Filing Status, Dependents & Income Basics
What form reports wages earned from an employer?
Form W-2
What is the 2024 standard deduction for a Single filer?
$14,600
Which credit helps low- to moderate-income workers and is refundable?
Earned Income Tax Credit (EITC)
What number must all paid preparers have to legally prepare federal tax returns?
PTIN (Preparer Tax Identification Number)
A stock held more than one year before selling is considered what type of gain or loss?
Long-term capital gain or loss
What are the five federal filing statuses?
Single, Married Filing Jointly, Married Filing Separately, Head of Household, Qualifying Surviving Spouse
Up to how much student loan interest can a taxpayer deduct as an adjustment to income?
$2,500
Which IRA allows tax-free withdrawals in retirement? Traditional or Roth?
Roth IRA
What form is used to authorize e-file signatures for electronically filed returns?
Form 8879
How much capital loss can an individual deduct against ordinary income per year?
$3,000 ($1,500 MFS)
True or False: A qualifying child must live with the taxpayer for more than half the year.
Name one reason a taxpayer might itemize instead of taking the standard deduction.
High mortgage interest, high state/local taxes, large charitable donations, high medical expenses
What age can taxpayers withdraw from a traditional IRA without penalty?
59½
If an e-filed return is rejected, how many days does the taxpayer have to correct and resubmit it?
5 days
How much gain can a Single taxpayer exclude on the sale of their primary residence if they meet the tests?
$250,000 ($500,000 MFJ)
What test determines whether a dependent provided less than half of their own financial support?
Support Test
Medical expenses must exceed what percentage of AGI to be deductible on Schedule A?
7.5% of AGI
Name one refundable portion of the Child Tax Credit.
Additional Child Tax Credit (ACTC)
Name one warning sign of a potentially fraudulent return.
Same address for multiple returns, missing schedules, unsupported expenses, suspicious dependents (ANY 1)
Name one requirement for property to be depreciable.
Must be used in business/producing income, has a useful life >1 year, and must wear out/be used up (Any 1)
Name two types of income that are taxable, even if the taxpayer does not receive a Form 1099.
Cash income, self-employment income, bartering, tips, gambling winnings (ANY 2)
What is the maximum educator expense deduction teachers can take for 2024?
$300 per educator (or $600 for married teachers MFJ)
Which schedule is used to report additional taxes, including self-employment tax?
Schedule 2
What is the difference between an innocent spouse and an injured spouse?
Innocent spouse seeks relief from tax on a spouse’s wrongdoing
Injured spouse wants to protect their portion of a refund from being taken for the other spouse’s past debts
What depreciation method is commonly used for most business equipment placed in service after 1986?
MACRS (Modified Accelerated Cost Recovery System)