👨👩👧 Who's Your Taxpayer?
A qualifying child must generally be younger than this age at the end of the tax year, unless permanently disabled.
What is under age 19 (or under age 24 if a full-time student)?
This type of return is filed for a taxpayer who died during the tax year.
What is a decedent's final income tax return?
These deductions reduce your income before calculating your adjusted gross income (AGI).
What are adjustments to income?
This filing option gives taxpayers additional time to file their return but not additional time to pay any tax due.
What is an extension of time to file?
A gain occurs when property is sold for more than this amount.
What is the adjusted basis?
This form is used to claim a refund on behalf of a deceased taxpayer when certain requirements are met.
What is Form 1310?
This relationship test allows an eligible foster child placed by an authorized agency to qualify as a dependent.
What is the relationship test?
The person legally responsible for filing a deceased taxpayer's final return is generally known by this title.
Who is the personal representative (executor or administrator)?
Self-employed individuals may deduct this cost for themselves, their spouse, and qualifying dependents if they meet the requirements.
What is self-employed health insurance?
Taxpayers who cannot pay their entire balance by the due date should still do this to reduce penalties.
What is file the return on time?
The difference between the amount realized from a sale and the adjusted basis is called this.
What is a gain or loss?
A fiduciary uses this return to report income earned by an estate or trust after a taxpayer's death.
What is Form 1041?
A person who files a joint return with their spouse generally cannot be claimed as someone else's dependent unless this exception applies.
What is the joint return was filed only to claim a refund of withholding or estimated tax payments?
This taxpayer identification number is required before an estate or trust can file its tax return.
What is an Employer Identification Number (EIN)?
Unlike itemized deductions, adjustments to income can generally be claimed whether a taxpayer itemizes or claims this.
What is the standard deduction?
This type of signature allows taxpayers to submit returns electronically without mailing a paper signature.
What is an electronic signature?
Property held for personal use generally produces this type of loss when sold for less than its basis.
What is a nondeductible personal loss?
This form reports the sale or exchange of real estate, including most home sales.
What is Form 1099-S?
If two taxpayers can claim the same qualifying child, these IRS rules determine who is entitled to the dependency.
What are the tie-breaker rules?
Income earned after a person's death belongs to this taxable entity rather than the individual.
What is the estate?
Contributions to this type of retirement account may reduce a taxpayer's income if they qualify.
What is a traditional IRA?
This document helps taxpayers verify the income reported on their tax return before filing.
What is an information return (such as a W-2 or 1099)?
The holding period for most property begins on this day.
What is the day after the property is acquired?
This form reports canceled debt that may need to be included in a taxpayer's income.
What is Form 1099-C?
A newborn child who is born alive at any time during the tax year is treated as meeting the residency test for this length of time.
What is the entire tax year?
This return is often required when someone receives income on behalf of a deceased taxpayer after death, such as interest or dividends.
What is the estate's Form 1041?
These qualified education costs may allow an adjustment to income for eligible taxpayers.
What is student loan interest?
If both spouses sign a joint return, they generally share this for the tax due.
What is joint and several liability?
This type of property is generally not considered a capital asset.
What is business or inventory property?
This form reports proceeds from broker transactions involving the sale of stocks, bonds, and other securities.
What is Form 1099-B?
A 22-year-old full-time college student lives with her parents all year, does not provide more than half of her own support, and has a part-time job. She generally qualifies as this type of dependent.
What is a qualifying child?
This type of income received after a person's death is generally taxable to the estate or the person who receives the income.
What is Income in Respect of a Decedent (IRD)?
Educators who purchase qualifying classroom supplies may qualify for this adjustment.
What is the educator expense deduction?
If a taxpayer is due a refund, choosing this filing method is generally the fastest way to receive it.
What is electronic filing with direct deposit?
Selling an investment asset after owning it for exactly one year results in this type of gain or loss.
What is a short-term capital gain or loss?
(Because it must be held more than one year to be long-term.)
A taxpayer sold stock, received retirement distributions, had canceled debt, and inherited income from a trust. Identify the four information returns they would likely receive.
What are Forms 1099-B, 1099-R, 1099-C, and Schedule K-1?
A taxpayer's 30-year-old brother lived with the taxpayer all year and meets all other dependency requirements. He does not have to live with the taxpayer to qualify because he meets this test.
What is the relationship test?
When a taxpayer dies, the tax year for that individual generally ends on this event.
What is the date of death?
Why are adjustments to income valuable beyond simply lowering taxable income?
What is they reduce AGI, which can increase eligibility for other deductions and credits?
A taxpayer files an extension but pays none of the tax owed by the original due date. The extension helps them avoid this penalty, but not this other penalty.
What is it avoids the failure-to-file penalty, but not the failure-to-pay penalty?
A taxpayer sells stock at a loss on December 20 and purchases substantially identical stock on January 5. This rule prevents the taxpayer from deducting the loss.
What is the wash sale rule?
This form reports distributions from an ABLE (Achieving a Better Life Experience) account.
What is Form 1099-QA?