State the basic tax formula
Identify the due date and extension available for individuals.
Due date: April 15; Extension: Form 4868-Auto 6 months
Identify the various filing statuses.
2) Married, filing jointly
3) Married, filing separately
4) Head of household
5) Qualifying widow(er) with dependent child
Criteria for filing single?
1) Unmarried or legally separated from spouse at the end of the tax year.
2) Does not qualify for another filing status.
Criteria for married filing jointly?
At year end of tax year: 1) Married and living together as husband and wife 2) Living together in a recognized common law marriage 3) Married and living apart but not legally separated or divorced.
Criteria for married filing separately?
At year end of tax year: 1) Married 2) If one spouse wants to be responsible only for own tax. 3) If both spouses do not agree to file a joint return.
Criteria for filing head of household?
1) Individual is not married, is legally separated, or is married and has lived apart from his/her spouse for the last 6 months of year.
2) Individual is not a "qualifying widower".
3) Individual is not nonresident alien.
4) Individual maintained a home that, for more than half of the tax year, is the principal residence of a:
A) son or daughter who is a qualifying child or qualifies as the taxpayers dependent (qualifying relative)
- legally adopted children, stepchildren, and desendants qualify
B) dependent relative who resides with the taxpayer (cousins, foster parents and unrelated dependents do not qualify)
C) Dependent father or mother, regardless of whether live with the taxpayer. (i.e. nursing home)
Criteria for filing qualifying widow(er) (surviving spouse)?
1) Unmarried at end of tax year.
2) Surviving spouse must maintain a household, which for the entire tax year was the principal place of abode of a son, stepson, daughter, stepdaughter.
3) Surviving spouse is entitled to a dependency exemption for the son, daughter, etc.
*Taxpayer qualifies for this status for 2 years after year of death of spouse.
In order to avoid confusing the required time period for different filing statuses, just remember:
For Head of Household?
Widower = Whole year
Head of Household = Half year
Give a summary for Head of Householde, whether the person must live with the taxpayer.
- Child or descendant - must live with taxpayer
- Parents - does not have to live with taxpayer
- Relative - must live with taxpayer
What form must one file for a 6 month extension?
Required time period for depedents for Widower and Head of Household
Widow = Whole year
Head of Household = Half a year (more than)
In order to file a joint return, the parties must be MARRIED at the end of the year. What is the exception?
Exception: If the parties are married but are LEGALLY SEPARATED under the laws of the state in which they reside, they cannot file a joint return (they will file either under the single or head of household filing status)