Deductions
This deduction is a set amount based on your filing status
What is a Standard Deduction
These offer dollar-for-dollar reduction in tax liability or increase tax refund
What are Tax Credits
This is a person, other than the taxpayer or spouse, who entitles the taxpayer to claim an exemption
What is a Dependent
This excludes certain income, revenue, or even taxpayers from tax altogether.
Self-employed individuals are independent contractors and not ______________
What are Employees
This deduction is an expenditure on eligible products, services, or contributions that can be subtracted from adjusted gross income (AGI) to reduce your tax bill.
What are Itemized Deductions
This credit allows taxpayers to claim a tax credit of up to $2,000 per qualifying child.
What is the Child Tax Credit
This is the number of tests that must be passed to qualify a child as a dependent
What is Five
These are the two most common types of exemptions
What are Personal and Dependency
This form is where self-employment taxes are calculated
What is the Schedule SE (1040 form)
This lowers a person’s taxable income
What are Tax Deductions
This is money owed to taxpayers when their total tax payments are greater than their total tax liability
What is a Refund
You can not claim a person as a dependent unless they are your
What is Qualifying Child/Qualifying Relative
Each exemption _________ income subject to tax
What is reduces/decreases
The self-employment tax does this to the total tax on Form 1040
What is Increases
Charitable Contributions & Medical & Dental Expenses are examples of ____________ this type of deduction
What are Itemized (Deductions)
This credit is available for all years of postsecondary education and for courses to acquire or improve job skills
What is the Lifetime Learning Credit
This qualifying child test looks at when your child was born
What is the Age Test
There are ________ tests that must be met to claim a qualifying relative
What is Three
(Dependent Taxpayer Test, Joint Return Test & Citizen or Resident Test)
Self-employed workers may receive this form for Miscellaneous Income
What is the 1099-MISC
Total income reduced by certain amounts, such as for an IRA or student loan interest
What is Adjusted Gross Income (AGI)
This credit is available for first 4 years of postsecondary education, cannot be claimed more than 4 tax years
What is the American Opportunity Credit
This test requires a child to have the same principle residence as the taxpayer for more than half the tax year
What is a Residency Test
The Tax Cuts and Jobs Act suspended this type of exemption
What is the Personal (Exemption)
This is the Tax Rate for Self-Employed Individuals
What is 15.3%