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14 Cards in this Set
- Front
- Back
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TRUE or FALSE
An additional standard deduction amount is allowed if either the taxpayer or a dependent of the taxpayer is blind or over age 65 |
FALSE
The additional standard deduction is allowed only for the taxpayer and the taxpayer's spouse |
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What is a dependents standard deduction?
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1. $900
or 2. Earned Income + $300 (Cannot Exceed Standard Deduction) |
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TRUE or FALSE
A self-employed individual taxpayer with net earnings from a business or profession of less than $400 would never be required to file an income tax return. |
Watch Your Wording!
An income tax return would be required if certain minimum amounts of GROSS INCOME have been received |
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TRUE or FALSE
Individuals may carry forward unused capital losses for an indefinite period until they are finally utitilized. |
Yes, even indefinitely
The net capital losses may be carried forward by individual taxpayers until they are exhausted |
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TRUE or FALSE
The dependent must be a qualifying child under the head of household filing status |
False
The head of household status is not dependent on whether the dependent in question is a qualifying child. |
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Can you deduct capital losses on personal property?
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No
You may deduct capital losses only on investment property, not on property held for personal use. |
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Can you deduct capital losses from investment property?
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Yes
You may deduct capital losses only on investment property, not on property held for personal use. |
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Qualify for Itemized Deduction?
Unreimbursed travel expenses related to employment |
Yes
These are required for the production or collection of income. |
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What is the standard deduction for head of household?
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$8,000
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If a question asks you how many DEPENDENCY exemptions something has, don't include...
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Personal Exemptions!
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Gene is a single, self-employed handyman. He earned $22,000 in receipts and had $22,400 deductible business expenses ($200 Loss), is he required to file?
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Yes
In each year, his gross income exceeds the standard deduction plus the personal exemption. Remember the rule states "a self-employed individual with net earnings of $400 or more from a business or profession must file a tax return regardless of gross income)" Thus, self employed individuals includes gross receipts in gross income. |
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If you needed to file an amended return (say you forgot to include an itemized deduction), it generally must be filed within ____?_____ from the time the tax was paid, whichever is later.
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Three Years
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Is Alimony Taxable income?
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Yes
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Is Alimony an itemized deduction?
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No
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