Unit 8 Flashcards
MAX FTC
US income x (Foreign income/WW income)
FTC is claimed on ..
Form 1116 unless all passive income <300$
Can FTC excess be carried
Yes back 1 year and forward 10
Child/Dependent Care Credit LIMIT
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.
Child and dependent care credit amount
35% of expenses . Reduced by 1% for evert 2k where AGI exceeds 15k. Over 43k = 20% Form 2441
2 Education Credits
AOC: Partially refundable and LLC . Not refundable
AOC max
$2500. 100% of first 2000 and 25% of next 2000. ONly used 4 times
AOC Phase out
phase out 80-90k. MFS cannot claim. $2,500 x 90k-MAGI/10k
AOC Refundable?
yes up to 40%
LLC max
20% expenses up to 2000$ (10k expenses)
LLC Phaseout
59-69k Single.
Child Tax Credit
increased from 1k to 2k for 2018-2024 but not refundable.
Additional Child Tax Credit refundable?
Refundable for people who get less than full amount of CTC. refund up to 15% of earned income in excess of 2500$
MAX Add Child Tax Credit
1400$ on schedule 8812
CHild Tax credit qualifying child must
under 17, desecendent of any fam, not provide half support, dependent
Child Tax Credit Phase out
Phase when reach 400k MFJ (200k). Reduced by 50$ for each 1k exceeding threshold.
Credit for Other Dependent is
500$ nonrefundable
Retirement Savings Contribution Credit is also called..
SAVERS CREDIT
Retirement savings con credit rules
must be 18 not dependent Not full time student
Retirement Saving Con Credit Amount
50% 20% 10% of plan or ira contribution. up to 2k. 50% = <19.5k
20% = <21.25 k
10% = <32.5 k
Credit for Elderly/Disabled age
65
Credit Elderly and Disabled amount
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)
Credit Elderly Disabled Base reductions
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
Cannot claim elderly credit is AGI > then…
SINGLE 17.5k
MFJ (one)20k
MFJ(two) 25k
MFS 12.5k
Cannot claim elderly crdit is nontaxable SS/pension annuity/Disability income is > then…
Single 5k
MFJ 1 5k
MFJ 2 7.5k
MFS 3.75k
Adoption credit refundable?
NO
Adoption credit max credit
14.3 k per child.
Adoption Credit Phase Out
MAGI >214,520. Elimianted at 254,520
Adoption credit Amount Calcualtion
= 14,300 x [ MAGI - (214,520 / 40k) ]
Can Adoption Credit to carried
Yes forward 5 years not subject to phaseout
Residential Mortgage Interest Credit
for first principle residence, interest on home is base. Rate is between 10-50% if >20% limit is 2k . Carrried forward 3 years
Minimum Tax Credit
Allowed for AMT paid in year against reg tax laibility in one or more prior years. NONREFUNDABLE
Minimum Tax Credit AMount
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
MTC Allowed
limited to current year gross regular tax minus current year tentative minum tax
MTC ALlowed
Gross Reg Tax - Credits - Tentative Min Tax = MTC Max ALlowed
MTC gross reg tax is reduced by..
Refundable credits
foreign tax
general business credit
MTC carried ?
Forward indefinetly
Earned Income Credit Disqualified income > what to not claim
3,650$ , interest, dividends, gains, nonbusiness rents, royalties’.
EIC 0 Qualifying CHildren Max
7,030$AGI , 538$
EIC 1 QC
10,540$ AGI , $3,585
EIC 2 QC
EIC 3 QC
- 8k AGI, $5,920
14. 8 AGI, $6,660
EIC PHASE OUTS
0 QC 7.65% <15.82k
1QC 15.98% <41.75k
2QC 21.06% <47.44k
3QC 21.06% <50.9k
Sec 6695 Penalty for non due diligence for EIC
$540
Records kept for EIC info
3 years
Residential Energy Credits amount
26% of cost of qualified property including solar, wind
Nonbusiness energy property credti amount
10%
INsulation
exterior doors, windows skylights
Fixed Limited Property for residential energy credit amounts and items
enerfy efficient building property 300$
Natural gas, hot water boiler, propane $150
Air ciruclar 50$
Premium Tax Credit
Taxpayers who obtain health insurance thru marketplace. REFUNDABLE
Premium Tax Credit poverty line amounts
4x poverty line
Premium Tax Credit cost of insurance is capped at what %
9.78% of income
Premium Tax Credit Eligability
Thru Marketplace No coverage thru employer/fed plan Income limits NOT MFS NOT a dependent
Form 1095 A
Marketplace - only one has to wait to receive to file.
Form 1095 B
Health Provider
Form 1095C
Employer
Health Coverage Tax Credit
HCTC refundable , pays 72.5 qualified premiums unill 2021. Cannot take PTC. Can’t be Dependent
Estimated Tax Payments Dates
April
June
Sept
Jan (adj weekend/holidaty)
Estimated Tax Payment amounts
25% of the least of
- 100% last year taxes
90% current year tax
90% annualized current year tax
Estimated Tax Payment Safe Harbor RUle
if if 2019 AGi > 150k must apply rulwe = lesser of 110% tax of 2019 or 90% of 2020
Estimated Tax Payment Farmers/FIsh
can make in 1 installemnt is 2/3 of income.
Exemption from withholding on w4
refunded all prior year
not a dependent and <12.4k
Dependent less than 1.1k
dependent less 350$ unearned income
Excess SS credit
firs 137.7k taxed 6.2% Refund excess amount by other employer.
Claim to refund form
Form 911
