Definitions
12 consecutive months ending on the last day of any month except December. Used for taxes.
What is fiscal year?
What is a direct credit against tax liability? Reduces what is owed dollar by dollar.
What is tax credit (credit against tax)?
True/false: parents are eligible to receive tax credit.
What is true?
True/false: tax credits are available for being a public school high school student.
What is false?
What is an advanced payment that is considered non-taxable income?
What is economic payment?
The US Federal government runs on an _____ to _____ fiscal year. Give dates.
What is October 1 to September 30?
The Foreign Earned Income Exclusion income limit is now ______.
What is $107,600?
The limit on adoption expenses is based on ____.
What is MAGI (modified adjusted gross income)?
Teachers can claim up to ____ of eligible tax credit.
What is $250?
What does AGI stand for?
What is Adjusted Gross Income?
What is the 2020 Fiscal Year?
What is October 1, 2019 to September 30, 2020?
The Medical Expense AGI limit is now at ___.
What is 7.5%?
Dependent care expenses are possible to claim for individuals who _____.
What is paid someone to care for a child or dependent so they could work?
What is:
up to $2,500 of the cost of tuition, fees and course materials paid during the taxable year. Also, 40% of the credit (up to $1,000) is refundable. This means you can get it even if you owe no tax?
Deductions for mileage rates can only be used for what purposes?
What is work purposes?
What is an IRA, and why do people have them?
What is Individual Retirement Account? To put money aside for their future.
Name an improvement that qualifies for the Nonbusiness Energy Property Credit.
What is
Energy-efficient exterior windows, doors and skylights
Roofs (metal and asphalt) and roof products
Insulation?
Many families save. The Saver's Credit is a tax credit for contributions made to ____. (give one eligible contribution)
What is:
contributions you make to a traditional or Roth IRA,
elective salary deferral contributions to a 401(k), 403(b), governmental 457(b), SARSEP, or SIMPLE plan,
voluntary after-tax employee contributions made to a qualified retirement plan (including the federal Thrift Savings Plan) or 403(b) plan,
contributions to a 501(c)(18)(D) plan, or
contributions made to an ABLE account for which you are the designated beneficiary (beginning in 2018).
How much is the Lifetime Learning Credit?
What is:
20 percent of the first $10,000 of qualified education expenses or a maximum of $2,000 per return. The LLC is not refundable?
What is a mistake that many expats make with their taxes?
What is not filing taxes because they live abroad?
What is the difference between standard deduction and itemized deduction?
What is: Standard deduction that reduces the amount of income on which you're taxed. Itemized deduction an expenditure on eligible products, services, or contributions that can be subtracted from adjusted gross income (AGI) to reduce your tax bill.
Please explain what QPRI is.
What is Qualified Principle Residence Indebtedness? The QPRI exclusion allows a taxpayer to exclude up to $2 million of the forgiven debt related to a decline in the value of the residence or to the financial condition of the taxpayer.
BONUS question: what is *the* most important thing we should be asking for from our clients? Without this, we are more likely to be audited.
What is DOCUMENT, DOCUMENT, DOCUMENT!
Part of the American Opportunity Tax Credit is refundable. The Lifetime Learning Credit is non-refundable. Explain this difference.
What is:
- recipients of AOTC can receive a refund... eligible for money even if they do not owe taxes to IRS
- recipients of LLC only tax credit
EIC question:
George has two kids. He makes less than $47,440 per year. He can receive up to _____.
What is $5,920?