Formula to arrive at tax due or refund

gross income

= AGI

= taxable income

apply tax rate

= tax

other taxes

tax due or refund Dependents

Qualifying Child mnemonic

C Close Relative (brothers, sisters, kids)

A Age limit (19/24 college)

R Residency and filing restrictions (more than 1/2 year, no joint return for child)

E Eliminate gross income test (doesn't matter unlike SUPORT)

S Support test changes (child didn't contribute more than 1/2 own support (no parent))

Taxable ordinary Income

- Money

- Property (FMV)

- Cancellation of debt

- Bairgain purchase (difference between price and FMV)

- Premium payments on life insurance > 50K by employer

- Interest income on life insurance deferred payment

- Payouts to employee of accident, med, health