R2-Finna Die Flashcards
Can you list some of the FOR AGI deductions (to arrive at AGI)
AA ISIS HOME
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
What are the deduction limits for traditional IRA deductions
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
What are the deduction limits for traditional IRA deductions
Lesser of 6,000, compensation, limit not contributed to other regular and roth IRA’s.
Walk me through the limits on eductions to Keogh Plans
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
lemme know about sum them self-employed deductions FOR AGI
Self Employment Tax: 50% of self-employment tax
Self employed health insurance: 100% may be deducted
Whats the additinoal deduction for the elderly and/or blind
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
Whats the standard deduction for a tax payer who is dependant on another tax payer
greater of 1,100 or earned income of the dependent PLUS $350
What are the major parts of Itemized deductions (From AGI)
TICC MMD
Taxes Paid Interest Paid Charity Casualty and Theft Losses Misc. Deductions like gambling losses to the extent of winnings Medical and Dental Expenses
Limitations on medical expenses?
deductible to the extent that they exceed 10% of AGI
Self employed peeps can deduct 100% of medical insurance premiums from gross income
What taxes are deductible as itemized deductions
limited to 10,000 total…state and local income & property tax, and sales tax
What are the types of interest that are deductible/nondeductible
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
Limitaitons of Charitble Contributions
and what hapens to excess contributions
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
Limit on nonbusiness casualty and theft loss???
Test cheat:
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
What are two misc. itemized deducitons
gambling losses and federal estate tax paid on income
what are some refundable tax credits
child tax credit, earned income credit, excess SS paid
What are the child/dependent care credit limitations
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
Talk me through the tax credit for the elderly or disabled
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
What is the American Oppurtunity Tax Credit
credit for the first 4 years of college and lmited to 2,500…100% of first 2000 cost and 25% of next 2,000
Whats the coverdell educations savings accounts?
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.
What are the requirements to be eligible for the retirement savings contribution credit
At least 18, not a full time student,not a dependent, and there are a bunch of income limits
How do you find the overall credit for foreign tax credit
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
SO theres a work oppurtunity credit….what are the limitations?
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
heyooo help me through the child tax credit
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
State the aternative minimum tax formula and the tax rate associated with it
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
What are some of the adjustments for the AMTI calculation..Panicts
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
Tax preference items part of the AMTI calculation (always add-backs): PPP
Private activity bond interest income
Percentage depletion deduction
Pre-1987 accelerated depreciation
