VITA UCLA Answered Questions

Form 1040 - Summary document for entire tax return Gross Income - Income in form of money, goods, property, services (not exempt from tax) Adjustments - Amount that reduces gross income (AKA "above the line deductions") Adjusted Gross Income - Gross income minus adjustments Deductions - Amounts that lower AGI, which therefore reduces taxable income. Itemized vs Standard deductions. VITA only files standard deductions Taxable Income - Amount taxed after AGI reduced by deductions Tax Tables - Annually standardized table that determines the amount of tax owed based on taxable income True or False: Being in a higher tax bracket means that entire income is taxed at the higher rate - False Only the amount of income that pushes you into the next tax bracket is taxed at the higher rate, income below taxed at lower rates Tax Liability - Tax that the taxpayer is responsible for paying. Calculated from tax tables Tax Credits - Reductions/Credits given to pay the taxpayer's tax liability under certain eligibility criteria Withholdings - Money taxpayer already paid to the IRS throughout the year by having it deducted from paychecks Individuals are required to file if: - -They owe taxes -Have self-employment income greater than $400 -Their gross income exceeds the filing requirement threshold Recommended to file is they have withholding that can be refunded or qualify for refund credits What are the 5 general filing statuses - -Single -Married filing jointly -Married filing separately -Head of household -Qualifying widow(er) Filing Status: Single - On last day of 2018: -Not married -Legally separated or divorced -Widowed and not remarried after 2 years of death of spouse Filing Status: Married Filing Jointly - On last day of 2018: -Legally married -Were married and lived together -Were married and lived apart (not legally separated or divorced) -Did not remarry after death of spouse (in year spouse dies)