Questions and Answers
Which of the following are IRS filing statuses? (Select all that apply)
What are the income requirements for a single individual under 65 to file?
$9,350
What is the income requirement for a single individual aged 65 or older to file?
$10,750
What is the IRS definition of 'Single'?
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What are the income requirements for Head of Household under 65?
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What is the income requirement for Head of Household aged 65 or older to file?
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What is the IRS definition of 'Married Filing Jointly'?
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What are the income requirements for Married Filing Jointly when both spouses are under 65?
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What is the income requirement for Married Filing Separately regardless of age?
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What is the IRS definition of 'Qualifying Widow(er)'?
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What are the income requirements for Qualifying Widow(er) under 65?
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What does Gross Income include?
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What are the Standard Deduction amounts for Single or MFS?
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What is the Standard Deduction for Married Filing Jointly or Qualifying Widow(er)?
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What is the Normal tax filing deadline?
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What is the amount for which a self-employed individual must file?
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What two methods can be used to file a tax return?
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What is Form 1040 EZ used for?
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Study Notes
IRS Filing Status
- Five IRS filing statuses: Single, Head of Household, Married Filing Jointly, Married Filing Separately, and Qualifying Widow(er).
Definition of Single
- Unmarried individuals without dependents, divorced, legally separated, or widowed in prior years.
Income Requirements for Single
- Under 65: $9,350;
- 65 or older: $10,750.
Definition of Head of Household
- Unmarried with qualifying child(ren) or married with qualifying child(ren) who did not live with the spouse for the last six months of the year.
Income Requirements for Head of Household
- Under 65: $12,050;
- 65 or older: $13,450.
Definition of Married Filing Jointly
- Married couples living together at the end of the tax year or on the date of death of a spouse.
Income Requirements for Married Filing Jointly
- Both under 65: $18,700;
- One spouse 65 or older: $19,800;
- Both spouses 65 or older: $20,900.
Definition of Married Filing Separately
- Married couples who choose not to live together at the end of the tax year or on the date of death.
Income Requirements for Married Filing Separately
- Any age: $3,650.
Definition of Qualifying Widow(er)
- Individuals widowed in the past two tax years with a qualifying dependent child and not remarried in the current tax year.
Income Requirements for Qualifying Widow(er)
- Under 65: $15,050;
- 65 or older: $16,150.
Gross Income
- Total income received, including both earned and unearned income.
Definition of Dependent
- An individual who can be claimed on another person’s tax return.
Filing Factors for Dependents
- Factors include marital status, age, blindness, earned income, unearned income, and gross income.
Filing Requirements for Single Dependents (Under 65 and NOT Blind)
- Must file if:
- Unearned income exceeds $950.
- Earned income exceeds $5,700.
- Gross income is more than $950 or earned income (up to $5,400) plus $300.
Filing Requirements for Single Dependents (65 or older OR Blind)
- Must file if:
- Unearned income exceeds $2,350.
- Earned income exceeds $7,100.
- Gross income is more than $2,350 or earned income (up to $5,400) plus $1,700.
Filing Requirements for Single Dependents (65 or older AND Blind)
- Must file if:
- Unearned income exceeds $3,750.
- Earned income exceeds $8,500.
- Gross income is more than $3,750 or earned income (up to $3,100) plus $1,700.
Filing Requirements for Married Dependents (Under 65 and NOT Blind)
- Must file if:
- Unearned income exceeds $950.
- Earned income exceeds $5,700.
- Gross income is more than $950 or earned income (up to $5,400) plus $300.
- Gross income is at least $5 if spouse files separately and itemizes deductions.
Filing Requirements for Married Dependents (65 or older OR Blind)
- Must file if:
- Unearned income exceeds $2,050.
- Earned income exceeds $6,800.
- Gross income is more than $2,050 or earned income (up to $5,400) plus $1,400.
- Gross income is at least $5 if spouse files separately and itemizes deductions.
Filing Requirements for Married Dependents (65 or older AND Blind)
- Must file if:
- Unearned income exceeds $3,150.
- Earned income exceeds $7,900.
- Gross income is more than $3,150 or earned income (up to $2,500) plus $1,400.
- Gross income is at least $5 if spouse files separately and itemizes deductions.
Self-Employed Individuals' Filing Requirements
- Must file if self-employment income is $400 or more.
Church Employees' Filing Requirements
- Must file if income is $108.28 or more.
Additional Reasons to File a Tax Return
- Social Security/Medicare taxes on unreported tips, Alternative Minimum Tax, or taxes on Qualified Retirement Plans. Filing may be required for Earned Income Tax Credit received from an employer.
Federal Tax Return Forms
- Three available forms: Form 1040 EZ, Form 1040 A, and Form 1040.
Form 1040 EZ Eligibility
- For taxpayers who are single or married filing jointly, under 65 and not blind, without dependents, with taxable interest of $1,500 or less, not itemizing deductions, taxable income less than $100,000, and who have not received any advanced EITC payments.
Form 1040 A Eligibility
- Allows for certain income adjustments, does not permit itemized deductions, taxable income less than $100,000, limited allowable credits, and no AMT adjustment for stock options.
Individual Taxpayer Identification Number (ITIN)
- Used for individuals who cannot obtain a Social Security Number; application via Form W-7.
Preparer Tax Identification Number (PTIN)
- Required for authorized tax preparers and obtained from the IRS using Form W-12.
IRS Third Party Designee Authorization
- Allows a third party to communicate with the IRS regarding the taxpayer's information, respond to notices, and receive copies of certain communications.
Normal Tax Filing Deadline
- April 15, adjusted to the next business day if it falls on a weekend or holiday.
Tax Liability
- Total taxes owed after credits, determined by taxable income and filing status.
Tax Preparation Steps
- Sequential process includes determining form type, completing personal information, exemptions, income reporting, calculating adjusted gross income, deducting standard/itemized deductions, calculating tax liability, claiming credits, reporting payments, and calculating any refund or amount owed.
Common Income Forms
- Form W-2 for wage and tax statements, Form 1099 for reporting non-employee compensation or various incomes like interest and dividends.
Standard Deduction Amounts
- Single or MFS: $5,700;
- MFJ or QW: $11,400;
- Head of Household: $8,400. Adjustments may apply for age or blindness.
Exemption Amount
- $3,650 per exemption claimed.
Distinction Between Dependent and Exemption
- Dependent refers to a person, while exemption refers to a dollar value reducing taxable income.
Filing Methods
- Tax returns can be filed via paper or electronically.
IRS e-file Signature Authorization (Form 8879)
- Retained by the preparer for three years, not mailed to IRS.
IRS e-file Return Transmission (Form 8453)
- Common attachments include Form 1098-C and Form 8332.
Release of Claim to Exemption for Child (Form 8332)
- Used by custodial parents to release or revoke claims to exemptions.
Taxpayer Payment Options
- Payments can be made via check, money order, credit card, or electronic funds withdrawal for e-filed returns.
Taxpayer Information Authorization (Form 8821)
- Used to allow a third party, like a mortgage broker, to access confidential information regarding taxpayer's previous returns.
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Description
This quiz focuses on understanding the five filing statuses recognized by the IRS, including definitions and requirements. Ideal for students or anyone preparing for tax season, it provides clear information on categories such as Single, Head of Household, and more. Test your knowledge with these flashcards to better navigate tax filing options.
