Individual Taxation 1 of 5 (1)

Question 1

TAX FILER

Answer 1

Someone required to file a tax return because (Irate Napoleon Choked Roger Stone):

• I: Income is higher than their standard deduction
• N: Net self-employment earnings of at least $400
• C: Claimed as a dependent and has gross income over the standard deduction for a dependent
• R: Receiving advanced Earned Income Credit (EIC) or Premium Tax Credit (PTC) payments
• S: Subject to the Kiddie Tax.

Question 2

Unearned Income Medicare Contribution Tax (Surtax on Unearned Income)

Answer 2

A 3.8% surtax charged on the lower of the net investment income or modified adjusted gross income (MAGI) in excess of:

• $200,000 for most taxpayers
• $250,000 for married couples filing joint returns
• $125,000 for married filing separate.

Question 3

Constructive Receipt

Answer 3

The date on which a cash basis taxpayer has income made available for use, which is the date on which it is considered received for tax purposes.

Question 4

“FOR” AGI Adjustments

Answer 4

(I EMBRACED Health & Farmers)

Adjustments added to or subtracted from gross income in computing AGI, including deductions for:

Interest on student Loans

50% self-Employment tax

Moving expenses (military only), Business expenses (Sch. C)

Rent/royalty & Flow-through entities (Sch. E)(S corps, P/S, Trusts)

Alimony (pre-2019 divorces/separations)

Contributions to Retirement (IRA/Keogh)

Early withdrawal penalty

jury Duty pay

Health savings accounts (HSA)

Farm income (Sch. F).