REG 2

Question 1

Educator Expenses?

Answer 1

$250/person- adjustment

Question 2

IRA adjustment?

Answer 2

$5500/ person (traditional+roth+nondeductible)

Question 3

IRA credit?

Answer 3

18 years old, not a student, not a dependent.

credit range from 0-1000 need really low income to qualify- <30,000/60,000

Question 4

2014 education related adjustments (above the line)?

Answer 4

Educator expense- 250/person
Student loan interest-0 to 2500 /person (phaseout 65k-80k)
Tuition and fee deduction (0-4000)– 65k-80k AGI phase out for higher education expense

Question 5

Coverdell education savings account, deductability? requirments? limit?

Answer 5

After tax contribution: 2000/beneficiary <18 -earnings accumulate tax-free (phase out:95k-110k for single)
tuition,room, board, supplies all qualify
must distribute after 30 yrs old -10% penalty (avoided by rolling over to another family member)

Question 6

catch-up ira?

Answer 6

> 50 yrs old-1000 extra

Question 7

Traditional IRA deduction phase out?

Answer 7

Must be Rich (60,000s/ 96000j) AND Active in another qualified plan- totally phased out for both people at $191000

Question 8

HSA deductability?

Answer 8

Adjustment- 3300s/6550family + 1000 cath-up for>55 yrs old

No medicare allowed

Question 9

How is Keogh Plan contributions deducted?

Answer 9

Adjustment above the line.

lesser of 52,000 or 25% net se earnings (after keogh, se tax deduction)

Question 10

Standard deduction for elderly or blind?

Answer 10

6200 regular+ 1200 to 2400 extra for married per person and 1550 to 3100 for single

Question 11

Standard deduction for dependent of another?

Answer 11

Yes. GREATER of 1000 or earned income+350

Question 12

Itemized deduction phase out?

Answer 12

Starts when AGI>305050 j/254200 s

reduce 3% of excess AGI

Question 13

What interest expenses are itemized deduction?

Answer 13

Mortgage interest-limit 1,000,000/100,000

Investment interest- limit to investment income (carry forward forever)

Question 14

Charitable deduction for indi, and for corp?

Answer 14

Individual-itemized 50%AGI total limit, 30% for FMV property (long term capital gain property)
Corp-10% AGI limit

Question 15

Charitable contribution carryover?

Answer 15

5 year forward.

same for individual and corp

Question 16

Which items are 2% AGI test intemized deductions?

Answer 16

Unreimbursed Business Expenses for employee.
educational expense (employment related, not including unused student loan interest)
Other employment related misc.

Question 17

Business gift deduction limit?

Answer 17

$25/person/year

Question 18

Child and dependent care credit?

Answer 18

20-35% of 3000 (1 child) or 6000 (>1 child)

Question 19

Credit for elderly (65) and/or Permanently Disabled?

Answer 19

15% * (5000 or 3750 - SS income and other nontaxable - 1/2 (AGI - 7500 or 5000))
so, max is 750
No refund

Question 20

Lifetime learning credit?

Answer 20

20% of qualified expenses up to $10,000. so max is 2000. phase-out from 54k-64k

Question 21

american Opportunity Credit?

Answer 21

40% refundable
phase out (80k-90k for single)
limit-100% of first 2k+25% of next 2k/ student
first 4 years of college

Question 22

adoption credit?

Answer 22

13,190/child

phase out-197,880-237,880

Question 23

general business credit?

Answer 23

for a group of qualified expenditures

100% of first 25k tax liability +75% of the rest

Question 24

Refundable credits?

Answer 24

Child tax credit-limited
EIC
American opportunity-40%

Question 25

AMT exemption amount?

Answer 25

S-52800-25% excess AMTI

MFJ-82100- 25% excess AMTI

Question 26

Statute of limitation on assesments by IRS?

Answer 26

3 years of the later of due date or date filed.
6 years, if >25% understatement of GI
Forever if fraud or false return.

Question 27

Statude of limitation on refunds by taxpayer?

Answer 27

Refund claim- the later of 3 years of due date or file date and 2 years of date paid tax.
Bad debt or worthless security- 7 years from the later of due date or file date

Question 28

ESTIMATED TAX payment requirments for individuals?

Answer 28

No penalty if tax owed less than 1000;

withhold 90% of current year or 100% of last year (110% if TI was > 150k)