11/8/24, 3:56 PM
H&R Block Income Tax Course WITH COMPLETE
SOLUTIONS GRADED A+
Terms in this set (307)
Due Diligence Requirements that tax professionals must follow when preparing income tax returns.
The amount of tax a taxpayer expects to owe for the year after subtracting expected
Estimated Tax
amounts withheld and certain refundable credits.
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)
Estimated Tax Voucher
the excess amount over that withheld on income which is subject to withholding, and
(3) his estimated self-employment tax.
Status claimed on Form W-4 directing the employer not to withhold federal income
Exemption from Withholding
taxes from the employee.
If a taxpayer did not pay enough tax on a timely basis during the year, he may be
Underpayment Penalty
required to pay an underpayment penalty.
Two Ways to Pay as You Go Withholding and Estimated Tax Payments
Form W-4 Employee's Withholding Allowance Certificate
Form 4868 Application for Automatic Extension of Time To File U.S. Individual Income Tax Return
Amended Return A tax return filed on Form 1040X after the original return has been filed.
Closed Year A tax year for which the statute of limitations has expired.
Open Year A taxable year for which the statute of limitations has not yet expired.
Generally 5% for each month or part of a month the return is late, but not more than
Failure-to-File Penalty
25% of the tax not paid.
Failure to File Taxpayer fails to file the return by the due date, and there is a balance due.
Form 1040X Amended U.S. Individual Income Tax Return
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Within three years of the date the original return was filed, or within two years of the
When can an amended return be filed?
date the tax was paid, whichever is later.
Can the 1040X be e-filed? No.
Those from such sources as dividends, interest, capital gains and losses, and
Portfolio Income and Losses
royalties.
Schedule E Supplemental Income and Loss
Payments received for the right to extract natural resources from the taxpayer's
Royalty
property or to use a taxpayer's literary, musical, or artistic creation.
A series of payments under a contract made at regular intervals over a period of
Annuity
more than one year.
The owner or recipient of funds in an account, such as an IRA, or from an insurance
Beneficiary
policy or will.
Contribution When a person puts money into a retirement plan.
An employee benefit plan that provides determinable benefits not based on
Defined Benefit Plan
employer profits.
An employee benefit plan that provides a separate account for each person covered
Defined Contribution Plan
and pays benefits based on account earnings.
A taxable pension from an employer-funded disability plan or a disability provision
Disability Pension
of a retirement plan.
Distribution When a person takes or receives money from a retirement plan.
Generally a series of definitely determinable payments made to a taxpayer after
Pension
retirement from work.
A qualified transfer of funds from one tax-favored account to another, usually of the
Rollover
same type.
A type of individual retirement arrangement in which contributions are not tax
Roth IRA
deductible, earnings grow tax deferred, and qualified withdrawals are tax free.
An individual retirement arrangement, contributions to which may or may not be
Traditional IRA deductible depending on the taxpayer's AGI and whether or not he is covered under
an employer-sponsored retirement plan.
For workers born before 1938, it is 65. For those born after it is gradually being
What is the full retirement age?
increased to 67.
How much of a client's social security and Up to 85%.
equivalent tier 1 RR benefits may be
taxable?
Form SSA-1099 Social Security Benefits
Form RRB-1099 Railroad Retirement Benefits
Single, Head of Household, Qualified Widow - $0-$25,000; Married Filing Jointly -
None of Social Security Benefits Taxable
$0-$32,000
Up to 50% of Social Security Benefits Single, Head of Household, Qualified Widow - $25,001-$34,000; Married Filing
Taxable Jointly - $32,001-$44,000
Up to 85% of Social Security Benefits Single, Head of Household, Qualified Widow - $34,001+; Married Filing Jointly -
Taxable $44,001+; Married Filing Single - $1+
Pensions to which the taxpayer did not make after-tax contributions or from which all
Fully Taxable Pension
pre-tax amounts have been recovered in previous years.
