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Medical expenses are deductible only to the extent they exceed this percentage of a taxpayer's adjusted gross income.
What is 7.5% of AGI?
Employees generally pay this percentage of wages for the Social Security portion of FICA tax.
What is 6.2%?
Interest earned on this type of bond is generally exempt from federal income tax.
What is a municipal bond?
If a taxpayer cannot sign a return because of a physical condition, this person may generally sign on the taxpayer's behalf if properly authorized.
Who is a duly authorized agent or person holding a valid power of attorney?
This type of property includes a taxpayer's home, car, and investment securities.
What is a capital asset?
Closing costs such as title fees and recording fees paid when purchasing real estate generally have this effect on the property's basis.
What do they increase the basis?
Taxpayers who are age 65 or older or blind may qualify for this in addition to the regular standard deduction.
What is an additional standard deduction?
This tax is imposed on the transfer of property by a deceased person.
What is the estate tax?
A taxpayer receives a cash inheritance from an aunt. The inheritance is generally this for federal income tax purposes.
What is excluded from gross income (not taxable)?
This document authorizes the IRS to discuss a taxpayer's confidential tax information with a designated representative.
What is Form 2848, Power of Attorney and Declaration of Representative?
A taxpayer purchases stock on March 15. For purposes of determining the holding period, counting begins on this day.
What is March 16 (the day after the purchase)?
Insurance reimbursements received for casualty damage generally have this effect on the basis of the damaged property.
What do they decrease the basis?
Gambling losses may be deducted only up to this amount.
What is the amount of gambling winnings?
Unlike Social Security tax, this portion of FICA has no wage base limit.
What is Medicare tax?
An employee receives a holiday turkey from their employer. Because it is a low-value item provided occasionally, it is generally considered this type of fringe benefit.
What is a de minimis fringe benefit?
An electronically filed return is generally considered filed on this date.
What is the date the IRS acknowledges acceptance of the return?
A taxpayer receives stock as an inheritance and sells it six months later. For tax purposes, the gain or loss is generally treated as this type of gain or loss.
What is a long-term capital gain or loss?
Routine repairs, such as painting a home or fixing a leaky faucet, generally have this effect on the property's basis.
What is no effect—they do not change the basis?
A taxpayer donates clothing to a qualified charity. The deduction is generally based on this value of the donated items.
What is the fair market value?
This type of tax system applies higher tax rates as a taxpayer's taxable income increases.
What is a progressive tax system?
Employer-provided meals may be excluded from an employee's income when they are furnished on the employer's business premises for this reason.
What is the convenience of the employer?
Taxpayers who discover an error after filing should generally file an amended return within this number of years after the original return was filed, or within two years after the tax was paid, whichever is later.
What is three years?
This term describes the difference between what a taxpayer paid for property, adjusted for certain increases or decreases, and is used to calculate gain or loss.
What is adjusted basis?
A taxpayer receives inherited property with a fair market value of $200,000 on the decedent's date of death. Six months later, the property is worth $225,000. Unless a special valuation election applies, the taxpayer's basis is this amount.
What is $200,000?
A taxpayer pays for prescription eyeglasses and contact lenses during the year. These expenses may qualify as this type of deduction if the taxpayer itemizes.
What are medical expenses?
This tax is imposed on the sale of certain goods and services, such as airline tickets and certain fuels.
What is an excise tax?
A taxpayer receives damages from a lawsuit for emotional distress that is not related to a physical injury. These damages are generally treated this way.
What are taxable?
This filing status generally cannot be changed to Married Filing Jointly after the due date if the original return was filed using it.
What is Married Filing Separately?
When calculating gain or loss on the sale of property, selling expenses such as commissions reduce this amount.
What is the amount realized?
A taxpayer purchases land for $90,000, pays $5,000 in legal fees related to the purchase, and later receives a $10,000 insurance reimbursement for damage to the land. The adjusted basis is this amount.
What is $85,000?
($90,000 + $5,000 − $10,000 = $85,000)