RIV

Question 1

standard deduction – single

Answer 1

$12,550

Question 2

standard deduction – HoH

Answer 2

$18,800

Question 3

standard deduction – MFJ

Answer 3

$25,100

Question 4

tax treatment of alimony payments

Answer 4

if divorce is pre-2019, alimony payments received are taxable income to the recipient

NOTE: if payment is REQUIRED to be paid, even if payee dies, they are not considered to be alimony payments

Question 5

max charitable contributions

Answer 5

60% of AGI (100% in 2021)

amount to deduct is amount contributed + carryovers

ex: if someone makes 80K, the max amount is $48K. if they donated 17K in y1 and 15K in y2, the y1 is carried over and max amount is 17K+15K

Question 6

“earned income” for a self-employed person

Answer 6

net earnings from self employment after one-half of the self employment tax

Question 7

tax deduction for personal casualty loss

Answer 7

amount the casualty loss exceeds 10% of AGI and $100 floor

ex: 50K AGI x 10% = 5k +100
if loss is 6k = 6k - 5100 = 900 deductible

Question 8

tax treatment for a scholarship

Answer 8

anything not part of qualified expenditures is taxable (i.e. room and board)

Question 9

is child support taxable?

Answer 9

no, child support is non taxable. only alimony (from divorce before dec 31 2018) is taxable

Question 10

when is tax payer required to make estimated quarterly tax payments? (2 conditions)

Answer 10

1) 1,000 or more tax liability
2) withholding is less than the lesser of
90% current year tax or 100% of prior year tax (110% if AGI is greater than 150K)

Question 11

where to adjust IRA contributions

Answer 11

form 1040

Question 12

AGI deduction for: property taxes on rental property

Answer 12

deduct FOR AGI on schedule E, then report net income on 1040

Question 13

AGI deduction for: charitable contributions

Answer 13

can deduct from AGI, limited to 60% of AGI (100% for 2020 and 2021). must be to qualified charity organization

Question 14

AGI deduction for: alimony

Answer 14

deduct FOR AGI on 1040

no deduction after 2018

Question 15

AGI deduction for: medical expenses

Answer 15

deduct anything from AGI exceeding the (medical expense floor % *AGI)

ex: AGI of 70K, floor of 7.5% = $5,250
if med expenses of 10K – you can deduct $4,750 (10k-5.25K)

Question 16

AGI deduction for: gambling losses

Answer 16

you can deduct; however, only to the extent of gambling winnings

Question 17

AGI deduction for: sole proprietorship expenses

Answer 17

deduct for AGI on schedule C

Question 18

AGI deduction for: ordinary business losses

Answer 18

deduct for AGI on schedule E

Question 19

AGI deduction for: moving expenses

Answer 19

no deduction unless in army

Question 20

AGI deduction for: state & local prop taxes paid on a personal car

Answer 20

yes from AGI up to $10K