Agi self employed - Study guides, Class notes & Summaries

TAX 4001 Exam 2 Questions With Correct Answers It has been suggested that tax policy favors deductions for AGI compared to itemized deductions. Describe two ways in which deductions for AGI are treated more favorably than itemized deductions. - answerItemized deductions must exceed the standard deduction before taxpayers receive any tax benefit from the deductions (this is equivalent to an overall floor limit). In contrast, business deductions that are deductible for AGI (above the line) r...

HRB FINAL EXAM PRACTICE QUESTIONS AND COMPLETE SOLUTIONS LATEST 2023-2024 | 100% VERIFIED. What is the personal exemption amount for 2016? - Answer $4,050 What two amounts are combined to make up the gross income filing requirments for most taxpayers? - Answer The standard deduction and the personal exemption amounts Under what circumstances might a taxpayer be required to file a return even though they do not meet the gross income filing requirements? - Answer 1. Has net employment of $40...

Due Diligence - Requirements that tax professionals must follow when preparing income tax returns. Estimated Tax - The amount of tax a taxpayer expects to owe for the year after subtracting expected amounts withheld and certain refundable credits. Estimated Tax Voucher - A statement by an individual of (1) the amount of income tax he estimates he will incur during the current taxable year on income that is not subject to withholding, (2) the excess amount over that withheld on income which is ...

HRB Final Exam Practice Questions and Answers Latest Updated 2023-2024 VERIFIED. What information do you need to know to determine whether a taxpayer is required to file a return? - Answer Gross income, filing status, age and if they are a dependent For tax purposes, when is a person's marital status determined? - Answer On the last day of the tax year Where on the tax form can you find the regular standard deduction amounts? - Answer Line 22 on 1040A, In the left margin at the top of the ...

1 HRB FINAL EXAM | QUESTIONS & ANSWERS (VERIFIED) | LATEST UPDATE | GRADED A+ What is the Difference between earned income and unearned income? Correct Answer: Earned income is received for services performed. Examples are wages commissions, tips and generally farming and other business income . Taxable income other than that received for services performed. Unearned Income includes money received ro the investment of money or other property, such as interest, dividends, and royal...

1 H&R BLOCK 2018 SCENARIOS EXAM | QUESTIONS & ANSWERS (VERIFIED) | LATEST UPDATE | GRADED A+ Carolyn earned $52,000 as a full-time employee in 2018. Due to procrastination and denial, she did not prepare her 2018 income tax return until June 23, 2019. Carolyn did not file the return until August 1, 2019. She did not request an extension of time to file. Her return showed a balance due of $1,500. What is her penalty? Correct Answer: The IRS assesses a late filing penalty for four mon...

HRB FINAL EXAM WITH COMPLETE SOLUTIONS LATEST 2023-2024 VERIFIED. What is the Difference between earned income and unearned income? - Answer Earned income is received for services performed. Examples are wages commissions, tips and generally farming and other business income . Taxable income other than that received for services performed. Unearned Income includes money received ro the investment of money or other property, such as interest, dividends, and royalties. It also includes pensio...

2024 SOUTH-WESTERN FEDERAL TAXATION COMPREHENSIVE CHAPTER 12 EXAM WITH QUESTIONS AND ANSWERS Adoption expenses credit - ANSWER-A provision intended to assist taxpayers who incur nonrecurring costs directly associated with the adoption process, such as legal costs, social service review costs, and transportation costs. Up to $13,190 ($13,190 for a child with special needs regardless of the actual adoption expenses) of costs incurred to adopt an eligible child qualify for the...

Three categories of deductions for AGI? - 1. Directly related to business activities 2. Indirectly related to business activities 3. Deductions subsidizing specific activities DIRECTLY Related to Business Activities? - Taxpayers are allowed to deduct expenses incurred to generate business income For tax purposes activities are either what? - 1. profit-motivated 2. motivated by personal objectives Profit-motivated activities are classified as what? - 1. Business activities (called "...

Which of the following choices is NOT a form of a tax prepayment? A. An overpayment of taxes in the prior year that was applied as an estimated payment for the current year. B. Income tax withheld from a taxpayer's salary or wages by an employer C. Estimated tax payments the taxpayer made directly to the IRS D. A tax refund received in the current year for the prior year: D. A tax refund received in the current year for the prior year T/F A taxpayer may deduct the greater of his standard d...