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1 All seven of the following tests must be met in order for a taxpayer to claim another person as a dependent in 0. Test numbers through vary depending joint return with a spouse. This rule does not apply if the joint return was ) Married filing joint test. A person cannot be treated as a dependent if he on whether the person is a qualifying child or a qualifying relative of the taxpayer. claim for refund and no tax liability would exist for either spouse if they had ) Taxpayer ineligible if a dependent test. To claim another person as a dependent, the taxpayer, or spouse of taxpayer if filing jointly, cannot be claimed as ) Citizen or resident test. The person claimed as a dependent must be either returns. a dependent on someone else s tax return. U.S. national, or a resident of the U.S., Canada, or Mexico. An adopted child the taxpayer all year passes this test if the taxpayer is a U.S. citizen or U.S. Qualifying Child Qualifying Relative ) Relationship test. The child must be the taxpayer s son, daughter, ) Relationship test. A relative of the taxpayer must be: stepchild, INDIVIDUAL foster child, brother, PREPARATION sister, stepbrother, stepsister, or A son, daughter, stepchild, foster child, or a descendant TA of any of these (such as a a descendant FAST ANSWER of any of these, such CHARTS as the taxpayer s grandchild, A brother, sister, or a son or daughter of either YEAR of these (such as a niece or nephew), niece, or nephew. Note: If a child meets tests through for more A father, mother, or an ancestor or sibling of either of them (such as a grandmother than 09 one taxpayer, Federal see Tax Qualifying Rate Child Schedule of More Than One Person, aunt, 09 or Filing uncle), or Requirements for Most Taxpayers Tab of, 00 Edition/Deluxe Edition. A stepbrother, stepsister, stepfather, stepmother, son-in-law, daughter-in-law, fathe Single Taxable Income If filing And at the end of 0, Then file a return if gross $ 0 to 9,00 0.0% minus $ 0.00 = Tax mother-in-law, status is: brother-in-law, taxpayer was: or sister-in-law, or income was at least: Any Single other person (other than the taxpayer s spouse) who lived with the taxpayer all... Under age... $,000 9, to,00.0% minus,.0 = Tax member of the taxpayer s Age or household older... if the relationship does not violate $,00 local law. ) Member of household test. The child must have lived with the ) Not MFJ a qualifying... child Under test. age The relative (both spouses) must not be... a qualifying child $ of,000 any other pe taxpayer for more than half of 0. Exceptions apply. Age or older (one spouse)... $,00 0,0 to 0,00.0% minus,0.0 = Tax Age or older (both spouses)... $,00 ) Age test. 0,0 The child and must over be:.0% minus,0.0 = Tax ) Gross MFS income... test. The Any relative age...$ must have gross income of less than $,0 in 0. Under MFJ age or QW 9 at Taxable the end Income of 0 and younger than the taxpayer HOH... Under age... $,000 (or $ spouse 0 if MFJ), to 9,00 or 0.0% minus $ 0.00 = Tax Age or older... $ 9,00 Under 9,0 age at to the,90 end of 0,.0% a full minus time student.00 for any = part Tax QW... Under age... $,000,9 to,00.0% minus,.00 = Tax Age or older... $,00 of five calendar months during 0, and younger than the,0 to,0.0% minus All seven,.00 of the following = Tax tests must be met in order for a taxpayer to claim another person,.00 as a = dependent Tax in 0. Test numbers through vary depending joint return with a spouse. This rule does not apply if the joint return was ) Married filing joint test. A person cannot be treated as a dependent if he taxpayer, (or spouse to 0,00 if MFJ), or.0% minus Any age 0,0 and permanently to,0 and.0% totally disabled. minus on whether 9,.00 the person = Taxis a qualifying Social child Security or a qualifying and relative Medicare of the taxpayer. Taxes claim for refund and no tax liability would exist for either spouse if they had ) Support, test. The and child over cannot have.0% provided minus over,0.00 half of his = or Tax ) Taxpayer ineligible if a ) dependent Support Maximum test. earnings The To claim taxpayer subject another must to: person have provided as a dependent, the taxpayer, or spouse does of Social not taxpayer apply Security for if filing persons tax jointly,...$,900 who cannot qualify be as claimed dependents Employee as ) under Citizen... the or children resident of test. divorce.0% The person claimed as a dependent must be either Social over Security half returns. of the tax relative s rate: support in her own MFS support Taxable during Income 0. $ 0 to 9,00 0.0% minus a dependent $ 0.00 on = someone Tax parents else s Medicare tax rule, return. the tax multiple...no support agreements Limit rules, Self-employed or the U.S. rule national,...0% for kidnapped or a resident childreof the U.S., Canada, or Mexico. An adopted child Note: If a taxpayer s 9, to child,00 is not a dependent.0% minus under the,.0 qualifying = child Tax rules, the Maximum child may Social still Security qualify as tax: a dependent under Medicare the qualifying tax the rate: taxpayer relative all rules. year passes this test if the taxpayer is a U.S. citizen or U.S. Employee...$,9.0 Employee....%,0 to 0,.0% minus Qualifying,.0 Child = Tax Self-employed... $,9.0Qualifying Self-employed Relative....90% 0,0 to 0,.0% minus ) Relationship,0.0 test. = Tax The child must be the taxpayer s son, daughter, ) Relationship test. A relative of the taxpayer must be: 0, and over.0% minus stepchild, SCHEDULE 0,90.00 foster = child, Tax brother, C AND sister, ENTITY stepbrother, stepsister, TA PREPARATION or A son, daughter, stepchild, foster child, or a descendant TA of any of these (such as a g HOH Taxable Income a FAST descendant ANSWER of any of these, Additional such CHARTS as the taxpayer s Medicare grandchild, Tax A brother, sister, or a son or daughter of either YEAR of these (such as a niece or nephew), $ 0 to,0 0.0% minus niece, $ or 0.00 nephew. = Tax Note: If a child 0.9% meets additional tests tax through on combined for more wages, compensation, A father, mother, and self-employment or an ancestor or sibling of either of them (such as a grandmother,, to,0.0% minus than.00 = Tax income above threshold amount. C one Corporations taxpayer, see Qualifying Child of More Than One Person, aunt, or uncle), or Filing Requirements, to,00.0% minus Tab,.00 of, = Tax 00 Edition/Deluxe Filing Status Edition. Single, HOH, QW A stepbrother, MFJ stepsister, MFS stepfather, stepmother, son-in-law, daughter-in-law, fathe,0 to 0,00.0% minus Tax,.00 Rate = All Tax taxable income Threshold of a C Amount corporation is taxed $00,000 at a flat rate of %. $0,000 Form $,000Filing Requirement Filing Deadline Filing Deadline mother-in-law, brother-in-law, or sister-in-law, or 0,0 to 0,00.0% minus PSC 0,0.00 = A personal Tax service corporation (PSC) no longer has a separate Entity Calendar Year Fiscal Year Any other person (other than the taxpayer s spouse) who lived with the taxpayer all 0,0 to 0,00.0% minus,.00 = tax Tax rate. The % corporation tax rate applies to PSCs. member of Schedule the taxpayer s C household Required if the to relationship does April not violate th local day law. of the 0,0 and over.0% minus Dividends,.00 = A C Tax corporation 09 can deduct Phaseouts a percentage Based of dividends on Modified received AGI (Form 00) file Form 00 th month after ) Member Received of household during the test. tax The year. child must have lived with the ) Not a qualifying child test. The relative must not be a qualifying child of any other per Itemized Deductions / Exemptions Traditional IRA Sole Covered proprietorship (including to $,000 self-employment individual s tax By Employer if taxpayer has taxpayer Deduction for more 0% than of more half of ownership. The 0. phaseouts Exceptions % do apply. not dividends apply for received tax years deduction. MFJ, QW...$0, Standard Deduction ) Age test. The child must be: 0 through 0. ) Gross Single, income HOH... test. single-member $,000 to $ income,000 of at least year. Less than 0% ownership. 0% dividends received deduction. The relative must have gross income of less than $,0 in 0. Single or MFS...$ Under age 9,00 at the end of 0 Student and Loan younger Interest than the taxpayer MFS...$0 LLC) to $ $00. 0,000 MFJ or QW...$,00 Small business 00% dividends received (or spouse if MFJ), MFJ...$ 0,000 to $ 0,000 Spouse not covered by HOH...$,0 investment or company. deduction. Form 0 Any partnership March th day of the Single, HOH, QW...$ 0,000 to $,000 employer...$9,000 to $ 0,000 Under age at Corporate the end of member 0, a full of time student for any part Partnership that engages in a rd month after Additional age or older, or blind, per person, per event: of five calendar same months affiliated during MFS group. 0,...Does and younger than the not qualify Roth IRA (including LLC trade or business MFJ, QW, or MFS...$,00 American Opportunity Credit MFJ, QW... $ 9,000 to $ 0,000 Single or HOH...$ taxpayer (or spouse,0 if MFJ), or classified as or has gross partnership s AMT Alternative minimum tax (AMT) is repealed for C corporations. MFJ...$ 0,000 to $ 0,000 Single, HOH... $,000 to $,000 Any age and permanently and totally disabled. partnership) income is required Dependents. The standard deduction is the greater of $,00 or Single, HOH, QW...$ 0,000 to $ 90,000 MFS... $ 0 to $ to 0,000 file a return. earned income plus $0, up to regular standard ) Support C Corporation deduction. test. The child Basis IRC cannot MFS have...does provided over Nontaxable half of his not or qualify Transfers ) Support Retirement test. Savings Form The taxpayer 0S Contributions must have All corporations provided over half March of the relative s th support day of in the her own support during 0. does Lifetime Learning Credit Credit AGI not apply up for to: persons who Single, qualify as dependents under the children of divorced S corporation required to file return agreements MFS regardless rules, of or the rule for kidnapped the end children of the rd month after General rule. No gain or loss is recognized if property is transferred MFJ...$,000 to $,000 parents to a Rate rule, MFJ the multiple HOH support QW, 09 Personal Exemption Deduction corporation in exchange for stock and immediately after the person is in Single, HOH, QW...$,000 to $,000 0% $,00 $, $ 9,0 amount of income/ corporation s Note: control If a taxpayer s of the corporation. child is not a dependent under the qualifying child rules, the child may still qualify as a dependent under the qualifying relative rules. Personal exemption deduction per person...$0 0% $,00 $, $ 0,0 deductions. Qualifying relative income limit...$,00 Shareholder s Basis in Stock Corporation s Basis in Property 0% $,000 $,000 $,000 Child Tax Credit/Family Credit Form 0 All corporations April th day of the Adjusted basis of Cash received Adjusted basis of property 0% in $,00 $,00 $,00 Phaseout begins at: C corporation required to file return regardless of th month after property FMV of property hands of the shareholder MFJ... $ 00,000 Adoption Credit or Exclusion Penalty for Not Having Health Insurance + Gain recognized received + Gain recognized by the Single, HOH, MFS, QW... $ 00,000 MFJ, Single, HOH, QW... $,0 to $,0 amount of income/ corporation s + Cash paid Liabilities transferred shareholder on the transfer Effective 09, the penalty tax under the Affordable Care Act (ACA) deductions. for not having minimum essential health insurance coverage is zero. C Corporation Distributions 09 Earned Income Credit Maximum Income Limits Limited Liability Company (LLC) No Children Child Children Children 09 Standard Mileage Rates Taxable to Shareholder Deductible by Corporation MFJ... $,0... $, LLC... can $,9 be classified... $,9 as a disregarded entity (single-member), a....0 Wages...0 Single, HOH, QW... $,0... $,09 partnership... $,0 (two... or $ 0, more members), or a corporation (with an election). Charitable....0 Medical and Dividends Moving Investment income limit: $,00 LLC Classification Filing Requirements erships s General Partner Guaranteed payments and/or distributive share of income ivity Income FASTTAFACTS Limited Partner Loss Guaranteed Distributive payments share of income Subject to erships s General Partner Guaranteed payments and/or distributive share of income ivity Income Fringe benefits Loan repayments (interest) Net Operating Loss (NOL) Default Rule deduction is not taken into account. FASTTAFACTS Limited Partner Loss Guaranteed Distributive payments share of income Subject to Rent payments Return of capital (in excess of basis) The NOL deduction is limited to 0% of taxable income. Carryback period none. Carryforward period indefinite. Exceptions to the Default Rule Farming Loss Property and Casualty Insurance Companies -year Carryback Yes Yes 0-year Carryforward n/a indefinite carryforward 0%-of-Taxable-Income Limit Farming loss. A farming loss is the smaller of the NOL for the year or the NOL computed considering only farming income and deductions. Property and casualty insurance companies. Applies to insurance companies other than a life insurance company. Election to waive carryback. An election may be made to waive carryback period. Note: When computing a taxpayer s NOL, the 0% qualified business income Yes Disregarded entity Single-member owner reports LLC income/expenses Individual on Schedule - C (Form 00), unless election is made to be taxed as corporation. Partnership New Excess Loss Disallowance Applies To All taxpayers except C corporations. Excess Loss Partnerships or S Corporations Passive Activity Loss Rules Disallowed Excess Loss Multi-member LLC must file Form 0 (partnership return), unless election is made to be taxed as corporation. Corporation LLC classified as S corporation files Form 0S. LLC classified as C corporation files Form 0. Excess of aggregate deductions of the taxpayer attributable to trades or businesses of the taxpayer over the sum of : Taxpayer s aggregate gross income or gain from the trades or businesses, plus $0,000 ($00,000 MFJ). The excess business loss limitation rules apply at the partner or shareholder level. The excess business loss limitation rules apply after the application of the passive loss rules. Any loss that is disallowed as an excess business loss is carried forward as an NOL to the following tax year. The new NOL rules apply to the carried forward disallowed excess business loss. - Includes coverage of IRS guidance released through //09 Includes coverage of IRS guidance released through //00 Handouts OnlineCPE Fast-Answer Tax Research Books Fast-Answer Online Tax Research Unlimited-Use Promotional Handouts Must-Take Online Tax Courses Page Page Page 0 Page NEW Bundle! Customers love the Jacob Special, but also wanted the Client Handouts. My new TTB Bundle includes all of our Best Sellers. Jacob Meyer BUNDLE ONLY $9 Save $00 Deluxe Edition Plus Pg $ 9 Plus st User Pg $ 9 Client Handouts Pg 0 $ 9 Online CPE Hours Pg $ 9 Shipping $ Total Retail Value $9 JACOB SPECIAL ONLY $9 Save $ Deluxe Edition Plus Pg $ 9 Plus st User Pg $ 9 Online CPE Hours Pg $ 9 Shipping $ Total Retail Value $00 Add Users to either special offer for Only $9! Includes Deluxe Edition Plus, Plus Add User, Online CPE Hours & Shipping ($0 Retail Value!) VOTED # TA RESEARCH PRODUCT YEARS IN A ROW! was voted the # Tax Research Solution in the 0-09 CPA Practice Advisor s Readers Choice Awards. received over 0% of the votes in 09. Page TH Year +0% OF VOTES! All Others Combined # WHAT S NEW PACKAGE Stay up-to-date on the latest tax law changes and industry news. The What s New Package is the best way to stay current year round. Books are released every months. Early Edition - NEW! $ Tax Season Edition $ Individual FastTaxFacts $ FastTaxFacts $ Shipping $ Total Retail Value $ Subject to SE tax SE tax t to Subject to l income from an activity Was the rental income from an INDIVIDUAL 09 rental activity and have AGI of $00,000 or less ($0,000 MFS). not subject to SE tax, with the exception of real estate dealers [Reg..0(a)-]. real estate professionals and are not subject to. property. An interest held directly by the taxpayer or through an entity that does not limit liability. Subject to SE tax SE tax t to Subject to l income from an activity Was the rental income from an BUSINESS Save $ rental activity and have AGI of $00,000 or less ($0,000 MFS). not subject to SE tax, with the exception of real estate dealers [Reg..0(a)-]. real estate professionals and are not subject to. property. An interest held directly by the taxpayer or through an entity that does not limit liability. ONLY $9 W- /099 Roadmap WHAT S NEWand TA INDUSTRY HIGHLIGHTS YEAR09 09 Clients With Children EARLY EDITION Page Chapter What s New Summary Chapter Individuals Chapter WHAT S NEW INDUSTRY HIGHLIGHTS Chapter Qualified Income (QBI) Deduction TA SEASON EDITION Chapter Planning Chapter Miscellaneous Tax Provisions Index and TA YEAR09 Chapter What s New Summary Chapter Individuals Chapter Chapter Qualified Income (QBI) Deduction Chapter Planning Chapter Miscellaneous Tax Provisions Index Real Answers. Real Fast! -99-.com

