Age >65
What form can be filed when you are 65 and Older?
1040-SR. What changes are on this return?
Is there a limit to how many dependents can be claimed?
Simply, no. However each dependent must be the IRS's requirements to be eligible for any benefit.
What is the most common tax filing error?
Incorrect SSN
What was the maximum social security wages?
$168,600 for 2024 and $176,100 for 2025
On the W-2 what does the box 5. represent?
a. Wages, tips, other compensation
b. Social security tax withheld
c. Medicare wages and tips
d. Other
c. Medicare wages and tips
Is the standard deduction different for Seniors?
Yes, the standard deduction for anyone over the age of 65 is $16,550 for single and $30,750 for MFJ
What tests must a dependent pass to receive benefit?
Dependent taxpayer test (are they claimed by another), Joint return test (if they have filed married filing jointly you cannot claim them), and citizen test (a valid us resident)
When the IRS started requiring dependents SSN, how many children "vanished" from tax returns the next year?
7 Million
What is the standard deduction for a Single person?
$14,600 for 2024 and $15,000 for 2025
What is the purpose of a 1099 consolidated.
The consolidated 1099 is used to report Dividends, Interest, and Stock sales related to a brokerage account.
Do seniors always have to file?
IT DEPENDS...... the same requirement is for all individuals (seniors have the additional subtraction from their Income). If their income exceeds the standard deductions they are required to file otherwise the answer is no.
What are the requirements for claiming head of household?
Unmarried or considered seperated/unmarried.
Paid more than half of the cost of keeping up a home.
Qualifying person lived with you. The individual must have resided with you for more than half the year.
How many forms could you possibly attach to a 1040?
150-175
What is the standard deduction for MFJ in 2024 and 2025?
$29,200 for 2024 and $30,000 for 2025
What is the purpose of a schedule C, E, and F?
A schedule C reports a small businesses activity. These are typically sole proprietorships.
A schedule E reports rent and royalties as well as K-1 activity.
A schedule F reports all FARM activity.
Do states give special tax benefits to seniors?
Sometimes, States like NC and SC give certain benefits to seniors. South Carolina allows for the first $15,000 of retirement income to be excluded.
What is an other dependent?
An other dependent is NOT a qualifying child, they ARE related to you or reside with you, their gross income is LESS than $4,700, you provide more than HALF of the person's total support for the year, and the individual is a U.S. Citizen or Resident.
The Federal Tax Code was 400 pages in 1913. How many pages was it in 2010?
70,000
If a dependent made over what amount of unearned income are they required to file a tax return?
$1,250
Unearned income is income received from sources other than employment or active business activities. It generally includes money that is not earned through work or providing services.
Interest, Dividends, Cap Gain, SS Benefit, Trust Income, Etc.
How long should you keep a copy of a tax return?
The IRS recommends keeping all supporting documents as well as the tax return for at least 3 years.
Are Life insurance proceeds taxable to seniors beneficiaries?
Generally, no. They are typically not considered taxable income. However the interest from these proceeds could be taxable.
Can a dependent be claimed by multiple people?
No. However some people have tried to sell children's SSN so that they can claim a child they don't have.
In what state is candy made with flour taxed at a cheaper rate than candy made without flour?
Illinois
Treats containing flour such as Kit Kats, Twix are considered groceries, not candy, and are taxed at a lower rate than are other items designated “candy” and prepared without flour, such as Starburst, Skittles
The absence of that one ingredient can cost you more than six times the sales taxes. Candy is taxed at 6.25%, groceries at 1%.
If you were filing Married Filing Separately, what is the lowest amount of gross income you could have to not be required to file a tax return?
What form is used to amend a tax return and can you amend a final tax return?
The 1040-X is used to amend an individuals tax return.
You can!