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Tax Preparer With Complete Solutions And Correct Answers Latest Version
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Tax Preparer With Complete Solutions And Correct Answers Latest Version
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Tax Preparer With Complete Solutions AndCorrect Answers Latest Version
Standard Deduction Increases Answer: $12,600 Married Filing Jointly or Qualified Widow(er)
increased $200
$9,250 Head of Household increased $150
$6300 Single or Married filing Separately increased $100
Standard Deduction for 65 or older or blind Answer: $1500 single or Head of Household no increase
$1250 for married taxpayers increased $50
Personal Exemption Amount-the amount a person can deduct for each exempt Answer: $4000 for
2016
Form 13614-C Answer: Intake/Interview & Quality Review Sheet
Due Diligence Answer: doing your part to ensure tax returns are correct
confirm taxpayer id, provide top quality service, make sure facts presented paint a reasonable picture
Retirement Income Answer: Qualified Charitable Distribution (QCD) is nontaxable if trustee of IRA
donating is 70 1/2. Maximum for annual exclusion for QCD is $100,000. Anything in excess is income. If
joint return, spouse can also have up to $100,000 QCD
Educator expenses Answer: $250 per year qualified expenses. Spouse can also deduct $250 if
educator. Both have to have separate expenses of their own. Any expenses exceeding $250 can be
treated as an itemized employment related deduction on Schedule A. Items that do not qualify are
home schooling, nonathletic supplies for physical education or health courses. have to put in 900 hours
2024
, of teaching during the school year (no part time teachers). If they receive reimbursement, they can not
apply deductions (or use EE bonds to pay educational expenses or nontaxable earning from an
educational account)
MAGI Answer: Modified Adjusted Gross Income
Tuition and Fees Deduction Answer: Up to $4000 can't be claimed if filing married filing separately
status. If claiming, have to have paid the expenses and claim the dependent receiving. Student can only
deduct from their taxes if they are not dependent on another tax form. If they are dependent and paid
own expenses, neither parent or dependent can claim adjustment. But if student is not a dependent and
another person paid fees (grandparent?) then student can treat amounts as gift amount. Those
taxpayers not eligible for this deduction might be eligible for education tax credit.
Carly Example Answer: She is 18 claimed by her parents as dependent. She took out loans for tuition
and fees. Parents can't deduct loans and she can't deduct loans because she is claimed as dependent by
them. they can look into educational credits though
Qualified education expenses
Work up tuition and fees adjustment and educational credit before deciding which one helps the client
most. Answer: don't include insurance, medical expenses, transportation, room and board. Books
not included unless specially required for course and couldn't buy them anywhere else. Ask if taxpayer
offset any expenses with distributions from state tuition programs. (529)
Form 5696 Answer: Nonbusiness energy property credit for biomass stoves, heating, air
conditioning, insulation, roofs, water heaters, windows and doors, no solar. Credit is only for taxpayer's
main home, new construction does not qualify nor does rental property.
Cancellation of debt-1 Answer: auto loans, credit card, medical care, professional services,
installment purchases of furniture or other personal property, mortgages and home equity loans
2024
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