2 Real Answers. Real Fast! -99-.com delivers real answers, real fast! Save time, guaranteed. We compile the mountains of tax information, condense it for quick comprehension, and present it in a fastanswer format. Includes coverage of new tax law passed prior to December. Use the # tax research product on the market! All seven of the following tests must be met in order for a taxpayer to claim another person as a dependent in 0. Test numbers through vary depending on whether the person is a qualifying child or a qualifying relative of the taxpayer. ) Taxpayer ineligible if a dependent test. To claim another person as a dependent, the taxpayer, or spouse of taxpayer if filing jointly, cannot be claimed as a dependent on someone else s tax return. ) Married filing joint test. A person cannot be treated as a dependent if he joint return with a spouse. This rule does not apply if the joint return was claim for refund and no tax liability would exist for either spouse if they had returns. ) Citizen or resident test. The person claimed as a dependent must be either U.S. national, or a resident of the U.S., Canada, or Mexico. An adopted child the taxpayer all year passes this test if the taxpayer is a U.S. citizen or U.S. Qualifying Child Qualifying Relative ) Relationship test. The child must be the taxpayer s son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of these, such as the taxpayer s grandchild, niece, or nephew. Note: If a child meets tests through for more than one taxpayer, see Qualifying Child of More Than One Person, Tab of, 00 Edition/Deluxe Edition. ) Relationship test. A relative of the taxpayer must be: A son, daughter, stepchild, foster child, or a descendant of any of these (such as a g A brother, sister, or a son or daughter of either of these (such as a niece or nephew), A father, mother, or an ancestor or sibling of either of them (such as a grandmother, aunt, or uncle), or A stepbrother, stepsister, stepfather, stepmother, son-in-law, daughter-in-law, fathe mother-in-law, brother-in-law, or sister-in-law, or Any other person (other than the taxpayer s spouse) who lived with the taxpayer all member of the taxpayer s household if the relationship does not violate local law. ) Member of household test. The child must have lived with the taxpayer for more than half of 0. Exceptions apply. ) Not a qualifying child test. The relative must not be a qualifying child of any other per ) Age test. The child must be: Under age 9 at the end of 0 and younger than the taxpayer (or spouse if MFJ), or Under age at the end of 0, a full time student for any part of five calendar months during 0, and younger than the taxpayer (or spouse if MFJ), or Any age and permanently and totally disabled. ) Gross income test. The relative must have gross income of less than $,0 in 0. ) Support test. The child cannot have provided over half of his or her own support during 0. ) Support test. The taxpayer must have provided over half of the relative s support in does not apply for persons who qualify as dependents under the children of divorced parents rule, the multiple support agreements rules, or the rule for kidnapped children Note: If a taxpayer s child is not a dependent under the qualifying child rules, the child may still qualify as a dependent under the qualifying relative rules. rental activity and have AGI of $00,000 or less ($0,000 MFS). not subject to SE tax, with the exception of real estate dealers [Reg..0(a)-]. real estate professionals and are not subject to. property. An interest held directly by the taxpayer or through an entity that does not limit liability. ivity Income t to Subject to l income from an activity Was the rental income from an erships s General Partner Guaranteed payments and/or distributive share of income Limited Partner Loss Guaranteed Distributive payments share of income Subject to SE tax SE tax Subject to Dependents - FASTTAFACTS DEPENDENTS 09 TA YEAR HOW A CHILD OR OTHER QUALIFYING PERSON AFFECTS A CLIENT S TA RETURN FAST ANSWER CHARTS Dependency Tests for 09 All seven of the following tests must be met in order for a taxpayer to claim another person as a dependent. Test numbers through vary depending on whether the person is a qualifying child or a qualifying relative. ) Taxpayer ineligible if a dependent test. To claim another person as a dependent, the taxpayer, or spouse of the taxpayer if filing jointly, cannot be eligible to be claimed as a dependent on someone else s tax return. ) Married Filing Jointly test. A person cannot be treated as a dependent if he or she files a joint return with a spouse. This rule does not apply if the joint return was filed only as a claim for refund and no tax liability would exist for either spouse if they had filed separate returns. ) Citizen or resident test. The person claimed as a dependent must be either a U.S. citizen, U.S. national, or a resident of the United States, Canada, or Mexico. An adopted child that lived with the taxpayer all year passes this test if the taxpayer is a U.S. citizen or U.S. national. Qualifying Child Qualifying Relative ) Relationship test. The child must be the taxpayer s son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of these, such as a grandchild, niece, or nephew. Note: If a child meets tests through for more than one taxpayer, see Qualifying Child of More Than One Person, page -. ) Relationship test. A relative of the taxpayer must be: A son, daughter, stepchild, foster child, or a descendant of any of these (such as a grandchild), A brother, sister, or a son or daughter of either of these (such as a niece or nephew), A father, mother, or an ancestor or sibling of either of them (such as a grandmother, grand father, aunt, or uncle), A stepbrother, stepsister, stepfather, stepmother, son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law, or Any other person (other than the spouse) who lived with the taxpayer all year as a member of the taxpayer s household if the relationship does not violate local law. See Exceptions to time lived with taxpayer, below. ) Member of household test. The child must have lived with the taxpayer for more than half of the year. See Exceptions to time lived with taxpayer, below. ) Not a qualifying child test. The relative must not be a qualifying child of any taxpayer for the year. For this purpose, a person is not a taxpayer if he or she is not required to file a tax return and either does not file a return or only files a return to get a refund of withheld income taxes. ) Age test. The child must be: Under age 9 at year and younger than the taxpayer (or spouse if MFJ), or Under age at year, a student, and younger than the taxpayer (or spouse if MFJ) see Student, below, or Any age and permanently and totally disabled, see Permanently and totally disabled, below. ) Gross income test. The relative must have gross income of less than $,0 in 0. Gross income defined. Gross income is all income that is not exempt from tax. Gross income includes all taxable unemployment compensation and certain scholarship and fellowship grants. Scholarships received by degree candidates that are used for tuition, fees, supplies, books, and equipment required for particular courses are generally not included in gross income. See Exception to gross income test, below. ) Support test. The child cannot have provided over half of his or her own support during the year. Note: Third party payments (welfare, AFDC, etc.) and scholarships received by a student are not considered support provided by the child. ) Support test. The taxpayer must have provided over half of the relative s support during the year. This test does not apply for persons who qualify as dependents under the children of divorced or separated parents rule, the multiple support agreements rules, and the rule for kidnapped children. See Dependent parent special rule, below. Note: If a taxpayer s child is not a dependent under the qualifying child rules, the child may still qualify as a dependent under the qualifying relative rules. However, claiming the child as a dependent under the qualifying relative rules will not qualify the taxpayer for the Earned Income Credit or the Child Tax Credit. Exceptions to time lived with taxpayer Temporary absences for special circumstances, such as school, vacation, business, medical care, military service, or detention in a juvenile facility, count as time the person lived in the home. A person is considered to have lived in the taxpayer s home all of the year if the person was born or died during the year and the taxpayer s home was this person s home for the entire time he or she was alive during the A child kidnapped by a non-family member may still be a qualifying child. Student A child qualifies as a student if, during any part of five calendar months during the year he or she was enrolled as a full-time student at a school, or took a full-time on-farm training course given by a school or a state, county, or local government agency. A school includes a technical, trade, or mechanical school. It does not include an on-the-job training course, correspondence school, or school offering courses only through the internet. Permanently and totally disabled A person is permanently and totally disabled if, at any time during the year, the person cannot engage in any substantial gainful activity because of a physical or mental condition and a doctor has determined that this condition has lasted, or can be expected to last, continuously for at least a year or can be expected to lead to death. Exception to gross income test If the taxpayer s relative (including a person who lived in the taxpayer s home all year as a member of the household) is permanently and totally disabled, certain income for services performed at a sheltered workshop may be excluded for this test. Dependent parent special rule If the taxpayer s qualifying person is the taxpayer s father or mother, the taxpayer may be eligible to file as Head of Household even if the father or mother does not live with the taxpayer. However, the taxpayer must be able to claim the father or mother as a dependent and pay more than half the cost of keeping up a home that was the main home for the entire year for the father or mother. This includes paying more than half the cost of keeping the parent in a rest home or home for the elderly. Clients With Children All seven of the following tests must be met in order for a taxpayer to claim another person as a dependent in 0. Test numbers through vary depending on whether the person is a qualifying child or a qualifying relative of the taxpayer. ) Taxpayer ineligible if a dependent test. To claim another person as a dependent, the taxpayer, or spouse of taxpayer if filing jointly, cannot be claimed as a dependent on someone else s tax return. ) Married filing joint test. A person cannot be treated as a dependent if he joint return with a spouse. This rule does not apply if the joint return was claim for refund and no tax liability would exist for either spouse if they had returns. ) Citizen or resident test. The person claimed as a dependent must be either U.S. national, or a resident of the U.S., Canada, or Mexico. An adopted child the taxpayer all year passes this test if the taxpayer is a U.S. citizen or U.S. Qualifying Child Qualifying Relative ) Relationship test. The child must be the taxpayer s son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of these, such as the taxpayer s grandchild, niece, or nephew. Note: If a child meets tests through for more than one taxpayer, see Qualifying Child of More Than One Person, Tab of, 00 Edition/Deluxe Edition. ) Relationship test. A relative of the taxpayer must be: A son, daughter, stepchild, foster child, or a descendant of any of these (such as a A brother, sister, or a son or daughter of either of these (such as a niece or nephew), A father, mother, or an ancestor or sibling of either of them (such as a grandmother aunt, or uncle), or A stepbrother, stepsister, stepfather, stepmother, son-in-law, daughter-in-law, fathe mother-in-law, brother-in-law, or sister-in-law, or Any other person (other than the taxpayer s spouse) who lived with the taxpayer all member of the taxpayer s household if the relationship does not violate local law. ) Member of household test. The child must have lived with the taxpayer for more than half of 0. Exceptions apply. ) Not a qualifying child test. The relative must not be a qualifying child of any other pe ) Age test. The child must be: Under age 9 at the end of 0 and younger than the taxpayer (or spouse if MFJ), or Under age at the end of 0, a full time student for any part of five calendar months during 0, and younger than the taxpayer (or spouse if MFJ), or Any age and permanently and totally disabled. ) Gross income test. The relative must have gross income of less than $,0 in 0. ) Support test. The child cannot have provided over half of his or her own support during 0. ) Support test. The taxpayer must have provided over half of the relative s support in does not apply for persons who qualify as dependents under the children of divorce parents rule, the multiple support agreements rules, or the rule for kidnapped childre Note: If a taxpayer s child is not a dependent under the qualifying child rules, the child may still qualify as a dependent under the qualifying relative rules. rental activity and have AGI of $00,000 or less ($0,000 MFS). not subject to SE tax, with the exception of real estate dealers [Reg..0(a)-]. real estate professionals and are not subject to. property. An interest held directly by the taxpayer or through an entity that does not limit liability. ivity Income t to Subject to l income from an activity Was the rental income from an erships s General Partner Guaranteed payments and/or distributive share of income Limited Partner Loss Guaranteed Distributive payments share of income Subject to SE tax SE tax Subject to 099 / W- - FASTTAFACTS 099/W- 09 TA YEAR EPLANATIONS AND WHERE TO REPORT W- AND 099 ITEMS ON THE TA RETURN FAST ANSWER CHARTS W-, Wage and Tax Statement Box Description Report On Wages, tips, other compensation Wages subject to federal income tax. Includes value of taxable fringe benefits. Does not include elective deferrals such as employee contributions to 0(k) plans. Statutory employees: Statutory employee box will be checked (box, Form W-). Line, Form 00. Statutory employees: Line, Schedule C and check the box. Federal income tax withheld Shows the total federal income tax withheld from the employee s wages for the year. Line, Form 00. Social security wages Wages subject to withholding of Social Security tax. Maximum applicable wages $,00 (0). Includes elective deferrals such as employee contributions to a 0(k) plan. Does not include Social Security tips or allocated tips. Not reported on Form 00. (Line a, Section B, Schedule SE, if also self-employed.) Social security tax withheld Total employee Social Security tax (.%) withheld on wages (box ) and tips (box ). Maximum Social Security tax withholding is $, (0). Excess withholding for employees with two or more jobs is reported as a refundable credit on Form 00. Line, Form 00, only if maximum withholding is exceeded. Medicare wages and tips Wages subject to withholding of Medicare. There is no maximum limit of wages subject to Medicare tax. Not reported on Form 00. (Line, Form 99, if subject to additional Medicare tax.) Medicare tax withheld Medicare tax rate of.% applied to Medicare wages (box ). Additional Medicare tax withheld at 0.9% on wages over $00,000. Line 9, Form 99, Additional Medicare Tax. Social security tips Tips the employee reported to the employer. Already included in box and box, Form W-. Allocated tips The IRS requires certain food and beverage establishments to assign tips to employees based on a formula. Allocated tips represent the excess of tips assigned to the employee and tips reported by the employee. Allocated tips are added to wages, and also reported on Form. A daily tip log can prove lower tips than the allocated amount. Line, Form 00. Form, Social Security and Medicare Tax on Unreported Tip Income. 0 Dependent care benefits Benefits received under an employer s dependent care assistance program. If benefits do not exceed actual expenses, none of the benefits are taxable. If benefits exceed qualified expenses for dependent care, the excess is added to wages on line, Form 00. These benefits reduce the amount available for Form. Part III, Form, Child and Dependent Care Expenses. Nonqualified plans Distributions from a nonqualified plan or nongovernmental section (b) plan or prior year deferral that became taxable for Social Security and Medicare taxes in the current year. Already included in wages in box (or box and/or box ), Form W-. Codes Letter codes indicating a variety of taxable and nontaxable items. For an explanation of W- codes, see Tab,, 00 Edition/Deluxe Edition. Various. Checkboxes Checkboxes indicating pay as a statutory employee (see box above), enrollment in an employer retirement plan, or third-party sick pay. Various. W-G, Certain Gambling Winnings Box Description Report On Gross winnings Gambling winnings of $,00 or more from bingo or slot machines, $,00 or more in proceeds from keno, more than $,000 in winnings from a poker tournament, $00 or more in other gambling winnings, or any other gambling winnings subject to federal income tax withholding. Gambling losses up to the amount of gambling winnings may be as a miscellaneous itemized deduction (not subject to % AGI limit). Line, Form 00, for winnings. Line, Schedule A (Form 00) for losses. W- /099 Roadmap Includes Two FastTaxFacts Tabs! 099 /W- Roadmap (After Tab ) Find explanations and where to report 099 and W- items on the tax return. $ Value! Dependents (After Tab ) Find information on how a child or other qualifying person affects the tax return. $ Value! Individual Tabs - Tabs - What s New 09 Federal Tax Table & EIC Table 00 Line Instructions FastTaxFacts: Dependents Itemized Deductions, A Sole Proprietorships and Farmers, C, F, SE Investment Income, B, D, 9 Rental, Passive, and At-Risk, E Deductions 9, 0 Automobiles and Listed Property Tax Credits Children, College, and Family Retirement, Social Security, and Medicare Other 00 Topics IRS, Penalties, and Audits Where to File and Tools FastTaxFacts: 099 /W- Roadmap States C Corporations, 0 9 S Corporations, 0 S 0 Partnerships and LLCs, 0 Estates, Trusts, and Fiduciaries, 0,0, 09 Employee Benefits Payroll and Labor Laws, 90, 9 Where to File and Tools Other Topics Small Recent Developments The Deluxe Edition Plus is by far our best seller! The book contains both individual and small business information. You will find information fast, with well-written, and easy-to-understand explanations and examples. thetaxbook.com/deluxe Deluxe Edition Plus BEST Seller 09 TA YEAR FEDERAL 00 SMALL BUSINESS ESTATES & TRUSTS DELUE EDITION Plus 09 Earned Income Credit Maximum Income Limits No Children Child Children Children MFJ... $,0... $,... $,9... $,9 Single, HOH, QW... $,0... $,09... $,0... $ 0, Investment income limit: $,00 09 Social Security and Medicare Highlights Social Security benefits increase....0% Medicare tax rate: Employee....