Individual Taxation

Question 1

What are the requirements for Married Filed Joint, Seperately, and Widower

Answer 1

Qualifying Widow(er) “2 years following death
Principal residence for whole year child”

Married Filing Jointly “EOY test
Spouse dies during year”

Married Filing Seperately Both must file separately

Question 2

What are the requirements for filing Single and as Head of Household

Answer 2

Head of Household Maintain half-year for dependent child, parent (not live, half support), relative (must live with)

Single EOY test

Question 3

What is the Individual Tax Formula

Answer 3

“Gross Income
(Adjustments)
AGI
(Standard/Itemized Deductions)
Taxable Inc before QBI deduction
(QBI Deduction)
Taxable Income

Federal Income Tax
(Tax Credits)
Other Taxes
(Payments)
Tax Due or Refund”

Question 4

What are some above the line deductions

Answer 4

IRA Contributions
Educator expenses
1/2 self employment taxes
SE insurance
Alimony

Question 5

What are some below the line deductions

Answer 5

All itemized deductions:
>7.5% AGI Med Expenses “paid”
SALT taxes etc.
Interest on Mortgage, Education Loans interest, prepaid interest
Charitable contributions (60% of AGI limit)
Ordinary Income Property - 50% AGI limit
LTCG Property - 30% AGI limits)
Casaulty losses - At least $100 and exceeds 10% AGI of a federally recognized disaster

Question 6

Which individual tax credits are refundable

Answer 6

Earned Income Credit
Federal Income Tax Witheld
Excess SS Paid
40% American Opportunity Credit

Question 7

What are some exceptions to the 10% IRA early withdrawl penalty

Answer 7

Buying a home (10k)
Insurance
Medical expense in excess of AGI floor
Adoption or Birth (5k)
Death

Question 7

How hold do you have to be to withdraw from an IRA without penalties

Answer 7

59 1/2

Question 7

What are the QBI rules

Answer 7

20% of Qualified Business Income limited to 20% of taxable income

Phase out at 182k Single, 364k Joint

Question 7

What are the business loss limitations?

Answer 7

Tax Basis Limit
At-risk limit
PAL limit
Business loss limit

Question 7

What is the Business Loss Limit

Answer 7

289k Single, 578k MFJ

Question 7

What is the penalty for failure to file

Answer 7

Generally 5% per month

Question 8

What is the penalty for failure to file

Answer 8

.05% per month (max 25%)

Question 9

What are the penalties related to incorrect filings etc

Answer 9

• Negligence (20% of understatement)
• Substantial Understatement (20% of under)
• Fraud penalty (75% of understatement and criminal)

Question 10

What is the safe harbor for individual tax payments

Answer 10

100% of PY
90% of CY
110% PY if AGI>$150k

Question 11

Qualifying widowers need to support their children what % of the year

Answer 11

100% otherwise they are head of household given >50%.

Question 12

What amount of losses from sale of 1244 small business stock are deductible

Answer 12

100,000 per year + 3,000 annual capital gains deduction

Question 13

Like kind exchange formula

Answer 13

Adjusted basis of old property + boot received (COD) - boot given up