R2-Finna Die

Question 1

Can you list some of the FOR AGI deductions (to arrive at AGI)

AA ISIS HOME

Answer 1

Alimony (pre 12/2018)
Attorney Fees for whistleblower

IRA
Student Loan Interest Expenses
Interest withdrawl penalty
Self employment health insurance/retirement

Health Savings Accounts
One half self employment tax
Moving Expenses (Military orders)
Educator Expenses

Question 2

What are the deduction limits for traditional IRA deductions

Answer 2

Lesser of either 6,000 or individuals earned income (12,000 for MFJ) additional 1,000 deductible contribution is allowed for each taxpayer over 50

Question 3

What are the deduction limits for traditional IRA deductions

Answer 3

Lesser of 6,000, compensation, limit not contributed to other regular and roth IRA’s.

Question 4

Walk me through the limits on eductions to Keogh Plans

Answer 4

Keogh plans are retirement plans for self-employed…DEductible is lesser of 25% of net earnings from self employment after Keough deduction and deducting one-half of self-employment tax OR 56,000

Question 5

lemme know about sum them self-employed deductions FOR AGI

Answer 5

Self Employment Tax: 50% of self-employment tax

Self employed health insurance: 100% may be deducted

Question 6

Whats the additinoal deduction for the elderly and/or blind

Answer 6

65 and older add 1,650 S or 1,300 MFJ if blind, add same amount

If they is 65 AND BLIND its double so 3,300 S or $2,600 MFJ

Question 7

Whats the standard deduction for a tax payer who is dependant on another tax payer

Answer 7

greater of 1,100 or earned income of the dependent PLUS $350

Question 8

What are the major parts of Itemized deductions (From AGI)

TICC MMD

Answer 8

Taxes Paid
Interest Paid
Charity
Casualty and Theft Losses
Misc. Deductions like gambling losses to the extent of winnings
Medical and Dental Expenses

Question 9

Limitations on medical expenses?

Answer 9

deductible to the extent that they exceed 10% of AGI

Self employed peeps can deduct 100% of medical insurance premiums from gross income

Question 10

What taxes are deductible as itemized deductions

Answer 10

limited to 10,000 total…state and local income & property tax, and sales tax

Question 11

What are the types of interest that are deductible/nondeductible

Answer 11

qualified residence on first and second home
interest on loans for investment purposes, limited to net investment income can be carried forward.
Prepaid interest
educational loan interest is an adjustment NOT itemized
Consumer interest is NOT deductible

Question 12

Limitaitons of Charitble Contributions

and what hapens to excess contributions

Answer 12

Overall limit is 60% of AGI
Cash may be all 60%
LTCG property (deduct FMV) is limited to the lesser of:
30% AGI
The Remaining amount to reach 60% after cash contributions
Excess contributions carried forward 5 years

Question 13

Limit on nonbusiness casualty and theft loss???

Test cheat:

Answer 13

has to be federally declared

If partial loss: deduction is based on decrease in FMV not to exceed FMV
If TOTAL LOSS: deduction is adj basis

Aggregate losses are reduced by insurance recovery, $100 per event, and 10% of AGI
Cheat: Usally the lowest number

Question 14

What are two misc. itemized deducitons

Answer 14

gambling losses and federal estate tax paid on income

Question 15

what are some refundable tax credits

Answer 15

child tax credit, earned income credit, excess SS paid

Question 16

What are the child/dependent care credit limitations

Answer 16

3,000 maximum (6,000 for two or more dependents)…max child care credit of 35% of AGI of 15,000 or less. Credit decreases by 1% for each 2,000 of AGI over 15,000. Minimum is 20%

Must be under 13

Question 17

Talk me through the tax credit for the elderly or disabled

Answer 17

if you are over 65, or perm. disabled. you can get a credit of:
5,000 if S or MFJ and one qualifies
7,500 if MFJ and both qualify or MFS

Question 18

What is the American Oppurtunity Tax Credit

Answer 18

credit for the first 4 years of college and lmited to 2,500…100% of first 2000 cost and 25% of next 2,000

Question 19

Whats the coverdell educations savings accounts?

Answer 19

like if grandma wanted to put money towards your education yearly capped at 2,000 and mus tbe paid out by the time beneficiary hits 30.

Question 20

What are the requirements to be eligible for the retirement savings contribution credit

Answer 20

At least 18, not a full time student,not a dependent, and there are a bunch of income limits

Question 21

How do you find the overall credit for foreign tax credit

Answer 21

Taxable income from all foreign operations DIVIDED BY Total Taxable Worldwide income THEN MULTIPLY by the U.S. Tax

The credit is the lesser of foreign taxes paid or overall limit. Any unused credit can be carried back one year and forward 10

Question 22

SO theres a work oppurtunity credit….what are the limitations?

Answer 22

40% of the first $6,000 of wages per employee paid during first year…
40% of the first $3,000 paid to certain summer youth

Question 23

heyooo help me through the child tax credit

Answer 23

basically you get a credit of 2,000 per child but has to abide by that dumbass CARES rule, except child gotta be under 17…any AGI over 200,000 or 400,000 is subject to $50 phaseout per $1000

Question 24

State the aternative minimum tax formula and the tax rate associated with it

Answer 24

Regular Taxable income
\+/- Adjustments
\+Preferences
=Alt. Minimum Taxable income
-Exemptions
=Alt. Minim Tax Base
X AMT Rate
=Tentative AMT Tax
-Regular Income Tax
=Alternative Minimum Tax

The tax rate is 26% on the first 194,800 of the amt tax base, and 28% on AMT base over that amount

Question 25

What are some of the adjustments for the AMTI calculation..Panicts

Answer 25

PANICTS....PANIC is increase or decrease....TS is only increase
Passive activity losses
Accelerated Depreciation
Net operating loss of indiv. Tax payer
Installment income of a dealer
Contracts-% completeion vs. Completed contract
Tax deductions 
Standard Deduction

Question 26

Tax preference items part of the AMTI calculation (always add-backs): PPP

Answer 26

Private activity bond interest income
Percentage depletion deduction
Pre-1987 accelerated depreciation