% Self-employed....90% Earnings needed for one quarter of coverage... $,0 Maximum earnings subject to: Social Security tax... $,900 Medicare tax...no limit Maximum Social Security tax: Employee... $,0 Self-employed... $,0 Max. Medicare tax...no limit Maximum earnings and still receive full Social Security benefits: Under full retirement age¹...$,0 Year of full retirement age²...$,90 Full retirement age... No limit Social Security tax rate: Employee....0% Self-employed...0% ¹ $ in benefits is withheld for every $ in earnings above limit. ² Applies only to earnings for months prior to attaining full retirement age. $ in benefits is withheld for every $ in earnings above the limit. Additional Medicare tax on earned income. Medicare tax for FICA and self-employment income is increased by 0.9% for earned income in excess of $0,000 MFJ, $,000 MFS, and $00,000 any other filing status. Additional Medicare tax on net investment income. A.% Medicare tax applies to net investment income in excess of $0,000 MFJ and QW, $,000 MFS, and $00,000 any other filing status. 09 Phaseouts Based on Modified AGI Itemized Deductions / Exemptions The phaseouts do not apply for tax years 0 through 0. Traditional IRA Covered By Employer MFJ, QW...$0,000 to $,000 Single, HOH... $,000 to $,000 MFS...$0 to $ 0,000 Spouse not covered by employer...$9,000 to $ 0,000 Student Loan Interest MFJ...$ 0,000 to $ 0,000 Single, HOH, QW...$ 0,000 to $,000 Roth IRA MFJ, QW... $ 9,000 to $ 0,000 Single, HOH... $,000 to $,000 MFS... $ 0 to $ 0,000 American Opportunity Credit MFJ...$ 0,000 to $ 0,000 Single, HOH, QW...$ 0,000 to $ 90,000 Retirement Savings Contributions Credit AGI up to: Single, Rate MFJ HOH QW, MFS 0% $,00 $, $ 9,0 0% $,00 $, $ 0,0 0% $,000 $,000 $,000 0% $,00 $,00 $,00 Lifetime Learning Credit MFJ...$,000 to $,000 Single, HOH, QW...$,000 to $,000 Child Tax Credit/Family Credit Phaseout begins at: MFJ... $ 00,000 Single, HOH, MFS, QW... $ 00,000 Adoption Credit or Exclusion MFJ, Single, HOH, QW... $,0 to $,0 09 Standard Mileage Rates Charitable...0 Medical and Moving Personal Exemption Deduction Personal exemption deduction per person...$0 Qualifying relative income limit... $,00 09 Standard Deduction Single or MFS... $,00 MFJ or QW... $,00 HOH... $,0 Additional age or older, or blind, per person, per event: MFJ, QW, or MFS... $,00 Single or HOH... $,0 Dependents. The standard deduction is the greater of $,00 or earned income plus $0, up to regular standard deduction. 09 Federal Tax Rate Schedule Single Taxable Income $ 0 to 9,00 0.0% minus $ 0.00 = Tax 9, to,00.0% minus,.0 = Tax 0,0 to 0,00.0% minus,0.0 = Tax 0,0 and over.0% minus,0.0 = Tax MFJ or QW Taxable Income $ 0 to 9,00 0.0% minus $ 0.00 = Tax 9,0 to,90.0% minus.00 = Tax,9 to,00.0% minus,.00 = Tax,0 to,0.0% minus,.00 = Tax, to 0,00.0% minus,.00 = Tax 0,0 to,0.0% minus 9,.00 = Tax, and over.0% minus,0.00 = Tax MFS Taxable Income $ 0 to 9,00 0.0% minus $ 0.00 = Tax 9, to,00.0% minus,.0 = Tax 0,0 to 0,.0% minus,0.0 = Tax 0, and over.0% minus 0,90.00 = Tax HOH Taxable Income $ 0 to,0 0.0% minus $ 0.00 = Tax, to,0.0% minus.00 = Tax, to,00.0% minus,.00 = Tax,0 to 0,00.0% minus,.00 = Tax 0,0 to 0,00.0% minus 0,0.00 = Tax 0,0 to 0,00.0% minus,.00 = Tax 0,0 and over.0% minus,.00 = Tax INDE What s New Where to File and Tools Other Topics Payroll Labor Laws 90, 9 Employee Benefits Estates, Trusts, Fiduciaries 0, 0, 09 Partnerships LLCs 0 0 S Corporations 0S 9 C Corporations 0 099/W- Roadmap Dependents 09 Tax Tables EIC Tables 00 Line Instructions Itemized Deductions A Sole Props Farmers C, F, SE Rental Passive E Deductions States Automobiles Listed Property Tax Credits Children College Family Retirement Social Security Medicare Other 00 Topics IRS Penalties Audits Where to File and Tools Investment Income B, D, What s New 0+ PAGES Our Customers Tell Us They find answers to 90% 9% of their tax questions in. On average, they save 0 minutes per question! They reference times a day during tax season! % keep within arms reach during tax season. Fast-Answer Tax Research Books See page. Order Items & Save $! See Page $9 Individual Forms: 00,,,, 9,,,, 0, 9,, 99 Forms: 0, 0S, 0, 0, 0, 09, 9, 90, 990 Schedules:,,,,,, A, B, C, D, E, EIC, F, H, SE $ Value! Start Ship Date //9

3 Edition 0+ PAGES 00 EDITION FEDERAL 09 Federal Tax Rate Schedule Single Taxable Income $ 0 to 9,00 0.0% minus $ 0.00 = Tax 9, to,00.0% minus,.0 = Tax 0,0 to 0,00.0% minus,0.0 = Tax 0,0 and over.0% minus,0.0 = Tax MFJ or QW Taxable Income $ 0 to 9,00 0.0% minus $ 0.00 = Tax 9,0 to,90.0% minus.00 = Tax,9 to,00.0% minus,.00 = Tax,0 to,0.0% minus,.00 = Tax, to 0,00.0% minus,.00 = Tax 0,0 to,0.0% minus 9,.00 = Tax, and over.0% minus,0.00 = Tax MFS Taxable Income $ 0 to 9,00 0.0% minus $ 0.00 = Tax 9, to,00.0% minus,.0 = Tax 0,0 to 0,.0% minus,0.0 = Tax 0, and over.0% minus 0,90.00 = Tax HOH Taxable Income $ 0 to,0 0.0% minus $ 0.00 = Tax, to,0.0% minus.00 = Tax, to,00.0% minus,.00 = Tax,0 to 0,00.0% minus,.00 = Tax 0,0 to 0,00.0% minus 0,0.00 = Tax 0,0 to 0,00.0% minus,.00 = Tax 0,0 and over.0% minus,.00 = Tax 09 Standard Deduction Single or MFS... $,00 MFJ or QW... $,00 HOH... $,0 Additional age or older, or blind, per person, per event: MFJ, QW, or MFS... $,00 Single or HOH... $,0 Dependents. The standard deduction is the greater of $,00 or earned income plus $0, up to regular standard deduction. 09 Personal Exemption Deduction Personal exemption deduction per person...$0 Qualifying relative income limit... $,00 09 Standard Mileage Rates Charitable...0 Medical and Moving INDIVIDUAL INCOME TA COMPLIANCE 09 Phaseouts Based on Modified AGI Itemized Deductions / Exemptions The phaseouts do not apply for tax years 0 through 0. Student Loan Interest MFJ...$ 0,000 to $ 0,000 Single, HOH, QW...$ 0,000 to $,000 American Opportunity Credit MFJ...$ 0,000 to $ 0,000 Single, HOH, QW...$ 0,000 to $ 90,000 Lifetime Learning Credit MFJ...$,000 to $,000 Single, HOH, QW...$,000 to $,000 Child Tax Credit/Family Credit Phaseout begins at: MFJ... $ 00,000 Single, HOH, MFS, QW... $ 00,000 TA YEAR09 09 Earned Income Credit Maximum Income Limits No Children Child Children Children MFJ... $,0... $,... $,9... $,9 Single, HOH, QW... $,0... $,09... $,0... $ 0, Investment income limit: $,00 09 Social Security and Medicare Highlights Social Security benefits increase....0% Maximum earnings subject to: Social Security tax... $,900 Medicare tax...no limit Maximum Social Security tax: Employee... $,0 Self-employed... $,0 Max. Medicare tax...no limit Social Security tax rate: Employee....0% Self-employed...0% Medicare tax rate: Employee....% Self-employed....90% Earnings needed for one quarter of coverage... $,0 Maximum earnings and still receive full Social Security benefits: Under full retirement age¹...$,0 Year of full retirement age²...$,90 Full retirement age... No limit ¹ $ in benefits is withheld for every $ in earnings above limit. ² Applies only to earnings for months prior to attaining full retirement age. $ in benefits is withheld for every $ in earnings above the limit. Additional Medicare tax on earned income. Medicare tax for FICA and self-employment income is increased by 0.9% for earned income in excess of $0,000 MFJ, $,000 MFS, and $00,000 any other filing status. Additional Medicare tax on net investment income. A.% Medicare tax applies to net investment income in excess of $0,000 MFJ and QW, $,000 MFS, and $00,000 any other filing status. Traditional IRA Covered By Employer MFJ, QW...$0,000 to $,000 Single, HOH... $,000 to $,000 MFS...$0 to $ 0,000 Spouse not covered by employer...$9,000 to $ 0,000 Roth IRA MFJ, QW... $ 9,000 to $ 0,000 Single, HOH... $,000 to $,000 MFS... $ 0 to $ 0,000 Retirement Savings Contributions Credit AGI up to: Single, Rate MFJ HOH QW, MFS 0% $,00 $, $ 9,0 0% $,00 $, $ 0,0 0% $,000 $,000 $,000 0% $,00 $,00 $,00 Adoption Credit or Exclusion MFJ, Single, HOH, QW... $,0 to $,0 What s New 09 Tax Tables EIC Tables 00 Line Instructions Itemized Deductions A Sole Props Farmers C, F, SE Investment Income B, D, 9 Rental Passive E Deductions 0 Automobiles Listed Property Tax Credits Children College Family Retirement Social Security Medicare Other 00 Topics IRS Penalties Audits Where to File and Tools States INDE If you prepare individual returns, and the associated schedules, the 00 Edition is the book for you. This book contains the same individual information as the Deluxe Edition Plus (Tabs -). thetaxbook.com/00 $ Order Items & Save $! See Page Start Ship Date //9 Individual Forms: 00,,,, 9,,,, 0, 9,, 99 Schedules:,,,,,, A, B, C, D, E, EIC, F, H, SE Individual Tabs - What s New 09 Federal Tax Table and EIC Table 00 Line Instructions Itemized Deductions, A Sole Proprietorships and Farmers, C, F, SE Investment Income, B, D, 9 Rental, Passive, and At-Risk, E Deductions 9, 0 Automobiles and Listed Property Tax Credits Children, College, and Family Retirement, Social Security, and Medicare Other 00 Topics IRS, Penalties, and Audits Where to File and Tools States Small 0+ PAGES SMALL BUSINESS BUSINESS TOPICS FEDERAL ESTATES & TRUSTS C Corporation Income Tax Rate Schedule Form 0. The corporate tax rate is a flat %. 09 Form 0 Federal Tax Rate Schedule $ 0 to,00 0.0% minus $ 0.00 = Tax,0 to 9,00.0% minus.00 = Tax 9,0 to,0.0% minus,.00 = Tax, and over.0% minus,.00 = Tax 09 Gift Tax Exclusion Annual exclusion for gifts per donee...$,000 Gifts to noncitizen spouse... $,000 Gift Tax Exclusion Year of death...09 Exclusion... $,00,000 Credit against tax...$,0,00 09 Estate and Gift Tax Rate Schedule $ 0 to 0,000 % minus $ 0 = Tax 0,00 to 0,000 0% minus 00 = Tax 0,00 to 0,000 % minus 00 = Tax 0,00 to 0,000 % minus,00 = Tax 0,00 to 0,000 % minus,00 = Tax 0,00 to 00,000 % minus,00 = Tax 00,00 to 0,000 0% minus,00 = Tax 0,00 to 0,000 % minus 9,00 = Tax 0,00 to 00,000 % minus,00 = Tax 00,00 to 0,000 % minus 9,00 = Tax 0,00 to,000,000 9% minus,00 = Tax,000,00 and over 0% minus,00 = Tax 09 Section 9 Deduction Regular annual dollar limit...$,00,000 SUV annual dollar limit...$,00 Investment limit phaseout range...$,0,000 to $,0, Start-Up Costs and Organizational Costs Start-Up Costs Election to deduct...$,000 Phaseout begins...$0,000 Election to amortize...0 months Organizational Costs Election to deduct...$,000 Phaseout begins...$0,000 Election to amortize...0 months 09 Pension Plan Limits TA YEAR 09 Standard Mileage Rates 09 Health Savings Account Limits Annual Contribution Limit Self-only, under age... $,00 Self-only, age and older... $, (k) / 0(b) Deferral Limits Under age 0... $ 9,000 Age 0 and over... $,000 SIMPLE Deferral Limits Under age 0... $,000 Age 0 and over... $,000 Qualified Retirement Plan Limits Profit sharing/sep limit...% / $,000 Defined benefit plan limit... $,000 Compensation limit... $ 0,000 Family, under age... $,000 Family, age and older... $,000 Minimum Annual Deductible Self-only coverage... $,0 Family coverage... $,00 Maximum Annual Deductible and Out-of-Pocket Expense Limit Self-only coverage... $,0 Family coverage... $,00 09 Health Flexible Spending Arrangement Limits Cafeteria Plan Health FSA Maximum amount employee can set aside pre-tax... $,00 09 Nondiscrimination Rules for Fringe Benefits Key employee threshold... $ 0,000 Highly compensated... $,000 Entity Classification Elections Individual Entity Default Filing Sole proprietor, Schedule C (or Schedule E for rental) Entity Options Corporation Cannot Be Taxed as: Partnership Partnership Partnership, Form 0 Corporation Sole proprietor Corporation (formed as a corporation under state law) LLC (single-member) LLC (multiple-owner) C corporation, Form 0, or S corporation, Form 0S (with S election) Disregarded entity owner files as if LLC did not exist. N/A Corporation Sole proprietor; Partnership Partnership Partnership, Form 0 Corporation Sole proprietor C Corporations 0 S Corporations 0S Partnerships LLCs 0 Estates, Trusts Fiduciaries 0, 0, 09 Social Security, Medicare, Exempt Orgs Payroll Labor Laws 90, 9 Tools Worksheets Other Topics Small Recent Developments Sales Dispositions Adjustments Small Retirement Employee Health Benefits Credits Starting a Audit Strategies States Tax Summary INDE The perfect companion to the 00 Edition. This book contains the same business information as the Deluxe Edition Plus (Tabs -) as well as seven additional tabs (Tabs -). thetaxbook.com/smallbusiness $ Order Items & Save $! See Page Start Ship Date //9 Forms: 0, 0S, 0, 0, 0, 09, 9, 90, 990, 0-H, 9,, 00, 099-MISC, 0, Schedules: K-, M-, M-, B-, PH Tabs - C Corporations 9 S Corporations 0 Partnerships & LLCs Estates, Trusts, Fiduciaries Employee Benefits Payroll & Labor Laws Tools & Worksheets Other Topics What s New Starting/Closing a, Accounting Small Retirement 9 Employee Health Benefits 0 Credits Tax-Exempt Orgs Audit Strategies States Tax Summary Comparison of Federal Editions The Deluxe Edition Plus contains the entire 00 Edition and the most referenced tabs from the Small including C Corps., S Corps., Partnerships, LLCs, Estates & Trusts, and more. Tabs - Tabs - Tabs - FastTaxFacts BEST Deluxe Edition Plus 00 Edition Small For a detailed listing of topics found in each tab, visit thetaxbook.com/compare Seller BONUS Buy or more items and save! FREE Online CPE Hours Receive hour per copy of. Page Real Answers. Real Fast! -99-.com

4 What s New Package Stay up-to-date on the latest tax law changes and industry news. The What s New Package is the best way to stay current year round. Books are released every months. thetaxbook.com/whatsnew YEAR ROUND COVERAGE WHAT S NEW and INDUSTRY HIGHLIGHTS NEW! TA YEAR09 EARLY EDITION Includes coverage of IRS guidance released through //09 Chapter What s New Summary Chapter Individuals Chapter Chapter Qualified Income (QBI) Deduction Chapter Planning Chapter Miscellaneous Tax Provisions Index WHAT S NEW INDUSTRY HIGHLIGHTS and TA YEAR09 TA SEASON EDITION Includes coverage of IRS guidance released through //00 Chapter What s New Summary Chapter Individuals Chapter Chapter Qualified Income (QBI) Deduction Chapter Planning Chapter Miscellaneous Tax Provisions Index All seven of the following tests must be met in order for a taxpayer to claim another person as a dependent in 0. Test numbers through vary depending joint return with a spouse. This rule does not apply if the joint return was ) Married filing joint test. A person cannot be treated as a dependent if he on whether the person is a qualifying child or a qualifying relative of the taxpayer. claim for refund and no tax liability would exist for either spouse if they had ) Taxpayer ineligible if a dependent test. To claim another person as a dependent, the taxpayer, or spouse of taxpayer if filing jointly, cannot be claimed as ) Citizen or resident test. The person claimed as a dependent must be either returns. a dependent on someone else s tax return. U.S. national, or a resident of the U.S., Canada, or Mexico. An adopted child the taxpayer all year passes this test if the taxpayer is a U.S. citizen or U.S. INDIVIDUAL Qualifying Child Qualifying Relative erships s General Partner Guaranteed payments and/or distributive share of income ) Relationship test. The child must be the taxpayer s son, daughter, ) Relationship test. A relative of the taxpayer must be: stepchild, INDIVIDUAL foster child, brother, PREPARATION sister, stepbrother, stepsister, or A son, daughter, stepchild, foster child, or a descendant TA of any of these (such as a a descendant FAST ANSWER of any of these, such CHARTS as the taxpayer s grandchild, A brother, sister, or a son or daughter of either YEAR of these (such as a niece or nephew), niece, or nephew. Note: If a child meets tests through for more A father, mother, or an ancestor or sibling of either of them (such as a grandmother than 09 one taxpayer, Federal see Tax Qualifying Rate Child Schedule of More Than One Person, aunt, 09 or Filing uncle), or Requirements for Most Taxpayers Tab of, 00 Edition/Deluxe Edition. A stepbrother, stepsister, stepfather, stepmother, son-in-law, daughter-in-law, fathe Single Taxable Income If filing And at the end of 0, Then file a return if gross $ 0 to 9,00 0.0% minus $ 0.00 = Tax mother-in-law, status is: brother-in-law, taxpayer was: or sister-in-law, or income was at least: Any Single other person (other than the taxpayer s spouse) who lived with the taxpayer all... Under age... $,000 9, to,00.0% minus,.0 = Tax member of the taxpayer s Age or household older... if the relationship does not violate $,00 local law. ) Member of household test. The child must have lived with the ) Not MFJ a qualifying... child Under test. age The relative (both spouses) must not be... a qualifying child $ of,000 any other pe taxpayer for more than half of 0. Exceptions apply. Age or older (one spouse)... $,00 0,0 to 0,00.0% minus,0.0 = Tax Age or older (both spouses)... $,00 ) Age test. 0,0 The child and must over be:.0% minus,0.0 = Tax ) Gross MFS income... test. The Any relative age...