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H&R Block Income Tax Course WITH COMPLETE
SOLUTIONS GRADED A+
Terms in this set (307)
Due Diligence Requirements that tax professionals must follow when preparing income tax returns.
The amount of tax a taxpayer expects to owe for the year after subtracting expected
Estimated Tax
amounts withheld and certain refundable credits.
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)
Estimated Tax Voucher
the excess amount over that withheld on income which is subject to withholding, and
(3) his estimated self-employment tax.
Status claimed on Form W-4 directing the employer not to withhold federal income
Exemption from Withholding
taxes from the employee.
If a taxpayer did not pay enough tax on a timely basis during the year, he may be
Underpayment Penalty
required to pay an underpayment penalty.
Two Ways to Pay as You Go Withholding and Estimated Tax Payments
Form W-4 Employee's Withholding Allowance Certificate
Form 4868 Application for Automatic Extension of Time To File U.S. Individual Income Tax Return
Amended Return A tax return filed on Form 1040X after the original return has been filed.
Closed Year A tax year for which the statute of limitations has expired.
Open Year A taxable year for which the statute of limitations has not yet expired.
Generally 5% for each month or part of a month the return is late, but not more than
Failure-to-File Penalty
25% of the tax not paid.
Failure to File Taxpayer fails to file the return by the due date, and there is a balance due.
Form 1040X Amended U.S. Individual Income Tax Return
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Within three years of the date the original return was filed, or within two years of the
When can an amended return be filed?
date the tax was paid, whichever is later.
Can the 1040X be e-filed? No.
Those from such sources as dividends, interest, capital gains and losses, and
Portfolio Income and Losses
royalties.
Schedule E Supplemental Income and Loss
Payments received for the right to extract natural resources from the taxpayer's
Royalty
property or to use a taxpayer's literary, musical, or artistic creation.
A series of payments under a contract made at regular intervals over a period of
Annuity
more than one year.
The owner or recipient of funds in an account, such as an IRA, or from an insurance
Beneficiary
policy or will.
Contribution When a person puts money into a retirement plan.
An employee benefit plan that provides determinable benefits not based on
Defined Benefit Plan
employer profits.
An employee benefit plan that provides a separate account for each person covered
Defined Contribution Plan
and pays benefits based on account earnings.
A taxable pension from an employer-funded disability plan or a disability provision
Disability Pension
of a retirement plan.
Distribution When a person takes or receives money from a retirement plan.
Generally a series of definitely determinable payments made to a taxpayer after
Pension
retirement from work.
A qualified transfer of funds from one tax-favored account to another, usually of the
Rollover
same type.
A type of individual retirement arrangement in which contributions are not tax
Roth IRA
deductible, earnings grow tax deferred, and qualified withdrawals are tax free.
An individual retirement arrangement, contributions to which may or may not be
Traditional IRA deductible depending on the taxpayer's AGI and whether or not he is covered under
an employer-sponsored retirement plan.
For workers born before 1938, it is 65. For those born after it is gradually being
What is the full retirement age?
increased to 67.
How much of a client's social security and Up to 85%.
equivalent tier 1 RR benefits may be
taxable?
Form SSA-1099 Social Security Benefits
Form RRB-1099 Railroad Retirement Benefits
Single, Head of Household, Qualified Widow - $0-$25,000; Married Filing Jointly -
None of Social Security Benefits Taxable
$0-$32,000
Up to 50% of Social Security Benefits Single, Head of Household, Qualified Widow - $25,001-$34,000; Married Filing
Taxable Jointly - $32,001-$44,000
Up to 85% of Social Security Benefits Single, Head of Household, Qualified Widow - $34,001+; Married Filing Jointly -
Taxable $44,001+; Married Filing Single - $1+
Pensions to which the taxpayer did not make after-tax contributions or from which all
Fully Taxable Pension
pre-tax amounts have been recovered in previous years.
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