Individual Tax Flashcards
Standard Deduction Amount (Single and MFJ)
12,400 MFJ
6,200 Single
Adjustments to AGI
I EMBRACED Education Health & Farming
Interest on Student Loans, Employment Tax 50%, Medical Prems 100%, Moving Expenses, Business Expense, Rental/Royalty, Alimony, Contributions to Retirement (IRA), Early Withdrawl Penalty, Jury Duty Pay, Education ($4000), Health Savings Account, Farm Income
Itemized Deductions found on what schedule
Schedule A
Items on Schedule A
COMMITT
Charitable Donations, Other Miscelaneous, Miscellaneous 2%, Medical Expenses (over 10% of AGI), Interest, Taxes, Theft or Casulty
Schedule B
Interest and Dividend Income
Taxability of Injury Awards
If it was non-physical then Taxable
Physical Injury- Tax Free
Schedule D
Capital Assets, Capital Gains/Losses
Deductibility of Capital losses
Offset $3,000 against ordinary income, carry forward unused portion indefinitely
Net Operating Loss
Back 2 forward 20
Schedule C
Profit and Loss from a Business
Schedule E
Pass through activities: rents, royalities, Flow through Entities
Alternative Minimum Tax
SIMPLE PIE
Standard Deduction not allowed, Interest on home equity not allowed (interest on original purchase is allowed), Medical Expenses under 10% of AGI not deductible, Personal and Dependent Exemptions not allowed, Local and State taxes not deductible, Employee Expenses subject to the 2% of AGI not deductible (BIT)
Private Activity Bond interest is taxable, Incentive Stock Options taxed when exercised, Excess depreciation over 150% of DDB
AMT Tax Rates
26% for first 179,500
28% for AMT over 179,500
AMT Adjustment for Corporations
PILE
Private activity bonds
Installment Sales of inventory- difference between accrual and installment method when installment is used for tax
Long term contract income- must be % of completion method
Excess depreciation on personal property over 150%
