R2 Concepts Flashcards
What is the maximum credit allowable for adoption expenses? Which expenses are not allowed?
$12,650. Doesn’t matter if the child has special needs, the max credit is still $12,650.
-Medical expenses are not allowed.
What is the phase out for the adoption credit?
Modified AGI of $189,710-$229,710
What is the amount for the child tax credit?
$1,000 per qualifying child
-Must be 17 years old or younger
What is the amount for the earned income credit for a individual with 2 qualifying children
40% of first $13,090
Max credit of $5,236
Qualifying child: must have lived with the taxpayer for 1/2 years
-19/24 rule
What is the amount for the earned income credit for an individual with no qualifying children?
7.65% of first $6,210
Max credit of $475
What is the amount for the earned income credit for an individual with 3 qualifying children?
45% of first $13,090
Max credit of $5,890.5
What is the amount for the earned income credit for an individual with one qualifying child?
34% of the first $9,320
Max $3,168.8
How do you determine a childs taxable income when he is claimed on a parents tax return?
They received the personal exemption from his, so he is limited to his standard deduction of the greater of :
1) $950 OR
2) EARNED INCOME +$300
What is the amount of additional standard deduction for an individual?
$1,450
How do you calculate the AMT exemption for Single individuals?
$33,750
25% of AMTI in excess of $112,500
How do you calculate the AMT exemption for MFJ?
$45,000
25% of AMTI in excess of $150,000
How do you calculate the AMT exemption for corporations?
$40,000
25% of AMTI in excess of $150,000
What is the phase out amount for the contribution amount in a Coverdell IRA for a single taxpayer?
Modified AGI
S: $95,000-$110,000
What is the phase out amount for the contribution amount in a Coverdell IRA for a single taxpayer?
Modified AGI
MFJ: $190,000-$220,000
What is the standard deduction for a dependent?
The greater of 1) $950 OR 2) earned income + $300