$ must have gross income of less than $,0 in 0. Under MFJ age or QW 9 at Taxable the end Income of 0 and younger than the taxpayer HOH... Under age... $,000 (or $ spouse 0 if MFJ), to 9,00 or 0.0% minus $ 0.00 = Tax Age or older... $ 9,00 Under 9,0 age at to the,90 end of 0,.0% a full minus time student.00 for any = part Tax QW... Under age... $,000,9 to,00.0% minus,.00 = Tax Age or older... $,00 of five calendar months during 0, and younger than the,0 to,0.0% minus,.00 = Tax taxpayer, (or spouse to 0,00 if MFJ), or.0% minus,.00 = Tax Any age 0,0 and permanently to,0 and.0% totally disabled. minus 9,.00 = Tax Social Security and Medicare Taxes ) Support, test. The and child over cannot have.0% provided minus over,0.00 half of his = or Tax ) Support Maximum test. earnings The taxpayer subject must to: have provided Social over Security half of the tax relative s rate: support in her own MFS support Taxable during Income 0. does Social not apply Security for persons tax...$,900 who qualify as dependents Employee under... the children of divorce.0% $ 0 to 9,00 0.0% minus $ 0.00 = Tax parents Medicare rule, the tax multiple...no support agreements Limit rules, Self-employed or the rule...0% for kidnapped childre Note: If a taxpayer s 9, to child,00 is not a dependent.0% minus under the,.0 qualifying = child Tax rules, the Maximum child may Social still Security qualify as tax: a dependent under Medicare the qualifying tax rate: relative rules. Employee...$,9.0 Employee....% Self-employed... $,9.0 Self-employed....90% 0,0 to 0,.0% minus,0.0 = Tax 0, and over.0% minus 0,90.00 = Tax Additional Medicare Tax HOH Taxable Income $ 0 to,0 0.0% minus $ 0.00 = Tax 0.9% additional tax on combined wages, compensation, and self-employment, to,0.0% minus.00 = Tax income above threshold amount., to,00.0% minus,.00 = Tax Filing Status Single, HOH, QW MFJ MFS,0 to 0,00.0% minus,.00 = Tax Threshold Amount $00,000 $0,000 $,000 0,0 to 0,00.0% minus 0,0.00 = Tax 0,0 to 0,00.0% minus,.00 = Tax 0,0 and over.0% minus,.00 = Tax 09 Phaseouts Based on Modified AGI ivity Income Limited Partner Loss Guaranteed Distributive payments share of income Subject to SE tax SE tax Subject to t to Subject to l income from an activity Was the rental income from an 09 rental activity and have AGI of $00,000 or less ($0,000 MFS). not subject to SE tax, with the exception of real estate dealers [Reg..0(a)-]. real estate professionals and are not subject to. property. An interest held directly by the taxpayer or through an entity that does not limit liability. Itemized Deductions / Exemptions Traditional IRA Covered By Employer The phaseouts do not apply for tax years MFJ, QW...$0,000 to $, Standard Deduction 0 through 0. Single, HOH... $,000 to $,000 Single or MFS...$,00 Student Loan Interest MFS...$0 to $ 0,000 MFJ or QW...$,00 MFJ...$ 0,000 to $ 0,000 Spouse not covered by HOH...$,0 Single, HOH, QW...$ 0,000 to $,000 employer...$9,000 to $ 0,000 Additional age or older, or blind, per person, per event: Roth IRA MFJ, QW, or MFS...$,00 American Opportunity Credit MFJ, QW... $ 9,000 to $ 0,000 Single or HOH...$,0 MFJ...$ 0,000 to $ 0,000 Single, HOH... $,000 to $,000 Dependents. The standard deduction is the greater of $,00 or Single, HOH, QW...$ 0,000 to $ 90,000 MFS... $ 0 to $ 0,000 earned income plus $0, up to regular standard deduction. Retirement Savings Contributions Lifetime Learning Credit Credit AGI up to: Single, MFJ...$,000 to $,000 Rate MFJ HOH QW, MFS 09 Personal Exemption Deduction Single, HOH, QW...$,000 to $,000 0% $,00 $, $ 9,0 Personal exemption deduction per person...$0 0% $,00 $, $ 0,0 Qualifying relative income limit...$,00 0% $,000 $,000 $,000 Child Tax Credit/Family Credit 0% $,00 $,00 $,00 Phaseout begins at: MFJ... $ 00,000 Adoption Credit or Exclusion Penalty for Not Having Health Insurance Single, HOH, MFS, QW... $ 00,000 MFJ, Single, HOH, QW... $,0 to $,0 Effective 09, the penalty tax under the Affordable Care Act (ACA) for not having minimum essential health insurance coverage is zero. 09 Earned Income Credit Maximum Income Limits No Children Child Children Children 09 Standard Mileage Rates MFJ... $,0... $,... $,9... $, Single, HOH, QW... $,0... $,09... $,0... $ 0, Charitable....0 Medical and Moving Investment income limit: $,00 FASTTAFACTS Individual - All seven of the following tests must be met in order for a taxpayer to claim another person as a dependent in 0. Test numbers through vary depending joint return with a spouse. This rule does not apply if the joint return was filed only as a ) Married filing joint test. A person cannot be treated as a dependent if he or she files a on whether the person is a qualifying child or a qualifying relative of the taxpayer. claim for refund and no tax liability would exist for either spouse if they had filed separate ) Taxpayer ineligible if a dependent test. To claim another person as a dependent, the taxpayer, or spouse of taxpayer if filing jointly, cannot be claimed as ) Citizen or resident test. The person claimed as a dependent must be either a U.S. citizen, returns. a dependent on someone else s tax return. U.S. national, or a resident of the U.S., Canada, or Mexico. An adopted child that lived with the taxpayer all year passes this test if the taxpayer is a U.S. citizen or U.S. national. BUSINESS Qualifying Child Qualifying Relative Partnerships Loss General Partner Guaranteed payments and/or distributive share of income ) Relationship test. The child must be the taxpayer s son, daughter, ) Relationship test. A relative of the taxpayer must be: stepchild, SCHEDULE foster child, brother, C AND sister, ENTITY stepbrother, stepsister, TA PREPARATION or A son, daughter, stepchild, foster child, or a descendant TA of any of these (such as a grandchild), or a FAST descendant ANSWER of any of these, such CHARTS as the taxpayer s grandchild, A brother, sister, or a son or daughter of either YEAR of these (such as a niece or nephew), or niece, or nephew. Note: If a child meets tests through for more A father, mother, or an ancestor or sibling of either of them (such as a grandmother, grandfather, than C one Corporations taxpayer, see Qualifying Child of More Than One Person, aunt, or uncle), or Filing Requirements Tab of, 00 Edition/Deluxe Edition. A stepbrother, stepsister, stepfather, stepmother, son-in-law, daughter-in-law, father-in-law, Tax Rate All taxable income of a C corporation is taxed at a flat rate of %. Form Filing Requirement Filing Deadline Filing Deadline mother-in-law, brother-in-law, or sister-in-law, or PSC A personal service corporation (PSC) no longer has a separate Entity Calendar Year Fiscal Year Any other person (other than the taxpayer s spouse) who lived with the taxpayer all year as a tax rate. The % corporation tax rate applies to PSCs. member of Schedule the taxpayer s C household Required if the to relationship does April not violate th local day law. of the Dividends A C corporation can deduct a percentage of dividends received (Form 00) file Form 00 th month after ) Member Received of household during the test. tax The year. child must have lived with the ) Not a qualifying child test. The relative must not be a qualifying child of any other person in 0. Sole proprietorship (including self-employment individual s tax if taxpayer has taxpayer Deduction for more 0% than of more half of ownership. 0. Exceptions % apply. dividends received deduction. ) Age test. The child must be: ) Gross income test. single-member income of at least year. Less than 0% ownership. 0% dividends received deduction. The relative must have gross income of less than $,0 in 0. Under age 9 at the end of 0 and younger than the taxpayer LLC) $00. Small business 00% dividends received (or spouse if MFJ), investment or company. deduction. Form 0 Any partnership March th day of the Under age at Corporate the end of member 0, a full of time student for any part Partnership that engages in a rd month after of five calendar same months affiliated during group. 0, and younger than the (including LLC trade or business taxpayer (or spouse if MFJ), or classified as or has gross partnership s AMT Alternative minimum tax (AMT) is repealed for C corporations. Any age and permanently and totally disabled. partnership) income is required to file a return. ) Support C Corporation test. The child Basis IRC cannot have provided over Nontaxable half of his or Transfers ) Support test. Form The taxpayer 0S must have All corporations provided over half March of the relative s th support day of in the 0. This test her own support during 0. does not apply for persons who qualify as dependents under the children of divorced or separated S corporation required to file return agreements regardless rules, of or the rule for kidnapped the end children. of the rd month after General rule. No gain or loss is recognized if property is transferred parents to a rule, the multiple support corporation in exchange for stock and immediately after the person is in amount of income/ corporation s Note: control If a taxpayer s of the corporation. child is not a dependent under the qualifying child rules, the child may still qualify as a dependent under the qualifying relative rules. deductions. Shareholder s Basis in Stock Corporation s Basis in Property Form 0 All corporations April th day of the Adjusted basis of Cash received Adjusted basis of property in C corporation required to file return regardless of th month after property FMV of property hands of the shareholder + Gain recognized received + Gain recognized by the amount of income/ corporation s + Cash paid Liabilities transferred shareholder on the transfer deductions. Rental Activity Income Subject to Was the rental income from an activity as a real estate dealer? No Yes Limited Partner Loss Guaranteed Distributive payments share of income Subject to SE tax SE tax Subject to Was the rental income from an activity as a real estate dealer? SE tax Subject to SE tax 09 rental activity and have AGI of $00,000 or less ($0,000 MFS). not subject to SE tax, with the exception of real estate dealers [Reg..0(a)-]. real estate professionals and are not subject to. property. An interest held directly by the taxpayer or through an entity that does not limit liability. C Corporation Distributions Limited Liability Company (LLC) Taxable to Shareholder Deductible by Corporation LLC can be classified as a disregarded entity (single-member), a Wages partnership (two or more members), or a corporation (with an election). Dividends LLC Classification Filing Requirements Fringe benefits Disregarded entity Single-member owner reports LLC income/expenses Loan repayments on Schedule C (Form 00), unless election is made (interest) to be taxed as corporation. Rent payments Partnership Multi-member LLC must file Form 0 (partnership Return of capital return), unless election is made to be taxed as (in excess of basis) corporation. Corporation LLC classified as S corporation files Form 0S. LLC classified as C corporation files Form 0. Net Operating Loss (NOL) Default The NOL deduction is limited to 0% of taxable income. Rule Carryback period none. Carryforward period indefinite. New Excess Loss Disallowance Exceptions to the Default Rule Applies To All taxpayers except C corporations. Farming Loss Property and Casualty Excess Excess of aggregate deductions of the taxpayer attributable to trades or businesses of the taxpayer over the Insurance Companies Loss -year Carryback Yes Yes sum of : 0-year Carryforward n/a indefinite Yes Taxpayer s aggregate gross income or gain from the carryforward trades or businesses, plus 0%-of-Taxable-Income Limit $0,000 ($00,000 MFJ). Farming loss. A farming loss is the smaller of the NOL for the year or the NOL Partnerships or The excess business loss limitation rules apply at the computed considering only farming income and deductions. S Corporations partner or shareholder level. Property and casualty insurance companies. Applies to insurance companies Passive Activity The excess business loss limitation rules apply after other than a life insurance company. Loss Rules the application of the passive loss rules. Election to waive carryback. An election may be made to waive carryback Disallowed Any loss that is disallowed as an excess business period. Excess loss is carried forward as an NOL to the following tax Note: When computing a taxpayer s NOL, the 0% qualified business income Loss year. The new NOL rules apply to the carried forward deduction is not taken into account. disallowed excess business loss. FASTTAFACTS - Tab Topics What s New Summary Individuals Qualified Income (QBI) Deduction Planning Miscellaneous Tax Provisions Package Includes Retail Value What s New Early Edition - NEW! $ What s New Tax Season Edition $ Individual FastTaxFacts $ FastTaxFacts $ Shipping $ Total Retail Value $ What s New Package $9 Save $ Early Edition / Tax Season Edition $ each What s New Package Content Overview Publication Start Ship Date New Tax Law Cut-Off Date Hot Topics from Previous Release Planning Strategies Included Ongoing Coverage of the TCJA What s New Early Edition //09 //09. New employee parking rules.. Tax elections for small business. What s New Tax Season Edition //00 //00 Includes and from Early Edition as well as:. When to merge businesses into one activity.. How to maximize the QBI deduction. Individual FastTaxFacts FastTaxFacts //09 //09 Laminated tri-fold sheets. ½ folds to.x. Chart Highlights: Federal Tax Rate Schedule, Filing Requirements, Phaseouts Based on AGI, Standard Deduction, Head of Household Filing Status Chart, Married Filing Separately Rules, Community Property Rules, Retirement Plan Limits, Stock Options Tax Treatment, Rental Activities, Education Credits, Nontaxable Income, Alimony, HSA Limits Chart Highlights: Filing Requirements, Net Operating Losses, Excess Loss Disallowance, QBI Income Deduction, QBI Flow Chart, QBI Specified Service Trade or, Nondiscrimination Rules for Fringe Benefits, Deduct Qualified Pension Plan and IRA Contributions, Spousal Partnerships, Partner s Basis, S Corp. Shareholder Basis, S Corp. Reasonable Compensation, Tax-exempt Organizations Note: All of these products are included in the Plus. Real Answers. Real Fast! -99-.com

5 See Back Cover for Married Filing Jointly Rates No individual income tax: AK, FL, NV, SD, T, WA, & WY All States Edition 0+ PAGES Fast answers to each state s unique income tax rules. A must have book when preparing out-of-state returns. thetaxbook.com/allstates ALL STATES EDITION INDIVIDUAL Single Filing Status Alabama $ 0 to 00...% 0 to,000...%,00 and over...% Arizona $ 0 to 0,9...9% 0,0 to,...%, to 0,90...% 0,9 to,...%,9 and over...% Arkansas $ 0 to, %,00 to,99...%,00 to,99...%,00 to,99...%,00 to, %,00 to, %,00 and over...9% California $ 0 to,0...0%,0 to 9,00...0% 9,00 to 9,99...0% 9,990 to,9...0%,0 to,...0%, to,0...9.%, to, %,00 to,9....%,99 and over....% Colorado flat rate...% Connecticut $ 0 to 0, % 0,00 to 0, % 0,00 to 00, % 00,00 to 00, % 00,00 to 0, % 0,00 to 00, % 00,00 and over...99% Delaware $,00 to, %,00 to 0, % 0,00 to 0, % 0,00 to, %,00 to 0,000...% 0,00 and over...0% District of Columbia $ 0 to 0, % 0,00 to 0, % 0,00 to 0, % 0,00 to 0, % 0,00 to,000,000...%,000,00 and over...9% Georgia $ 0 to 0...% to,0...%, to,0...%, to,0...%, to,000...%,00 and over...% Hawaii $ 0 to,00...0%,0 to,00...0%,0 to 9,00...0% 9,0 to,00...0%,0 to 9,00...0% 9,0 to, %,00 to, %,00 to, %,00 and over...% Idaho $ 0 to,...%, to,90...%,90 to,...%, to,...%, to,9...%,0 to 0,90...% 0,90 and over...% Illinois flat rate...% Indiana flat rate...% Iowa $ 0 to,...0.%, to,0...0.%,09 to,...%, to,9...0%,9 to,0...%, to,00...%,0 to,0...0%, to 9,90...9% 9,9 and over...9% Kansas $,00 to,000...%,00 and over...% Kentucky $ 0 to, %,00 to, %,00 to, %,00 to, %,00 to,000...%,00 and over...0% Louisiana $ 0 to,00...%,0 to 0,000...% 0,00 and over...% Maine $ 0 to,09...0%,00 to,99...%,00 and over...% Maryland $ 0 to, %,00 to, %,00 to, %,00 to 00,000...% 00,00 to, %,00 to 0,000...% 0,00 to 0, % 0,00 and over...% Massachusetts flat rate...0% Certain capital gains....00% Michigan flat rate...% Minnesota $ 0 to,0...%, to,0...0%, to,0...%, and over...9.% Mississippi $ 0 to,000...%,00 to 0,000...% 0,00 and over...% Missouri $ 0 to % 00 to,000...%,00 to, %,00 to,000...%,00 to, %,00 to,000...%,00 to, %,00 to,000...% INCOME TA BY STATE,00 to, %,00 to 9,000...% 9,00 and over...0% Montana $ 0 to, %,90 to,00...0%,0 to,00...0%,0 to 0,00...0% 0,0 to,00...0%,0 to,00...0%,0 and over...9% Nebraska $ 0 to,00...%,0 to,0...%, to 9,90...0% 9,9 and over...% New Hampshire Interest and dividends...% New Jersey $ 0 to 0, % 0,00 to, %,00 to 0, % 0,00 to,000...%,00 to 00, % 00,00 and over...90% New Mexico $ 0 to,00...%,0 to,000...%,00 to,000...%,00 and over...9% New York $ 0 to,0...00%, to,0...0%, to,0...%, to, %,0 to 0,0...% 0, to,000...%,00 to,00,0...%,00, and over...% North Carolina flat tax...% North Dakota $ 0 to,0...0%, to 9,0...0% 9, to 90,0...% 90, to,0...%, and over...90% Ohio $ 0 to, %, to 0, % 0,0 to, %,0 to,00...%,0 to, %,0 to,00...% TA YEAR 09,0 to 0, % 0,0 to 0,00...9% 0,0 and over...99% Oklahoma $ 0 to, %,00 to, %,0 to,0...00%, to, %,90 to, %,0 and over...00% Oregon $ 0 to,0...0%, to,0...0%, to, %,00 and over...9.9% Pennsylvania flat rate...0% Rhode Island $ 0 to 0,0...% 0, to,00...%,0 and over...99% South Carolina $ 0 to,90...0%,9 to,0...%, to,0...%, to,0...%, to,00...%,0 and over...% Tennessee Interest and dividends...% Utah flat rate...% Vermont $ 0 to,0...%, to 9,0...0% 9, to 90,0...0% 90, to,0...0%, and over...9% Virginia $ 0 to, %,00 to, %,00 to, %,00 and over...% West Virginia $ 0 to 0, % 0,00 to, %,00 to 0,000...% 0,00 to 0, % 0,00 and over...% Wisconsin $ 0 to,0...00%, to,0...%, to,0...%, and over...