R1 Flashcards
5 requirements to file as a Qualifying Surviving Spouse
- Spouse died within the previous two years and the surviving spouse didn’t remarry.
- TP has a child that can be claimed as a dependent.
- The dependent child lived with the taxpayer for the entire year.
- TP paid over half of the keep up of the home for the dependent child
- the TP could have filed a joint return the year the spouse died
To qualify as Head of Household, the TP must be single on the last day of the year and maintain a home for a dependent person for more than ______ of the taxable year.
6 months
Qualifying Child Requirements (CARES)
CLOSE RELATIVE - child, sibling, or any descendent of these (can be step or adopted)
AGE LIMIT - under 19 or 24 if going to school
RESIDENCY AND FILING REQUIREMENTS - same principal place of a boat for more than half the year. Must be a citizen of US Canada or Mexico. Child cannot file a joint return.
ELIMINATE GROSS INCOME TEST - the SUPORT test does not apply to the QC
SUPPORT TEST - QC did not contribute more than half of their own support
Qualifying Relative Requirements (SUPORT)
SUPPORT TEST - TP supplied more than half of the support of QR
UNDER GROSS INCOME LIMITATION - gross income is less than $4,700
PRECLUDES DEPENDENT FILING JOINT RETURN - QR cannot file as married
ONLY citizens of USA Canada and Mexico
RELATIVE - children, grandchildren, parents, grandparents, siblings, aunts, and uncles, and nieces and nephews (can be, adopted, or in-laws)
How much can be deducted from gross income for an employer who pays for educational expenses on behalf of the employee?
$5,250
Are scholarships included in gross income?
NO
QBI Deduction =
20% x QBI
True/false: contributions to IRAs and alimony paid (for divorce before 2019) are included as itemized deductions.
FALSE: THEY ARE ADJUSTMENTS TO GROSS INCOME.
Are personal property taxes (such as taxes paid on cars) deductible when you itemized?
YES
What amount can noncash donations be deducted at?
HIGHER OF FMV OR 30% OF AGI WITH A 5 YEAR CARRY FORWARD
What percentage of AGI are allowed for medical expense deductions?
7.5%
If the amount of medical deductions is less than the AGI floor, how much can be deducted?
$0
What is the maximum deduction for retirement plan contributions?
$7,000
What is the phase out range for retirement contributions if you are covered by an employer in an active participant plan?
$123,000 - $143,000
How are QBI deduction calculated for individual schedule K-1s?
ATTRIBUTABLE AMOUNT - QBI Deduction
