Phaseouts etc. Flashcards
Students Phaseouts
$80,000-$90,000 ($160,000 - $180,000MFJ)
AOTC is partially refundable (40%)
Elderly or disabled credit is 15% of Base Amount
$5,000, $7,500 MFJ, Zero MFS
$3,750 for MFS living apart
$5,000 if only one spose is above 65
Base - benefits - (1/2 of AGI above $7,500, $10,000 MFJ, $5,000 MFS)
Elderly or disabled credit Phaseout - deduct social and…
Deduct from base 1/2 of AGI above $7,500, $10,000 MFJ, $5,000 MFS.
Social Security Benefits include in gross income 0%-50%-85% - Base amount of the calculation is:
Base $25,000 Single & HH, $32,000 MFJ, Zero MFS, .
AMT Exemptions are:
$73,600, $114,600 MFJ, $57,300 MFS
AMT Phaseouts:
25% above $523,600, $1,047,200 MFJ, $523,600 MFS
AMT rate is
26% of $199,000 and 28% above ($99,500 MFS)
Social Security Benefits 0%-50%-85% - Add on amount is:
Add on: $9,000 HH, Single, $12,000 MFJ, Zero MFS.
An individual may deduct as an ordinary loss(Instead of capital) a sale for small business stock (1244). Limits are:
$50,000 and $100,000 MFJ
For capital investments, not receiving stock need to weight average the basis.
($10,000 stock +$9000 not for stock. sold at $10,000. Loss of $9,000 9/19 is capital)
Social security and Medicare % an limit are:
Social Security: 6.2% $142,800
Medicare: 2.45% and 0.9% above $200,000 ($250,000 MFJ, $125,000 MFS)
Savers credit MFJ is 0%-10%-20%-50% if AGI is:
Less then $39,500 - $43,000 - $66,000, more then $66,000
Limit: $2,000
Gift tax add to basis of property formula
Exclusion is $15,000
(FMV - Donor’s Basis)
——————————- * Gift Tax
(FMV - $15,000)
Alimony is not deductible since
Divorce made after 2018
Personal casually loses
Damage -10%AGI - $100
How to calculate basis for Like-Kind Exchange
AB of property
+ Gain recognized
+ Boot given
- Boot received
- Loss recognized (Boot given)
Medical travel expenses
$50 max per night per person
IRA phaseout if the person or spouse has an employer plan is:
$198,000 - $208,000 - if spouse has
$66,000 - $76,000 single, $105,000 - $125,000 MFJ, $0 - 10,000 MFS
ROTH IRA phasouts are:
$125,000 - $140,000 Single
$198,000 - $208,000 MFJ
$0 - $10,000 MFS
Gift Tax to spouse who is not US citizen is limited to:
To spouse who is not a US Citizen $159,000
Form 706 - Estate tax return is due:
9 Months after death.
Estimation is due 3+1 years after form 706
Payment is due 1+9 years after form 706
Inclusion ratio for GSTT
Multiply the 40% by:
Formula:
Transfer exemption
1 - ——————————————-
(FMV - Estate Tax + charitable)
Amount of charitable deduction to a tax payer who does not itemize is:
$300 & $600 for MFJ. The deduction is allowed to:
Church
Educational
Hospitals etc.
household employee taxes
Wages above $2,300 for FITA and above $1,000 for FUTA. Use 1040 schedule H to report.
Remember the 7.5% AGI Floor for medical
there is a 7.5% of AGI floor for medical deductions
QBID Phaseouts are:
QBID is on top of standard deduction!
Phaseouts: $164,900 - $214,900
$329,800 - $429,800 MFJ
QBID is 20% or 20% of TI
1231
1245
1250
1231 - Lone term business property. Gains are LTCG.
1245 - Property - Recapture is ordinary income. Above is 1231.
1250 - Real - Recapture is 25% (Accelerated is ordinary). Above is LTCG
Child and dependent care credit (Refundable)
$8,000 and $16,000 for 2+ children (Under 13 years old)
Limited to lesser of couples AGI.
Credit is 50% of expenses. (No more than smaller income of spouse)
Phaseout $125,000 - $183,000 (down to 20%)
Phaseout starts at $183,000 $400,000 down to 20% credit.
If parent is student - considered to ear $250 per month (500 for 2+ children)
Estimate tax payment dates
April 15 (January-March),
June 15 (April-May),
September 15 (June-August), and
January 15 (September-December) of the following year.
Farmers on January 18 or pay until March 1, 2021
Foreign income:
Limited to $108,700. Home allowance anything above $17,992
Adoption credit
Max $14,400
Phaseout $216,660 - $256,660.
Safe harbor rule for estimated tax
For 2020 abut AGI of $150,000 need to pay 110%
Child tax credit (Refundable)
$3,000 per child ($3,600 under 6)
Phaseout $75,000 112,500 HH, $150,000 MFJ
Above phaseout credit is $2000 up to $200,000 and 400,000MFJ
Residential Mortgage Interest Credit
10% - 50%
Limit $2000 (if % is bigger than 20%)
IRA Phaseout if taxpayer has a plan from work
from $6000 ($7000 above 50)
$66,000 - $76,000 single
$105,000 - $125,00 MFJ
$0 - $10,000 MFS
Penalties IRA
6% Excise tax on contribution
10% Premature distributions before 59 1/2
Loan from 401K is limited to:
$50,000 no more than 50% of employee money
Loss from rental property is $25,000 and phaseout is
$100,000 - $150,000 from MAGI
Student loan interest deduction (Above the line)
Up to $2500.
Phaseout: $70,000 - $85,000, $140,000 - 170,000 MFJ
