FREE IRA Knowledge Question and Answers
Which of the following statements regarding the PTC for premiums is accurate?
Explanation:
The premium tax credit, or PTC, is a refundable benefit that assists qualified people and families in paying the premiums for health insurance plans obtained via the Health Insurance Marketplace. You must fulfill specific requirements and submit a tax return with Form 8962, Premium Tax Benefit, in order to receive this credit (PTC).
What circumstance(s) from the list below is reported on Form 1099 MISC:
Explanation:
Anyone who has given another person at least $10 in royalties, broker payments in lieu of dividends, or tax-exempt interest must fill out and send out Form 1099-MISC: Miscellaneous Income (also known as Miscellaneous Information). Additionally, it is sent to everyone you paid at least $600 to in the past year.
Which of the following factors is taken into account when determining whether any social security benefits are taxed:
Explanation:
Interest income that is exempt from federal and/or state taxes is referred to as tax-exempt interest.
Regarding the Form 8995 Qualified Business Income (QBI) Deduction Simplified Computation, whether of the following claims is true?
Explanation:
Your qualified business income (QBI) deduction is computed using Form 8995, "Qualified Business Income Deduction Simplified Computation." Up to 20% of an individual taxpayer's net QBI from a trade or business may be deducted, as well as some trusts and estates.
What statement about the Form 1095A, Health Insurance Marketplace Statement, is true?
Explanation:
Form 1095-A is provided by health insurance marketplaces to:
1. The IRS must disclose specific data about people who sign up for a qualified health plan through the Health Insurance Marketplace.
2. People to enable them to:
> claim the premium tax credit;
> reconcile the credit on their returns with the advance credit payments made for the premium tax credit; and
> submit a correct tax return.
If you're 65 or older, or if one of the following applies to you:
Explanation:
If you file as Single or Head of Household and are 65 years of age or older, your standard deduction rises by $1,700. Your standard deduction rises by $1,700 if you qualify as legally blind. Your standard deduction rises by $1,350 if you are married and filing jointly and you or your spouse are 65 years of age or older.
In the current year, a child might be liable for kiddie tax if:
Explanation:
If a child satisfies the Internal Revenue Code's standards for age and support, the child is subject to the kiddie tax (IRC). Children who are: 17 years of age or under at the end of the tax year are subject to the kiddie tax because support obligations do not apply to those under 18.