See Part 1 TY2025

Additional Medicare Tax Threshold Single

$200,000

What is the character of gain on sale of copyright, literary work, etc.?

Ordinary

If your MAGI exceeds the threshold, NIIT is payed at 3.8% of the lesser of

your net investment income or amount MAGI exceeds the threshold

NIIT MAGI threshold/Additional Medicare Tax threshold mfj

250,000

NIIT MAGI threshold/Additional Medicare Tax threshold mfs

125,000

NIIT MAGI threshold/Additional Medicare Tax threshold all nonmarried statuses

200,000

Are Roth IRA Contributions deductible

no

Date by which taxpayer must begin taking RMDs

April 1st following the year in which they turn 70.5, and 12/31 in subsequent years

This type of IRA has RMDs

Traditional

Are withdrawals and distributions taxable (traditional)

Yes

Are withdrawals and distributions taxable (ROTH)

No if qualified

Does traditional IRA have early withdrawal penalties; what age, what percent

Yes; 59.5, 10%

Maximum Roth contribution

7,000

Catch-up amount (roth), age allowed to contribute this, total max contribution

1,000; >50; 8,000

IRA contribution limit phaseout Single/HoH

150,000-165,000

A taxpayer must pay estimated tax if both of the following apply: The taxpayer expects to owe at least 1,000 in tax after subtracting withholding and credits AND…

amount owed after withholding and credits is less than the smaller of 90% of tax owed this year or 100% of tax on last year's return

Traditional IRA deductible contribution limit Single, Full deduction permitted

126,000

Traditional IRA deductible contribution limit Single, Partial deduction range

126,000-146,000

Traditional IRA deductible contribution limit Single, No deduction permitted

146,000

Traditional IRA deductible contribution limit, Spouse not covered by employer's plan, Full deduction permitted

236,000

Traditional IRA deductible contribution limit, Spouse not covered by employer's plan, Partial Deduction Range

236,000-246,000

Traditional IRA deductible contribution limit, Spouse not covered by employer's plan, No deduction

246,000

If a minister's housing allowance is less than the FRV of the home, are they required to include it for SE tax?

Yes

If a minister's housing allowance is less than the FRV of the home, are they allowed to exclude it from income tax?

Yes

For determining a qualifying child for the Child Tax Credit, is the child required to be your dependent?

Yes

For determining a qualifying child for the Child Tax Credit, is the child required to be a citizen or resident of the US?

Yes

For determining a qualifying child for the Child Tax Credit, is the child required to be under 24 if a student?

No, limit is 17

2025 SALT cap

40,000

Amount of medical and dental expenses deductible Schedule A

Amount > 7.5% of AGI

What happens if a taxpayer engages in a prohibited transaction in connection with their traditional IRA?

Account stops being an IRA as of the first day of that year.

If a taxpayer's Trad.IRA stops being an IRA due to a prohibited transaction, what happens?

account distributes its assets at FMV on first day of year

If a Mutual Fund or REIT declares a dividend in these months but doesn't pay till next year, the dividend is regarded as being received 12/31 of the year it was declared.

October, November, December

If a Mutual Fund or REIT declares a dividend in Oct, Nov, Dec but doesn't pay till January, when is the money treated as being received?

12/31 of year it was declared

Can a nonresident alien file MFJ?

No

When must excess IRA contributions and earnings be withdrawn to avoid paying excise tax?

April 15th, plus extensions

What amount is the excise tax on excess IRA contributions

6%

Which education credit is for those not doing their first 4 years of postsecondary education?

Lifetime Learning Credit

Which education credit is for regular college students? How many years of college can they take?

American Opportunity Credit, 4

What is the interval for MAGI for married couples claiming a partial AOC

160,000-180,000

Percent of tax owed as payroll tax per side (employer/employee)

7.65%

Total self-employment tax percentage

15.3%

Form used by individuals to pay their quarterly estimated tax

1040-ES

Name of the deduction that allows tax free transfers of property between married couples

Marital Deduction

At what age does the standard deduction go up?

