Filling Requirement and Filling Status

Question 1

Individual Income Tax Formula

Answer 1

Gross income
(Adjustments)
………………………..
Adjusted Gross Income (AGI)
(Standard deduction)
OR
(Itemized deductions)
…………………………………..
Taxable income before QBI deduction
(QBI deduction)
……………………………………
Taxable Income
——————————-
———————————
Federal income tax –> Regular tax or Alternative min tax
(tax credits)
Other taxes —> self-employment tax (social security)
(payments) –> withholdings, estimated taxes, excess social security tax, last year overpaid (applied)
…………………………………..
tax due OR refund
————————–
—————————–

Question 2

When to File tax return?

Answer 2

Due Date – April 15th
Extension – Oct 15th
Payment of tax – April 15th

Question 3

Filling Status

Answer 3

->Married Filed Jointly
also, for the year the spouse dies

->Single
Determined by what is the status at end of the year (Dec 31st)

-> Married Filed Seperatly

• > Qualified Widow(er) with Dependent child
• for two years after the spouse dies (after that it’s gone)
• dependent child need to live with them for Whole year
• > Head of Household
• has dependent
• need to maintain the principal residence for more than Half the year
• qualifying child (need to live with them)
• father/ mother ( just need to maintain the residence, not require to live with them)
• dependent relative ( need to live with them)

Question 4

Qualifying Child

Answer 4

CARES

C - Close Relative (son, daughter, step kids, brother, sister, step-siblings, decendants)

A - Age Limit
19 under
OR 24 full- time student ( 5 months of taxable year)

R - Residency and filing requirement

• resident of US, Canada, or Mexico
• same principal residence as the tax payer for more than half-year
• child cant file joint tax return ( unless filled only for refund claim)

E - Eliminated gross income test

S - must not contribute more than half of his/ her own support

Question 5

Qualifying Relative

Answer 5

SUPORT

S - support test
more than one hlalf

U - under gross income limitation

• income should be less than 4300 ( yr 020)
• just taxable income
• non taxable income are okay (social security ( at low level income ), tax exempt interest income ( state/municipal bond), tax exempt scholarships)

P - Precludes dependent filing a Joint Return
unless there is no tax liability on the joint return

O - only citizen of US, Canada and Mexico

R - relative

OR

T - taxpayer lives with the individual ( if non relative ) for whole year
- this one wont give you the household status but might help you get other credits

Question 6

multiple support agreement

Answer 6

• one supporter gets full qualification
• must be relative
  or live with taxpayer whole year if non relative
• must contribute more than 10%