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Question 1

Qualifying child

Answer 1

SUPORT test

Question 2

Qualifying relative

Answer 2

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Question 3

Qualifying surviving spouse requirements

Answer 3

1. spouse died in one of two previous years and did not remarry
2. there is a child claimed as dependent
3. child lived in home for whole current year
4. paid over half cost of keep up home for child
5. could have filed joint return in year died (single if no child is involved)

Question 4

if taxpayer spouse dies in august, how do you file

Answer 4

as married filing jointly even if died earlier in the year

Question 5

if you pay for more than half of your parents living - you qualify as…

Answer 5

head of household (if not married)

Question 6

IRA deduction (adjustment to arrive at AGI)

Answer 6

can contribute and deduct up to $7000; or deduct up to amount of taxable income

Question 7

alimony paid pursuant to a divorce before 2018

Answer 7

all considered income

Question 8

self employment taxes - how much is deductible

Answer 8

50%

Question 9

QBI deduction amount and limitation

Answer 9

Deduction: 20% of QBI amount given
Limited to taxpayers with taxable income (before QBI deduction) of less than $241,950 (381,000 for married) for category 1 (easiest) - cat 2 means no QBI deduction, and 3 isnt tested

Question 10

kiddie tax

Answer 10

net unearned income of dependent child under 18 is taxed at parents rate.

=Childs unearned income - 1300 deduction - 1300 that is taxed at the Childs tax rate

Question 11

“net earnings from self employment”

Answer 11

92.35% of the business income amount

Question 12

section 199A QBI deduction is the lesser of:

Answer 12

20% of taxable income or 20% of QBI

Question 13

QBI - taxable income at or below $191,950 or $393,900

Answer 13

QTB and SSTB use full 20% deduction

Question 14

QBI - above $241,950 or $483,900

Answer 14

QTB: use full W-2 wage and property limation and SSTB there is no QBI deduction allowed

Question 15

category 2 QBI calculation (above limitation on taxable income)

Answer 15

1. calculate tentative qbi (20% x QBI)
2. take greater of: 50% of share of w-2 wages (given) OR 25% of w-2 share given + 2.5% of UBIA
3. take lesser of step 1 or step 2

Question 16

when calculating QBI deduction, and there is health insurance on W-2

Answer 16

subtract amount from ordinary business income before calculating the QBI deduction

Question 17

mortgage interest (sch A)

Answer 17

full amount is deductible on house up to $750,000

Question 18

points for a mortgage

Answer 18

also fully deductible

Question 19

personal credit card interest

Answer 19

not deductible - its just a personal expense

Question 20

home improvements

Answer 20

are deductible - use percentage if given

Question 21

for insurance covered, net loss is:

Answer 21

the total fair value of each item lost (or lesser of adjusted basis or decrease in FMV)

Question 22

insurance problems: casualty floor

Answer 22

deduct $100 (for each main storm) after you take net loss - insurance covered

Question 23

AGI floor for insurance problems

Answer 23

10% of AGI for insurance

Question 24

contributions to a roth IRA

Answer 24

not deductible (earnings and deductions from roth IRA are not included in AGI)

Question 25

redoing something in house due to flooding etc

Answer 25

must be a federally declared disaster

Question 26

medical insurance premiums

Answer 26

are deductible from AGI

Question 27

homeowner insurance premiums on personal prop

Answer 27

are not deductible (would be if a rental on Sch E)

Question 28

life insurance premiums

Answer 28

are not deductible

Question 29

alimony - before end of 2018

Answer 29

are deductible because are included in income

Question 30

sales tax

Answer 30

is deductible from AGI - but you can choose to itemize or take standard deduction * limited to 10,000

Question 31

investment interest expense

Answer 31

deductible from AGI - limited to net investment income

Question 32

gambling losses

Answer 32

deductible up to gambling winnings - from AGI

Question 33

interest paid on a qualified education plan

Answer 33

deductible up to 2500 for AGI - if used to pay education expenses

Question 34

charitable contributions: when there is a value on top

Answer 34

subject value you are getting from the donation amount to get total value that is deductible

Question 35

charitable contributions - what value to use

Answer 35

use the FMV or the time of thrift value when given

Question 36

is contribution of services considered charitable contributions?

Answer 36

no, not deductible

Question 37

if driving for meals on wheels what is deductible

Answer 37

can deduct the full amount of driving times the centers per mile

Question 38

charitable contribution AGI limitation

Answer 38

60% then carry forward 5 years

Question 39

medical expenses - if using credit card but paid in following year

Answer 39

when charged, it is deductible even if not paid

Question 40

chiropracter and physical therapist

Answer 40

both deductible

Question 41

medical home improvements (like adding an elevator)

Answer 41

deduct amount: amount of putting in elevator - difference of improvement of FMV + any upkeep paid on it

Question 42

medical deduction amount for Sch A

Answer 42

7.5 % of AGI is subtracted from total medical expenses to get to qualified medical expenses deducted

Question 43

personal disability insurance premiums

Answer 43

Personal disability insurance premiums are not deductible (but disability insurance benefits are also generally not taxable when received—if the premiums are paid by the taxpayer with post-tax dollars). Only medical insurance premiums are deductible as qualifying medical expenses.

Question 44

which credit can result in a refund

Answer 44

earned income credit

Question 45

self employment tax

Answer 45

not a deduction - only can deduct state tax

Question 46

contributions to health savings account

Answer 46

not deductible for medical expenses, it is deduction to get to AGI