Review Flashcards
(24 cards)
Which of the following imposed the first constitutional federal income tax?
The revenue act of 1913
Which is the best source for obtaining a plain language understanding about the current tax law?
Commerce clearing House federal tax guide
Sources of substantial authority available for tax research include what?
Internal revenue code, Congressional committee reports, Treasury regulations, and private letter rulings
What is the maximum state income tax and real estate tax that’s able to be deducted below the line?
10,000
When is 4th quarter Federal estimated income tax payment due?
January 15th of the Year following the year the payment is being made for
What date does divorce follow the post-tcja rule of no deductions or inclusion in income?
December 31 2018
How long do you have to own a stock for the dividends to qualify as qualified?
60 days in the 121 days surrounding the ex-dividend rate otherwise it is ordinary dividend tax at ordinary income tax rate
What is the standard deductions for a child?
The greater of $1,150 or $400 + earned income but not to exceed the normal standard deduction
What income is not subject to social security tax?
Rental real estate income and shareholder share of s corporations income in excess of salary
What is the total self-employment tax that is both portion of employee and employer for social security and Medicare tax?
15.3%
What is the average rate a taxpayer pays based on a taxable income called?
Effective income tax rate
The tax rate applied to the last dollar of taxable income earned is called what?
Marginal income tax rate
What are the following tests that must be satisfied by qualifying child?
Relationship test, abode test, citizenship test
What is the maximum age to qualify for kiddie tax?
Under age 19
What’s the maximum age to qualify for child tax credit?
Under 18
What is the maximum age to qualify for dependent care?
Under age 13
The five dependency test to qualify as a dependent are?
Gross income test, support test, member of household or family member test, citizenship test (us, canada, or Mexico) and joint filing test
What is the formula to calculate reduced deductible contribution for amounts over the AGI limit?
Reduction = contribution limit × (AGI-lower limit) ÷ lower limit
How much can you deduct on a section 1244 loss against ordinary income?
$50,000 against ordinary income and an additional $3,000 long-term capital loss deduction
What is the minimum deductible that a family can have on a high deductible health policy in the current year?
Hdhp for family is $2,800 for 2022 and 1400 for a single person
The percentage of whole life insurance that can represent the total employer contribution allocated to a participant’s account?
50%
An ESOP must own what percentage of the corporation’s stock immediately after an owner sells their stock for the owner to qualify for nonrecognition of gains?
30%
In order for group terms life insurance plan to be non discriminatory, what percentage of employees must it benefit?
70% and that group has at least 85% non key employees
Roth Triggers vs. Penalty Exception
