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HR Block (TKA Exam Prep) question and answer latest update
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HR Block (TKA Exam Prep) question and answer latest update
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HR Block (TKA Exam Prep) IRC - correct answer Internal Revenue Code Standard Deduction - correct answer Set by statute. Included in calculating the Below -the-Line deductions (for Taxable Income). Alternative is Itemized Deduction Itemized Deduction - correct answer Sum of allowable deductions in calculating the Below -the-Line deductions (for Taxable Income). Alternative is Standard Deduction Tax Rate (Individuals) - Ordinary Income - correct answer 10% - 37% Tax Rate (Individuals) - Net Gains / Qualified Dividends - correct answer 0% - 20% (sometimes) 20% - 28% (usually) Alternative Minimum Tax Rate - correct answer 26% - 28% Capital Gains - correct answer Profit (or Loss) from the sale of property or investments (preferential tax rate compared to Ordinary Income) Adjusted Gross Income (AGI) - correct answer Gross Income - Deductions Taxable Income - correct answer AGI - (Larger of Standard or Itemized Deduction) Tentative Tax - correct answer Taxable Income (x) Tax Rate Taxes Due (+) or Refund ( -) - correct answer Tentative Tax - Credits Refundable Tax Credit - correct answer Taxpayer can receive money through a refund Nonrefundable Tax Credit - correct answer Tax is lowered to a possible $0. But no refund. Title 26 (US. Code) - correct answer The statutory bas of all federal tax law. Gross Income - correct answer "All income from whatever source derived" Haig -Simons Definition of Income - correct answer Market Value of Rights Exercised in Consumption + Change in Property Rights over the Term. Interpretation: Total value of consumer expenditures + net change in savings (e.g., bank accounts, stocks and bonds, real estate) Alternative is Economic Benefit Definition. Economic Benefit Definition of Income - correct answer Value of any economic benefit received by the taxpayer regardless of the form of that benefit. Alternative is Haig -Simons Definition. Imputed Income - correct answer *Not Income Any services one performs for oneself or family / the value of property used that one owns Loans - correct answer Loans themselves are not taxed. However, Loan Discharge or Loan Forgiveness may constitute Income. - Debt must be enforceable. - Creditor has agreed to receive less than initially contracted Compensation Income - correct answer Consideration for Performance of Services (regardless of the form - e.g., cash, property, fringe benefits).The benefits of buying summaries with Stuvia:
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