Random things to remember

Question 1

MFJ SS Taxable breakpoints

Answer 1

0-32k: 0%
32k - 44k: 50%
44k +: 85%

Question 2

Single SS Taxable breakpoints

Answer 2

0-25k: 0%
25k - 34k: 50%
34k +: 85%

Question 3

EFC - Parent Income %

Answer 3

22% - 47%

Question 4

EFC - Student Income %

Answer 4

50%

Question 5

EFC - Parent Assets %

Answer 5

5.64%

Question 6

EFC - Student Asset %

Answer 6

20%

Question 7

SS REDUCTION: 0-36 MONTHS EARLY

Answer 7

5/9% / MONTH

Question 8

SS REDUCTION: 36-60 MONTHS EARLY

Answer 8

5/12% / MONTH

Question 9

SS DELAY - HIGHER BENEFIT AMOUNT / MONTH

Answer 9

2/3% / MONTH

Question 10

Charitable Deduction AGI Thresholds:

Answer 10

Cash: 60%
LTCG: 50% Basis / 30% FMV
Ordinary income property: 50%

Question 11

SS provisional income formula

Answer 11

50% of Social Security benefits + tax-exempt income + AGI (without Social Security)

Question 12

American Opportunity Tax Credit

Answer 12

100% on first $2,000
25% on next $2,000

Max credit $2,500

(Only for first 4 years of college)

Question 13

Lifetime Learning Credit

Answer 13

20% of $10,000
Can be used whenever there’s qualified expenses

Question 14

Taking SS Early formula

Answer 14

5/9% / month for 36 months // 5/12% / month for next 24 months

Question 15

Taking SS Late formula

Answer 15

8% Annual to max of 24% (2/3% / month)

Question 16

Kiddie Tax Basics

Answer 16

first $1,250 taxed at 0%
next $1,250 taxed at childs rate (10%)

Anything above taxed at parents marginal

Question 17

Kiddie Tax (Standard Deduction)

Answer 17

greater of $1,250 or their earned income plus $400 (not to exceed $13,850)

Question 18

Failure to file penalty

Answer 18

5% of the unpaid taxes for each month or part of a month that a tax return is late up to a maximum of 25%.

A minimum penalty of $485 is imposed if the tax return is later than 60 days.

Question 19

Rental real estate: active participation

Answer 19

Taxpayers may deduct up to a $25,000 loss provided they “actively participate”.
Active participation requires:
Taxpayer ownership of at least 10% of the property, AND
Substantial involvement in managing the property.
The $25,000 loss is allowed if the taxpayer’s MAGI (AGI without the rental loss) is equal to or less than $100,000.
The $25,000 limit is phased out in the MAGI range from $100,000 to $150,000.

Question 20

Failure to pay penalty

Answer 20

0.5% per month the tax is unpaid up to a maximum of 25%.

Question 21

HSA NQ Distributions

Answer 21

Distribution not used for qualified medical expenses are subject to ordinary income tax plus a 20% penalty tax.

Question 22

Personal Auto Policy Split limits
example:
70,000 / 120,000 / 50,000

Answer 22

The maximum for bodily injury coverage for one person is $70,000, the maximum coverage for one accident for all bodily injuries is $120,000, and the $50,000 for total damage to the automobile