Filing Status Flashcards
When is marital status determined for taxes?
The last day of the taxable year
If one spouse dies during the year, what status can you file?
Married filing joint
When can you file a surviving spouse?
Two years after the year of the spouses death if:
1) Provide more than 1/2 of the cost for maintaining the household of a dependent child (foster children not included) and the child has to use the home as a principle residence.
Define maintaining the household:
rent, mortgage interest, home insurance, repairs
Not included: clothing, education, medical, vacations, and transportation
What are the requirements to be in the head of household status?
- An unmarried person
- More than 1/2 of the cost of maintaining the household for a qualifying relative or qualifying child (a non relative living in the home doesn’t count in this test)
What are the two exceptions to the head of household rules?
- If the QC is not married, that child does not have to be your dependent
- if the QR is a parent, the parent need not live with the taxpayer, but the taxpayer must provide more than 50% of the cost of maintaining the house.
What is the purpose of the kiddie tax?
Discourage income producing assets into the hands of the children, so that they can be taxed at lower rates.
What children fall into the rules the middle tax?
All children under the age of 18 (last day the tax year)
Includes children who are 18- if their earned income does not exceed 50% of their total support for the year
19-23: applies to those who are full-time college students
How does the kiddie tax work?
Focuses on net unearned income (investment income) in excess of a statutory amount it is taxed at rates for trusts and estates (high rates).
What is the mini standard deduction for someone who is dependent on another?
Greater of:
1100
Earned Income + 350
What is the threshold for determining what amount is to be taxed at Childs rate versus trust and estate?
2200
Taxable Income - Threshold = Amount to be taxed at trust
