Numbers to Remember

Question 1

Social security tax rate and cutoff

Answer 1

6.2% and 168,600

Question 2

Medicare rate and cutoff

Answer 2

1.45%, no cutoff

Question 3

Self employment tax

Answer 3

15.3% on 92.35% of profit on Schedule c
there is a 50% deduction above the line tho

Question 4

MFJ Standard Deduction

Answer 4

$29,200

Question 5

MFS Standard Deduction

Answer 5

$14,600

Question 6

HOH Standard Deduction

Answer 6

$21,900

Question 7

Single Standard Deduction

Answer 7

$14,600

Question 8

Blind or over 65 additional deduction if MFJ or MFS per person

Answer 8

$1550

Question 9

Blind or over 65 additional deduction if HOH or Single

Answer 9

$1,950

Question 10

Dependent on another return standard deduction

Answer 10

the greater of $1,300 or earned income plus $450

Question 11

QBI cutoffs

Answer 11

50% of W-2 wages or 25% of W-2 wages plus 2.5% of unadjusted basis of qualifying property
20% of taxable income

Excludes service businesses over $191,950 or $383,900

Question 12

Additional medicare tax

Answer 12

.9% above $250,000 MFJ or $125,000 MFS or $200,000 single and HOH

Question 13

Corporate dividends received deduction

Answer 13

Ownership <20% of stock: 50% DRD
Ownership between 20% and 80%: 65% DRD
Ownership >80%: 100% DRD deductions

Question 14

Charitable contributions deduction

Answer 14

100% deductible up to 10% of taxable income before charitable deductions and before dividends-received deduction
Excess contributions can carry forward for 5 years

Question 15

AMT rate for corporations and floor

Answer 15

15%
only applies to corps with over $1 billion in income for 3 preceding years
only owed if tentative minimum exceeds regular
creates carryforward

Question 16

Corporate payment and return filing requirements

Answer 16

15th day of 4th month, may extend to 15th day of 9th month
Extension does not extend the payment deadline
Estimated payments are due on the 15th day of the 4th, 6th, 9th, and 12th months
Must pay 100% of tax due, small corporations (TI<$1 million) may use safe-harbor rule of paying 100% of prior year tax

Question 17

Individual payment deadlines

Answer 17

Estimated taxes on self-employment and investment income are due on April 15, June 15, September 15, and January 15
Underpayment penalty avoided by paying: 90% of current year tax of 100% of prior year tax (110% if AGI > $150,000)

Question 18

Child credit amount

Answer 18

$2,000 per dependent child under age 17, $500 for certain non-child dependents, phases out for high-income taxpayers starting at $400,000 mfj

Question 19

Dependent care credit

Answer 19

for children less than 13 years old or other dependents who can’t care for themselves, between 35% and 20% of child-care costs, depending on AGI
nothing if over $438,000