Individual Income Tax

Question 1

Tax Return

Answer 1

Gross Income
-Adjustments
=AGI
- Standard Deduction or Itemized deductions
=Taxable Income before QBI
-QBI deduction
= Taxable Income

Question 2

Surviving Spouse

Answer 2

-2 taxable years following death unless remarried
-Principal residence for dependent child

Question 3

Head of Household

Answer 3

Unmarried and has dependent relative living with them more than 1/2 yr

Question 4

Qualifying Child

Answer 4

CARES
Close relative
Age limit
Residency & filing requirements
Eliminate gross income test
Support test

Question 5

Qualifying Relative

Answer 5

SUPORT
Support test
Under a specific $ of income
Precludes dependent filing a joint return
Only citizens
Relative test
Taxpayer lives with individual whole year

Question 6

Joint contributors

Answer 6

Must file a multiple support declaration Form 2120

Question 7

No penalty for retirement distributions

Answer 7

HIM DEAD TED
Homebuyer
Insurance
Medical
Disability
Education
Adoption or birth
Disaster
Terminal illness or death
Emergency expenses
Domestic abuse

Question 8

Adjustments (above the line)

Answer 8

Educator expenses
Traditional IRA contribution
Student loan interest deduction
HSA deduction
Moving expenses (military)
Deductible part of SE tax
SE Health insurance
SE Retirement plans
Penalty on early withdrawal of savings
Alimony paid before Dec 2018
Attorney fees-discrimination, whistle blow

Question 9

IRA contributions

Answer 9

Under 50 $7,000
Over 50 $8,000

Question 10

Standard deduction

Answer 10

Single $14,600
HOH $21,900
MFJ/Surviving Spouse $29,200
MFS $14,600
Additional: 1 TP over 65 or blind $1950/1550

Question 11

Medical expenses

Answer 11

Qualified medical expenses
-Insurance reimbursement
=Qualified medical expenses paid
-7.5% of AGI
=Deductible medical expenses

Question 12

State and local taxes

Answer 12

SALT
-personal property tax must be based on value to be deductible

Question 13

Charitable Contributions

Answer 13

Cash 60%
Ord income 50%
LT cap gain prop 30%

Question 14

QBI

Answer 14

Section 199A
-for flow thru entity not C-Corp
-20% x Qualified business income

Question 15

Tax Credits-Nonrefundable

Answer 15

-Child & dependent care credit
-Elderly & permanently disabled
-Education credits
-Retirement savings contribution
-Foreign tax credit
-General business credit
-Adoption credit

Question 16

Tax Credits-Refundable

Answer 16

-Federal income tax wh
-American opportunity credit (40%)
-Child tax credit
-Earned income credit
-Excess SS paid

Question 17

Earned income credit

Answer 17

Earned income less than $
Tax-exempt interest less than $11,600