Unit 1: Tax Returns for Individuals Flashcards
Resident aliens are taxed on their ____.
Worldwide income
A taxpayer needs the ATIN to claim the adopted child as a ___ or to be eligible for a ___. But an ATIN can’t be used to obtain the ___.
Dependent
Child Care Credit
Earned Income Credit
Taxpayers with an ITIN are not eligible to receive ___ or the ___.
Social Security benefits
Earned Income Credit
If there is an error on a prior year’s tax return, the tax preparer is REQUIRED by law to ___. However, they’re NOT required to ___.
Notify the taxpayer of the error and consequences for not correcting the error.
Actually correct the error
A taxpayer can request an ___ if they’re adopting a child and meet all of the following:
a) The child is placed in the ___ for legal adoption,
b) The adoption is ___ or is a legal ___ adoption and the child has a ___ or ___.
c) Can’t obtain ___ even though they made a reasonable effort
d) Can’t obtain ___ for other reasons such as ___.
a) Taxpayer’s home
b) Domestic; Foreign; Permanent resident alien card; Certificate of citizenship
c) SSN
d) SSN; the adoption hasn’t been made final
Filing requirement threshold for MFJ, under 65.
Moni & Gabe
$19,500
An alien is considered a ___ for tax purposes unless he meets at least one of two tests:
a) ___
b) ___
Non-resident
a) The Green Card Test
b) The Substantial Presence Test
Form 1040NR is used by ___ to report their US source income
Non-resident aliens
For tax purposes, an alien is an individual who is not a ___. They’re further classified as ___ or ___.
US Citizen
Resident; Non-resident
A taxpayer is required to file a tax return if he has self-employment earnings of $___ +
$400+
Each individual on a tax return needs a Taxpayer Identification Number (TIN). What are the three types of TINs?
- SSN
- Individual Taxpayer Identification Number (ITIN)
- Adoption Taxpayer Identification Number (ATIN)
Nonresident aliens are taxed on ___.
Income from sources within the US
Odd Filing Requirements:
a) Church employees who are ___ and have wages of $___ and more.
b) If they owe ___ on ___ not report to employer.
c) If they must pay the ___.
d) If they owe additional tax on a ___, including an ___, ___, or other tax-favored health plan.
e) If they received ___ or ___ distributions.
f) If they owe ___ taxes for a household worker such as a ___.
g) If they must recapture an ___ credit, ___ credit, or other credit.
a) Exempt from employer’s Social Security and Medicare taxes; $108.28
b) Social Security or Medicare taxes; tips
c) Alternative Minimum Tax
d) Qualified plan; IRA; Health Savings account
e) Medicare Advantage MSA; Health Savings account
f) Household employment; nanny
g) Education; Investment
Tax preparers are expected to collect the following biographical information: 1) 2) 3) 4) 5) 6)
1) Legal name
2) DOB
3) Marital status
4) Nationality
5) # Dependents
6) SSN / TIN
When calculating the # of days present in the US for the Substantial Presence Test, days are NOT counted if the taxpayer:
a) Regularly commutes to work in the US from ___ or ___.
b) Is in the US as a crew member of a ___.
c) Is unable to leave the US because of a ___ that arose in the US.
d) Is an ___ individual.
e) Is a ___ individual in the US temporarily.
f) Is a ___ or ___ on a temporary Visa.
g) Is a ___ on a temporary Visa who doesn’t intend to reside permanently.
h) Is a ___ to compete in ___. Exclude the days they actually competed in ___.
a) Canada or Mexico
b) Foreign vessel
c) Medical condition
d) Exempt
e) Foreign government-related
f) Teacher or trainee
g) Student
h) Professional athlete; charitable sports event; charitable sports event
