Area 3: Individual Taxation

A taxpayer's spouse died in Year 1. The taxpayer has a dependent child (age 10) living at home. The taxpayer did not remarry. What is the taxpayer's filing status for Year 1, Year 2, and Year 3?

An employee receives ,000 of non-discriminatory group term life insurance coverage from their employer. The cost of the policy is .50 per ,000 of coverage per month. How much must be included in the employee's gross income for the year?

A single taxpayer redeemed Series EE savings bonds in Year 1. The total proceeds were ,000 (,000 principal + ,000 interest). The taxpayer used all proceeds to pay for qualified higher education expenses. The taxpayer's modified AGI is ,000. The phase-out range for the exclusion is ,000 - ,000. What amount of interest is excludable from gross income?

A self-employed consultant had net earnings from self-employment of 0,000 in Year 1. The self-employment tax rate is 15.3% (12.4% SS + 2.9% Medicare) up to the wage base, and 2.9% thereafter. Assume the Social Security wage base is 68,600. The calculated total Self-Employment Tax is approximately 1,120. What is the consultant's 'Adjustment to Income' (above-the-line deduction) for this tax?

Taxpayer (AGI 0,000) incurred the following medical expenses: Doctor bills ,000; Cosmetic surgery (elective) ,000; Prescription drugs ,000; Health insurance premiums (after-tax) ,000. Insurance reimbursed ,000. What is the deductible medical expense amount on Schedule A?

A taxpayer (AGI 0,000) donated cash of ,000 to a public charity and long-term capital gain stock (FMV ,000, Basis ,000) to a public charity. What is the maximum charitable contribution deduction allowed in the current year?

Taxpayer paid ,000 in investment interest expense. They had ,000 in interest income and ,000 in qualified dividends. They did NOT elect to treat the qualified dividends as investment income. What is the investment interest expense deduction?

A married couple filing jointly paid the following taxes in Year 1: State income tax ,000; Real estate tax on primary home ,000; Personal property tax on cars ,000. What is their itemized deduction for taxes (SALT)?

A single taxpayer has taxable income of 00,000 (before QBI deduction). Their sole source of income is a law practice (SSTB). The threshold for QBI phase-out is 91,950 and the top of the range is 41,950 (Year 1 inflation adjusted). What is their QBI deduction?

Taxpayer (AGI 30,000) actively participates in a rental real estate activity that produced a ,000 loss. They have no other passive income. How much of the loss can they deduct against ordinary income?

A taxpayer invested ,000 in a partnership (passive activity). In Year 1, their share of the loss was ,000. They had no other passive income. What is the suspended loss due to the At-Risk rules and the Passive Activity rules respectively?

A taxpayer has 2 qualifying children (under age 17). Their tax liability before credits is 0. Their earned income is ,000. What is the amount of the Child Tax Credit they can claim as a REFUND (Additional Child Tax Credit)? (Assume current tax year rules, max refundable approx ,700 per child).

Taxpayer has ,000 of U.S. source income and ,000 of foreign source income. Total taxable income is ,000. The U.S. tax liability before credits is ,000. The taxpayer paid ,000 in foreign taxes. What is the Foreign Tax Credit limitation?

Which of the following items is added back to regular taxable income to calculate Alternative Minimum Taxable Income (AMTI) for an individual?

A taxpayer had AGI of 60,000 in Year 1 and tax liability of 0,000. In Year 2, they expect a tax liability of 0,000. To avoid the underpayment penalty for Year 2 via the Safe Harbor rules, what is the minimum estimated tax payment required?