Taxation & Computation

Part 1 · 12 study cards · Active recall format

Q1.What is the refund statute of limitations?

3 years from filing 2 years from paying whichever is later

Q2.What is the self-employment tax rate and composition for 2025?

15.3% total — Social Security 12.4% on net earnings up to $176,100 plus Medicare 2.9% on all net earnings. Additional 0.9% Medicare surtax on earnings above $200K single / $250K MFJ.

Q3.What does the $400 self-employment threshold determine?

Net earnings from self-employment of $400 or more generally require Schedule SE It is not a universal Schedule C filing threshold; Schedule C may still report a smaller profit or a loss

Q4.What are the two AMT tax rates?

26% on AMTI up to $232,600 ($116,300 MFS) 28% on AMTI above $232,600

Q5.What are the estimated tax payment due dates?

1st Quarter: April 15 2nd Quarter: June 15 3rd Quarter: September 15 4th Quarter: January 15 of following year

Q6.What is the penalty for filing a false Form W-4 claiming excess allowances?

$500 civil penalty

Q7.What are the time limits for a §1031 like-kind exchange?

45 days to identify replacement property after transfer of old property. 180 days to close on replacement (or return due date + extensions, whichever is earlier).

Q8.When is the individual tax return due for calendar year 2025?

April 15, 2026. With Form 4868 extension: October 15, 2026. Extension to FILE only — tax payment still due April 15.

Q9.What is the failure to file penalty?

5% per month of unpaid tax, maximum 25%. If return >60 days late: minimum penalty = $525 (2025) or 100% of unpaid tax, whichever is less.

Q10.What is the failure to pay penalty?

0.5% per month of unpaid tax, maximum 25%. Increases to 1% per month after IRS issues notice of intent to levy. Combined with failure-to-file: 5% total monthly cap.

Q11.What is the time limit to file an amended return (Form 1040-X)?

Within 3 years from original filing date OR 2 years from payment date, whichever is later. If original was filed late without extension: 3-year clock starts from actual filing date.

Q12.What is the late filing penalty rate, maximum, and minimum penalty if the return is more than 60 days late?

5% per month of unpaid tax, max 25%. If the return is more than 60 days late, the minimum penalty is the SMALLER of: (a) $525, or (b) 100% of unpaid tax.

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