REG Mnemonics Test Questions & Answers 2024/2025
Qualifying Child "CARES" - ANSWERSClose Relative: taxpayers son, daughter, stepson, stepdaughter, sister, brother, stepbrother, stepsister, or a descendent of any of these.
Age Limit: younger than 19 or 24 if a full-time student that attends ...
Qualifying Child "CARES" - ANSWERSClose Relative: taxpayers son, daughter, stepson, stepdaughter,
sister, brother, stepbrother, stepsister, or a descendent of any of these.
Age Limit: younger than 19 or 24 if a full-time student that attends an educational institution for at least
5 months during the year. Individuals who are totally and permanently disabled
Residency and Filing Requirements: same principal place as the taxpayer for more than half the taxable
year. Resident of North America. Child cannot file a joint return
Eliminate Gross Income Test: does not apply
Support Test: qualifying child must not have contributed more than half their own support
Qualifying Relative "SUPORT" - ANSWERSSupport Test: taxpayer must have supplied more than half of
the support of a person
Under a Specific Amount of Taxable Gross Income Test: Less than $4,700 in taxable income (Not taxable:
Social Security at low levels, tax-exempt interest income & scholarships)
(Exception: Medical expenses provided do not consider gross income test)
Precludes Dependent Filing a Joint Tax Return Test: can't be a married dependent
Only Citizens of America or Resident of North America
Taxpayer Lives with Individual for Whole Year Test
Nondeductible Taxes for Itemized deductions "FIB" - ANSWERSFederal taxes (including social security)
Inheritance
Business on schedule C and rental on schedule E
Nondeductible Expense (on Schedule C) - ANSWERSSalaries paid to the sole proprietor (withdrawal)
Federal income tax
Personal portion of (automobile, travel, meal expenses, interest expense, state & local tax expense,
health insurance of a sole proprietor)
Bad debt expense of a cash basis taxpayer
Charitable contributions
Entertainment expenses
ROTH IRA premature distribution exception (still subject to ordinary income tax) "HIMDEADD" -
ANSWERSHomebuyer of First Home: within 120 days of distribution ($10k max)
Insurance Medical: if unemployed with 12 consecutive weeks of unemployment compensation
Medical Expenses: in excess of percentage of AGI floor
, Disability
Education: college tuition, books, fees...
Adoption or Birth of a Child: within one year from the date of birth of adoption ($5k max)
Disaster: qualified natural disaster ($22k max)
Death or terminal illness
Tax Credits "GAF REEC" - ANSWERSGeneral Business Credit
Adoption Credit (legal & agency fees) NOT Medical fees
Foreign Tax Credit (deduction or a credit for Corporations)
Retirement Savings Contribution Credit
Elderly and/or Permanently Disabled Credit
Education Credit
Child and Dependent Credit (20%-35%threshold) (under age 13, a disabled dependent/spouse of any age
who cannot take care of themselves) Max Expenditures: One dependent $3k. Two dependent $6k
Non Taxable Miscellaneous Items "FLAP WIGM" - ANSWERSForeign-Earned Income Exclusion (up to
$120k)
Life Insurance Proceeds
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