% No Tax States Alabama Arizona Arkansas Colorado Connecticut Delaware District of Columbia MS MO MT NE NH NJ NM NY NC ND OH OK OR PA RI SC TN UT VT VA WV WI Mississippi Missouri Montana Nebraska New New New New York North North Ohio Oklahoma Oregon Pennsylvania Rhode South Tennessee Utah Vermont Virginia West Wisconsin NT AL AZ AR CA Hampshire CO Jersey CT Mexico DE Carolina DC Dakota GA HI ID IL IN IA KS Island KY Carolina LA ME MD MA Virginia MI MN Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota California Georgia Hawaii Idaho Illinois Indiana Iowa Kansas $9 Order Items & Save $! See Page Start Ship Date //0 Topics by State 09 Tax Rates Tax Tables Filing Requirements Resident, Part-Year Resident, and Nonresident Filing Information Additions Subtractions Adjustments Exemptions Credits Pension Exclusions Underpayment Penalties Filing Addresses Filing Deadlines School District Codes Contact Information Estimated Tax Reciprocal Agreements Property Tax Credits/Refunds The All States Edition one place for the answers to state issues! Jay Weller Zite, EA, Skokie, IL FastTaxFacts FASTTAFACTS FAST ANSWER TA CHARTS Tab : Individual Individual Preparation Federal Tax Rate Schedule Filing Requirements Phaseouts Based on AGI Standard Deduction Head of Household Filing Status Chart Married Filing Separately Rules Community Property Rules Retirement Plan Limits Schedule A (Form 00) Highlights Stock Options Tax Treatment Use of Home Methods Rental Activities Education Credits Nontaxable Income Alimony Health Savings Account Limits Preparer Due Diligence Tab : 099 / W- Roadmap Explanations and Where to Report 099 and W- Items on the Tax Return W- W-G 099-A 099-B 099-C 099-DIV 099-G 099-INT 099- LTC 099-MISC 099-PATR 099-Q 099-R 099-SA 09-E 09-T Tab : Dependents How a Child or Other Qualifying Person Affects a Client s Tax Return Dependency Tests Dependent Credits Head of Household Flow Chart Education Benefits Child and Dependent Care Credit Flow Chart Earned Income Credit Filing Requirements for Dependents Claiming a Dependent s Education Expenses Kiddie Tax Tab : Social Security & Medicare Social Security Benefits, Reporting, Taxation, and Medicare Entity Classification Elections Agreements Employer Identification Number (EIN) Secretaries of State Contact Information Online Resources Interview Questions Entity Pros and Cons Starting a Checklist Planning Tax Treatment for Buyers and Sellers Tab : Military Special Situations Pertaining to U.S. Armed Forces Personnel MACRS Recovery Periods MACRS Percentage Charts Section 9 Methods Formulas Qualified Real Property Section 9 Intangibles Special Farming Asset Recovery Periods Correcting Errors AMT Adjustments Tab : International Foreign Income, Exclusions, and Credits Exclusion of Combat Pay Moving Expenses Foreign Asset Reporting Hostile Fire and Imminent Danger Pay Extensions for Military Personnel Military Reservists IRAs for Armed Forces and Support Personnel Deferring Payment of Taxes Sale of Principal Residence Combat Zone Provisions Signing Joint Returns Tab : Schedule C and Entity Tax Preparation TA YEAR09 Filing Requirements C Corporations Net Operating Losses Excess Loss Disallowance Limited Liability Company Qualified Income Deduction QBI Flow Chart QBI Specified Service Trade or Personal Service Corporations Nondiscrimination Rules for Fringe Benefits Where to Deduct Qualified Pension Plan and IRA Contributions Spousal Partnerships Partner s Basis S Corporation Shareholder Basis S Corporation Reasonable Compensation Tab : MACRS, Recovery Periods, and Percentage Individual Tax Rate Schedule Estate and Trust Tax Rate Schedule Kiddie Tax Personal Exemption Deduction Due Diligence Dependent Credits Individual TCJA Provisions TCJA Provisions Corporation Provisions Excess Loss Disallowance Qualified Income Deduction Tab 9: Repairs & Improvements When to Capitalize and When to Deduct Property Expenditures Retirement Age Taxability Working While Receiving Benefits How to Qualify Early Retirement Disability Benefits Survivor s Benefits Family Benefits Spousal Benefits Tier I Railroad Retirement Benefits Primary Insurance Amount Form SSA-099 Medicare Basics Medicare Parts A, B, C, D Donut Hole Tab 0: Starting a Entity Comparison and Items to Consider When Starting a Repairs Improvements Betterments Restorations Adaptations Types of Materials and Supplies Remodel-Refresh Safe Harbor Unit of Property Routine Maintenance Safe Harbor De Minimis Safe Harbor Election Small Taxpayer Safe Harbor Partial Dispositions Individual 099 / W- Dependents Social Security & Medicare Military International 9 Repairs & Improvements INDE 0 Starting a 0 laminated fast-answer tri-fold sheets, bound into one book. Each sheet contains popular charts found throughout all editions of Series. Most sheets contain information not found in other publications. Keep commonly referenced information, tax facts, and charts at your fingertips. thetaxbook.com/fasttaxfacts $ Order Items & Save $! See Page Start Ship Date //9 Indexed NEW TABS! 0 Tri-Fold Fast-Answer Sheets Tab Topics Individual 099/W- Roadmap Dependents Social Security & Medicare Military International 9 Repairs & Improvements 0 Starting a 0 Pages Packed with Fast Answer Tax Charts! Each sheet is tri folded & contains six pages. Sheets expand in size to ½ Each sheet expands to pages! Real Answers. Real Fast! -99-.com

6 Residents. Taxpayers must file if: California gross income (gross income from all sources) is more than: Filing Age as of Dependents Status December 0 or more Single or Head of Household Under... $,9 $,0 $, or older... $, $ 0, $, Married/RDP Filing Jointly or Separately Under (both spouses/rdps)... $,9 $, $, or older (one spouse)... $, $, $, or older (both spouses/rdps)... $,9 $,9 $ 9, Qualifying Widow(er) Under... n/a $,0 $, or older... n/a $ 0, $, California AGI (federal AGI modified by California adjustments) is more than: Filing Age as of Dependents Status December 0 or more Single or Head of Household Under... $, $, $, or older... $, $, $,0 Married/RDP Filing Jointly or Separately Under (both spouses/rdps)... $, $,0 $, or older (one spouse)... $,0 $ 0,0 $, or older (both spouses/rdps)... $, $, $, Qualifying Widow(er) Under... n/a $, $, or older... n/a $, $,0 Filing Status Standard Deduction Single or Married/RDP Filing Separately... $,9 Married/RDP Filing Jointly, HOH, or QW... $, Dependents. The standard deduction is the greater of $,00 or earned income, up to regular standard deduction based on filing status. Taxpayer (and spouse/rdp if filing jointly) can be claimed as a dependent...$ 0 Single, Married/RDP Filing Separately, HOH... $ Married/RDP Filing Jointly, QW... $ Married/RDP Filing Jointly (taxpayer or spouse can be claimed as a dependent)... $ Blind (for each taxpayer and/or spouse/rdp)... $ Senior (for each taxpayer and/or spouse/rdp) Age or older on or before January, 0... $ Dependent (for each dependent claimed on federal return)... $ Requirements Must be property owned by the taxpayer. Must be used in taxpayer s business or income-producing activity. Must have determinable useful life of more than one year. Common Assets GDS Any property without a designated class life... years Appliances, carpets, furniture, etc., used in residential rental real estate activities... years Automobiles and trucks... years Computers and peripheral equipment... years Farm buildings (other than single-purpose)...0 years Farm machinery and equipment (new)... years Farm machinery and equipment (used)... years Fences... years Fences (agricultural)... years Land...Not depreciable Land improvements... years Nonresidential real estate (including home office)...9 years Office machinery (calculators, copiers, etc.)... years Office furniture and fixtures (desks, files, safes)... years Rent-to-own property (qualified)... years Residential rental property (buildings).... years Single-purpose agricultural or horticultural structures...0 years Tractor units for over the road... years Trees or vines bearing fruit or nuts...0 years Tax year first placed in service: 09 st year with special depreciation... $,000 st year with special depreciation... $,00 st year elected out of special depreciation... $0,000 nd year depreciation... $,000 rd year depreciation...$9,00 th year depreciation and all later years...$,0 If business use less than 00%, depreciation limit equals amount listed For vehicles purchased before September, 0. Excluded Property Property placed in service and disposed of in the same year. Equipment used to build capital improvements. Section 9 intangibles. Certain term interests. A person can receive Social Security retirement or survivor s benefits and work at the same time. However, benefits may be reduced based on age and earnings amount. Different rules apply to disability benefits recipients who continue to work. Age Full retirement age. Attain full retirement age during 09. Younger than full retirement age at the end of 09. Year of Birth Born prior to 9 Full Retirement Age Reduction in Benefits No reduction in benefits. Benefits are reduced by $ for every $ in excess of $,90. Benefits are reduced by $ for each $ earned above $,0. Year of Birth Full Retirement Age Age 9 Age, months 9 Age, months 9 Age, months 99 Age, months 9 Age, months 90 Age, months 9 Age, months 9 Age, months 99 Age, 0 months 9 Age, 0 months Age or later Age January birthday. Individuals born on January of any year should refer to the previous year in this chart. The following table illustrates the effect on a primary beneficiary s benefit, and a spouse s benefit who normally would receive 0% of the primary beneficiary s primary insurance amount (PIA) when Social Security benefits begin at age. Year of Birth Primary s Reduction Percentage Spouse s Reduction Percentage A $,000 ($ 00 Spousal) Benefit Reduced To: 9.%.% $ ($ ) 9.% 9.% $ ($ ) % 0.00% $ 0 ($ 0) 9.% 0.% $ ($ ) 9.%.% $ ($ ) 9.0%.0% $ ($ ) 9.%.% $ ($ ) 99 9.%.% $ 0 ($ 9) 90 and later 0.00%.00% $ 00 ($ ) Single, Married/RDP Filing Separately Taxable Income $ 0 to,0.00% minus $ 0.00 = Tax,0 to 9,00.00% minus 0. = Tax 9,00 to 9,99.00% minus 0. = Tax 9,990 to,9.00% minus,09.9 = Tax,0 to,.00% minus,9. = Tax, to,0 9.0% minus,.9 = Tax, to,99 0.0% minus,.99 = Tax,00 to,9.0% minus,.9 = Tax,99 and over.0% minus,.9 = Tax Married/RDP Filing Jointly, QW Taxable Income $ 0 to,00.00% minus $ 0.00 = Tax,0 to,00.00% minus 0.0 = Tax,00 to 9,9.00% minus 90. = Tax 9,99 to,.00% minus,9.90 = Tax,9 to 0,.00% minus,.0 = Tax 0, to,00 9.0% minus,.9 = Tax,0 to,99 0.0% minus 0,.9 = Tax,999 to,0,99.0% minus,9.9 = Tax,0,99 and over.0% minus,.9 = Tax HOH Taxable Income $ 0 to,00.00% minus $ 0.00 = Tax,0 to,00.00% minus 0.0 = Tax,00 to,990.00% minus 90. = Tax,99 to 0,0.00% minus,900. = Tax 0, to,.00% minus,. = Tax, to,99 9.0% minus,0. = Tax,00 to,99 0.0% minus,9. = Tax,00 to 0,99.0% minus,0. = Tax 0,99 and over.0% minus 9,9. = Tax Deduction limit (including qualified real property)... $,00,000 SUV limit...$,00 Investment limit phaseout begins... $,0,000 The limits are indexed for inflation. Placed in Service Year September, 0 December, 0 Qualified Property in General, Plants Bearing Fruits and Nuts Portion of Basis of Qualified Property Acquired After September, 0 Longer Production Period Property, Certain Aircraft 00% 00% 0 0% 00% 0 0% 0% 0 0% 0% 0 0% 0% 0 0% 0%* 0 and after 0% 0% September, 0 December, 0 Portion of Basis of Qualified Property Acquired Before September, 0 0% 0% 0 0% 0% 09 0% 0% 00 0% 0%* 0 and after 0% 0% depreciation. Social Security benefits increase....0% Maximum earnings subject to: Social Security tax... $,900 Medicare tax... No limit Maximum Social Security tax: Employee...$,9.0 Self-employed...$,9.0 Maximum Medicare tax... No limit Social Security tax rate: Employee....0% Self-employed....0% Maximum Social Security benefits at full retirement age: Maximum monthly benefit... $, Medicare tax rate: Employee...% Self-employed...90% Earnings needed for one quarter of coverage... $,0 Maximum earnings and still receive full Social Security benefits: Under full retirement age¹...$,0 Year of full retirement age²...$,90 Full retirement age... No limit Medicare premiums: Part A (per month)...$ Part B (per month) ³...$ Hospital deductible... $, ¹ $ in benefits is withheld for every $ in earnings above limit. ² Applies only to earnings for months prior to attaining full retirement age. $ in benefits is withheld for every $ in earnings above the limit. ³ Standard monthly premium. Additional Medicare tax on earned income. Medicare tax for FICA and selfemploy ment income is increased by 0.9% for earned income in excess of $0,000 MFJ, $,000 MFS, and $00,000 any other filing status. Additional Medicare tax on net investment income. A.% Medicare tax applies to net investment income in excess of $0,000 MFJ and QW, $,000 MFS, and $00,000 any other filing status. SSI makes monthly payments to people who have low income, few resources, and are age or older, blind, or disabled. SSI is not taxable. SSI amounts for 09. The monthly maximum federal amounts are $ for an eligible individual, $, for an eligible married couple California Edition 0+ PAGES CALIFORNIA EDITION PERSONAL, CORPORATE, TA STATE SALES AND USE TA YEAR09 09 Filing Requirements 09 Standard Deduction 09 Exemption Credits 09 California Tax Rate Schedule California is filled with complicated tax code. The California Edition answers your questions about state tax law for individuals, corporations, partnerships, LLCs, estates, and trusts. thetaxbook.com/california What s New, Federal Conformity 0 Tax Tables and Forms Residency and Filing Requirements Adjustments, Deductions, Exemptions Retirement, Social Security Tax Credits, Amortization, Basis Corporations Partnerships, AMT, LLCs, Estates, Miscellaneous Trusts Extensions, Penalties, Estimated Tax Audits, Protests, Appeals, Contacts INDE $ Order Items & Save $! See Page Start Ship Date //0 Forms:, NR, 00, 00S,,,, FTB Schedules: CA (0/0NR), D, K-, P, R, S, Tab Topics What s New and Federal Conformity 09 California Tax Tables Residency and Filing Requirements Adjustments, Deductions, and Exemption Credits Retirement and Social Security Individual and Tax Credits, Amortization and Basis Corporations 9 Partnerships, LLCs, Estates and Trusts 0 AMT and Miscellaneous Extensions, Penalties, and Estimated Tax Audits, Protests, Appeals and Contacts Comprehensive coverage of depreciation, amortization, and depletion pertaining to business property and other tangible assets. thetaxbook.com/depreciation DEPRECIATION FEDERAL Depreciable Property MACRS Recovery Periods 09 Standard Mileage Rates Vehicle Limitations (Section 0F) Vehicle (includes autos, trucks, and vans) limitations based on 00% business use. multiplied by business use percentage. For vehicles purchased after September, 0. DEPRECIATION, AMORTIZATION, AND DEPLETION 09 Section 9 Limits TA YEAR Special Allowance 09 * Applies to the adjusted basis attributable to manufacture, construction, or production in prior years with remaining adjusted basis not qualifying for bonus What s New, Basics Section 9, Special MACRS MACRS Tables Listed Property, Automobiles Real Property Amortization, Intangible Assets Dispositions, Sales, Recapture Like-Kind Exchanges, Involuntary Conversions Depletion Changes and Errors Planning Strategies INDE $ Order Items & Save $! See Page Start Ship Date //9 Forms:,, 9, 9, 99,,,, 9, Schedules: T (Timber), D (Form 00), F (Form 00) Tab Topics 0+ PAGES What s New and Basics Section 9 and Special MACRS MACRS Tables Listed Property and Automobiles Real Property Amortization and Intangible Assets Dispositions, Sales, and Recapture 9 Like-Kind Exchanges & Involuntary Conversions 0 Depletion Changes and Errors Social Security & Medicare 0+ PAGES Detailed coverage of Social Security, Medicare, Medicaid, and other programs. Fast answers to frequently asked retirement, disability, and Medicare questions. thetaxbook.com/socialsecuritymedicare SOCIAL SECURITY & MEDICARE SOCIAL SECURITY, MEDICARE, TA FEDERAL AND MEDICAID YEAR09 Working While Receiving Social Security Benefits Social Security Full Retirement Age Social Security Early Retirement Reduced Benefits SOCIAL SECURITY 09 Social Security and Medicare Highlights Supplemental Security Income (SSI) Retirement Disability Medicare Survivors Spouses Children SSI, Medicaid, CHIP Appeals Long-Term Care VA Benefits INDE $ Order Items & Save $! See Page Start Ship Date //0 Forms: SSA-099, RRB-099, W-V, SS-, 09, SSA-, SSA- Tab Topics Social Security Eligibility Social Security Benefits Social Security Taxation and Planning Disability Medicare & Supplemental Insurance Supplemental Security Income Survivors, Spouses, and Children Medicaid and CHIP 9 Long-Term Care 0 Veterans Benefits Appeals Real Answers. Real Fast! -99-.com

