1040 Avengers: Endgame
What line on the 1040 shows Adjusted Gross Income (AGI)?
Line 11.
A dependent must meet one of five tests. Name ONE test for a Qualifying Child.
Relationship, Age, Residency, Support, Joint Return test.
What form is used to report payments received for self-employment work (nonemployee compensation)?
Form 1099-NEC.
What form must be used to reconcile Marketplace insurance?
Form 8962.
What form reports student loan interest paid?
Form 1098-E.
Refundable credits increase your refund even if you had no tax liability. Name ONE refundable credit.
Earned Income Credit, Additional Child Tax Credit, American Opportunity Credit (refundable portion).
A Qualifying Relative must make less than what amount in taxable gross income (2025)?
$5,050 (use current IRS threshold; adjust annually).
A taxpayer had $6,000 in business income and $8,000 in expenses. Will they receive an earned income credit boost?
No — they have a business loss, which reduces earned income.
If the taxpayer had Advance Premium Tax Credit (APTC) paid on their behalf, what can happen on the tax return?
They may have to repay some or all of it.
Is unemployment taxable?
Yes
What schedule is used to report interest and ordinary dividends?
Schedule B.
Can a parent claim a child who worked and filed their own return?
Yes, as long as they mark “Someone else can claim me” and dependency rules are met.
True or False: A self-employed person can deduct clothing if it's “for business.”
False — unless it’s protective gear or a uniform not suitable for everyday wear.
What part of the 1095-A determines the Premium Tax Credit calculation?
Columns A (Premium), B (SLCSP), and C (APTC).
What schedule reports rental income and expenses?
Schedule E.
A taxpayer has $0 withholding and $0 refundable credits. What must happen for them to receive a refund?
They can’t — no withholding + no refundable credits = $0 refund.
Who claims the child for EIC when two parents both qualify?
The parent with whom the child lived the longest; if equal time, the parent with highest AGI.
What is the SE tax rate used to calculate self-employment tax?
15.3%.
If a taxpayer had Marketplace insurance for only 3 months, do you enter all 12 months on the 8962?
No — only the months they had Marketplace coverage.
A taxpayer donated to a qualified charity but has no receipt. What happens?
They cannot deduct it — substantiation is required.
What line on the 1040 shows the total tax YOU owe before credits?
Line 24.
A student lived on campus 10 months out of the year. Do they still meet the residency test for their parent?
Yes — temporary absences count as living with the taxpayer.
A taxpayer uses a room in their home exclusively and regularly for business. What form reports this deduction?
Form 8829 (Home Office Deduction).
What happens if a taxpayer doesn't file Form 8962 when they received APTC?
Their refund is delayed or frozen until the form is filed.
What is the maximum educator expense deduction (2025)?
$300 per eligible educator (adjust per IRS updates).