Taxes
If Hannah received $85,000 in wages from her employer and $5,000 in municipal bond interest, what is her taxable income?
$85,000
Which audit is conducted at the local IRS office?
If Hannah file her taxes on March 3, 2021, when will her statute of limitation expire?
April 15, 2024
If April 15 falls on a Saturday, what will be the due date for the tax return?
Monday
Hannah and Chris have a daughter (19 years old) who is away at college 9 months out of the year, and they provide for all of her living expenses. How can they claim her?
Qualifying Child
A taxpayer can avoid a substantial understatement of tax penalty by having substantial authority to support the position.
True
If Hannah has a gross tax liability of $12,000, with $2500 available credits and $8000 withheld by her employer how much is her taxes due (refund)?
$1500 due
Which audit is conducted at the taxpayer's business?
Field audit
True or False, the statute of limitation is always 3 years?
False
If a taxpayer is not able to file by the due date, they can request for an extension for how long?
6 months
Hannah and Chris have a daughter (21 years old) who's in college. They provide over half of her living expenses, but she has job making $8000 a year. How can they file her?
Qualifying Child
Medical and dental expenses are considered a AGI deduction (above the line)
False - itemized deduction
Taxes to fund a specific purpose is called?
Earmarked Taxes
Which audit is conducted through mail?
Correspondence audit
If Hannah filed her taxes on June 3, 2021. When will the statute of limitation expire for tax return?
June 3, 2024
If a corporation have a taxable income of $598, will they have to file a tax return?
YES
Rachel, who is not related to Hannah and Chris lived with them all year. How can Hannah and Chris claim Rachel on their taxes?
Qualifying relative
The goal is tax planning is to minimize taxes
False - maximize after-tax wealth
Qualified Dividends and what is NOT considered ordinary income?
Net-Long Term Capital Gain
Which audit is most common?
Correspondence
If Hannah filed her taxes on March 3, 2021; but she understated her gross income by 30%. When will her statute of limitation expire?
April 15, 2027
If a corporation have 0 taxable income, will they have to file a tax return?
YES
Hannah husband passed away in 2021. Should she file her 2021 taxes return as Married filing jointly or Qualifying widower?
Married filing jointly
Federal Income Taxes paid is an itemized deduction
False
Which is a tax? Tolls, Parking Meters, or Surcharge on retail sales
Surcharge on retail sales
Which audit is least common and typically most complex?
Field
If a fraudulent tax returns was filed on March 31, 2021, when will the statue of limitation expire?
Its doesn't.
If Hannah is due a tax refund, is she required to file her tax return?
YES
In April of 2021, Mike's wife left him, but did not divorce him. Mike provided for their child and paid all of the living expenses for the home while his wife was away. How should he file his tax return?
Head of household
Timing and the income strategy is based on the present value of money?
False- Only timing