Taxpayers & Dependents
A taxpayer who is unmarried, pays more than half the cost of maintaining a home, and has a qualifying person living with them may qualify for this filing status.
What is Head of Household?
This doctrine requires taxpayers to include income when it is credited to their account or otherwise made available to them, even if they do not physically receive it.
What is constructive receipt?
The amount realized from the sale of property minus the property's adjusted basis equals this.
What is a gain or loss?
Even when a taxpayer receives a filing extension, this must generally still be done by the original due date to avoid penalties and interest.
What is pay any tax due?
This tax is imposed on earned income to fund Social Security and Medicare programs.
What is FICA tax?
This is generally the starting basis of property purchased in an arm's-length transaction.
What is the cost of the property?
This form is used to report and reconcile premium tax credits received through the Health Insurance Marketplace.
What is Form 8962?
A qualifying child must generally be younger than the taxpayer and under this age at the end of the year, unless a student.
What is age 19?
A taxpayer receives a cash prize for winning a contest. Unless specifically excluded by law, the prize is included in this type of income.
What is gross income?
A capital asset held for more than one year generates this type of gain when sold at a profit.
What is a long-term capital gain?
A taxpayer who discovers an error on a previously filed return generally uses this form to correct it.
What is Form 1040-X?
The Additional Medicare Tax applies to wages and self-employment income exceeding this amount for a single taxpayer.
What is $200,000?
A taxpayer purchases stock for $5,000 and later receives a $500 return of capital distribution. This becomes the stock's adjusted basis.
What is $4,500?
This form is used to claim the American Opportunity Credit and the Lifetime Learning Credit.
What is Form 8863?
This tiebreaker rule applies when two taxpayers can claim the same qualifying child, but neither taxpayer is the child's parent.
What is the highest AGI rule?
Under the claim of right doctrine, income received without restriction as to its use is generally taxable in the year it is received, even if the taxpayer may have to do this later.
What is repay the income?
A taxpayer sells stock held for 11 months and recognizes a gain. The gain is taxed at this type of capital gain rate.
What is a short-term capital gain rate (ordinary income tax rates)?
The due date for an individual income tax return is generally this date unless it falls on a weekend or holiday.
What is April 15?
This tax may apply when a taxpayer receives a large distribution from a qualified retirement plan and fails to meet an exception to the general rule.
What is the 10% early withdrawal penalty tax?
The basis of inherited property is generally this value on the decedent's date of death.
What is fair market value?
This form is used to amend a previously filed individual income tax return.
What is Form 1040-X?
This tiebreaker rule applies when two taxpayers can claim the same qualifying child, but neither taxpayer is the child's parent.
What is the highest AGI rule?
This form is commonly issued to independent contractors and reports nonemployee compensation of $600 or more.
What is Form 1099-NEC?
When property is inherited, its basis is generally adjusted to this value on the decedent's date of death.
What is the fair market value (stepped-up basis)?
This filing status generally provides the lowest tax rates and highest standard deduction for married couples.
What is Married Filing Jointly?
This tax may apply to individuals with significant investment income and modified adjusted gross income above certain thresholds.
What is the Net Investment Income Tax (NIIT)?
Improvements that add value to property generally have this effect on basis.
What is increase basis?
Taxpayers use this schedule to report capital gains and losses from the sale of investments.
What is Schedule D?
A taxpayer's parent does not have to live with the taxpayer to meet this special rule for Head of Household status.
What is the qualifying parent exception?
A taxpayer receives compensation for services in the form of property rather than cash. The fair market value of the property is generally included in income under this principle.
What is income can be received in any form, whether money, property, or services?
The sale of stock at a loss followed by the purchase of substantially identical stock within 30 days before or after the sale triggers this rule.
What is the wash sale rule?
A taxpayer who cannot obtain a spouse's signature on a joint return because the spouse died during the tax year may generally do this.
What is sign the return on behalf of the deceased spouse and note that the spouse is deceased?
Self-employed individuals generally pay this tax to cover both the employee and employer portions of Social Security and Medicare taxes.
What is self-employment tax?
A taxpayer receives a gift with the donor's basis of $10,000 and a fair market value of $8,000 on the date of the gift. For purposes of determining a loss, this amount may be used as the basis.
What is $8,000 (fair market value at the date of the gift)?
This form is used by taxpayers to calculate and report depreciation and amortization deductions.
What is Form 4562?