Enrolled Agent Exam Part 1
Adoption Credit - ANS-Max of $thirteen,810 in step with toddler or restrained to expenses
incurred (besides if toddler is special desires, then whole credit score can be taken). Phased out
between $207,140 and $247,one hundred forty
Alimony -- If the payor should pay loan bills and the home is mutually owned, how a whole lot is
deductible by means of the taxpayer? - ANS-50% of mortgage bills can be deducted and the
payee spouse need to 50% of the payments in income. The taxpayer can also claim 50% of the
interest paid as an itemized deduction.
Alimony -- If the payor need to pay actual estate taxes and domestic insurance and the
residence is "held as tenants with the aid of the whole lot" or "joint tenants", how a whole lot is
deductible? - ANS-None of the total payments are deductible through payor/gross earnings to
payee. All of the real estate taxes are deductible as an itemized deduction. None of the home
coverage is deductible as an itemized deduction.
Alimony -- If the payor ought to pay actual estate taxes and domestic coverage and the house is
"held as tenants in common", how tons is deductible? How a great deal should be included in
alimony profits through the payee? - ANS-Half of the entire bills are deductible by means of
payor/gross income to payee. Half of the real estate taxes are deductible as an itemized
deduction. None of the home insurance is deductible as an itemized deduction.
American Opportunity Credit - ANS-$2500/student for first 4 years of postsecondary education.
One hundred% of first $2000 qualified charges and 25% of the next $2000 of certified prices
Phases out among $eighty,000 and $90,000 for singles and between $one hundred sixty,000
and $180,000 on a joint go back.
Up to 40% of the credit score is refundable.
Are benefits from a health and coincidence plan included in gross earnings if paid by using
organisation? - ANS-No (if you obtained a physical injury in connection with the benefits)
Are entertainment prices deductible? - ANS-No
Are event tickets deductible as enterprise present expense? - ANS-Yes if the quantity in keeping
with person donee per year is restrained to $25. Also, adequate data need to be maintained.
Are punitive damages included in gross profits? - ANS-Yes (until you received a physical harm
in connection with the punitive damages)
, Can unpaid alimony or infant support be deducted as a nonbusiness awful debt? - ANS-No.
Cannot be a terrible debt until it becomes absolutely worthless.
Child Tax Credit --Qualifying Child - ANS-a. Taxpayer's son, daughter, stepchild, foster child,
brother, sister, stepbrother, stepsister, half brother, 1/2 sister, or a descendant of any of them.
B. Underneath age 17 at the cease of 2018.
C. Did not provide over half of his or her own guide for 2018
d. Lived with the taxpayer for greater than 1/2 of 2018 --counts if baby died/became born and
lived with tpayer more than 1/2 the time alive, brief absences also allowed.
E. Is claimed as a dependent on the taxpayer's return
f. Does no longer document a joint go back for the yr (or documents simplest to say refund or
predicted tax paid)
g. Was a U.S. Citizen, a U.S. Countrywide, or a U.S. Resident alien
Child Tax Credit Amounts - ANS-$2000 2018 to 2025. Additional Child Tax Credit is for those
who get much less than the total quantity of CTC. The ACTC may additionally give the taxpayer
a reimbursement despite the fact that the taxpayer does now not owe any tax. ACTC is
refundable up to fifteen% of earned earnings in extra of $2500. Capped at $1400. Schedule
8812.
Phased out while AGI reaches $400,000 for MFJ or $two hundred,000 all others. Credit is
decreased via $50 for each $one thousand (or part thereof) by means of which AGI exceeds
threshold.
There is also a $500 nonrefundable credit score for dependents aside from a qualifying child or
for qualifying infant without required SSN.
Credit for Elderly or Disabled - ANS-15% instances base amount which is $5000 for singles
$7500 for MFJ, and $3750 MFS. Limited to disability income if beneath age 65. Base amount is
decreased via tax exempt social security blessings, pension/annuity excluded from GI, one half
of of extra AGI over $7500 for singles $10,000 for MFJ. MFS who lives with spouse can not
declare.
