individual tax issues Flashcards Preview

cpa > individual tax issues > Flashcards

Flashcards in individual tax issues Deck (5):

Personal Exemptions

No personal exemption can be claimed for a taxpayer or spouse who is claimed on another tax return
- personal exemptions include taxpayer and spouse if MFJ
-Personal exemption is claimed on taxpayer's final return even if taxpayer or spouse dies DURING return


Dependency Exemptions

-applied on LAST day of tax year or the last day the dependent was alive.
- qualify as qualified child or relative
---child= relationship, residence and age test along with joint return test/citizen/50% of support


qualifying relative

anyone who lives with the taxpayer the entire year
- common relatives except for cousins who get 50% or more support from taxpayer


Gross income test- relative

dependents gross income must be less than the exemption amount ($4,000 for 2015)..
income that is taxable^^

two exceptions for child/stepchild if under the age of 19 or 24 and a full time student


Deemed distribution

SE tax in determining SE income cantake a deemed deduction of 7/65% for income taxes