R1 - Individual Taxation - Exemptions Flashcards
1
Q
What is the personal exemption phase-out and how is it calculated?
A
Reduction of exemptions by 2% for every $2,500 by which gross income exceeds a threshold
2
Q
What is the definition of a qualifying child?
A
CARES Close relative Age limit (under 19/24 if full-time college student) Residency and filing requirements Eliminate gross income test Support test changes
3
Q
What is the definition of a qualifying relative?
A
SUPORT
Support (over 50%) test
Under a specific amount of taxable income test (under $3,950)
Precludes dependent filing a joint return test
Only residents (of U.S./Mexico/Canada) test
Relative test
OR
Taxpayer lives with individual (if nonrelative) for whole year test