65

How much does age/blindness increase standard deduction?

2,000

What is the standard deduction for 2025

15,750

What type of damages are taxable?

Punitive

What type of damages are nontaxable?

Compensatory

If a taxpayer dies and the spouse remarries in the same year, what is the dead taxpayer's filing status?

Married Filing Separately

How does a nontaxable distribution affect basis?

Decreases basis by amount of nontaxable distribution or return of capital

If a child is born and dies in the same tax year before obtaining SSN, can parents claim them? If so, how?

Yes, write DIED in space for SSN

FBAR must be filed if a U.S. person has total foreign account balances of _____ or more

10,000

Where is hobby income reported?

Schedule 1, other income

Can hobby expenses be deducted? If not, what can be deducted from hobby income?

No, COGS

For Nonresident Alien students, what amount of scholarship money is excluded from income?

Amount spent on qualifying expenses, i.e. tuition, fees, books supplies. NOT room and board

How many indirect IRA rollovers are allowed per year?

One

How can a taxpayer move money between IRAs after their rollover cap has been hit for the year?

trustee-to-trustee transfer

What form is used for reporting SS, MCR, and FUTA taxes for household employees>

Schedule H

How long must a taxpayer live apart from spouse to qualify for HoH

last six months of year

When alternative valuation method is elected, what date is used for basis of property?

FMV at 6 months after death

What type of rates are ordinary dividends taxed at?

Ordinary

What type of rates are qualified dividends taxed at>

Capital gains

Form used to calculate current year AMT

Form 6251

Form used to amend a tax return

Form 1040-X

Form used to claim a credit for previous year AMT

Form 8801

Form used for the foreign tax credit

Form 1116

A resident alien meets either the ____ or _____

Substantial presence test; Green card test.

Relevant Interval of MAGI for Traditional IRA deduction; Single

79,000-89,000

Relevant Interval of MAGI for Traditional IRA deduction; MFJ or QSS

126,000-146,000

Relevant Interval of MAGI for Traditional IRA deduction; MFS

0-10k partial deduction; over 10k no deduction

Relevant interval of MAGI for Roth IRA contribution limit; MFJ or QSS

236,000-246,000

Relevant interval of MAGI for Roth IRA contribution limit; MFS and lived with spouse any time during year

0-10k

Relevant interval of MAGI for Roth IRA contribution limit; Single, HoH, or MFS and didn’t live with spouse

150,000-165,000

At what age can you contribute an extra 1,000 to IRAs?

50

At what age can you start taking distributions from IRAs?

59.5

Net Investment Income Tax MAGI threshold Single

200,000

If a nonresident alien doesn’t have wages subject to withholding, when is their filing deadline?

June 15th

The amount of group term life insurance coverage that is taxable is the amount over _______

50,000

If foreign assets exceed ______ at year end, Form 8938 must be filed

50,000

If foreign accounts total _____ at any point in the year, taxpayer must file FBAR (Fincen 114)

10,000

How many days must be spent outside the U.S. to meet the Physical Presence Test for qualifying for the Foreign Earned income Exclusion?

330

How much can be taken as a Qualified Charitable Distribution?

108,000

Form for exemption from SE tax on ministerial earnings

4361

Information return received by taxpayer from private employer pension plan

1099-R

Information return received by taxpayer for traditional IRA distributions

1099-R

Information return received by taxpayer for Social Security Benefits

SSA-1099

Sally rents out her house for 2 weeks every year. She earns 6,000. How much is included in gross income?

0

Percentage of qualifying costs a taxpayer may claim for the Residential Clean Energy Credit for property placed into service in 2025

30%

Which form must be used to report the sale of capital assets?

8949

Form used to claim a casualty loss deduction

4684

form U.S. Income Tax Return for Estates and Trusts

1041

Amount of the Child Tax Credit

2,200

Form for exemption from SE tax on ministerial earnings

4361

Form to reapply for a credit after disallowance

8862

Charitable use of vehicle is written off at ____/mile

.14