Tax Planning - 14% - 24 of 170 questions Flashcards

Question

Form 8606

Answer 1

Non-deductible IRA contributions

Answer 2

M Municipal bond interest A Accident and Health Plans: Employer Premiums F Fringe Benefits I Inheritances and Gifts A Accident and Health Plans: Amount(s) Rec'd S Scholarships P Personal Residence Sale Gains (up to $250/500) A Adoption Assistance D Death Benefits D Dependent Care Assistance Programs E Education Assistance Program (up to $5,250) D Debt Discharged (certain circumstances) M Meals and Lodging for Employees I Interest on Education Bonds (Series EE and Series I) C Compensatory Damages Compensation S Support Payments Received ( Child Support & Alimony post 2018)

Answer 3

Above the line or Deductions for AGI * HSA contributions with after-tax money (deadline to contribute is April 15) * employer portion of SE tax 1. Net SE profits x 0.9235 = SE tax 2. SE tax x 50% = deductible - additional 0.9% medicare tax not deductible * SEP, SIMPLE, Qualified Plans for SE individuals * SE health insurance premiums (only if no other coverage options are available) * early withdrawal penalties of savings accounts (ie. CDs) * alimony payments prior to 2019 * traditional IRA contributions * student loan interest up to $2500 of interest paid on student loans * educator expenses, $300 per individual, $600 max MFJ * business expenses, govt officials who work on a fee basis, performing artists, members of military reservists traveling over 100 miles to perform reserve services

Answer 4

[(high phaseout - MAGI) / range] x max contribution (which is 7000 under 50) = portion of contribution that IS deductible

Answer 5

§ **Unreimbursed Medical/Dental Expenses **(of yourself, spouse, dependent child, dependent who makes less than $4,700 - exceeding 7.5% of AGI □ LTC premiums (limits on $ amts by age) □ premiums for Medicare Part B and D □ weightless treatment program prescribed by doc §** Taxes paid **- SALT up to $10k §** Interest Paid** □ mortgage interest paid on up to $750k for primary and secondary residence □ Investment interest up to net investment income □ can include interest paid on HELOC, buy, build, substantially improve assuming under $750k debt threshold § **Gifts to Charity** - cash donations up to 60% of AGI □ private vs public = different max ded §** Casualty and Theft Losses** □ federally declared disaster losses ® lesser of FMV or Basis - the amount over $100 is ded ® total amount of all losses is above 10% of AGI threshold § **other Itemized ded on Schedule A, line 16**

Answer 6

§ Refundable Credits □ Earned Income Credit □ Additional Child Tax Credit □ AOTC □ Premium Tax Credit - help cover premiums of health insurance purchased through Health Insurance Marketplace § Non-Refundable Credits □ Child and Dependent Care Credit □ Child Tax Credit □ Retirement Savings Contribution Credit □ Lifetime Learning Credit