7 Affordable and fast online tax research! Having the most up-todate tax information at your fingertips is critical. Find information fast, with well-written and easy-to-understand explanations and examples. Save time and money. thetaxbook.com/weblibrary st User $9 $ Off Retail Value Add Users $9 per user* Plus st User $9 $0 Off Retail Value Plus Add Users $99 per user* Subscription Comparison Series Plus 00 Edition Small All States Edition California Edition Social Security & Medicare What s New Early Edition What s New Tax Season Edition Occupation & Oddities FastTaxFacts Update Service Tools for Tax Pros Archives Government Documents ONLINE ONLY Plus Publications Forms & Instructions Internal Revenue Code Treasury Regulations Court Cases Letter Rulings Revenue Procedures Revenue Rulings Notices Announcements BEST Seller $0 Retail Value! RETAIL VALUE $ $ $9 $ $ $ $ $ $ $ $0 & More Online! Features Online: Looks just like the printed books. PDF Format: Print and/or pages to your clients. Easy to Search: Find answers fast! Up-To-Date Content: Updated to reflect new legislation and the latest information released from the IRS. Access Anywhere: Available anywhere you have internet. Use Any Device: Computer, ipad, smartphone, or tablet. Bookmarks & History: Find previously viewed documents fast. Archives: Access previous years editions. 009 to 0 Archives 09 Editions Subscription Term: Receive immediate access. Subscription valid through //0. *Add Users: Add up to 0 users to your or Plus subscription. OCCUPATIONS & ODDITIES TA COMPLIANCE FOR INDIVIDUALS TA FEDERAL & SMALL BUSINESS YEAR09 Tab Overview Tab Daycare Providers Common expenses for day care providers, business use of home rules including how to calculate business percentage of home, standard meal and snack rates, and food program reimbursements. Tab Real Estate, Rental Activities Passive activity rules for real estate and rentals, common expenses for rental real estate activities, repair and improvement regulations, vacation home rules, and at-risk rules. Tab High Income, AMT Net investment income tax, additional Medicare tax, municipal bonds, other tax-exempt investments, and alternative minimum tax. Tab Military Combat zone income reporting and exclusions, extensions and deferrals, principal residence purchase and sale rules, military reservists, and foreign earned income exclusion rules. Tab Tab Tab Truckers, Transportation Industry Contractors, Construction Farmers, Ranchers, and Hobbies Special per diem rules for transportation workers, heavy vehicle excise tax for truckers, common repairs for truckers and whether they must be capitalized as improvements or deducted as repairs. Common expenses that can be deducted and common expenses that must be capitalized, cost of goods sold, inventory valuation methods, and special accounting methods for long-term construction contracts. Common expenses that can be deducted for farmers, farm inventory rules, weather-related sales and other farm income, hobby farms, horse activities, and the hobby loss rules. Tab Ministers Parsonage housing allowance rules, self-employment income and expenses, employee income and expenses, tax-exempt income allocation of expenses, and vow of poverty rules. Tab 9 Direct Sellers, Sales Reps Common deductions for direct sellers, personal use of demonstration products, per diem rules, travel, and meals and entertainment rules. Tab 0 Gambling Gambling as a business compared to gambling for recreation, and gambling loss rules. Tab Tab Seniors and Taxpayers With Disabilities Divorced and Separated Taxpayers Social Security benefits, disability insurance benefits, workman s compensation benefits, and longterm care issues. Topics include alimony, child support, property settlements, information about the effects of divorce decrees, and qualified domestic relations orders (QDROs). Tab Crowdfunding A presentation of tax rules that apply when determining how to treat transactions related to crowdfunding campaigns. Tab Restaurants Information specific to restaurants including tax treatment of smallware purchases, deductions for qualified real property, depreciation, and information for reporting employee tips. Tab Death of a Taxpayer Tax issues related to the death of a taxpayer including final filing requirements, income and deductions in year of death, estate income tax return, estate tax return, gift tax return, distributions to beneficiaries, and a comprehensive example. Tab Nonprofits Information specific to tax-exempt organizations including application procedures, filing requirements, unrelated business income tax, types of 0(c) organizations, and private foundations. Tab Public Safety Personnel Tax issues specific to public safety personnel including survivor, death or disability benefits, compensation, deductions for work related expenses, travel expenses, insurance premiums, and early distributions from retirement plans. Tab Employee Stock Options A presentation of rules that apply when determining the tax treatment of employee stock options including the different types of employee stock options. Tab 9 Household Employees Information specific to household employees including how to determine if an individual has a household employee, employment tax issues, and reporting. I love the. When clients ask me a question, the directs me to the information quickly. Occupations & Oddities Available Online Only Plus Exclusive Renee Kroll, Waikoloa, HI Online CPE Hours with each user purchased. See page! Daycare Providers Real Estate & Rental Activities Military Truckers and Transportation Industry Contractors & Construction Farmers, Ranchers, & Hobbies Ministers Direct Sellers and Sales Representatives Gambling Seniors & Taxpayers With Disabilities Divorced and Separated Taxpayers Crowdfunding Restaurants Death of a Taxpayer Nonprofits Public Safety Personnel Employee Stock Options Household Employees U.S. Citizens and Resident Aliens Abroad New Tab! Navigation on pages -9! Real Answers. Real Fast! -99-.com

8 Navigation Homepage Navigation Video Send Feedback Subscription Management Logout Search All Select Search Libraries Navigation Library Search: Receive instant results for keyword searches. Search all libraries or search the libraries of your choice. Index: Click on a letter to display a drop down box containing index references for. Search : As you type in the search box, search suggestions appear. Go right to a tab. Click and go! Select : Quickly switch between books. Archives: In December, when the 09 Tax Year Editions are released, you will still have access to the Editions of. Government Documents: Up-to-date library of information released by the IRS. Easy to search. Bookmark commonly used documents. History and Bookmarks: Find previously viewed documents fast! Create and name bookmarks, to find documents quickly for future reference. Save searches you frequently reference. Series 00 & Small All States California Edition Edition Social Security & Medicare What s New In-Depth TCJA Supplement Occupations & Oddities FastTaxFacts Master Set Update Service Tools for Tax Pros Archives Government Documents Publications Forms & Instructions Internal Revenue Code Treasury Regulations Court Cases Letter Rulings Revenue Procedures Revenue Rulings Notices Announcements History and Bookmarks History Bookmarks Saved Searches Special Offers with Plus Included BUNDLE 00 & Small 09 Tax Year Home 00 Edition 09 Tax Year NEW Bundle! ONLY Save $00 Deluxe Edition Plus Pg $ 9 Plus st User Pg $ 9 Client Handouts Pg 0 $ 9 Online CPE Hours Pg $ 9 Shipping $ Total Retail Value $9 Search 00 & Small Index # A B C D E F G H I J K L M N O P Q R S T U V W Y Z Archives Previous Tax Year Editions of Tax Charts and Guide Customers love the Jacob Special, but also wanted the Client Handouts. My new TTB Bundle includes all of our Best Sellers. Jacob Meyer $9 JACOB SPECIAL Small 09 Tax Year 00 Edition Front Cover / (Inside Cover) Small Edition Front Cover / (Inside Cover) Tab What s New Tab C Corporations, 0 Tab 0 Federal Tax Table and EIC Table Tab 9 S Corporations, 0S Tab 00 Line Instructions Tab 0 Partnerships and LLCs, 0 Tab Itemized Deductions, A Tab Estates, Trusts, and Fiduciaries, 0, 0, 09 Tab Sole Proprietorships and Farmers, C, F, SE Tab Social Security, Medicare, Exempt Organizations Tab Investment Income, B, D, 9 Tab Payroll and Labor Laws, 90, 9 Tab Rental, Passive, and At-Risk, E Tab Deductions Tab 9, Tab 0 Automobiles and Listed Property Tab Tax Credits Tab Children, College, and Family Tab Retirement and Employee Benefits Tab Other 00 Topics Tab IRS, Penalties, and Audits Tab Worksheets and Where to File Tab States Tab Tools and Worksheets Tab Other Topics Tab Small Recent Developments Tab Starting/Closing a, Accounting Tab Small Retirement Tab 9 Employee Health Benefits Tab 0 Credits Tab Tax-Exempt Orgs Tab Audit Strategies Tab States Tax Summary 00 Edition Back Cover / (Inside Cover) Small Edition Back Cover / (Inside Cover) ONLY $9 Save $ Deluxe Edition Plus Pg $ 9 Plus st User Pg $ 9 Online CPE Hours Pg 0 $ 9 Shipping $ Total Retail Value $00 Add Users to either special offer for Only $9! Includes Deluxe Edition Plus, Plus Add User, Online CPE Hours & Shipping ($0 Retail Value!) The Web Library is the best source for fast answers and confirmation of what is current. It has good links to the IRS and other sources. William S. Thompson, CPA, Fairport, NY Real Answers. Real Fast! -99-.com

9 Navigation Home Deductions Tab Contents Per Diem Rates Continental U.S. (CONUS) Net Operating Loss (NOL) Change Common Elections FormatTruckers / Transportation Industry Chart Amortization Switch from Per Diem Rates Per Diem Rates / High-Low Method Deductions Meals, Entertainment, Travel, and Lodging Entertainment Meals Travel and Lodging Accountable / Nonaccountable Plans Reporting Reimbursements Per Diem Reservists, Performing Artists, and Fee-Basis Government Officials Inventory / Cost of Goods Sold Uniform Capitalization Rules (UNICAP) Qualified Income Deduction (Section 99A) Qualified Income (QBI) Deduction Flowchart QBI Deduction Simplified Worksheet Net Operating Loss (NOL) Start-Up / Organization Costs Deduction/Amortization Accounting Periods and Methods Cash Method Accrual Method Change in Accounting Method Per Diem Rates Continental U.S. (CONUS) Effective: 0// 9/0/9 0// 9/0/ M&IE...$...$ Lodging...$9...$9 For higher localities, see Per Diem Rates, page -. Net Operating Loss (NOL) (See page -9) Default Rule Effective for losses arising in tax years ending after December, 0, the NOL deduction is limited to 0% of taxable income. Carryback period none. Carryforward period indefinite. Exceptions to the Default Rule Farming Loss Property and Casualty Insurance Companies -year Carryback Yes Yes 0-year Carryforward Search 00 & Small Index # A B C D E F G H I J K L M N O P Q R S T U V W Y Z Shortcut to Tabs Print Tab < Previous Page - Next Page > Jump to Page Bookmark Page - Switch to HTML PDF to HTML for viewing on a tablet / phone. n/a indefinite carryforward 0%-of-Taxable-Income Limit Farming loss. A farming loss is the smaller of the NOL for the year or the NOL computed considering only farming income and deductions. Property and casualty insurance companies. Applies to insurance companies other than a life insurance company. Election to waive carryback. An election may be made to waive the carryback period. See Election to waive NOL carryback, page -0. Note: When computing a taxpayer s NOL, the 0% qualified business income deduction is not taken into account. See Qualified Income Deduction (Section 99A), page -. For one-click easy access, install the icon on your desktop. Download at: Yes New for 0 Entertainment expenses. Beginning in 0, no deduction is allowed for business entertainment expenses. See Entertainment, page -. Qualified business income deduction. For tax years 0 through 0, there is a 0% deduction of qualified business income from a trade or business operated directly or through a pass-through entity. See Qualified Income Deduction (Section 99A), page -. Net operating loss (NOL). Effective for losses Page arising updates in tax years look ending after December, 0, the NOL deduction is limited to 0% of taxable like this. income with no carryback and unlimited carryforward. See Net Operating Loss (NOL), page -9. Domestic production activities deduction (DPAD). For tax years beginning in 0, the DPAD is no longer allowed. See Domestic Production Activities Deduction, page -. Cash method of accounting. For tax years beginning in 0, more taxpayers are eligible to use the cash method of accounting. See Small business accounting method simplification, page -. Common Elections Election to capitalize carrying charges, page -. Election to waive NOL carryback period for farming loss, page -. Election to deduct up to $,000 in start-up or organizational costs, page -. Election to adopt a tax year other than a calendar year, page -. Election to use a tax year other than a required tax year for a partnership, S corporation or PSC, page -. Truckers / Transportation Industry Chart For workers subject to the U.S. Department of Transportation hours of service rules, a deduction of 0% for meals is allowed (compared to the general 0% limitation). This can include individuals working on an airline, barge, bus, ship, train, or truck. In addition to a higher limit for deducting meals, transportation workers also have their own special standard meals and incidental expenses (M&IE) rates. Effective: 0// 9/0/9 0// 9/0/ M&IE Continental U.S. (CONUS)...$...$ M&IE, outside Continental U.S. (OCONUS)...$...$ Tax home. Generally, the tax home is the regular place of business or post of duty. For truckers, this could be the main terminal. See Tax home, page -0. Amortization (See Start-Up/Organization Costs, page -) A business deduction for amortization is first reported on Part VI, Form, and Amortization The deductible amount is then carried to the other expenses line on the tax return. Period IRC Code Section Circulation expenditures *... -years... 9(e) Research and experimental costs *...0-years... 9(e) Research and experimental costs... 0-months... Intangible drilling costs *... 0-months... 9(e) Mining development costs *...0-years... 9(e) Mining exploration costs *...0-years... 9(e) Pollution control facilities... 0-months...9 Cost of acquiring a lease...lease term... Reforestation expenditures... -months...9 start-up costs... 0-months...9 Goodwill and other intangibles...-years...9 Corporate organizational costs... 0-months... Partnership organizational costs... 0-months...09 * Optional write-off method [IRC 9(e)]. No AMT adjustment required. See Form AMT Adjustments Summary Chart, page -. 0 Tax Year Deductions - Navigation Fast Navigation: Go page-to-page, tab-totab, perform a search, or reference the index. Bookmarks: Set bookmarks for frequently referenced pages for quick access. Print/Save: Print or save pages. Or click Print Tab to print or save the entire tab. Updated Pages: We update to reflect tax law changes. Tab Contents: Go right to a tab in and click on a page from the tab contents section. Cross References: Linked to government documents. (Form example). PDF Format looks like the printed edition. Scroll page to page with ease. The is very user friendly and easy to navigate. Dan Dannis, Costa Mesa, CA The TaxBook and Web Library are my go to resources during tax season. The search function is especially quick when a client is sitting at my desk. Lee Richardson, Orange Park, FL Real Answers. Real Fast! -99-.com 9

10 Alternative Minimum Tax Audits Cancellation of Debt Insolvency Capital Gains and Losses Charitable Cash Donation Tracker Charitable Contributions Guide Charitable Noncash FMV Guide Clergy Religious Workers Consumer Credit Crowdfunding Dependent Support Worksheet Divorce and Taxes Education Tax Benefits Estimated Taxes Families With Children* Filing Status Foreign Bank and Financial Accounts Gambling Log Health Savings Accounts (HSAs) High-Income Taxpayers Hobby vs. Household Employees Identity Theft and Your Taxes Itemized Deductions: Casualty and Theft Losses Itemized Deductions: Homeowners Itemized Deductions: Interest Paid Itemized Deductions: Medical Expenses* Itemized Deductions: Taxes Paid Kiddie Tax Moving Expenses Multi-State Taxation New Tax Law* Referrals Appreciated Sale of a Principal Residence Same-Sex Married Couples Standard vs. Itemized Deduction* Stock Options Same Day Sales Tax Cuts and Jobs Act: Individuals Tax Facts and Figures Tax Scams Protect Yourself Taxable Social Security Benefits Taxpayers Who Receive an IRS Notice Tipped Employees What Should You Do if You Can t Pay Your Taxes? Withholding Filling Out Form W- Entity Comparison Chart Entity Pros and Cons Expenses Worksheet Financing Don t Intermingle Funds Management Tips Owners Taking Money Out of a Use of Home Buy-Sell Agreements Corporation Meeting Requirements Day Care Providers Income and Expenses Employee or Independent Contractor* Expense Reimbursements for Employees Farm Expenses Worksheet Farm Income Worksheet Farm Inventory and Accounting Methods Farm Vehicles and Fuels Form 099-MISC, Miscellaneous Income, Reporting Fringe Benefits Health Care Reform: Cost Sharing Subsidy for Individuals with High-Deductible Plans Health Care Reform: Employer Insurance Requirement Health Care Reform: Individual Insurance Requirement Health Care Reform: Premium Assistance Credit Health Care Reform: State Health Insurance Exchanges Inventory Cost of Goods Sold Limited Liability Companies (LLCs) Marketing Your Mileage and Expense Log On-Demand Drivers Partnerships Real Estate Professionals Recordkeeping for Tax Purposes Rental Income and Expense Worksheet Rental Income and Expenses Repairs vs. Improvements S Corporations Self-Employment Tax Short-Term Rentals Small Health Care Tax Credit Starting a Tax Cuts and Jobs Act: Corporations Tax Cuts and Jobs Act: Tax Cuts and Jobs Act: Employers Tax Cuts and Jobs Act: Excess Loss and Net Operating Loss (NOL) Tax Cuts and Jobs Act: New Income Deduction Vehicles Use College Financial Aid Planning Early Retirement Distributions SEPP Estate Planning, Wills, Probate, and Transfer of Assets Financial Planning Guide Moving Out Worksheet Newlyweds Tax Tips Pension Income Planning Saving for College Individual Retirement Accounts: Inherited IRAs Individual Retirement Accounts: Kinds of IRAs and Prohibited Transactions Individual Retirement Accounts: Roth IRAs Individual Retirement Accounts: Traditional IRAs Retirement Income Reverse Mortgages Saving for Retirement Social Security and Medicare Tax Cuts and Jobs Act: Retirement and Others Savings Accounts Death of a Taxpayer Estate Tax (Form 0) Gift Tax C Corporation Tax Organizer General Engagement Letter for Individual Tax Preparation Health Care Organizer Individual Taxpayer Organizer* Individual Taxpayer Organizer Rental Property Individual Taxpayer Organizer Sole Proprietorship LLC Tax Organizer Partnership Tax Organizer S Corporation Tax Organizer Newsletters Released Quarterly * Spanish version available Login to your subscription at handouts.thetaxbook.net or use the Desktop Icon Handouts 00+ Customizable Client Handouts! Tax Brochures, Planning Tips, Newsletters, Organizers Use handouts to explain tax concepts to your clients, promote your practice, and help your clients stay organized. Handouts cover a huge variety of tax-related subjects and are written in an easy-toread format your clients will appreciate. Build customer loyalty and keep your name in front of your clients year round! thetaxbook.com/handouts erships s General Partner Guaranteed payments and/or distributive share of income ivity Income Limited Partner Loss Guaranteed Distributive payments share of income Subject to SE tax SE tax Subject to t to Subject to l income from an activity Was the rental income from an Client Handouts Guide 00 rental activity and have AGI of $00,000 or less ($0,000 MFS). not subject to SE tax, with the exception of real estate dealers [Reg..0(a)-]. real estate professionals and are not subject to. property. An interest held directly by the taxpayer or through an entity that does not limit liability. Tax Planning Retirement Estates and Trusts Organizers Newsletters Includes a printed reference guide to find handouts fast! How It Works Login to your online subscription immediately. Access over 00 Client Handouts. Printed reference guide ships in December. Customize handouts with your logo (optional) and address. Print handouts for distribution (unlimited printing). Create PDFs to your clients! Add a Template! NEW! Do you have multiple offices? Add a template to avoid the hassle of continually changing your address. Each template purchased allows you to store an additional logo and address in your subscription. Landscape Tax Cuts and Jobs Act Individuals TA YEAR 0 TA OFFICE TA PREP LANE TA CITY, MN The Tax Cuts and Jobs Act is the biggest federal tax law change in over 0 years. Below are some significant changes affecting individuals. Note: Except where noted, the changes are effective for tax years 0 0. Tax Rates Insert Your Logo & Address Income tax rates. Most individual income tax rates have been lowered, including the top marginal tax rate from 9.