REG 1 Flashcards
1
Q
Qualifying Widower
A
- 1st year MFJ
- two year eligibility after death
- QC/QR must reside for whole yr.
2
Q
MFJ
A
- must be married at the end of the year
- cant be legally separated
- yr spouse dies
3
Q
QC
A
Close relative: child/step Age: under 18/24 Resident: 1/2 yr Eliminate: gross inc Support: 51%
4
Q
QR
A
Support 51% Under inc.: $4150 Precludes: Dep MFJ (unless no tax lia) Only US citizen Relative
5
Q
Employer provided insurance
A
tax free fringe benefit
6
Q
Deductible Alimony pmts/Alimony inc.
A
- Divorce b4 12/31/2018
- pmts in cash or equal
- end at death of spouse
7
Q
Include in income
A
- wages
- alimony rec b4 2019
- any unemployment
- US treas bond int (not used on qual ed ex)
- pmt to student outside degree exp
- employee awards
- int. inc. on fed/st income taxes
- int. inc. on fed gov obligations
8
Q
Excluded in Income
A
- workers comp
- int. inc. from state gov obligation
- st. tax refund (unless itemized)
- int. from muni bonds
9
Q
Taxed SS benefits
A
taxed if:
AGI + int. on taxed exempt bond + 50% SS benefits is greater than the threshold amount.
10
Q
Accruable exp
A
services rendered but not paid for
11
Q
Scholarship
A
Non taxable for proceeds spent on tuition, fees, book, and supplies
NO room and board?
12
Q
G/L on sale of stock date
A
on the trade date for accrual and cash basis taxpayers
13
Q
Penalty on withdrawl from IRA b4 59
A
(amount withdrawn * marg TR%) + (amount withdrwn * 10%)
14
Q
Items exempt from IRA distribution penalty
A
- Home buyinh
- Insurance (medical)
- Medical expense (above 10% of AGI)
- Disability
- Education
- Death
15
Q
Ins. policy proceeds includable in inc.
A
Amount received in CY - (Policy amount/expected yrs. of pmt)
