Practice Test Facts Flashcards
Taxable Income Calculation
Income-AGI deductions=AGI-Standard/itemized deduction-personal exemption=taxable income
Limit of standard deduction for single person
12,400
Stopping point of Alimony deductibility
12/31/2018
US Treasury Bills Gross Income Treatment
Included
Local Municipal Bond Gross Income Treatment
Excluded
State Income Tax Refund Gros Income Treatment
Included (if took itemized deduction)
Excluded is Standard Deduction
US Stock Dividend Gross Income Tax Treatment
Included
Tax Free to Taxable Muni Calculation
tax free rate x (1-tax bracket)
Fed Income Tax Treatment of Employer Long Term Care Premiums
Excluded even if discriminatory
Nontaxable portion of Group Term Life
Up to 50,000
Social Security Wage Base for 2020
$137,700
Social Security Tax Percent
6.2%
FICA/Medicare Tax Wage Base
Unlimited
FICA/Medicare Tax Percent
1.45%
Traditional IRA Phase Out Range (MFJ)
104,000-124,000
Traditional IRA MAx Contribution Limit
6,000
Trad IRA Reduced Limit Calculation
Contribution Limit x[(AGI - Lower Limit)/20,000]
HSA over contribution tax
6%
HSA Early Distribution/Non-medical expense tax
20% (Before age 65)
Carry-over timeframe for Charitable Contributions
5 years
Casualty Loss Deductibility
0 after 2017 (unless natural disaster)
Post 2017 Mortgage Interest Principal Limit
750,000
Deductible Expenses for Donated Items
Materials and Expenses (not time or property)
Medical Expense Deductibility
Anything over 7.5% of AGI (anything greater is deductible)