% to %. The 0 individual income tax brackets are: Single MFJ or QW $0 to $9,...0% $9, to $,00...% $,0 to $,00...% $,0 to $,00...% $,0 to $00,000...% $00,00 to $00,000...% $00,00 and over...% HOH MFS $0 to $,00...0% $,0 to $,00...% $,0 to $,00...% $,0 to $,00...% $,0 to $00,000...% $00,00 to $00,000...% $00,00 and over...% $0 to $9,00...0% $9,0 to $,00...% $,0 to $,000...% $,00 to $,000...% $,00 to $00,000...% $00,00 to $00,000...% $00,00 and over...% $0 to $9,...0% $9, to $,00...% $,0 to $,00...% $,0 to $,00...% $,0 to $00,000...% $00,00 to $00,000...% $00,00 and over...% Kiddie Tax. Generally, the Kiddie Tax applies to certain children with unearned (investment) income that exceeds $,00. The new law simplifies the Kiddie Tax by applying ordinary and capital gain tax rates applicable to trusts and estates to the net unearned income of a child instead of using the parent s rate. Adjustments to Income $9 Order Items & Save $! See Page Add Template $9 per template Tax Cuts and Jobs Act Individuals TA OFFICE TA PREP LANE TA CITY, MN moving expense reimbursements have been suspended and are not available for most taxpayers. Exception: Qualified active duty servicemembers of the Armed Forces (and their spouses and dependents) can claim the moving expense deduction and receive excludable moving expense reimbursements. Alimony. Effective for instruments executed after December, 0, alimony and separate maintenance payments are not deductible by the payor spouse and not included in income by the recipient spouse. Personal and Dependency Exemptions Deduction The deduction for personal and dependency exemptions is suspended for tax years 0 through 0, however, the dollar amount ($,0 for 0) is still applicable when applying the rules for determining a qualifying child or qualifying relative for other tax benefits. Standard Deduction Portrait 0 TA YEAR 09 The standard deduction amounts have almost doubled for 0: $,000 Single or MFS, $,000 MFJ or QW, $,000 HOH. Age and/or blind. The additional standard deduction amounts apply for age or older, and/or blind, per person, per event: $,00 MFJ, QW, or MFS, $,00 Single or HOH. Dependent. The standard deduction in 0 for an individual who may be claimed as a dependent by another Handouts Overview Tax Brochures: Explain tax concepts to your clients. Planning Tips: Help your clients minimize tax liability. Newsletters: Released early January, late March, mid-june, and mid-september. Organizers: Get your clients ready for tax season. Includes individual and business versions. Handouts are updated throughout the year to reflect new tax law. Suggested Uses Place a handout in each client s folder before tax season. /mail handouts to new clients for a great first impression. During tax season, /mail handouts to clients who have not yet scheduled their appointment. Place handouts on your website or distribute via social media. Keep your name in front of clients all year by ing/ mailing quarterly newsletters. Provide customized handouts in your reception area. JIM USES CLIENT HANDOUTS TO EPLAIN TA CONCEPTS Moving expenses. The moving expense deduction and the exclusion from gross income and wages for qualified Unlimited Printing! taxpayer cannot exceed the greater of $,00, or earned income plus $0. Landscape or Portrait format available. BOB DOESN T USE CLIENT HANDOUTS TO EPLAIN TA CONCEPTS Subscription Details: Receive immediate access. Subscription valid through //0. Guide Start Ship Date: //9 0 Real Answers. Real Fast! -99-.com

11 Client Handouts Catalog * Spanish version available. ^ TCJA handout View Sample Handouts thetaxbook.com/handouts Handouts NEW! Extending Form 00 (Q Release) Rental Real Estate QBI Safe Harbor (Q Release) Head of Household Filing Status (Q Release) Virtual Currency (Cryptocurrency) (Q Release) Requesting Information from the IRS (Q Release) Splitting Child Tax Benefits (Q Release) Alternative Minimum Tax Audits Cancellation of Debt Insolvency Capital Gains and Losses Charitable Contributions: Charitable Contributions Guide Charitable Contributions: Noncash FMV Guide Charitable Contributions: Recordkeeping Requirements Clergy Religious Workers Consumer Credit Crowdfunding Dependent Support Worksheet Divorce and Taxes Education Tax Benefits Estimated Taxes Families With Children* Filing Status Foreign Bank and Financial Accounts Gambling Log Health Care Reform: Cost- Sharing Reduction and the Premium Tax Credit Health Care Reform: Health Insurance Marketplace Health Savings Accounts (HSAs) High-Income Taxpayers Hobby vs. Household Employees Identity Theft and Your Taxes Itemized Deductions: Casualty and Theft Losses Itemized Deductions: Homeowners Itemized Deductions: Interest Paid Itemized Deductions: Medical Expenses* Itemized Deductions: Taxes Paid Kiddie Tax Moving Expenses Multi-State Taxation Referrals Appreciated Sale of a Principal Residence Standard vs. Itemized Deduction Stock Options Same Day Sales Tax Cuts and Jobs Act: Individuals^ Tax Facts and Figures Tax Scams Protect Yourself Taxable Social Security Benefits Taxpayers Who Receive an IRS Notice Tipped Employees What Should You Do if You Can t Pay Your Taxes? Withholding Filling Out Form W- Entity Comparison Chart Entity Pros and Cons Expenses Worksheet Financing Don t Intermingle Funds Management Tips Owners Taking Money Out of a Use of Home Buy-Sell Agreements Corporation Meeting Requirements Daycare Providers Income and Expenses Employee or Independent Contractor* Expense Reimbursements for Employees Farm Expenses Worksheet Farm Income Worksheet Farm Inventory and Accounting Methods Farm Vehicles and Fuels Form 099-MISC, Miscellaneous Income, Reporting Fringe Benefits Health Care Reform: Employer Insurance Requirement Inventory Cost of Goods Sold Limited Liability Companies (LLCs) Marketing Your Mileage and Expense Log On-Demand Drivers Partnerships Real Estate Professionals Recordkeeping for Tax Purposes Rental Income and Expense Worksheet Rental Income and Expenses Repairs vs. Improvements S Corporations Self-Employment Tax Short-Term Rentals Small Health Care Tax Credit Starting a Tax Cuts and Jobs Act: Corporations^ Tax Cuts and Jobs Act: ^ Tax Cuts and Jobs Act: Employers^ Tax Cuts and Jobs Act: Excess Loss and Net Operating Loss (NOL)^ Tax Cuts and Jobs Act: Qualified Income Deduction^ Vehicles Use Planning College Financial Aid Planning Early Retirement Distributions SEPP Estate Planning, Wills, Probate, and Transfer of Assets Financial Planning Guide Moving Out Worksheet Newlyweds Tax Tips Pension Income Planning Saving for College Retirement Individual Retirement Accounts: Backdoor Roth IRA Individual Retirement Accounts: Inherited IRAs Individual Retirement Accounts: Kinds of IRAs and Prohibited Transactions Individual Retirement Accounts: Qualified Charitable Distribution (QCD) Individual Retirement Accounts: Required Minimum Distributions (RMDs) Individual Retirement Accounts: Roth IRAs Individual Retirement Accounts: Traditional IRAs Retirement Income Reverse Mortgages Saving for Retirement Social Security and Medicare Retirement and Other Savings Accounts^ Estates & Trusts Death of a Taxpayer Estate Tax (Form 0) Gift Tax Organizers General Engagement Letter for Individual Tax Preparation Individual Taxpayer Organizer* Individual Taxpayer Organizer Rental Property Individual Taxpayer Organizer Sole Proprietorship C Corporation Tax Organizer LLC Tax Organizer Partnership Tax Organizer S Corporation Tax Organizer Newsletters Newsletters Released Quarterly * Spanish version available. ^ TCJA handout Real Answers. Real Fast! -99-.com

12 Education We offer 0 online continuing professional education (CPE) courses presented in self-study format. thetaxbook.com/onlinecpe Average Customer Satisfaction Rating for CPE Courses How it Works Purchase hours to complete any course. Receive instant access to hours. Read courses online or print provided PDF. Share hours with your staff. Assign courses. Track completed courses. Print certificates of completions. Course results are uploaded to IRS and CTEC. Online CPE Hours Purchase hours to complete any course! 0 Hours $9 $9./Hr. As an expert in your field, you know the importance of staying up-to-date on the tax industry. The following courses are considered must-take because they cover subjects with significant changes within the past year. NEW TA LAW HOURS NEW! QUALIFIED BUSINESS INCOME DEDUCTION HOURS Must-Take Courses Tax law continues to evolve as the IRS provides guidance on the TCJA. Learn how to apply the new law to your client s returns! Released 9/ Learn who qualifies and how to calculate the qualified business income deduction. Includes specified service trades or businesses, deduction limitations, and rental real estate activities. Released 9/ Your CPE courses are wonderful. The lessons are easy to understand. Nicole Piehl, Eugene, OR SHARING/GIG ECONOMY HOURS Hours Hours $9 $./Hr. $9 $9.0/Hr. Online CPE hours do not expire. Subject to CPE policy found at thetaxbook.com/cpepolicy. The sharing economy is a growing area of activity. Learn how technology has changed how individuals generate income and understand the tax reporting requirements. Released 9/ Courses are valid for CPAs, EAs, and tax professionals. Tax Materials, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: Tax Materials, Inc. has been approved by the State Board of Tax Practitioners of Oregon to provide continuing education for tax practitioners in Oregon. NYS Sponsor ID Number is 009 Training Courses California Tax Education Council APPROVED EDUCATION PROVIDER Do you have a new preparer in the office? Want to brush up on the basics? Use these courses to get up to speed before tax season. INDIVIDUAL TA PREP 0 HOURS Review the basics for individual returns. Includes filing status, dependents, income, itemized deductions, tax credits, and more. Released 9/ Complete learning objectives, course overviews, and other course information is available at thetaxbook.com/onlinecpe INDIVIDUAL TA PREP 0 HOURS Review advanced topics for individual returns. Includes estimated tax payments, sole proprietorships, self-employment income, investment income, and more. Released 9/ Real Answers. Real Fast! -99-.com

13 Compliance Courses Credentialed tax professionals have CPE requirements dictated by the IRS or their state. Each year we offer three Ethics courses, the AFTR course, and a California Tax Review course to fulfill specific CPE requirements. CIRCULAR 0 ETHICS HOURS AVOIDING ETHICAL VOILATIONS HOURS Several professional credentials require two hours of Ethics each year. We offer three educational and entertaining courses to fulfil your Ethics requirement. Released 9/ DISCLOSING CLIENT INFORMATION HOURS 00 ANNUAL FEDERAL TA REFRESHER HOURS CALIFORNIA TA FOR CRTPs HOURS Non-exempt tax professionals who participate in the Annual Filing Season Program (AFSP) are required to complete the Annual Federal Tax Refresher (AFTR) course. Learn more at Released / This course satisfies the CTEC hour California state tax requirement for CRTPs. Content includes rules for individuals, partnerships, LLCs, corporations, estates and trusts, and more. Released / offers some of the best and most affordable CPE courses that I have taken. I really like the examples and key facts. 0 James Bailey, Frederick, MD Limited Time Courses Education FREE Online CPE Hours! Receive free Online CPE hours for products purchased. Plus Hours Hours Additional Users Hour Per User Series Hour Per Book TTB Bundle & Jacob Special Includes Hours Every year we release ten courses covering various professions, specific topics, and unique tax situation. Based on popularity and requests, some courses will rotate yearly. The following courses will be available one year from release date. Take them now before they are gone! All courses released 9//9 and available through 9//0. CLIENTS WITH DEPENDENTS HOURS TRUSTS HOURS DIVORCED TAPAYERS HOURS REAL ESTATE AND RENTAL ACTIVITES HOURS SENIOR AND TAPAYERS WITH DISABILITIES HOURS MINISTERS DEATH OF A TAPAYER CLIENTS WITH UNPAID TAES LIMITED LIABILITY COMPANIES DATA SECURITY HOUR HOUR HOUR HOUR HOUR Real Answers. Real Fast! -99-.com

14 09 Federal Tax Rate Schedule Single Taxable Income $ 0 to 9,00 0.0% minus $ 0.00 = Tax 9, to,00.0% minus,.0 = Tax 0,0 to 0,00.0% minus,0.0 = Tax 0,0 and over.0% minus,0.0 = Tax MFJ or QW Taxable Income $ 0 to 9,00 0.0% minus $ 0.00 = Tax 9,0 to,90.0% minus.00 = Tax,9 to,00.0% minus,.00 = Tax,0 to,0.0% minus,.00 = Tax, to 0,00.0% minus,.00 = Tax 0,0 to,0.0% minus 9,.00 = Tax, and over.0% minus,0.00 = Tax MFS Taxable Income $ 0 to 9,00 0.0% minus $ 0.00 = Tax 9, to,00.0% minus,.0 = Tax 0,0 to 0,.0% minus,0.0 = Tax 0, and over.0% minus 0,90.00 = Tax HOH Taxable Income $ 0 to,0 0.0% minus $ 0.00 = Tax, to,0.0% minus.00 = Tax, to,00.0% minus,.00 = Tax,0 to 0,00.0% minus,.00 = Tax 0,0 to 0,00.0% minus 0,0.00 = Tax 0,0 to 0,00.0% minus,.00 = Tax 0,0 and over.0% minus,.00 = Tax 09 Standard Deduction Single or MFS... $,00 MFJ or QW... $,00 HOH... $,0 Additional age or older, or blind, per person, per event: MFJ, QW, or MFS... $,00 Single or HOH... $,0 Dependents. The standard deduction is the greater of $,00 or earned income plus $0, up to regular standard deduction. 09 Personal Exemption Deduction Personal exemption deduction per person...$0 Qualifying relative income limit... $,00 09 Standard Mileage Rates Charitable...0 Medical and Moving SMALL BUSINESS ESTATES & TRUSTS 09 Earned Income Credit Maximum Income Limits No Children Child Children Children MFJ... $,0... $,... $,9... $,9 Single, HOH, QW... $,0... $,09... $,0... $ 0, Investment income limit: $,00 09 Social Security and Medicare Highlights Social Security benefits increase....0% Medicare tax rate: Maximum earnings subject to: Social Security tax... $,900 Medicare tax...no limit Maximum Social Security tax: Employee... $,0 Self-employed... $,0 Max. Medicare tax...no limit Social Security tax rate: Employee....0% Employee....% Self-employed....90% Earnings needed for one quarter of coverage... $,0 Maximum earnings and still receive full Social Security Self-employed...0% ¹ $ in benefits is withheld for every $ in earnings above limit. benefits: Under full retirement age¹...$,0 Year of full retirement age²...$,90 Full retirement age... No limit ² Applies only to earnings for months prior to attaining full retirement age. $ in benefits is withheld for every $ in earnings above the limit. Additional Medicare tax on earned income. Medicare tax for FICA and self-employment income is increased by 0.9% for earned income in excess of $0,000 MFJ, $,000 MFS, and $00,000 any other filing status. Additional Medicare tax on net investment income. A.% Medicare tax applies to net investment income in excess of $0,000 MFJ and QW, $,000 MFS, and $00,000 any other filing status. 09 Phaseouts Based on Modified AGI Itemized Deductions / Exemptions The phaseouts do not apply for tax years 0 through 0. Student Loan Interest MFJ...$ 0,000 to $ 0,000 Single, HOH, QW...$ 0,000 to $,000 American Opportunity Credit MFJ...$ 0,000 to $ 0,000 Single, HOH, QW...$ 0,000 to $ 90,000 Lifetime Learning Credit MFJ...$,000 to $,000 Single, HOH, QW...$,000 to $,000 Child Tax Credit/Family Credit Phaseout begins at: MFJ... $ 00,000 Single, HOH, MFS, QW... $ 00,000 Traditional IRA Covered By Employer MFJ, QW...$0,000 to $,000 Single, HOH... $,000 to $,000 MFS...$0 to $ 0,000 Spouse not covered by employer...$9,000 to $ 0,000 Roth IRA MFJ, QW... $ 9,000 to $ 0,000 Single, HOH... $,000 to $,000 MFS... $ 0 to $ 0,000 Retirement Savings Contributions Credit AGI up to: Single, Rate MFJ HOH QW, MFS 0% $,00 $, $ 9,0 0% $,00 $, $ 0,0 0% $,000 $,000 $,000 0% $,00 $,00 $,00 Adoption Credit or Exclusion MFJ, Single, HOH, QW... $,0 to $,0 What s New Tax Credits 9 0 States FREE Services INCLUDED WITH ALL ORDERS Learn more at thetaxbook.com/free Tax Industry News Find coverage of new legislation and industry news. Online CPE Hours Purchase any title from Series, or a User, and receive free Online CPE Hours for each product purchased. $ 9.0 Retail Value Per CPE Hour Product Online CPE Hours Retail Value Series hour per copy $ 9.0 Plus st User hours per st user $ 9.0 st User hours per st user $9.00 Additional Users hour per additional user $9.0 Tools for Tax Pros Electronic printable documents tax professionals use to provide disclosures, recordkeeping, substantiation, and more. Tax Organizers: Individual, Sole Proprietor, LLC, C Corporation, S Corporation Consent to Disclose Information Engagement Letter Message Board Do you have questions about a client s tax return? Use our Message Board to ask a fellow tax preparer. The Message Board is exclusive to our customers and not available to the general public. Updates Estate Inventory Worksheet Fair Market Value Guide for Noncash Contributions Worksheet and more! Find pages in affected by new tax law. 