Taxes Flashcards
Due date for filing a 2019 return is
Wednesday April 15, 2020
Form 1040 updates
Income in page one Signature page 2 New line 6 for capital gain or loss Full year health care coverage or exempt box removed Associated sch from 6 to 3
W-4 has been changed
Allows for accurate withholding
1040-SR for seniors
Only one spouse needs age requirement
Includes standard deduction charge
Withholding
Amount a payer takes away from employee and gives immediately to government
After 2018
In divorce alimony and separate maintanence payments are no longer deductible by payer spouse
Gross income limitation for relative is
4200
Deduction for personal exemptions is reduced to
0 for 2018-2025
Standard deduction for ppl not using form 1040 sch A their own deduction has increased
Married jointly 24000
Head of household 18000
Single 12200
Medical deductions on 1040
71 and over 5270
Age 61 to 70 4220
Age 40 and under 420
HSA deduction max is
3500 self
7000 for family
Mileage expenses
58 cents per mile business
20 cents per mile medical or moving
14 cents per mile for charitable organizations
Retirement savings contribution credit
Gross income less than 32000 for single
Max credit for child is
2000
Refundable amount limited to 1400
Earned income credit
6557 with three or more children
5828 with two children
3526 with 1 child
529 with no children
Only given if earned less than
50000 with 3 or more children
15000 with no children
Bitcoin = property and not currency
Immediate consequences for ppl using bitcoins for goods and services
VITA/TCE
Volunteer income tax assistance and tax counseling for the elderly
Most forms can be found at
Irs.gov under tax preparation software
Most taxpayers use fork
1040 while ppl over 65 at the end of the tax year use form 1040-SR
If younger than 65 and earn over 12000 and can be claimed as dependent by someone else can
File tax return
Five filing statuses
Impacts calculation of income tax, standard deduction, and limits certain deductions
Most beneficial to least beneficial for tax payer
Married filing jointly Qualifying widower Head of household Single Married filing separately
Taxpayers are considered married if
Married on last day of tax year
Spouse died during the year and surviving spouse has not remarried
Common law marriage can still file
Jointly
Can be married filling jointly even if one spouse doesn’t work
Married filing separately is worst than
Married filing jointly
Exemption
Dollar amount that can be deducted from individuals total income thereby reducing taxable income
To qualify for personal exemptions taxpayer must not be able to be
Claimed as a dependent
