Dependents
What 5 tests need to be met for a child to be your qualifying child?
Relationship, age, residency, support & joint return
(Pub 17 p.28)
What is the maximum credit available for each education credit and how many years is each credit available?
AOTC: $2500 per eligible student. 4 years max per student. (Pub 4012 p. J-8)
LLC: $2000 per return. Unlimited number of years. (Pub 4012 p. J-8)
ITINs need to be included on a federal tax return at least once in ________ years to be considered active
Three consecutive
(Pub 4012 p. L-11)
What boxes on a 1098-T are out of scope (OOS)?
Boxes 4 & 6
(Pub 4012 p. xiv)
A portion of ____ is deductible as an adjustment to income on Schedule 1
Self-employment tax
What questions do you need to ask to determine if a taxpayer can claim their 20 year old as a qualifying child dependent?
Were they a full time student?
Did the child provide more than half of their own support?
Did the child live with the taxpayer for more than half the year, excluding temporary absences such as attending college?
What are considered qualifying expenses for the Lifetime Learning Credit?
Tuition. Student activity fees and expenses for course-related books, supplies, and equipment are included in qualified education expenses only if the fees and expenses are required to be paid to the institution for enrollment or attendance
(Pub 4012 p. J-10)
What identifying number do you enter on the W-2 screen for an ITIN holder?
ITIN SSN
What is the VITA scope limitation for noncash charitable contributions?
$500 or less
BONUS: Up to $5000 for Military cert only. Tax-Aide can also do up to $5000.
(Pub 4012 p.xviii)
To be deductible, a business expense must be both ____ and _____
Ordinary and necessary
(Pub 4012 p. D-38)
Who is entitled to claim a dependent that lived equally with two separate parents (180 days each)?
The parent with the higher AGI or per Form 8332.
(Pub 17 p. 29, Pub 4012 p. C-8)
If scholarships are taxable, to whom are they taxable?
To the student, regardless of who takes the education credit.
In addition to all required supporting documentation, what must be submitted with a W-7 in order to apply for an ITIN?
A U.S. federal income tax return
What boxes on a 1099-MISC are OOS?
5, 7, 9-15
(Pub 4012 p xv)
Where do you enter a 1099-K on a return?
In the “Income” screen of a Schedule C
Name 5 things that are included in “total support” when determining dependency.
Food, lodging, clothing, education, medical and dental care, recreation, transportation and similar necessities
(Pub 17 p. 35)
What can be adjusted to maximize the education credit on a return?
The taxability of unrestricted scholarships
Where does the Oregon EIC for ITIN holders appear on a return?
As a refundable credit on line 39 of the OR-40
Name two situations that are out-of-scope for taxpayers with Marketplace health insurance (1095-A)
Part IV Allocation of Policy Amounts
Part V Alternative Calculation for Year of Marriage
If marketplace premiums are to be used for the self-employed health insurance adjustment to gross income
Employee has code FF in box 12 of Form W-2, has a Marketplace policy, and is otherwise eligible for PTC
Employee covered through an Individual Coverage Health Reimbursement Arrangement (ICHRA) if the taxpayer claims entitlement to PTC
Name two ways self-employed health insurance can be used on a tax return.
Deducted as an adjustment to income or entered as part of medical expenses on Sch. A
When does Kiddie Tax kick in?
$2700 of unearned income, including taxable scholarships & grants, for a child under 18 and in certain situations if the child is older.
(IRS.gov Topic 553)
Name two requirements for claiming Oregon subtraction code 333
Taxable scholarship claimed on student’s federal return
Housing expenses paid by or on behalf of student
Subtraction can’t be more than the amount of scholarship income included in federal taxable income.
What federal tax credits are available to a taxpayer with an ITIN? Assume no spouse with SSN.
Credit for Other Dependents, Child & Dependent Care Credit
https://blog.taxact.com/obbb-limits-tax-credits-for-itin-filers-without-ssn/
Name 8 self-employment situations that are out of scope.
Businesses with inventory, employees, contract labor, depreciation, individual asset purchases exceeding $2,500, business use of the home, expenses over $50,000 or a net loss.
(Pub 4012 p. D-35)
Who administers the TriMet & MultCo SE taxes?
TriMet: Oregon Department of Revenue
MultCo: City of Portland Revenue Division