Unit 1 Flashcards
Estimated Tax Due Date
Jan April June Sept
SS/Medicare/income tax withholding Due Date
Jan April Oct Jan (last day of month)
W2 W3 Due Date
Jan 31
FUTA Form 940 Due Date
Jan April July OcT (if over 500$)
Automatic filing extension if..
living outside US for job/post
Who must file FBAR
US citizens with >10k in foreign account. Filed online with financial crimes enforcement network.
Who must file Form 8938
> 50k at last day of year or 75k at anytime foreign financial assets. Also file FBAR
Who files form 3520
report transactions with foreign trusts, and receipts of certain large gifts from foreign persons.
Who files form 8865?
Interest in foreign partnerships: Either >50% ownership
>10% US controlled
Contributed property = 10% interest with value of >100k
reported event
Filing Status MFJ
Living apart on last day but not final. Have to file MFS if one dies and remarry.
Qualifying Widower filing status
2 years following death, did not remarry and maintain house.
Who cannot use Standard Deduction
Nonresident Alien
Short-Term Returns
If one spouse itemizes
Partnerships/Estates
Standard Deduction =
Basic Standard Deduction+ Additional Standard Deduction
MFJ / Widower Standard and Additional Deduction
Basic : 24.8k
Add: 1.3k
Head of House Standard and Additional Deduction
Basic: 18.65k
Add: 1.65k
Single Standard and Additional Deduction
Basic: 12.4k
Add: 1.65k
MFS Standard Deduction
Basic: 12.4k
Add: 1.3k
Basic Standard Deduction of children under 19 or student under 24. who are dependents
Greater of $1,100 or EI plus $350 up to $12,400.
Additional Standard Deduction
Person who reaches age 65 or is blind.
Filing Requirements
Must file if over threshold, SE earnings of $400 or dependent with GI> Standard Deduction or Unearned income >$1,100
Exception to Gross income filing threshold = Standard Deduction is ..
Must file if MFS >5$
additional deduction over 65 but not blind.
Does Gross income include SS benefits?
No unless MFS
or 1/2 SS +GI +Tax-Exempt Interest >25k / MFJ >32k
Filing Requirement includes..
Foreign Earned income and residence disposition gain
Auto Filing Extension
Does not extend time for payment
Interest charged from original due date.
5% per month up to 25% failure to file, and failure to pay
Penalty for not filing
5% up to 25%
Penalty for not paying
5% per month up to 25%
Employers required to keep records for..
4 years.
Employers penalty for deposits of taxes
2% 1-5 days
5% 6-15 days
10% >16 days
Who qualifying as dependent
Must be qualifying child/relative. NEVER SPOUSE
Who is a Qualifying Child ?
Meet 4 Tests: - Relationship -Age -Residence Not Self Supporting
Who is Qualifying Relative ?
Meet 4 Tests: - Relationship OR Residence (cousin must live whole year) Gross Income <4.3k -Support - Cannot be qualifying child of another.
can a MFJ be Dependent?
No unless only filed for a refund
Dependents must live…
US, Canada, Mexico
Kiddie Tax
Net Unearned Income of child is taxes at parents rate.
Net Unearned Income = UI - $1,100 - SD
Kiddie Tax Does not apply too..
> 18 years old if Earned Income > Half of their support
Nonresident Alien Taxation
Can chose to be taxed as US Citizen. SO taxed on worldwide income
Tax rate for most US source income received by foreign taxpayers
30%
Considered US resident if ..
in US at least 31 out of 183 days past 3 years.
If spouse is nonresident what is status
Considered unmarried for HoH status, and does not chose to treat as resident alien
