Formulas

Question 1

What is the individual tax formula (1040)?

Answer 1

Gross Income - Adjustments = AGI - (Std / Itemized Deduction) - QBI Deduction = Taxable Income - Tax Credits + Other Taxes - Tax Payments = Refund/Amt Due

Question 2

Self-Employment Tax Calculation

Answer 2

Net SE Earnings x 92.35% x 15.3% (MAX of 142,800)

Question 3

QBI Formula (below the threshold)

Answer 3

QBI x 20%

Question 4

QBI Formula (above the threshold)

Answer 4

SSTB: $0
QTB: Lesser of overall limitation or W-2 and Property Limitation

Question 5

What is the W-2 and Property limitation for QBI?

Answer 5

Greater of:
50% of W-2 Wages (OR)
25% of W-2 Wages + 2.5% of qualified property (PP&E)

Question 6

What is the overall limitation for QBI?

Answer 6

Lesser of 20% x QBI or (Taxpayer NI - Capital Gains) x 20%

Question 7

Medical Expense Deduction Formula

Answer 7

Qualified Medical Expenses - Insurance Reimbursement - 7.5% AGI floor

Question 8

Casualty Loss Calculation (Nonbusiness Property)

Answer 8

Lesser of Adjusted Basis or Decreased FMV - 100 - 10% of AGI = Deductible Loss

Question 9

Child and Dependent Care Credit: Max Credits and Phaseout %

Answer 9

$3,000 for 1 child, max $6,000

Phaseout 1% per $1000 AGI over $15,000- Minimum is 20%, Max 35%

Question 10

Elderly and Permanently Disabled Credit Calculation

Answer 10

Base - Social Security Payments, Pensions, Annuities - 1/2 of AGI over $7.5k (single) or $10k (MFJ) * 15% = Credit

Question 11

Foreign Tax Credit

Answer 11

(Tax Income from Foreign Ops/Worldwide Income) * U.S Tax = Credit Limit

Question 12

General Business Credit

Answer 12

(General Liability: $0-25,000 * 100%) + (Excess * 75%) = Max Credit Permitted

Question 13

Basis of New Property Received

Answer 13

Adjusted Basis of Old Property + Gain recognized + Boot Paid - Boot Received