Filing Status
Tax filings generally with the lowest tax rate.
Married filing jointly and Qualifying Widow
A qualifying child must have the same principal residence as the taxpayer for how long?
More than half the year.
Which of the following is an example of unearned income:
Wage, A bonus from their employer, Unemployment compensation or Self-Employment
Unemployment compensation
Total income minus total total adjustments.
Adjusted Gross Income
Form used to report unemployment compensation.
1099-G
To be a qualifying relative
You must have provided more than half the person's support.
A dependent that does NOT have to live with the taxpayer to qualify for Head of Household filing status.
Parents
Joe contributes part of his salary to the 401K retirement plan set up by his employer. Will Joe have to pay tax on these contribution?
Not until the money is withdrawn
In 2020, what IRS forms can be use to repot income and expenses?
1040
When a taxpayer sells an item they have held as an investment, Schedule D and form 8949 are use to report 4 important facts considering the sale of the asset.
The date asset was acquired, the basis, the date the items was sold, the proceeds.
Joe and Riley are married. Joe works as a computer technician. Riley stays home with their baby and has no income.
Married Filing Jointly
To determined if as individual can be claimed as a dependent, three rules must first be met.
Joint Return test
Dependent taxpayer test
Citizen or resident test
What percent of your tax liability are you expected to pay during the year?
90%
Sonia (67) is single, received nontaxable social security of $9,000, and made $750 net from selling Christmas ornaments at a craft show
Sonia must file a tax return.
Form 1099-S reports what?
Sales or exchange of real estate.
There are five filing Status.
Single
Married Filing Jointly
Married Filing Separate
Head of Household
Qualifying Widow(er)
Support test for a qualifying relative.
You must have provided more than half of the dependents support
The value os a non cash gift such as a ham or turkey does not have to be included in your gross income
(True/False)
True
Who may file a tax return for a person who passed away?
The taxpayer's spouse or a personal representative
When a taxpayer withdraws money from a savings account before the maturity date, they may forfeit some of the interest played. This is called:
An early withdrawal penalty
Judy's spouse died two years ago. She live alone on a retirement home.
Single
The five test for a qualifying child
Relationship, Age, Residency, Support, Joint Return
Sylvia is a waitress. The amount on line 1 of her w2 is 17,540. She reported tips of 2,489 to her employer. Her under reported tips totaled 37. What is the amount of he tips included in box 1 of her w2?
$2,489
If taxpayers are self-employed with no other income, they have to file a return if they have net earning from self-employment of:
$400
Form W-4V, Voluntary Withholding Request, might be used for:
Social security benefits
Tier 1 Railroad retirement benefits
Unemployment compensation