FREE IRA Knowledge Question and Answers

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If you're 65 or older, or if one of the following applies to you:

Correct! Wrong!

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.

Regarding the Form 8995 Qualified Business Income (QBI) Deduction Simplified Computation, whether of the following claims is true?

Correct! Wrong!

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 circumstance(s) from the list below is reported on Form 1099 MISC:

Correct! Wrong!

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 statements regarding the PTC for premiums is accurate?

Correct! Wrong!

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).

In the current year, a child might be liable for kiddie tax if:

Correct! Wrong!

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.

What statement about the Form 1095A, Health Insurance Marketplace Statement, is true?

Correct! Wrong!

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.

Which of the following factors is taken into account when determining whether any social security benefits are taxed:

Correct! Wrong!

Explanation:
Interest income that is exempt from federal and/or state taxes is referred to as tax-exempt interest.

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