What are the five filing statuses?
Single, MFJ, MFS, Head of Household, Qualifying Surviving Spouse.
What are the tests for a qualifying child?
Relationship, Age, Residency, Support, Joint Return.
What is the gross income test for a qualifying relative?
Dependent must have GI < exemption amount (2026 inflation-adjusted).
How is alimony treated post-TCJA?
Not deductible by payer, not taxable to recipient for divorces finalized after 12/31/2018.
Are gambling winnings taxable?
Yes, all gambling winnings are fully taxable.
How are scholarships taxed?
Tax-free if used for tuition & required fees; taxable if used for room & board.
What are common “above-the-line” adjustments?
Educator expenses, IRA contributions, student loan interest, HSA, SE tax, SE health insurance.
Standard vs. itemized?
Taxpayer chooses the higher; standard deduction varies by filing status.
Refundable credits examples?
EIC, Additional Child Tax Credit, Premium Tax Credit (excess advance repayments may apply).
Nonrefundable credits?
Child and dependent care credit, education credits (LLC nonrefundable), foreign tax credit.
What form does a partnership file?
Form 1065 with Schedule K-1 to partners.
What form does an S Corp file?
Form 1120-S with Schedule K-1 to shareholders.
Schedule C belongs to which business type?
Sole proprietorship (or disregarded entity LLC).
What increases partnership basis?
Contributions, share of income, share of liabilities.
What decreases partnership basis?
Distributions, share of losses, nondeductible expenses.
What is C-Corp stock basis?
Initial investment + additional capital contributions.
Section 179 expense limit applies to what?
Tangible personal property used in a trade or business.
Bonus depreciation allows what?
Immediate deduction of % of qualified property (phasing after TCJA).
What is the general business credit?
A group of credits including research credit, work opportunity credit, etc.
What is due diligence?
Tax professionals must verify information when preparing or filing returns.
What records must practitioners return to clients?
Any records that belong to the client and are needed to comply with tax obligations.
What form is used for power of attorney?
Form 2848.
What form is used for general authorization to access taxpayer information?
Form 8821 (not a POA).
What are the three types of IRS audits?
Correspondence, Office, Field.
