Vocabulary
An individual who may be claimed on another person's income tax return. To be claimed, a person must meet the qualifying child or qualifying relative test.
What is a dependent?
Unmarried with no kids
What is single? (S)
Tip income is taxable
What is True, if monthly tips are $20 or more?
What does IRS stand for?
Reasonable steps taken by a tax preparer to satisfy compliance with the tax law and ensure that a tax return is correct
What is Due Diligence?
The amount of total tax due to the IRS after any credits and before considering any advance payments (withholding, estimated payments, etc.) made by the taxpayer.
What is tax liability?
Single with dependents, providing over 50% of expenses
What is Head of Household (HOH)
Child-support is non-taxable
What is True
Total income less reductions that are allowable
What is Adjusted Gross Income? (AGI)
How can taxpayers file their taxes?
What is electronically or paper?
Amounts that may be subtracted from income that is otherwise taxable.
What are deductions?
Couple legally married, filing together
What is married filing joint? (MFJ)
Taxpayers cannot be married to file HOH
What is false, taxpayers can be legally married, but considered unmarried for HOH tax purposes.
-They must either be legally separated under a decree of divorce. or meet all of the following requirements: -not be filing a MFJ return, must have provided more than 1/2 support for their home, lived apart for the last 6 months of the tax year, & be able to claim a qualifying person
Money from working.
What is Earned Income?
Dependents must be under age 17 at end of the year to qualify for?
What is the Child Tax Credit? (CTC)
A child who meets the relationship, age, residency, support, joint return, and the special tests regarding a taxpayer to determine the taxpayer's eligibility to claim the Child Tax Credit, Earned Income Tax Credit, or Child and Dependent Care Credit with regard to the child, or to use the head of household filing status.
What is Qualifying Child? (QC)
Couple legally married, filing separately
What is married filing separately? (MFS)
A taxpayer may not claim a person as a dependent unless that person is a U.S. Citizan?
What is False? A dependent can be:
The amount taken out of income by the payer and submitted to the IRS as an advance payment of the taxpayer's federal income tax.
What is Federal Income Tax Withheld
Money or property a taxpayer receives from a retirement plan, such as an individual retirement arrangement (IRA) or an employer-maintained retirement plan.
What is distribution?
A person who (1) is not a qualifying child of any taxpayer; (2) bears a certain relationship to the taxpayer or lives with the taxpayer all year; (3) whose gross income for the year is less than $4,400 for 2022; and (4) for whom the taxpayer provides more than one-half support for the year.
What is Qualifying Relative? (QR)
A taxpayer using MFS must file a tax return if they earn more than?
What is $5
A noncustodial parent can claim ALL the same credits for any tax year they are entitled to claim the child as a dependent?
What is False.
Noncustodial parent can only claim: dependency, CTC, Other dependent credit, & the ACTC
Custodial parent is also entitled to the above and: HOH, Credit for child & dependent care expenses, and EIC
Total income received in the form of money, property, or services that is subject to tax.
What is Gross Income?
An agreement between taxpayers who collectively provide at least 50% of a dependent relative's support.
What is a Multiple Support Agreement?