Part 1 — Individuals: CHEAT SHEET

WHO MUST FILE (2024)

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HIGH-YIELD: Self-employed: file if net SE income ≥ $400 (regardless of total income)

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FORM 1040 FLOW

Gross Income (all sources unless excluded)

− Above-the-line deductions (Schedule 1, Part II) → AGI

− Standard or itemized deduction

− QBI deduction (if eligible)

= Taxable Income

× Tax rates (2024 brackets below) → Tax liability

− Credits (reduce tax)

± Other taxes & payments → Refund/Amount Owed

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2024 STANDARD DEDUCTIONS

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2024 TAX BRACKETS (Key Thresholds)

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System: Marginal (progressive) — only income in each bracket taxed at that rate.

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FILING STATUS DECISION TREE

Married Dec 31?

• YES → MFJ or MFS (or HOH if considered unmarried)

• NO → Single, HOH, or QSS

HEAD OF HOUSEHOLD (All 3 required):

• Unmarried or "considered unmarried" (lived apart 6+ months)

• Paid >50% of household costs

• Qualifying person in home >half the year (dependent parent exception: no residency required)

QUALIFYING SURVIVING SPOUSE (QSS):

• Spouse died in prior 2 years

• Dependent child in home all year

• Did not remarry

• Uses MFJ tax brackets for 2 years, then Single/HOH

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MFJ vs. MFS Quick Contrasts

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When to elect MFS: High medical deductions, student loan income-driven repayment, separation/divorce.

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GROSS INCOME BASICS

IRC §61: All income from whatever source unless specifically excluded by law

Included:

• Wages, salaries, tips, bonuses, severance

• Interest, dividends, capital gains

• Business & rental income

• Alimony (pre-2019 divorce decrees)

• Gambling winnings

• Cancellation of debt (with exceptions)

Excluded:

• Gifts, inheritances

• Life insurance proceeds (death)

• Qualified scholarships

• Workers' compensation

• Child support

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FRINGE BENEFITS — EXCLUDED FROM INCOME

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Over $50K group-term life = imputed income included

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MEALS & LODGING (IRC §119) — BOTH MUST APPLY

Included in gross income UNLESS:

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Filing Status	Under 65	65+
Single	$14,600	$16,550
MFJ	$29,200	$30,750 (one) / $32,300 (both)
MFS	$5	$5
HOH	$21,900	$23,850
QSS	$29,200	$30,750
Status	Amount	+Age 65/Blind
Single	$14,600	+$1,950
MFJ	$29,200	+$1,550 (each)
MFS	$14,600	+$1,550
HOH	$21,900	+$1,950
QSS	$29,200	+$1,550
Rate	Single	MFJ
10%	$0–$11,600	$0–$23,200
12%	$11,601–$47,150	$23,201–$94,300
22%	$47,151–$100,525	$94,301–$201,050
24%+	Higher	Higher
Benefit	MFJ	MFS
Standard deduction	$29,200	$14,600
Earned Income Credit	✓	✗
Child/Dependent Care Credit	✓	✗
Education credits (AOC/LLC)	✓	✗
Student loan interest ded.	✓	✗
Joint & several liability	✓	✗
Benefit	Limit/Rule
Health insurance	Employer-paid, pretax
Group-term life	Up to $50,000 coverage
Qualified transportation	$315/month (2024) transit/parking
Employee discounts	≤ gross profit % (goods); ≤20% (services)
Working condition fringe	If employee could deduct
No-additional-cost services	Airline standby, hotel rooms
Dependent care assistance	$5,000/year ($2,500 MFS)
De minimis benefits	Occasional snacks, holiday gifts
Item	Requirement
Meals	On employer premises + for employer's convenience
Lodging	On employer premises + for employer's convenience + condition of employment

Excluded: On-site cafeteria, company housing (essential to job) Included: Cash allowances, off-premises meals, personal gym membership

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COMMON ABOVE-THE-LINE DEDUCTIONS (AGI)

• Student loan interest (up to $2,500)

• Educator expenses (up to $300)

• HSA contributions

• Self-employed health insurance premiums

• SE tax deduction (50% of SE tax paid)

• Deductible IRA contributions

• Alimony paid (pre-2019 decrees)

Key: AGI gates many phase-outs. Memorize these vs. below-the-line.

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EXAM RED FLAGS

🚩 MFS filing threshold = $5 (not $5K