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a specific dollar amount that reduces the amount of income on which you're taxed
What is standard deduction?
Federal income tax is a “_____” system. If you fail to pay the amount owed fees may be assessed.
What is pay as you go?
_____ includes all income from all sources: money, goods, property, services.
What is gross income?
True/False: the standard deduction for dependents can exceed the regular standard deduction.
What is FALSE?
Cannot exceed the regular standard deduction
Bitcoin is an example of _____.
What is virtual currency?
an expenditure on eligible products, services, or contributions that can be subtracted from adjusted gross income (AGI) to reduce your tax bill
What is itemized deduction?
The regular due date for the 2020 individual federal income tax return (Form 1040) is _____.
What is April 15, 2021?
______ is an IRS tax form that must be completed if a taxpayer has received interest income and/or ordinary dividends over the course of the year.
What is Schedule B?
_____ is financial support that a person is ordered by a court to give to their spouse during separation or following divorce.
What is alimony?
Name at least 2 types of transactions involving virtual currency.
What is...
The receipt or transfer of virtual currency for free (without providing any consideration)
An exchange of virtual currency for goods or services
A sale of virtual currency
An exchange of virtual currency for other property, including for another virtual currency
an individual's total gross income minus specific deductions
What is Adjusted Gross Income (AGI)?
If the tax return due date falls on a Saturday, Sunday or legal holiday, the due date is delayed until _____.
What is the next business day?
Use _____ to report income or loss from a business you operated or a profession you practiced as a sole proprietor.
What is Schedule C?
Standard deduction for dependents is limited to the greater of ____ or _____.
What is:
$1,100 in 2020
OR
The individual’s earned income from the year, plus $350
Taxpayers with income or expenses that receive special treatment under the regular tax system may be subject to an additional tax known as the _______.
What is alternative minimum tax (AMT)?
12 consecutive months ending on the last day of any month except December
What is fiscal year?
Taxpayers can benefit if standard deduction is ___ than their itemized deductions.
What is MORE?
Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin --> In these states, any income that qualifies under state law as ________ is divided equally between the spouses for tax purposes.
What is "community income?"
For purposes of the child and dependent care credit, a "qualifying person" is:
What is...
A dependent who was under age 13 when the care was provided.
An individual living with a taxpayer for more than half of a year who is physically or mentally unable to care for himself, if he is:
1. A spouse
2. A dependent
3. Would have been a dependent except for one of the following:
A. He received gross income of $4,300 or more in 2020
B. He filed a joint return
C. Another person could claim the taxpayer or the taxpayer’s spouse as a dependent
Premium tax credits are available only to individuals and families with household incomes of at least 100—but no more than 400—percent of the _____.
What is federal poverty level?
direct deduction against income tax liability --> reduces what is owed for taxes dollar-by-dollar
What is tax credit?
Taxpayer can claim up to $_____ of itemized deductions (or $_____ if married filing separate).
What is $10,000 / $5,000?
Keep records as long as needed until the ______ for the return expires.
What is period of limitations?
BEFORE/DURING:
alimony is deductible by the payor and includible in the recipient's income
AFTER:
not deductible / non included in income
If taxpayers convert amounts in a traditional IRA to a Roth IRA, the amount converted is includible in the ______.
What is taxpayer’s income?