Chapter 17 - Individual Retirement Arrangements
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1.
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You cannot make contributions to an IRA if you are 80 years old.
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2.
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You can contribute to a Roth IRA for your spouse provided the contributions satisfy the spousal IRA limit.
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3.
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You can keep funds in your traditional IRA indefinitely.
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4.
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Generally, distributions from a Roth IRA are taxable in the year that you receive them.
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5.
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You are not required to take distributions from your Roth IRA at any age.
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6.
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You can set up a Roth IRA at any time.
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7.
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You can make contributions to a Roth IRA at any time.
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Chapter 18 - Alimony
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8.
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Not all payments required under a divorce instrument are considered alimony for tax purposes.
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9.
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All payments required under a divorce instrument are considered alimony for tax purposes.
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10.
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If your alimony payments decrease or terminate during the first three calendar years, you may be subject to the recapture rule.
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Chapter 19 - Education-Related Adjustments
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11.
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Student loan interest includes both required and voluntary interest payments.
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12.
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You can change your return by filing Form 1040X.
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13.
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For purposes of the standard deduction, earned income includes any part of a scholarship or fellowship grant that you must include in your gross income.
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Chapter 20 - Standard Deduction
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Chapter 21 - Medical and Dental Expenses
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14.
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In order to claim medical expenses for your spouse:
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  You must have been married to your spouse for the entire year
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Your spouse must sign a consent form
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You must have been married either at the time your spouse received the medical services or at the time you paid the medical expenses
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You must file Form 9654
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15.
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Birth control pills prescribed by a doctor qualify as a medical expense.
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16.
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Bottled water qualifies as a medical expense.
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17.
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In order for a tax to be deductible, it must be imposed on you.
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18.
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You can deduct state and local income taxes.
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19.
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Deductible real estate taxes generally do not include taxes charged for the local benefits and improvements that increase the value of the property.
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Chapter 22 - Taxes
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Chapter 23 - Interest Expense
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20.
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Prepaid mortgage interest is deductible in the year paid.
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21.
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You generally cannot deduct the full amount of points in the year paid.
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Chapter 24 - Contributions
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22.
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Money or property given to public parks and recreation facilities are deductible as charitable contributions.
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23.
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Money or property given to political groups are deductible as charitable contributions.
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Chapter 25 - Nonbusiness Casualty and Theft Losses
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24.
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Deductible casualty losses can result from sonic booms.
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25.
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Deductible casualty losses can result from terrorist attacks.
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Chapter 26 - Car Expenses and Other Employee Business Expenses
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26.
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Your trip is considered entirely for business if you were outside the United States for a week or less, combining business and nonbusiness activities.
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27.
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You can deduct your travel expenses when you attend a convention if you can show that your attendance benefits your trade or business.
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Chapter 27 - Tax Benefits for Work-Related Education
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28.
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Education you need to meet the minimum education requirements for your present trade or business is qualifying work-related education.
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29.
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Education that maintains or improves skills in your present work is considered qualifying work-related education.
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Chapter 28 - Miscellaneous Deductions
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30.
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You can claim a depreciation deduction on your computer or cell phone that you use in your work as an employee if its use is for the convenience of your employer and is:
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Not greater than 2% of AGI
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Purchased during the current tax year.
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Used predominantly for business purposes.
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Required as a condition of your employment
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31.
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Fines and penalties paid to a governmental unit for violating the law are nondeductible.
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Chapter 29 - Limit on Itemized Deductions
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32.
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Gambling losses are subject to the overall limit on itemized deductions.
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33.
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Medical and dental expenses are not subject to the overall limit on itemized deductions.
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34.
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The overall limit on itemized deduction does not apply to investment interest expense.
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Chapter 30 - How to Figure Your Tax
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35.
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Changes to accelerated depreciation of certain property is a common tax preference item for AMT purposes.
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36.
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The addition of personal exemptions is a common adjustment for AMT purposes.
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Chapter 31 - Tax on Investment Income of Certain Minor Children
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37.
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Part of a child's investment income may be subject to tax at the parent's tax rate if the child's investment income was less than $1,600.
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38.
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If you qualify and elect to include your child's interest and dividend income on your tax return, your child will not have to file a return.
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39.
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To claim the child and dependent care credit, you must keep up a home.
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40.
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The home you keep up in order to claim the child and dependent credit must be the main home for both you and the qualified person.
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Chapter 32 - Child and Dependent Care Credit
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Chapter 33 - Credit for the Elderly or the Disabled
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41.
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For purposes of the credit for the elderly or disabled, if you are under age 65, you must have your physician complete a statement certifying that you were permanently and totally disabled on the date you retired.
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42.
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You can take the credit for the elderly or disabled if you are a qualifying individual and your income is not more than certain limits.
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Chapter 34 - Child Tax Credit
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43.
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An 18 year old child is considered a qualifying child for purposes of the child tax credit.
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44.
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To claim the child tax credit, you must file Form 1040 or Form 1040A.
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Chapter 35 - Education Credits
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45.
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The Lifetime Learning Credit is available for all years of postsecondary education and for courses to acquire or improve job skills.
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46.
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The Hope Credit is available only until the first two years of postsecondary education are completed.
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Chapter 36 - Earned Income Credit
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47.
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To claim the earned income credit, your filing status cannot be married filing separately.
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48.
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To claim the earned income credit, your filing status cannot be married filing jointly.
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Chapter 37 - Other Credits
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49.
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Currently, there is NO tax credit allowed for placing a qualified electric vehicle in service during the year.
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50.
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Credit for excess social security tax withheld is a refundable credit.
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