General Return Requirements Flashcards
What is required for taxpayers and their dependents when filing a return?
A valid Taxpayer Identification Number (TIN) is required for taxpayers, their spouse (if filing jointly), and dependents.
What types of TINs are there?
Types of TINs include:
• Social Security Number (SSN)
• Individual Taxpayer Identification Number (ITIN)
• Adoption Taxpayer Identification Number (ATIN)
Which credits require a valid SSN for all individuals on the return?
The Earned Income Credit (EIC), Child Tax Credit (CTC), and Additional Child Tax Credit (ACTC) require valid SSNs.
What happens if a qualifying child doesn’t have an SSN?
The taxpayer may claim the EIC for taxpayers without qualifying children.
What TINs are accepted for the Credit for Other Dependents and American Opportunity Tax Credit (AOTC)?
SSN, ITIN, or ATIN are accepted.
What is required for a child to qualify for credits?
A child must have a valid TIN by the return’s due date to qualify for credits.
How can a taxpayer claim a child who was born and died in the same tax year?
The taxpayer can claim them as a dependent using ‘Died’ for the SSN on Form 1040, with proof (e.g., birth or death certificate).
Who can apply for an Individual Taxpayer Identification Number (ITIN)?
Those not eligible for an SSN but must file a U.S. tax return, such as nonresident aliens and dependents of U.S. resident aliens.
What are key facts about ITINs?
• ITINs are only for federal tax reporting.
• They don’t authorize work or qualify for Social Security benefits or the Earned Income Credit (EIC).
• ITINs expire if not used on a tax return for three years.
How to apply for an ITIN?
Submit Form W-7 with a federal tax return and proof of identity (original or certified copies).
What should ITIN holders know about e-filing?
ITIN holders can’t e-file the tax return in the year the ITIN is issued but can in future years.
What are the common accounting periods used by taxpayers?
Most taxpayers use a calendar year (January 1–December 31) or a fiscal year, which ends on the last day of any month except December.
What is the Cash Method of accounting?
Income is reported when received, and constructive receipt applies when income is available, even if not in physical possession.
What is an exception to the Cash Method?
Interest on U.S. savings bonds (Series E and EE) is reported at maturity.
Give an example of the Cash Method.
Jill earned money as a photographer in December 2021 but was asked not to cash the check until January 2022. She reports the income in 2022.
