REG 1 Flashcards
TAX
state the basic tax formula
gross income
<adjustments>
=
AGI
<itemized>
=
taxable income before QBI Deduction
<QBI>
=
taxable income
federal income tax
<tax>
other taxes
<payments>
=
tax due or tax refund
</payments></tax></QBI></itemized></adjustments>
what are the criteria for selecting the single filling status?
-unmarried or legally separated from spouse at the end of the tax year
-does not qualify for another filing status
what are the criteria for selecting the married filling jointly filing status?
at the end of the tax year
-married and living together as spouses; or
-living together is a legally recognized common-law marriage; or
-married and living apart but not legally separated
What are the criteria for selecting the qualifying surviving spouse status?
-unmarried at the end of the tax year; and
-maintain a household, which for the whole taxable year was the principal place of abode of the taxpayer’s child or stepchild; and
-the taxpayer’s child or stepchild qualifies as a dependent of the taxpayer
the taxpayer qualifies for the status for two years after year of spouse’s death
what are the criteria for selecting the head of household filing status?
-individual is unmarried, legally separated, or is married and has lived apart from his or her spouse for the last six months of the year
-individual is not a “qualifying surviving spouse”
-individual is not a NRA
-individual maintained a home that, for more than half of the taxable year, is the principal residence of a (son or daughter who is a qualifying child or qualifies as the taxpayers dependent (qualifying relative); a dependent relative who resides with the taxpayer; or a dependent father or mother, regardless of whether he or she lives with the taxpayer)
name the requirements for an individual to meet the definition of “qualifying child”
Close Relative
Age limit (19/24) and younger than taxpayer
Residency and filing requirements
Eliminate gross income test
Support test
note CARES
name the requirements for an individual to meet the definition for a “qualifying relative”
Support (over 50%) test
under a specific amount of (taxable) gross income
precludes dependent filing a joint tax return
only citizens (residents of US, Canada, Mexico)
Relative or
Taxpayer lives with the individual for the whole year
note SUPORT
what are the requirements for a multiple support agreement?
-two or more people provide more than 50% of support, but no one person contributes more than 50%
-to claim as a dependent, a contributor must provide more than 10% of support, and other dependency test must be met (suport)
-a multiple support declaration, form 2120, must be filed
define gross income
gross income includes all income from whatever source derived, unless specifically excluded
when should cash-basis taxpayer report income?
a cash-basis taxpayer should report income in the year in which income is either actually or constructively received, whether in cash or property
name some nontaxable fringe benefits (exclusions)
-meals and lodging (for convenience of employer on employer’s premises)
-employer paid educational expenses
-employer-provided parking and transit passes
-qualified tuition reduction
-qualified employee discounts
-employer-paid accident, medical, and health insurance
-dependent care assistance adoption assisstance
-life insurance coverage (up to $50,000)
-retirement plan contributions (non-Roth)
are life insurance premiums paid by an employer taxable to an employee
premiums on the first $50,000 (face amount) of group term life insurance are not includable in gross income
define gross income
gross income includes all income from whatever source derived, unless specifcally excludable
when should cash-basis taxpayer report income?
a cash-basis taxpayer should report income in the year in which income is either actually or constructively received, whether in cash or property
