R2 - Tax Calculation, Credits, and Other Taxes (AMT), Other Items, Tax Standards, Research Flashcards
Eligible Expenses for the Adoption Credit
All reasonable and necessary expenses, costs, and fees for the adoption. Medical expenses do not qualify
The credit for prior year alternative minimum tax liability may be carried:
Forward indefinitely
The alternative minimum tax (AMT) is computed as the:
Excess of the tentative AMT over the regular tax
Provided the taxes due after withholdings are not over $______________________, there is no penalty for underpayment of estimated taxes.
$1,000
How can a taxpayer avoid penalties of underpayment of estimated tax?
Make timely estimated tax payments equal to:
90% of the tax on the return for the current period or
100% of last year’s tax
OR the exception is if AGI is > $150,000, then a taxpayer must pay 110% of the prior year’s tax liability in four equal payments.
A claim for refund of erroneously paid income taxes, filed by an individual before the statute of limitations expires, must be submitted on Form:
1040X
Statute of limitation rules on assessments:
Three years from the later of the due date of the return or the date the return was filed (including amended returns.) If the misstatement is over 25% of gross income, the statute of limitations is 6 years.
A calendar-year individual filed an income tax return on April 1. This return can be amended no later than:
Three years, three months, and 15 days after the end of the calendar year.
What is the statute of limitations for fraud or filing false tax returns?
There is no time limitation
Statute of Limitations for Refunds for Individuals
The later of:
Three years later from the date the return was filed or the original due date of the return; OR
Two years from the time the tax was paid (if not when the return was filed)
