⭐ Cha-Ching! Credits!
This credit helps offset the cost of raising qualifying children.
What is the Child Tax Credit?
A taxpayer who is unmarried and does not qualify for another filing status generally files this way.
What is Single?
This form is used to request an automatic extension of time to file an individual income tax return.
What is Form 4868?
This return is filed to report the income, deductions, gains, and losses of an estate or trust.
What is Form 1041?
A qualifying child generally must meet this test by living with the taxpayer for more than half the year.
What is the residency test?
This is the basis of property received as compensation for services.
What is the fair market value of the property when received?
To qualify for the Child Tax Credit, a qualifying child generally must be under this age at the end of the tax year.
What is age 17?
This penalty generally applies when a taxpayer does not file a required return by the due date.
What is the failure-to-file penalty?
This form is used to amend a previously filed individual income tax return.
What is Form 1040-X?
This person is responsible for managing the assets and affairs of an estate or trust.
Who is a fiduciary?
To be a qualifying child, the individual generally must be under this age at the end of the tax year, unless a qualifying student or permanently disabled.
What is age 19?
The basis of property received in exchange for services generally equals this amount.
What is the fair market value of the property?
This credit encourages taxpayers to save for retirement by contributing to eligible retirement plans.
What is the Retirement Savings Contributions Credit (Saver's Credit)?
For federal tax purposes, marital status is generally determined on this date.
What is December 31?
This form authorizes an individual to represent a taxpayer before the IRS.
What is Form 2848?
This tax identification number is generally required after an individual's death for an estate.
What is an Employer Identification Number (EIN)?
This test requires a taxpayer to provide more than half of a person's total support to claim them as a qualifying relative.
What is the support test?
If a taxpayer receives property as a gift and later sells it at a gain, this basis is generally used.
What is the donor's adjusted basis (carryover basis)?
Unlike deductions, tax credits reduce this directly.
What is tax liability?
This filing status may be available for two years following the year of a spouse’s death when the taxpayer maintains a home for a dependent child.
What is Qualifying Surviving Spouse?
This form is used to report nondeductible contributions to traditional IRAs and to track a taxpayer's basis in IRAs.
What is Form 8606?
Beneficiaries receive this schedule reporting their share of estate or trust income.
What is Schedule K-1 (Form 1041)?
A qualifying relative does not have to meet this test that is required for a qualifying child.
What is the age test?
These costs increase the basis of a home because they add value or prolong its useful life.
What are capital improvements?
Up to this amount of the American Opportunity Credit is refundable.
What is 40% (up to $1,000)?
A married taxpayer may sometimes be considered unmarried for Head of Household purposes when living apart from a spouse during this portion of the year.
What is the last six months of the year?
This form is used to claim education credits such as the American Opportunity Credit and Lifetime Learning Credit.
What is Form 8863?
This term describes the maximum amount of income that retains its character when distributed to beneficiaries.
What is Distributable Net Income (DNI)?
This IRS tie-breaker rule generally allows the parent with whom the child lived the longest during the year to claim the child.
What is the residency tie-breaker rule?
These expenses do not increase the basis of a personal residence because they simply keep the property in good condition.
What are repairs and maintenance?
This education credit can be claimed for the first four years of post-secondary education.
What is the American Opportunity Credit?
A taxpayer may choose this filing status even when one spouse has no income, but both spouses are generally jointly responsible for the tax.
What is Married Filing Jointly?
This form is used to calculate the Additional Medicare Tax.
What is Form 8959?
For income tax purposes, a decedent's final tax year ends on this date.
What is the date of death?
A taxpayer's parent does not have to live with the taxpayer to meet this requirement for Head of Household.
What is being a qualifying person?
When determining gain on the sale of property, this amount is subtracted from the amount realized.
What is the adjusted basis?
This credit helps offset the cost of caring for a qualifying child or dependent while the taxpayer works.
What is the Child and Dependent Care Credit?
When a taxpayer dies, this person is generally responsible for filing the taxpayer’s final return.
Who is the personal representative, executor, or administrator?
This form is used to calculate the Net Investment Income Tax.
What is Form 8960?
This election allows a qualified revocable trust to be treated as part of a decedent's estate for income tax purposes.
What is the Section 645 election?
A taxpayer cannot claim this filing status unless they pay more than half the cost of keeping up a home for a qualifying person.
What is Head of Household?
A taxpayer converts a personal residence to rental property. For depreciation purposes, the basis is generally the lesser of these two amounts.
What are the property's adjusted basis or its fair market value on the date of conversion?