Accounting Final pt 3

Card Set Information

Author:
ndumas2
ID:
84823
Filename:
Accounting Final pt 3
Updated:
2011-05-09 17:01:17
Tags:
Survey Accounting Anderson LSU
Folders:

Description:
third part of accounting study cards
Show Answers:

Home > Flashcards > Print Preview

The flashcards below were created by user ndumas2 on FreezingBlue Flashcards. What would you like to do?


  1. List the Deductions for adjusted gross income
    • •IRA contributions
    • •Self-employed health insurance premiums
    • •Keogh contributions
    • •Penalty on early withdrawal of savings
    • •Alimony payments
    • •Moving expenses
    • •Student loan interest
    • •Tuition and fees
  2. IRA contributions: Individual Retirement Account (income limit) are
    • - retirement savings
    • - up to $4,000/year per spouse
    • - tax deductible (make contribution as late as 4/15 of the next year)
    • - earnings grow tax-deferred
    • - minimum age to take money out is 59½ years of age
    • - new version: “Roth IRA” – no deduction, nontaxable upon distributions
  3. for Keogh contributions: IRAs for the self-employed,
    is there a 4,000 maximum?
    no $4,000 maximum
  4. to make sure alimony payments are acurate the
    • Ex-Husband (Payer) must Report Ex-Wife’s SSN
    • Ex-Wife (Recipient)
  5. what are some examples of moving expenses?
    • A) transportation of household goods
    • B) travel to new location (no meals, but hotels, gas, airfare)
    • 1) not for convenience, so for a job
    • 2) greater than 50 miles
  6. Standard Deduction (2010 tax year)
    for Single, Married Filing Joint, Married Filing Seperate, head of Household, Qualifying widow (er) and old age & blindness if married filing joint or single
    • •Single $ 5,700
    • •Married filing Joint $11,400
    • •Married filing Separate $ 5,700
    • •Head of household $ 8,400
    • •Qualifying widow(er) $11,400
    • •Additional amounts for old age and blindness
    • ($1,100 if MFJ; $1,400 if S)
  7. When do we use Itemized Deductions (claimed on schedule A
    only deduct if total exceeds the standard deduction)
  8. Itemized Deductions Include...
    • •Medical
    • •Taxes
    • •Interest
    • •Charitable contributions
    • •Casualty and theft losses
    • •Miscellaneous
    • Employee business expenses
    • Other
  9. Medical Deductions include
    • - doctors, hospitals (not vet bills)
    • -prescription drugs and insulin
    • -health insurance premiums for employees (paid by employee; if employer is paying for it you cannot claim it)
    • - certain home improvements (ex. chair lift installation)
    • - travel to a specialist for treatment (lodging, airfare, gas)
    • - cosmetic surgery only if required to; elective cosmetic surgery no longer a deduction
  10. When claiming medical deductions...
    • - when claiming these deductions,
    • - dental
    • -orthodontics
    • - eye care
    • subtract
    • 1) health insurance proceeds
    • 2) 7.5% of AGI (floor)
  11. Types of Interests for itemized deductions
    • - mortgage interest on house on 2 homes (debt cannot exceed $1,000,000)
    • and home equity loans
    • - points: 1 point = 1% of loan value
    • - investment interest: deductible to the extent of your investment income
    • - consumer debt: nondeductible
    • - credit cards
    • - car loans
    • - personal loans
  12. Itemized deduction of Casualty and theft losses
    • - subject to 2 floors (amt. you have to reduce the deduction from)
    • - $100 per event (hurricane, robbery, theft)
    • - 10% of AGI per year regardless of how many events
  13. Itemized Miscellaneous Deductions include
    • - unreimbursed employee business expenses
    • -supplies
    • -equipment
    • -tax return prep fee
    • -job hunting – resume, travel
    • -business use of automobile
    • – present 50. cents/mile
    • commuting is personal

    • -supplies
    • - equipment
    • -union dues
    • - subscriptions related to business
    • - travel
    • - entertainment (lose 50% of deduction)
    • - meals (lose 50% of deduction)\
    • - other
    • -tax return prep fees
  14. After Indemized deduction is determined...
    Add all upand subtract 2% of AGI and compare to standard deductions
  15. Reduction of Deduction-
    – if make too much money have reduction of itemized deductions
  16. A note about Exemptions
    if your parents claim a dependency exemption for you, the you cannot claim yourself
  17. Exemptions for ($3,650 for 2010)
    • •Personal
    • •Dependency
    • –Qualifying Child:
    • •Relationship Test
    • •Age Test
    • •Residency Test
    • •Support Test
    • –Qualifying Relative
    • •Not a qualifying child
    • •Relationship/household Test
    • •Gross Income Test
    • •Support Test
  18. Where to file- For Louisiana residents:
    • Internal Revenue Service
    • Austin, TX 73301-0002

What would you like to do?

Home > Flashcards > Print Preview