Tax for HR Block Chap 1-12 Exam

Tax for HR Block Chap 1-12 Exam Describe Gross Income - ANS ️️ All income from whatever source derived, unless excluded from taxation by law. Describe Earned Income - ANS ️️ Income received for services performed, including wages, commissions, tips, and, generally, farming and other business income. Filling requirements differ based on the following - ANS ️️ Nondependents. Dependents. Certain children under age 19 or full-time students under age 24. Self-employed individuals. Aliens. three factors determine the filing requirement for nondependents - ANS ️️ Filing status. Age. Gross income. Common Law Marriage - ANS ️️ The parties must have the legal capacity to marry. Single parties must have the current intent to marry. That is, they must intend to be married and must communicate that intent to one another. The couple must live together. The parties must publicly present themselves to others as a married couple. Divorce Final Dec 31 - ANS ️️ Considered unmarried for the year 65 Birthday Jan 1, 2019 - ANS ️️ Considered 65 for 2018 tax year Taxpayers age 65 or older and/or blind are entitled to the following increased standard deduction amounts - ANS ️️ $1,600 (per condition) for singles and heads of households. $1,300 (per condition) for all married taxpayers and qualifying widow(er)s. A dependent taxpayer's standard deduction is equal to the greater of the following - ANS ️️ $1,050. Their earned income plus $350. A parent can make this election if the following conditions are met (19 or full time student up to 24 - ANS ️️ The child is under the age of 19; or under the age of 24 at the end of the tax year, if the dependent is a full-time student. The child had income only from interest and dividends. The child's gross income was less than $10,500. The child is required to file a return, unless the parent makes this election. The child does not file a joint return for the year. No federal income tax was withheld from the child's current-year income, no current-year estimated tax payments were made by or for the child, and no previous-year overpayments were applied against the child's current-year tax liability