Tax 1040 Cards

Question 1

NOT Investment Income

Answer 1

“Angsty Teens Quit Life”

• Active Biz Income
• Tax-free Income
• Qual. Dividends
• Life Insurance Proceeds

Question 2

NOT Subject to SE Tax

Answer 2

“Dogs Chase Rabbits Lazy Squirrels Sleep”

• Dividends
• Capital Gains
• Rental Income
• LP Distribution
• S Corp Wages
• S Corp K1

Question 3

YES Subject to SE Tax

Answer 3

• Net Sched C Income
• GP K1
• BoD Fees
• 1099 Wages

Question 4

Above the Line Adjustments

Answer 4

• IRA Contributions
• Keogh/SEP Cont.
• 1/2 SE Tax (x .07065)
• SE Health Ins. Premium
• Alimony (pre-2019)
• Student loan interest ($2,500)
• HSA
• Early withdrawal penalties

Question 5

YES Investment Income

Answer 5

• Taxable Interest
• Non-qualified dividends
• Royalties
• Rental Income (passive)
• STCG

Question 6

Gross Income Exclusions

Answer 6

• Gifts
• Inheritance
• Child Support
• Muni Interest
• Worker’s Comp.
• Compensatory PMT
• LI Proceeds

Question 7

Below the Line Itemized Deductions

Answer 7

• Gambling loss (offset winnings)
• Medical > 7.5% AGI
• SALT, Property, Real Estate ($10k TTL)
• Mortgage Interest <$750k mortgage
• Charity
• Fed disaster loss
• Margin Interest (offset invest income only)

Question 8

Gross Income

Answer 8

• Wages/Salary/Tips
• Ord./Qual Div. (Schd B)
• Taxable Interest (Schd B)
• Cap Gains (Schd D)
• Biz Income (Schd C)
• Real Estate Income - active/passive (Schd E)
• Alimony Rcv’d (Pre-2019)
• Unemployment
• Punitive Dmg PMT
• Taxable SS