Exam 14: Special Tax Computation Methods, tax Credits, and Payment of Tax

Current year foreign taxes paid exceed the ceiling based on U.S.tax attributable to foreign source income.These excess foreign tax credits

An example of an AMT tax preference item is the excess of MACRS depreciation on equipment over depreciation computed by using the the 150% declining balance method.

If an employee has more than one employer during the year,all employers must withhold federal income taxes but only one employer must withhold FICA tax.

Jay and Cara's daughter is starting her freshman year of college.Jay and Cara will be able to claim the American Opportunity Tax Credit for a percentage of the cost of tuition,required fees and course materials,but the room and board charges will not qualify for the credit.

The qualified retirement savings contributions credit is based on a maximum contribution of $2,000.

For purposes of the AMT,the standard deduction,but not the personal and dependency exemptions,is allowed.

The Lifetime Learning Credit is partially refundable.

Discuss tax-planning options available for expenses incurred for child and dependent care.

The child and dependent care credit is partially refundable.

Doggie Rx Inc.is a new company developing a tasty chewable pill for dogs that will protect them from all types of fleas,ticks and intestinal parasites.This is its first year of business,and it has spent $500,000 on qualifying research expenditures.Doggie Rx will earned a simplified research credit of

Shafiq,age 16,works part-time at the local supermarket after school and on vacations.He plans to open a Roth IRA to save for his future.Shafiq makes less than $10,000 per year.He can take advantage of the qualified retirement savings contributions credit ("saver's credit").

Margo and Jonah have two children,ages 13 and 17.Their modified AGI is $120,500.What is their child tax credit?

To help retain its talented workforce,Zapper Corporation opens a child care facility in the building next to its offices.It spends $200,000 on rent,salaries and supplies.With respect to the $200,000 expenditure,Zapper will be entitled to a tax credit and a tax deduction of

Joe,who is single with modified AGI of $84,000,is sending his son to his first year of college.The total tuition and related payments during the year amounted to $18,000.Joe has not taken advantage of any other type of tax benefit related to educational expenses.His American Opportunity Tax Credit is

To claim the Lifetime Learning Credit,a student must take at least one-half of a full-time course load during the year.

Drake and Davina are married and file a joint return for 2016 with taxable income of $100,000 and tax preferences and adjustments of $51,000 for AMT purposes.Their regular tax liability is $16,533.What is the amount of their total tax liability?

Suzanne,a single taxpayer,has the following tax information for the current year. • Charitable contribution of real property with a FMV of $25,000 (adjusted basis $20,000)for which a $25,000 deduction was taken for regular tax. • Research and experimental expenses of $40,000 deducted in full for regular tax. Suzanne's total tax preferences and adjustments equals

Medical expenses in excess of 10% of AGI are deductible when computing AMT for taxpayers under the age of 65.

All of the following are self-employment income except

The itemized deduction phase-out,which has the effect of increasing regular taxable income for high income taxpayers,will also raise AMTI.