Tax for HR Block Chap 1-12
1. Describe Gross Income
All income from whatever source derived, unless excluded from taxation by law.
2. Describe Earned Income
Income received for services performed, including wages, commissions, tips, and, generally,
farming and other business income.
3. Filling requirements differ based on the following
Nondependents.
Dependents.
Certain children under age 19 or full-time students under age 24.
Self-employed individuals.
Aliens.
4. Three factors determine the filing requirement for nondependents
Filing status.
Age.
Gross income.
5. Common Law Marriage
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.
6. Divorce Final Dec 31
Considered unmarried for the year
7. 65 Birthday Jan 1, 2019
Considered 65 for 2018 tax year
8. Taxpayers age 65 or older and/or blind are entitled to the following increased
standard deduction amounts
$1,600 (per condition) for singles and heads of households.
$1,300 (per condition) for all married taxpayers and qualifying widow(er)s.
9. A dependent taxpayer's standard deduction is equal to the greater of the following
$1,050.
Their earned income plus $350.
, 10.A parent can make this election if the following conditions are met (19 or full time
student up to 24
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
11.Form 8862
If your earned income credit (EIC), child tax credit (CTC)/additional child tax credit
(ACTC), or American opportunity tax credit (AOTC) was disallowed by IRS, you must
complete and file.
Now you meet all the requirements and want to take the EITC, CTC/ACTC or AOTC for
this tax year
12.Schedule C
Profit or Loss From Business
13.Form 4868
Six month extension
14.Form 8379
Injured Spouse Allocation
15.Form 8857
Request for Innocent Spouse Relief, can provide three types of relief from joint
responsibility:
Innocent spouse relief.
Separation of liability.
Equitable relief.
16.For a taxpayer to claim a qualifying child or qualifying relative as a dependent, the
following three tests must be met
Dependent taxpayer test.
Joint return test.
Citizen or resident test.
17.Qualifying Child test
Relationship test.
Age test.
1. Describe Gross Income
All income from whatever source derived, unless excluded from taxation by law.
2. Describe Earned Income
Income received for services performed, including wages, commissions, tips, and, generally,
farming and other business income.
3. Filling requirements differ based on the following
Nondependents.
Dependents.
Certain children under age 19 or full-time students under age 24.
Self-employed individuals.
Aliens.
4. Three factors determine the filing requirement for nondependents
Filing status.
Age.
Gross income.
5. Common Law Marriage
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.
6. Divorce Final Dec 31
Considered unmarried for the year
7. 65 Birthday Jan 1, 2019
Considered 65 for 2018 tax year
8. Taxpayers age 65 or older and/or blind are entitled to the following increased
standard deduction amounts
$1,600 (per condition) for singles and heads of households.
$1,300 (per condition) for all married taxpayers and qualifying widow(er)s.
9. A dependent taxpayer's standard deduction is equal to the greater of the following
$1,050.
Their earned income plus $350.
, 10.A parent can make this election if the following conditions are met (19 or full time
student up to 24
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
11.Form 8862
If your earned income credit (EIC), child tax credit (CTC)/additional child tax credit
(ACTC), or American opportunity tax credit (AOTC) was disallowed by IRS, you must
complete and file.
Now you meet all the requirements and want to take the EITC, CTC/ACTC or AOTC for
this tax year
12.Schedule C
Profit or Loss From Business
13.Form 4868
Six month extension
14.Form 8379
Injured Spouse Allocation
15.Form 8857
Request for Innocent Spouse Relief, can provide three types of relief from joint
responsibility:
Innocent spouse relief.
Separation of liability.
Equitable relief.
16.For a taxpayer to claim a qualifying child or qualifying relative as a dependent, the
following three tests must be met
Dependent taxpayer test.
Joint return test.
Citizen or resident test.
17.Qualifying Child test
Relationship test.
Age test.
