| Taxed Or Not | Pay As You Go | Just Do It | Feeling Ambitious | Dollar For Dollar |
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What is Schedule A
*Gambling losses deducted on Sch A, Line 28 *Can be deducted to extent of winnings
Gambling losses can be deducted on this schedule.
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What is $1,000
*Estimated taxes generally paid in 4 equal installments
As a general rule, if your tax liability is ______ or more for the year, you are expected to make estimated tax payments
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What is a Form 1099.
If you performed work as an independent contractor and you earned at least $600 from a payer, that payer is required to send you this.
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What is recourse debt
*All other debt considered nonrecourse
This type of debt holds the borrower personally liable.
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What is the American Opportunity Tax Credit
This tax credit is available for the first four years of a postsecondary education program.
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What is ordinary income
John recently retired at age 60 and received a distribution of $150,000 from his traditional IRA. In which way, if any, will the distribution be taxed?
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What is 90% and 100%, respectively.
*90% and 110%, respectively if AGI>$150,000
Taxpayer must pay the lesser of ________ of the current year taxes owed or ______ of prior year taxes for estimates if AGI<$150,000
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What are ordinary income rates
*Qualified dividends are taxed at capital gains rates
Nonqualified dividends are taxed at these rates.
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What is 50%
*Deductible in arriving at AGI
The deductible percentage of self-employment tax.
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What is the Foreign Tax Credit
*It is a non-refundable tax credit
This credit is for income taxes paid to a foreign government as a result of foreign income tax withholdings.
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What is $0
*Money received as gift excluded from taxable income *Person who gives gift might need to file gift tax return
Dale received a $30,000 gift from his aunt. What amount is included in gross income?
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What is April 15, June 15, September 15, January 15
Estimated taxes are due on these dates
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What is 5 years
Charitable contributions subject to the 50% limit that are not fully deductible in the year made may be carried forward _____ years.
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What is married filing jointly
*As long as don't remarry before end of tax year.
A taxpayer’s spouse dies in August of the current year. This is the taxpayer’s filing status for the current year.
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What is the Earned Income Credit
Which of the following credits can result in a refund even if the individual had no income tax liability?
Lifetime learning credit Earned income credit Child and dependent care credit |
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What is winnings from lottery and jury pay
*Child support received is excluded from taxable income
Winnings from lottery
Child support received Jury pay Which item(s) are included in taxable income? |
What is $25,000
*100% of prior year taxes
Jordan had a tax due of $25,000 in the prior year. In the current year her tax liability is $75,000. Her AGI is $135,000. At least how much should she pay in estimated taxes?
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What is $0
*Personal interest is nondeductible
An individual pays $500 interest on auto loan and $2,500 interest on personal credit card. How much deductible for tax purposes?
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What is 5% and 25%, respectively
The failure-to-file penalty is ______ percent of the unpaid taxes for each month up to _____ percent of unpaid taxes.
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What is $2,000 + ($1,000 * 25%) = $2,250
*Credit is 100% of first $2,000, 25% of next $2,000 *Max credit is $2,500
Steven has $3,000 of qualified expenses. Calculate the American Opportunity Tax Credit before any phase-outs.
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What is $28,000
*State tax refunds non-taxable if standard deduction
Ralph received the following in the current year:
Wages $22,000 Unemployment compensation $6,000 State tax refund previous year $425 Ralph uses the standard deduction. Gross income? |
What is $40,000 * 110% = $44,000
James had a tax due of $40,000 in the prior year. In the current year his tax liability is $75,000. His AGI is $153,000. At least how much should he pay in estimated taxes?
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What is $10,000
*Donations must be to made to qualified organizations
You make a $10,000 donation to a needy family and a $10,000 donation to Salvation Army. What amount will be reported on Sch A before limitations?
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What is $250,000 is tax free
*$500,000 if MFJ *Excess reported as capital gain on Sch D
You are single and live in your home for two of the five years before the sale, then up to ________ of profit is tax-free.
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What is $4,500 * 20% = $900
*Credit is 20% of qualified expenses up to $10,000
Qualified expenses are $4,500. Calculate the Lifetime Learning Credit before any phase-outs.
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