Exam (elaborations)
HR Block (TKA Exam Prep) question and answer latest update
- Course
- Institution
HR Block (TKA Exam Prep) question and answer latest update
[Show more]
Content preview
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:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Schoolflix. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67866 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now