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16 All seven of the following tests must be met in order for a taxpayer to claim another person as a dependent in 0. Test numbers through vary depending joint return with a spouse. This rule does not apply if the joint return was ) Married filing joint test. A person cannot be treated as a dependent if he on whether the person is a qualifying child or a qualifying relative of the taxpayer. claim for refund and no tax liability would exist for either spouse if they had ) Taxpayer ineligible if a dependent test. To claim another person as a dependent, the taxpayer, or spouse of taxpayer if filing jointly, cannot be claimed as ) Citizen or resident test. The person claimed as a dependent must be either returns. a dependent on someone else s tax return. U.S. national, or a resident of the U.S., Canada, or Mexico. An adopted child the taxpayer all year passes this test if the taxpayer is a U.S. citizen or U.S. Qualifying Child Qualifying Relative ) Relationship test. The child must be the taxpayer s son, daughter, ) Relationship test. A relative of the taxpayer must be: stepchild, INDIVIDUAL foster child, brother, PREPARATION sister, stepbrother, stepsister, or A son, daughter, stepchild, foster child, or a descendant TA of any of these (such as a a descendant FAST ANSWER of any of these, such CHARTS as the taxpayer s grandchild, A brother, sister, or a son or daughter of either YEAR of these (such as a niece or nephew), niece, or nephew. Note: If a child meets tests through for more A father, mother, or an ancestor or sibling of either of them (such as a grandmother than 09 one taxpayer, Federal see Tax Qualifying Rate Child Schedule of More Than One Person, aunt, 09 or Filing uncle), or Requirements for Most Taxpayers Tab of, 00 Edition/Deluxe Edition. A stepbrother, stepsister, stepfather, stepmother, son-in-law, daughter-in-law, fathe Single Taxable Income If filing And at the end of 0, Then file a return if gross $ 0 to 9,00 0.0% minus $ 0.00 = Tax mother-in-law, status is: brother-in-law, taxpayer was: or sister-in-law, or income was at least: Any Single other person (other than the taxpayer s spouse) who lived with the taxpayer all... Under age... $,000 9, to,00.0% minus,.0 = Tax member of the taxpayer s Age or household older... if the relationship does not violate $,00 local law. ) Member of household test. The child must have lived with the ) Not MFJ a qualifying... child Under test. age The relative (both spouses) must not be... a qualifying child $ of,000 any other pe taxpayer for more than half of 0. Exceptions apply. Age or older (one spouse)... $,00 0,0 to 0,00.0% minus,0.0 = Tax Age or older (both spouses)... $,00 ) Age test. 0,0 The child and must over be:.0% minus,0.0 = Tax ) Gross MFS income... test. The Any relative age...$ must have gross income of less than $,0 in 0. Under MFJ age or QW 9 at Taxable the end Income of 0 and younger than the taxpayer HOH... Under age... $,000 (or $ spouse 0 if MFJ), to 9,00 or 0.0% minus $ 0.00 = Tax Age or older... $ 9,00 Under 9,0 age at to the,90 end of 0,.0% a full minus time student.00 for any = part Tax QW... Under age... $,000,9 to,00.0% minus,.00 = Tax Age or older... $,00 of five calendar months during 0, and younger than the,0 to,0.0% minus,.00 = Tax taxpayer, (or spouse to 0,00 if MFJ), or.0% minus,.00 = Tax Any age 0,0 and permanently to,0 and.0% totally disabled. minus 9,.00 = Tax Social Security and Medicare Taxes ) Support, test. The and child over cannot All have.0% seven provided minus of the over following,0.00 half of tests his = or must Tax be ) met Support Maximum in order test. for earnings The a taxpayer subject to must claim to: have another person as a dependent in 0. Test does numbers Social not apply Security through for persons tax vary...$,900 who depending qualify as dependents joint Employee return under with... a the spouse. children This of rule divorce does.0% not apply if the joint return was filed only as a provided ) Married Social over Security filing half of joint the tax test. relative s rate: A person support cannot in be treated as a dependent if he or she files a her own MFS support Taxable during Income 0. $ 0 to 9,00 on 0.0% whether minus the person $ is 0.00 a qualifying = Tax child parents or a qualifying Medicare rule, the relative tax multiple...no of the support taxpayer. agreements Limit claim rules, Self-employed for or refund the rule and...0% for no kidnapped tax liability childre would exist for either spouse if they had filed separate Note: If a taxpayer s 9, to child,00 is not a ) dependent.0% Taxpayer minus under ineligible the,.0 qualifying a dependent = child Tax rules, test. To the Maximum claim child another may Social still person Security qualify as as tax: a a dependent, the minus taxpayer,,.0 or spouse = of Tax taxpayer if filing Employee jointly,...$,9.0 cannot be claimed as ) Citizen Employee or resident... test. The person claimed.% as a dependent must be either a U.S. citizen, returns. dependent under Medicare the qualifying tax rate: relative rules.,0 to 0,.0% Self-employed... $,9.0 Self-employed... a dependent on someone else s tax return. U.S. national, or a resident of the U.S.,.90% Canada, or Mexico. An adopted child that lived with 0,0 to 0,.0% minus,0.0 = Tax the taxpayer all year passes this test if the taxpayer is a U.S. citizen or U.S. national. 0, and over.0% minus 0,90.00 = Tax Qualifying Child Additional Medicare Qualifying Tax Relative HOH Taxable Income $ 0 to,0 ) 0.0% Relationship minus test. $ The 0.00 child = must Taxbe the taxpayer s 0.9% additional son, daughter, tax on combined ) Relationship wages, compensation, test. A relative and of self-employment the taxpayer must be:, to,0.0% stepchild, SCHEDULE minus foster child,.00 brother, C AND = Tax sister, ENTITY stepbrother, income above stepsister, TA threshold PREPARATION or amount. A son, daughter, stepchild, foster child, or a descendant TA of any of these (such as a grandchild), or, to,00.0% a minus,.00 = Tax FAST descendant ANSWER of any of these, such CHARTS as the Filing taxpayer s Status grandchild, Single, A HOH, brother, QW sister, or MFJ a son or daughter of MFS either YEAR of these (such as a niece or nephew), or,0 to 0,00.0% niece, minus or nephew.,.00 Note: If a = child Tax meets tests Threshold through Amount for more $00,000 A father, mother, $0,000 or an ancestor or sibling $,000 of either of them (such as a grandmother, grandfather, 0,0 to 0,00.0% minus 0,0.00 = Tax than 0,0 to 0,00.0% C one Corporations taxpayer, see Qualifying Child of More Than One Person, aunt, or uncle), minus,.00 = Tax or Filing Requirements 0,0 and over.0% Tab of minus,, Edition/Deluxe = Tax 09 Edition. Phaseouts Based on A stepbrother, Modified stepsister, AGI stepfather, stepmother, son-in-law, daughter-in-law, father-in-law, Tax Rate All taxable income of a C corporation is taxed at a flat rate of %. Form Filing Requirement Filing Deadline Filing Deadline mother-in-law, brother-in-law, or sister-in-law, or PSC A personal service corporation Itemized (PSC) Deductions no longer has / Exemptions a separate Traditional Entity IRA Covered By Employer Calendar Year Fiscal Year Any other person (other than the taxpayer s spouse) who lived with the taxpayer all year as a tax rate. The % corporation The tax phaseouts rate applies do not to PSCs. apply for tax years MFJ, QW...$0,000 to $, Standard Deduction member of Schedule the taxpayer s C household Required if the to relationship does April not violate th local day law. of the Dividends A C corporation can deduct 0 a percentage through 0. of dividends received Single, (Form HOH 00)... $,000 file Form to 00 $,000 th month after Single or MFS...$ ) Member Received of household during the test. tax The,00 year. child must Student have lived Loan with Interest the ) Not a qualifying MFS child...$0 test. The relative must to $ not 0,000 be a qualifying child of any other person in 0. MFJ or QW...$,00 Sole proprietorship (including self-employment individual s tax if taxpayer has taxpayer Deduction for more MFJ...$ 0,000 to $ 0,000 Spouse not covered by HOH...$ 0% than of more half of,0 ownership. 0. Exceptions % apply. dividends received deduction. Single, HOH, QW...$ 0,000 to $,000 employer...$9,000 to $ 0,000 ) Age test. The child must be: ) Gross income test. single-member income of at least year. Additional age or older, or blind, per person, Less per than event: 0% ownership. 0% dividends received deduction. The relative must have gross income of less than $,0 in 0. Roth IRA MFJ, QW, or MFS...$ Under age 9 at the end of 0,00and younger than the taxpayer LLC) $00. Small business 00% dividends received American Opportunity Credit MFJ, QW... $ 9,000 to $ 0,000 Single or HOH...$ (or spouse if MFJ), investment or company.,0 deduction. Form 0 Any partnership March th day of the MFJ...$ 0,000 to $ 0,000 Single, HOH... $,000 to $,000 Under age at Corporate the end of member 0, a full of time student for any part Dependents. The standard deduction is the greater of $,00 or Single, HOH, QW...$ 0,000 to $ 90,000 MFS Partnership that engages in a rd month after... $ 0 to $ 0,000 earned income plus $0, up to regular of five calendar standard same months deduction. affiliated during group. 0, and younger than the (including LLC trade or business Retirement Savings Contributions taxpayer (or spouse if MFJ), or classified as or has gross partnership s AMT Alternative minimum tax (AMT) is repealed for C corporations. Lifetime Learning Credit Credit AGI up to: Single, Any age and permanently and totally disabled. partnership) income is required MFJ...$,000 to $,000 Rate MFJ to HOH file a return. QW, MFS 09 Personal Exemption ) Support Deduction test. The child cannot have provided Single, over HOH, half of QW his...$ or,000) to Support $,000 test. 0% The taxpayer $,00 must $ have, provided $ 9,0 C Corporation Basis IRC Nontaxable Transfers Form 0S All corporations over half March of the relative s th support day of in the 0. This test Personal exemption deduction her per own person support...$0 during 0. MFS...Does not does qualify not apply 0% for persons $,00 who qualify $, as dependents $ 0,0 under the children of divorced or separated Qualifying relative income limit...$,00 0% S corporation required to file return agreements regardless rules, of or the rule for kidnapped the end children. of the rd month after General rule. No gain or loss is recognized if property is transferred $,000 $,000 $,000 Child Tax Credit/Family Creditparents to a rule, the multiple support corporation in exchange for stock and immediately after the person is in 0% $,00 $,00 $,00 Note: If a taxpayer s child is not a dependent under Phaseout the qualifying begins at: amount of income/ corporation s control of the corporation. child rules, the child may MFJ... $ 00,000 Adoption still qualify Credit as or a dependent Exclusion under the qualifying relative rules. deductions. Penalty for Not Having Health Shareholder s Insurance Basis in Stock Single, Corporation s HOH, MFS, QW Basis... in Property $ 00,000 MFJ, Single, HOH, QW... $,0 to $,0 Form 0 All corporations April th day of the Effective 09, the penalty tax under Adjusted the Affordable basis of Care Cash Act (ACA) received Adjusted basis of property in for not having minimum essential health insurance coverage is zero. C corporation required to file return regardless of th month after property FMV of property hands of the shareholder + Gain recognized received 09 + Earned Gain recognized Income by the Credit Maximum Income amount Limits of income/ corporation s + Cash paid Liabilities transferred shareholder on the transfer No Children Child Children deductions. Children 09 Standard Mileage Rates MFJ... $,0... $,... $,9... $, Single, HOH, QW... $,0... $,09... $,0... $ 0, Charitable....0 C Medical Corporation and Moving Distributions Investment income limit: $,00 Limited Liability Company (LLC) Taxable to Shareholder Deductible by Corporation LLC can be classified as a disregarded entity (single-member), a Partnerships distributive share of income ivity Income Partnerships as a real estate dealer? FASTTAFACTS Wages Dividends Fringe benefits Loan repayments (interest) Rent payments Return of capital (in excess of basis) Net Operating Loss (NOL) Default Rule The NOL deduction is limited to 0% of taxable income. Carryback period none. Carryforward period indefinite. FASTTAFACTS Exceptions to the Default Rule Farming Loss Property and Casualty Insurance Companies -year Carryback Yes Yes 0-year Carryforward n/a indefinite carryforward 0%-of-Taxable-Income Limit Farming loss. A farming loss is the smaller of the NOL for the year or the NOL computed considering only farming income and deductions. Property and casualty insurance companies. Applies to insurance companies other than a life insurance company. Election to waive carryback. An election may be made to waive carryback period. Note: When computing a taxpayer s NOL, the 0% qualified business income deduction is not taken into account. Yes partnership (two or more members), Individual or - a corporation (with an election). LLC Classification Filing Requirements Disregarded entity Single-member owner reports LLC income/expenses on Schedule C (Form 00), unless election is made Partnership New Excess Loss Disallowance Applies To All taxpayers except C corporations. Excess Loss Partnerships or S Corporations Passive Activity Loss Rules Disallowed Excess Loss to be taxed as corporation. Multi-member LLC must file Form 0 (partnership return), unless election is made to be taxed as corporation. Corporation LLC classified as S corporation files Form 0S. LLC classified as C corporation files Form 0. Excess of aggregate deductions of the taxpayer attributable to trades or businesses of the taxpayer over the sum of : Taxpayer s aggregate gross income or gain from the trades or businesses, plus $0,000 ($00,000 MFJ). The excess business loss limitation rules apply at the partner or shareholder level. The excess business loss limitation rules apply after the application of the passive loss rules. Any loss that is disallowed as an excess business loss is carried forward as an NOL to the following tax year. The new NOL rules apply to the carried forward disallowed excess business loss. - Includes coverage of IRS guidance released through //09 Includes coverage of IRS guidance released through //00 Special Offers NEW Bundle! TTB Bundle & Jacob Special Customers love the Jacob Special, but also wanted the Client Handouts. My new TTB Bundle includes all of our Best Sellers. Jacob Meyer BUNDLE ONLY $9 JACOB Save $00 All of our best sellers in one bundle! SPECIAL ONLY $9 Save $ OnlineCPE Handouts OnlineCPE Deluxe Edition Plus pg $ 9 Plus st User pg $ 9 Client Handouts pg 0 $ 9 Online CPE Hours pg $ 9 Shipping $ Total Retail Value $9 Deluxe Edition Plus pg $ 9 Plus st User pg $ 9 Online CPE Hours pg 0 $ 9 Shipping $ Total Retail Value $00 Add users to either special offer for only $9! Includes Deluxe Edition Plus, Plus Add User, Online CPE Hours & Shipping ($0 Retail Value!) Loss General Partner Guaranteed payments and/or YEAR ROUND COVERAGE Limited Partner Loss Guaranteed Distributive payments share of income Subject to SE tax SE tax Subject to t to Subject to l income from an activity Was the rental income from an INDIVIDUAL 09 rental activity and have AGI of $00,000 or less ($0,000 MFS). not subject to SE tax, with the exception of real estate dealers [Reg..0(a)-]. real estate professionals and are not subject to. property. An interest held directly by the taxpayer or through an entity that does not limit liability. Loss General Partner Limited Partner Loss Guaranteed payments and/or Guaranteed Distributive distributive share of income payments share of income Subject to SE tax SE tax rental activity and have AGI of $00,000 or less ($0,000 MFS). Subject to not subject to SE tax, with the exception of real estate dealers [Reg..0(a)-]. real estate professionals and are not subject to. Subject to property. An interest held directly by the taxpayer or Was the rental income from an activity Was the rental income from an through an entity that does not limit liability. activity as a real estate dealer? No Yes Rental Activity Income SE tax Subject to SE tax BUSINESS 09 W- /099 Roadmap WHAT S NEW and INDUSTRY HIGHLIGHTS Clients With Children Page TA YEAR09 EARLY EDITION WHAT S NEW INDUSTRY HIGHLIGHTS Chapter What s New Summary Chapter Individuals Chapter Chapter Qualified Income (QBI) Deduction and TA YEAR09 Chapter Planning TA SEASON EDITION Chapter Miscellaneous Tax Provisions Index Chapter What s New Summary Chapter Individuals Chapter Chapter Qualified Income (QBI) Deduction Chapter Planning Chapter Miscellaneous Tax Provisions Index What s New Package Our What s New Package is the best way to stay current year round. Books are released every months. Early Edition - NEW! $ Tax Season Edition $ Individual FastTaxFacts $ FastTaxFacts $ Shipping $ Total Retail Value $ What s New Package $9 Save $ Early Edition / Tax Season Edition $ each Tab Topics What s New Summary Individuals Qualified Income (QBI) Deduction Planning Miscellaneous Tax Provisions Real Answers. Real Fast! -99-.com