50% of the costs to maintain the household for the tax year.
d. The surviving spouse can file a joint return in the tax year of the death of the spouse.

Question 9

Head of Household

Answer 9

An individual must maintain a household that is the principal place of abode for a qualifying individual.

Question 10

Single

Answer 10

An individual must file as an unmarried individual if (s)he neither is married nor qualifies for surviving spouse or head of household status.

Question 11

Standard Deduction vs. Itemized Deduction

Answer 11

The taxpayer itemizes deductions if the total allowable itemized deductions is greater than the standard deduction. Otherwise, the taxpayer claims the standard deduction. A person must elect to itemize, or no itemized deductions will be allowed.

Question 12

Additional Standard Deduction

Answer 12

Over the age of 65 or Blind, if both taxpayer is entitled to twice the amount.

MFJ, MFS, Qualifying Widower = $1,300
S, HH = $1,600

Question 13

Standard Deduction Amount

Answer 13

MFJ, Qualifying Widower= $24,000
HH =$18,000
Single, MFS= $12,000

Question 14

An individual must file a federal income tax return if gross income is above…

Answer 14

net earnings from self-employment is $400 or more, or (s)he is a dependent (i.e., listed on another person’s tax return) with more gross income than the standard deduction or with unearned income over $1,050.

Question 15

Form 4868 offers automatic extension of return to

Answer 15

6 month extension- October 15

Question 16

Military given automatic extension of…

Answer 16

2 month extension- June 15

Question 17

Form 1040NR Nonresident Alien’s tax return due date

Answer 17

15th day of the 6th month- June 15

Question 18

Interest Penalty for Late Payment

Answer 18

5% per month up to 25%

Question 19

Failure to Pay Penalty

Answer 19

.5% per month up to 25%

Question 20

Qualifying Child Requirements

Answer 20

1. Relationship – The child must be the taxpayer’s son, daughter, stepson, stepdaughter, brother, sister, stepbrother, stepsister, or any descendant of any such relative. Adopted individuals and eligible foster children meet the relationship test.
2. Age – The child must be under the age of 19 or a full-time student under the age of 24. Full-time student status requires 5 months of enrollment/registration at a school or in an on-farm training course.
3. Principal Residence – The child must have the same principal place of abode as the taxpayer for more than half of the year.
4. Not Self-Supporting – The child must not have provided over half of his or her own support.

Question 21

Qualifying Relative Requirements

Answer 21

1. Resident for entire year or relationship of an extended or immediate family.
2. Gross income less than $4,150.
3. Support- Provide more than 50% for the individual.
4. Individual must not be qualifying child of taxpayer or any other taxpayer.

Question 22

Citizen or Resident Test

Answer 22

To qualify as a dependent, an individual must be, for any part of the year, a U.S. citizen, resident, or national, or a Canadian or Mexican resident.

Question 23

Dependent Standard Deduction

Answer 23

The standard deduction for a dependent with unearned income is limited to the greater of $1,050 or the amount of earned income plus $350.

Question 24

Rate of Tax on Net Unearned Income for a dependent under 19 or 24

Answer 24

Ordinary and capital gain rates of estates and trusts. Referred to as the “kiddie’ tax.

Question 25

Net unearned income is

Answer 25

unearned income minus the sum of
1. $1,050 (first $1,050 clause) and
The greater of (a) $1,050 of the standard deduction or
2. $1,050 of itemized deductions or (b) the amount of allowable deductions that are directly connected with the production of unearned income.

Question 26

Child Earned Income

Answer 26

Salaries
Wages
Tips
Taxable Scholarships

Question 27

Child Unearned Income

Answer 27

Interest
Dividends
Capital Gains
Trusts distributions
Debt cancellation
Pension/Annuities
Social Security
Royalties

Question 28

Green Card Test

Answer 28

A taxpayer is a resident for tax purposes if (s)he was a lawful permanent resident (immigrant) of the United States at any time during the year.

Question 29

Nonresident Alien

Answer 29

A nonresident alien may file a joint return if (s)he is married to a U.S. citizen or resident at the end of the year.

Question 30

Substantial Presence Test

Answer 30

A taxpayer is considered a U.S. resident if (s)he was physically present in the United States for at least

a. ) 31 days during 2018 and
b. ) 183 days during 2018, 2017, and 2016, counting all days of physical presence in 2018 but only 1/3 the number of days of presence in 2017 and only 1/6 the number of days in 2016.