Exam (elaborations)
Becker CPA Regulation R1 Detailed Questions and Expert Answers
- Course
- CPA
- Institution
- University Of Southern California
Becker CPA Regulation R1 Detailed Questions and Expert Answers
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Becker CPA Regulation R1 Detailed Questions andExpert Answers
M1-Individual taxation formula(1040) - ANS Gross Income
<Adjustments>
---------------------
Adjusted Gross Income
<Standard Deduction OR Itemized Deductions>
<Exemptions>
---------------------
Taxable Income B4 QBI Deduction
<QBI Deduction>up to 20 percent for only Pass thru entities
_______________________________
TAXABLE INCOME
Federal Inc Tax(regular or alternative minimum tax)
<Tax Credits>
Other Taxes(soc sec/self employment)
<Payments>
-------------------
Tax Due OR Refund
Gross Income Items - ANS wages
,interest inc
dividends
state tax refunds
alimony received(cannot include if divorced after 12/31/18)
business income
capital gain/loss
IRA income
pension/annuity
rental income/loss
k-1 income/loss(partnership/llc)
unemployment compensation
social security benefits
other income
Adjustment items - ANS Educator expenses
IRA
Student loan interest expenses
tuition and fee deduction
health savings account
moving expenses(Only Military moving)
one half self employment FICA
Self-employed health insurance
,self-employed retirement
interest withdrawal penalty
alimony Paid(cannot deduct if divorced after 12/31/18
Itemized deduction items (I.D) - ANS Medical (in excess of 7.5% of AGI)
taxes - state/local (income, sales & property up to $1000)
interest expense (home and investment)
charity (up to 60% of AGI)
casualty/theft attributable to federal disaster (in excess of 10% of AGI)
**You can opt for Std Deduction( form 1040EZ) instead of I.D
Who must file? - ANS General Rule:
Income is equal to or greater than:
-the regular standard deduction (except for married filing separately), plus
-the additional standard deduction for taxpayers 65+ or blind (except for married
filing separately)
Exceptions:
-individuals with net earnings from self employment are $400 or more
-individuals who can be claimed as dependents with: unearned income of more
than $1050, earned income of more than $6300, or total income which exceeds
the larger of $1000 or earned income plus $350
, When to file (individual taxpayers) - ANS April 15
Extension for individual tax payers - ANS October 15, BUT payments must be
MADE(must file form 4868 by April 15)
Taxpayers out of the country get automatic two-month extension (no filing
required for extension)
Filing Status: Single - ANS any taxpayer that does not qualify for another filing class
must use the single status by default
1. single at yearend
2. legally separated
End-of-Year Test - ANS December 31st decides the filing status
Filing status: Joint Return - ANS parties must be married at the end of the year,
living together in a recognized commonlaw marriage, or married living apart (but
not legally separated)
*if one spouse dies during the year, a joint return may be filed
Filing status: Married filing separately - ANS Taxpayers are legally married as of the
last day of the year. Generally no tax advantage to filing separately (usually a
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