[jlee1086]

The sim starts with this: “Mrs. Vick, a 40-year-old cash basis taxpayer, earned $45,000 as a teacher and $5,000 as a part-time, self-employed real estate agent in 2015. Mr. Vick, who died on July 1, 2015, had been permanently disabled on his job and collected state disability benefits until his death. For all of 2015 the Vicks’ residence was the principal home of both their 11-year-old daughter, Joan Vick, and Mrs. Vick’s unmarried cousin, Fran Phillips, who had no income in that year. During 2015, Joan received $200 a month in survivor Social Security benefits that began on August 1, 2015, and will continue at least until her 18th birthday. In 2015, Mrs. Vick provided over one-half the support for Joan and Fran, both of whom were U.S. citizens. Mrs. Vick did not remarry. Mr. and Mrs. Vick received the following in 2015:”

There’s lots of fluff but the important thing is that the Mrs Vick didn’t itemize. Since the problem didn’t mention a standard deduction, I put 0 for “Itemized deductions or standard deduction.” Well, now I find out that the standard deduction for MFJ is 12,600. Standard and personal deductions were barely mentioned in my Becker class. Are they mentioned in the AL or do we just have to know it (and that’s why I hate tax)?

FAR 57 (11/2014), 64 (1/2015), 79 (7/2015)
AUD 68 (2/2015), 79 (11/2015)
REG 79 (1/2016)
BEC 81 (4/2016)

[wombataholic]

I don't know if it is or isn't, but you probably should know it, personal exemption amounts and a few of the most common deduction phaseout amounts going into the exam.

AUD - 91
BEC - 85
FAR - 91
REG - 92

CPA, CFE
Passed all 4 CPA exam sections with Ninja Notes/MCQ/Audio

Licensed CPA
Passed each section on the first try with Ninja Notes/MCQ/Audio

[nib]

@ jlee1086

1)individual can have either Itemized deductions or standard deduction. whichever is higher
2) In above example , mrs vicks didnot itemized deduction . that means she chosen standard deduction .
3) standard deduction for single= 6300
for MFJ= 12600

I hope this helps .

[Author]

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