Review

Question 1

Which of the following imposed the first constitutional federal income tax?

Answer 1

The revenue act of 1913

Question 2

Which is the best source for obtaining a plain language understanding about the current tax law?

Answer 2

Commerce clearing House federal tax guide

Question 3

Sources of substantial authority available for tax research include what?

Answer 3

Internal revenue code, Congressional committee reports, Treasury regulations, and private letter rulings

Question 4

What is the maximum state income tax and real estate tax that’s able to be deducted below the line?

Answer 4

10,000

Question 5

When is 4th quarter Federal estimated income tax payment due?

Answer 5

January 15th of the Year following the year the payment is being made for

Question 6

What date does divorce follow the post-tcja rule of no deductions or inclusion in income?

Answer 6

December 31 2018

Question 7

How long do you have to own a stock for the dividends to qualify as qualified?

Answer 7

60 days in the 121 days surrounding the ex-dividend rate otherwise it is ordinary dividend tax at ordinary income tax rate

Question 8

What is the standard deductions for a child?

Answer 8

The greater of $1,150 or $400 + earned income but not to exceed the normal standard deduction

Question 9

What income is not subject to social security tax?

Answer 9

Rental real estate income and shareholder share of s corporations income in excess of salary

Question 10

What is the total self-employment tax that is both portion of employee and employer for social security and Medicare tax?

Answer 10

15.3%

Question 11

What is the average rate a taxpayer pays based on a taxable income called?

Answer 11

Effective income tax rate

Question 12

The tax rate applied to the last dollar of taxable income earned is called what?

Answer 12

Marginal income tax rate

Question 13

What are the following tests that must be satisfied by qualifying child?

Answer 13

Relationship test, abode test, citizenship test

Question 14

What is the maximum age to qualify for kiddie tax?

Answer 14

Under age 19

Question 15

What’s the maximum age to qualify for child tax credit?

Answer 15

Under 18

Question 16

What is the maximum age to qualify for dependent care?

Answer 16

Under age 13

Question 17

The five dependency test to qualify as a dependent are?

Answer 17

Gross income test, support test, member of household or family member test, citizenship test (us, canada, or Mexico) and joint filing test

Question 18

What is the formula to calculate reduced deductible contribution for amounts over the AGI limit?

Answer 18

Reduction = contribution limit × (AGI-lower limit) ÷ lower limit

Question 19

How much can you deduct on a section 1244 loss against ordinary income?

Answer 19

$50,000 against ordinary income and an additional $3,000 long-term capital loss deduction

Question 20

What is the minimum deductible that a family can have on a high deductible health policy in the current year?

Answer 20

Hdhp for family is $2,800 for 2022 and 1400 for a single person

Question 21

The percentage of whole life insurance that can represent the total employer contribution allocated to a participant’s account?

Answer 21

50%

Question 22

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?

Answer 22

30%

Question 23

In order for group terms life insurance plan to be non discriminatory, what percentage of employees must it benefit?

Answer 23

70% and that group has at least 85% non key employees

Question 24

Roth Triggers vs. Penalty Exception

Answer 24