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Enrolled Agent > Unit 8 > Flashcards

Unit 8 Flashcards

1
Q

MAX FTC

A

US income x (Foreign income/WW income)

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2
Q

FTC is claimed on ..

A

Form 1116 unless all passive income <300$

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3
Q

Can FTC excess be carried

A

Yes back 1 year and forward 10

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4
Q

Child/Dependent Care Credit LIMIT

A

Expenses cannot exceed earned income. If married smaller of two, if one is in school 250$ a month is income. Limited to 3k or 6k for 2.

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5
Q

Child and dependent care credit amount

A

35% of expenses . Reduced by 1% for evert 2k where AGI exceeds 15k. Over 43k = 20% Form 2441

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6
Q

2 Education Credits

A

AOC: Partially refundable and LLC . Not refundable

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7
Q

AOC max

A

$2500. 100% of first 2000 and 25% of next 2000. ONly used 4 times

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8
Q

AOC Phase out

A

phase out 80-90k. MFS cannot claim. $2,500 x 90k-MAGI/10k

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9
Q

AOC Refundable?

A

yes up to 40%

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10
Q

LLC max

A

20% expenses up to 2000$ (10k expenses)

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11
Q

LLC Phaseout

A

59-69k Single.

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12
Q

Child Tax Credit

A

increased from 1k to 2k for 2018-2024 but not refundable.

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13
Q

Additional Child Tax Credit refundable?

A

Refundable for people who get less than full amount of CTC. refund up to 15% of earned income in excess of 2500$

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14
Q

MAX Add Child Tax Credit

A

1400$ on schedule 8812

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15
Q

CHild Tax credit qualifying child must

A

under 17, desecendent of any fam, not provide half support, dependent

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16
Q

Child Tax Credit Phase out

A

Phase when reach 400k MFJ (200k). Reduced by 50$ for each 1k exceeding threshold.

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17
Q

Credit for Other Dependent is

A

500$ nonrefundable

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18
Q

Retirement Savings Contribution Credit is also called..

A

SAVERS CREDIT

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19
Q

Retirement savings con credit rules

A

must be 18 not dependent Not full time student

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20
Q

Retirement Saving Con Credit Amount

A

50% 20% 10% of plan or ira contribution. up to 2k. 50% = <19.5k
20% = <21.25 k
10% = <32.5 k

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21
Q

Credit for Elderly/Disabled age

A

65

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22
Q

Credit Elderly and Disabled amount

A

15% x initial base amount
Single 5k
MFJ 7.5k
MFS 3.75k

Base is reduced by:
Tax Exempt SS
Pension/annuity benefits
1/2 AGI excess over 7.5k (10kMFJ)

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23
Q

Credit Elderly Disabled Base reductions

A

Base is reduced by:
Tax Exempt SS
Pension/annuity benefits
1/2 AGI excess over 7.5k (10kMFJ)

15% x initial base amount
Single 5k
MFJ 7.5k
MFS 3.75k

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24
Q

Cannot claim elderly credit is AGI > then…

A

SINGLE 17.5k
MFJ (one)20k
MFJ(two) 25k
MFS 12.5k

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25
Q

Cannot claim elderly crdit is nontaxable SS/pension annuity/Disability income is > then…

A

Single 5k
MFJ 1 5k
MFJ 2 7.5k
MFS 3.75k

26
Q

Adoption credit refundable?

A

NO

27
Q

Adoption credit max credit

A

14.3 k per child.

28
Q

Adoption Credit Phase Out

A

MAGI >214,520. Elimianted at 254,520

29
Q

Adoption credit Amount Calcualtion

A

= 14,300 x [ MAGI - (214,520 / 40k) ]

30
Q

Can Adoption Credit to carried

A

Yes forward 5 years not subject to phaseout

31
Q

Residential Mortgage Interest Credit

A

for first principle residence, interest on home is base. Rate is between 10-50% if >20% limit is 2k . Carrried forward 3 years

32
Q

Minimum Tax Credit

A

Allowed for AMT paid in year against reg tax laibility in one or more prior years. NONREFUNDABLE

33
Q

Minimum Tax Credit AMount

A 
AMT that would have been computed is only adj made to taxable income were those for tax favored items that result in deferral as opposed to exclusion. 
- Standard Deduction
Tax Excemt Interest on bonds
-Depletion
-Taxes
34
Q

MTC Allowed

A

limited to current year gross regular tax minus current year tentative minum tax

35
Q

MTC ALlowed

A

Gross Reg Tax - Credits - Tentative Min Tax = MTC Max ALlowed

36
Q

MTC gross reg tax is reduced by..

A

Refundable credits
foreign tax
general business credit

37
Q

MTC carried ?

A

Forward indefinetly

38
Q

Earned Income Credit Disqualified income > what to not claim

A

3,650$ , interest, dividends, gains, nonbusiness rents, royalties’.

39
Q

EIC 0 Qualifying CHildren Max

A

7,030$AGI , 538$

40
Q

EIC 1 QC

A

10,540$ AGI , $3,585

41
Q

EIC 2 QC

EIC 3 QC

A
  1. 8k AGI, $5,920

14. 8 AGI, $6,660

42
Q

EIC PHASE OUTS

A

0 QC 7.65% <15.82k
1QC 15.98% <41.75k
2QC 21.06% <47.44k
3QC 21.06% <50.9k

43
Q

Sec 6695 Penalty for non due diligence for EIC

A

$540

44
Q

Records kept for EIC info

A

3 years

45
Q

Residential Energy Credits amount

A

26% of cost of qualified property including solar, wind

46
Q

Nonbusiness energy property credti amount

A

10%
INsulation
exterior doors, windows skylights

47
Q

Fixed Limited Property for residential energy credit amounts and items

A

enerfy efficient building property 300$
Natural gas, hot water boiler, propane $150
Air ciruclar 50$

48
Q

Premium Tax Credit

A

Taxpayers who obtain health insurance thru marketplace. REFUNDABLE

49
Q

Premium Tax Credit poverty line amounts

A

4x poverty line

50
Q

Premium Tax Credit cost of insurance is capped at what %

A

9.78% of income

51
Q

Premium Tax Credit Eligability

A 
Thru Marketplace
No coverage thru employer/fed plan
Income limits
NOT MFS
NOT a dependent
52
Q

Form 1095 A

A

Marketplace - only one has to wait to receive to file.

53
Q

Form 1095 B

A

Health Provider

54
Q

Form 1095C

A

Employer

55
Q

Health Coverage Tax Credit

A

HCTC refundable , pays 72.5 qualified premiums unill 2021. Cannot take PTC. Can’t be Dependent

56
Q

Estimated Tax Payments Dates

A

April
June
Sept
Jan (adj weekend/holidaty)

57
Q

Estimated Tax Payment amounts

A

25% of the least of
- 100% last year taxes
90% current year tax
90% annualized current year tax

58
Q

Estimated Tax Payment Safe Harbor RUle

A

if if 2019 AGi > 150k must apply rulwe = lesser of 110% tax of 2019 or 90% of 2020

59
Q

Estimated Tax Payment Farmers/FIsh

A

can make in 1 installemnt is 2/3 of income.

60
Q

Exemption from withholding on w4

A

refunded all prior year
not a dependent and <12.4k
Dependent less than 1.1k
dependent less 350$ unearned income

61
Q

Excess SS credit

A

firs 137.7k taxed 6.2% Refund excess amount by other employer.

62
Q

Claim to refund form

A

Form 911

Enrolled Agent (10 decks)

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