Filing Requirements - Who must file a tax return Flashcards
Net earnings from self employment
$400 or more
Individual dependent must file a tax return if earned income
Is greater than the standard deduction of $12,400
Individual dependent must file a tax return if unearned income
Is greater than $1,100.
Capital gains or dividends.
Gross income filing threshold until 2026
Basic Standard deduction - Don’t include the additional standard deduction for being blind
Married Filing Seperately gross income exception
$5 filing threshold.
Over 65, what is the filing requirement?
Standard deduction + additional standard deduction = gross income threshold
Personal residence disposition gains aren’t included factored in gross income when computing whether you need to file a tax return based on your gross threshold.
False. It must be added back.
Foreign earned income thats excluded must be added back when computing your threshold of whether or not you must file a tax return.
True
If you have an AMT credit, you don’t have to file a tax return?
False, you should to get a refund. To trigger a record and start the statutes of limitations.
income tax Deadline for filing tax return
15th day of 4th month following the close. 4/15 calendar year tax payers. If its Saturday, Sunday or holiday, its the next business day.
What form to file an extension
Form 4868 or uses a credit card to make the required tax payment.
Who gets an automatic 2 month extension
A U.S. active duty civilian or resident whose outside of the U.S. or Puerto Rico.
Return is due 6/15.
What happens if the U.S. active duty military outside of Puerto Rico and the U.S. files form 4868?
The due date gets extended by another 4 months.
Decedents final return
Return date the tax was due if death had not occured.
NRA tax return due date when not subject to wage withholding
15th day of the 6 month
NRA tax return due date when subject to wage withholding
15th of 4th month at end of close of tax year.
When is the tax liability due?
When the tax return must be filed.
If I get an extension when is the tax liability due?
When the original tax filing was due, not when you make an extension.
Failure to file penalty
5% penalty per month of up to 25% of unpaid liability.
Failure to pay penalty amount
.5 % per month up to 25% of unpaid liability.
Can the failure to pay penalty offset the failure to file penalty?
Yes
How to avoid the failure to pay penalty?
Pay estimate of unpaid tax up to 90% of the tax liability due
What information is required to be kept
Maintained if material books of accounts and records to substantiate them.
How long must you retain employment tax records?
For 4 years after the due date of the return or payment of the tax.
Penalties for not making employer tax payments on time
Do not apply if - due to reasonable cause.
Penalties 2% for 1-5 days late
5% for 6-15 days late
10% for 16 or more days late
IP Pin
Assigned to eligble tax payer for to prevent misuse and identity theft.
Additional standard deduction for head of household and single
$1,650
Additional standard deduction for MFJ, MFS, Qualiifying Widow(er)
$1,300
Basic standard deduction for Head of Household
$18,650
Basic standard deduction for MFJ and qualifying widow
$24,800
Basic standard deduction for single / MFS
$12,400