Credit for Elderly or Disabled -- AGI Cutoff - ANS-Single, HOH, Qualifying Widower $17,500
MFJ -- one certified partner. $20,000
MFJ -- each certified -- $25,000
MFS -- $12,500
Adoption Credit - ANS-Max of $thirteen,810 in step with toddler or restrained to expenses
incurred (besides if toddler is special desires, then whole credit score can be taken). Phased out
between $207,140 and $247,one hundred forty
Alimony -- If the payor should pay loan bills and the home is mutually owned, how a whole lot is
deductible by means of the taxpayer? - ANS-50% of mortgage bills can be deducted and the
payee spouse need to 50% of the payments in income. The taxpayer can also claim 50% of the
interest paid as an itemized deduction.
Alimony -- If the payor need to pay actual estate taxes and domestic insurance and the
residence is "held as tenants with the aid of the whole lot" or "joint tenants", how a whole lot is
deductible? - ANS-None of the total payments are deductible through payor/gross earnings to
payee. All of the real estate taxes are deductible as an itemized deduction. None of the home
coverage is deductible as an itemized deduction.
Alimony -- If the payor ought to pay actual estate taxes and domestic coverage and the house is
"held as tenants in common", how tons is deductible? How a great deal should be included in
alimony profits through the payee? - ANS-Half of the entire bills are deductible by means of
payor/gross income to payee. Half of the real estate taxes are deductible as an itemized
deduction. None of the home insurance is deductible as an itemized deduction.
American Opportunity Credit - ANS-$2500/student for first 4 years of postsecondary education.
One hundred% of first $2000 qualified charges and 25% of the next $2000 of certified prices
Phases out among $eighty,000 and $90,000 for singles and between $one hundred sixty,000
and $180,000 on a joint go back.
Up to 40% of the credit score is refundable.
Are benefits from a health and coincidence plan included in gross earnings if paid by using
organisation? - ANS-No (if you obtained a physical injury in connection with the benefits)
Are entertainment prices deductible? - ANS-No
Are event tickets deductible as enterprise present expense? - ANS-Yes if the quantity in keeping
with person donee per year is restrained to $25. Also, adequate data need to be maintained.
Are punitive damages included in gross profits? - ANS-Yes (until you received a physical harm
in connection with the punitive damages)
, Can unpaid alimony or infant support be deducted as a nonbusiness awful debt? - ANS-No.
Cannot be a terrible debt until it becomes absolutely worthless.
Child Tax Credit --Qualifying Child - ANS-a. Taxpayer's son, daughter, stepchild, foster child,
brother, sister, stepbrother, stepsister, half brother, 1/2 sister, or a descendant of any of them.
B. Underneath age 17 at the cease of 2018.
C. Did not provide over half of his or her own guide for 2018
d. Lived with the taxpayer for greater than 1/2 of 2018 --counts if baby died/became born and
lived with tpayer more than 1/2 the time alive, brief absences also allowed.
E. Is claimed as a dependent on the taxpayer's return
f. Does no longer document a joint go back for the yr (or documents simplest to say refund or
predicted tax paid)
g. Was a U.S. Citizen, a U.S. Countrywide, or a U.S. Resident alien
Child Tax Credit Amounts - ANS-$2000 2018 to 2025. Additional Child Tax Credit is for those
who get much less than the total quantity of CTC. The ACTC may additionally give the taxpayer
a reimbursement despite the fact that the taxpayer does now not owe any tax. ACTC is
refundable up to fifteen% of earned earnings in extra of $2500. Capped at $1400. Schedule
8812.
Phased out while AGI reaches $400,000 for MFJ or $two hundred,000 all others. Credit is
decreased via $50 for each $one thousand (or part thereof) by means of which AGI exceeds
threshold.
There is also a $500 nonrefundable credit score for dependents aside from a qualifying child or
for qualifying infant without required SSN.
Credit for Elderly or Disabled - ANS-15% instances base amount which is $5000 for singles
$7500 for MFJ, and $3750 MFS. Limited to disability income if beneath age 65. Base amount is
decreased via tax exempt social security blessings, pension/annuity excluded from GI, one half
of of extra AGI over $7500 for singles $10,000 for MFJ. MFS who lives with spouse can not
declare.
Credit for Elderly or Disabled -- AGI Cutoff - ANS-Single, HOH, Qualifying Widower $17,500
MFJ -- one certified partner. $20,000
MFJ -- each certified -- $25,000
MFS -- $12,500
