Enrolled Agent Part 1: Individuals
Substancial Presence Test Requirments - ANS-To be considered a US Resident a tax
payer must be physically present in the US for atleast 31 days during 2019 but must
have a total of 183 days. All days count for 2019 but only 1/3 of the days count for 2018
and 1/6 of the days in 2017
Income tax rate for a foreign person recieving U.S source income - ANS-30%
Are Spouses with different accounting methods allowed to file a joint return. - ANS-Yes
Qualifying Relative rule for a Dependent - ANS-Tax Payer must provide over one-half of
the support of the individual. IE If A person makes $2600, tax payer must provide $2700
Rules for a child to qualify as a dependent - ANS-1.Relationship - THe Child must be
the taxpayer's son, daughter,stepson, step daugher, brother, sister, stepbrother, step
sister, Adopted individuals, eligible foster children, meet the relationship test.
2. Age - Must be under 19 or under 24 and a full-time student
3.Principal Residence - Child must live with the tax payer for more than half a year
4. Not Self Supporting - The Child must not have provided over their support
What itemized deductions can a nonresident alien can take - ANS-1. Casualty and theft
losses from a federally declared disaster (IE police report)
2. Charitable contributions to US ORGANIATIONS
3. Local and state income taxes
4. Miscellanous Deductions
Dependent Qualifications - ANS-1. Tax payer must provede over 50% of the support of
a U.S citizen who meets relationshp and residence tests
2. Must pass relationship test
, 3. Must pass Child Dependent (under 19 or 24 college) then they are claimed
dependent regardless of income
4. Must Pass Gross Profit Limit (Must Not earn more than $4200)
5. Canada or Mexico is exempted from residency test.
6. Unmarried son or daugher, unmarried grandchild, unmarried stepchild, and other
relatives must live in the principle place of abode for atleast 6 months
Claiming a Cousin - ANS-Must live in the house hold the entire year
Requirment to determine whether a taxpayer is considered unmarried for head of
household - ANS-1. The Tax Payer must have filed a separate return.
2. The taxpayer paid more than half the cost of upkeeping of the home
3. The TaxPayers spouse did not live in the home during the last 6 months of the tax
year
4. Tax payers spouse must pass 6 month test, The home must have been the main
home of the tax payers child for MORE than 6 months
5. The tax payer must be able to claim the child as dependent
Does school void the 6 month test ? - ANS-No, time spent at school does not void the 6
month test, meaning that they pass the 6 month test even if they at school.
Head Of House Hold Payment Time Period Qualification - ANS-Must pay more than
50% of upkeep of the house DURIN G THE ENTIRE TAX year
Calculation for unearned income for children - ANS-Unearned income - 1100 (first
clause) - 1100 (kiddie deduction)
When can a minor's income be taxed at the ordinary and capital gain rates of estates
and trusts or the parent's marginal rate? - ANS-When a child has net unearned income
and is under age 18 with at least one living parent
how is net unearned income of a dependent under the age of 19 taxed? - ANS-NUI of a
depended under 19(under 24 fr full time students) is taxed to the dependent at the
ordinary and capital gains rate or at dependents marginal rate
Substancial Presence Test Requirments - ANS-To be considered a US Resident a tax
payer must be physically present in the US for atleast 31 days during 2019 but must
have a total of 183 days. All days count for 2019 but only 1/3 of the days count for 2018
and 1/6 of the days in 2017
Income tax rate for a foreign person recieving U.S source income - ANS-30%
Are Spouses with different accounting methods allowed to file a joint return. - ANS-Yes
Qualifying Relative rule for a Dependent - ANS-Tax Payer must provide over one-half of
the support of the individual. IE If A person makes $2600, tax payer must provide $2700
Rules for a child to qualify as a dependent - ANS-1.Relationship - THe Child must be
the taxpayer's son, daughter,stepson, step daugher, brother, sister, stepbrother, step
sister, Adopted individuals, eligible foster children, meet the relationship test.
2. Age - Must be under 19 or under 24 and a full-time student
3.Principal Residence - Child must live with the tax payer for more than half a year
4. Not Self Supporting - The Child must not have provided over their support
What itemized deductions can a nonresident alien can take - ANS-1. Casualty and theft
losses from a federally declared disaster (IE police report)
2. Charitable contributions to US ORGANIATIONS
3. Local and state income taxes
4. Miscellanous Deductions
Dependent Qualifications - ANS-1. Tax payer must provede over 50% of the support of
a U.S citizen who meets relationshp and residence tests
2. Must pass relationship test
, 3. Must pass Child Dependent (under 19 or 24 college) then they are claimed
dependent regardless of income
4. Must Pass Gross Profit Limit (Must Not earn more than $4200)
5. Canada or Mexico is exempted from residency test.
6. Unmarried son or daugher, unmarried grandchild, unmarried stepchild, and other
relatives must live in the principle place of abode for atleast 6 months
Claiming a Cousin - ANS-Must live in the house hold the entire year
Requirment to determine whether a taxpayer is considered unmarried for head of
household - ANS-1. The Tax Payer must have filed a separate return.
2. The taxpayer paid more than half the cost of upkeeping of the home
3. The TaxPayers spouse did not live in the home during the last 6 months of the tax
year
4. Tax payers spouse must pass 6 month test, The home must have been the main
home of the tax payers child for MORE than 6 months
5. The tax payer must be able to claim the child as dependent
Does school void the 6 month test ? - ANS-No, time spent at school does not void the 6
month test, meaning that they pass the 6 month test even if they at school.
Head Of House Hold Payment Time Period Qualification - ANS-Must pay more than
50% of upkeep of the house DURIN G THE ENTIRE TAX year
Calculation for unearned income for children - ANS-Unearned income - 1100 (first
clause) - 1100 (kiddie deduction)
When can a minor's income be taxed at the ordinary and capital gain rates of estates
and trusts or the parent's marginal rate? - ANS-When a child has net unearned income
and is under age 18 with at least one living parent
how is net unearned income of a dependent under the age of 19 taxed? - ANS-NUI of a
depended under 19(under 24 fr full time students) is taxed to the dependent at the
ordinary and capital gains rate or at dependents marginal rate
