Question 1

The earned income credit is available only to taxpayers with qualifying children.

Accepted Answer

A) True 
 B)False

Question 2

The maximum amount of the American Opportunity Tax Credit for each qualified student is

Accepted Answer

A) $1,500. 
B) $2,000. 
C) $2,500. 
D) $3,000. 
A) $1,500. 
B) $2,000. 
C) $2,500. 
D) $3,000.

Question 3

A wage cap does not exist for which of the following self-employment taxes?

Accepted Answer

A) Social Security tax 
B) FICA 
C) FUTA 
D) Medicare hospital insurance 
A) Social Security tax 
B) FICA 
C) FUTA 
D) Medicare hospital insurance

Question 4

George and Meredith who are married,have a regular tax liability of $22,783 based on regular taxable income of $125,000.This year they generated tax preferences of $25,000,and positive adjustments attributable to limitations on itemized deductions of $18,700.In determining regular taxable income,they had claimed $12,150 of personal and dependency exemptions for themselves and their 20-year old dependent daughter.What is George and Meredith's alternative minimum tax for 2016?

Accepted Answer

@#IMG-DLM& *$83,800 - [.25 × (

Question 5

Hawaii,Inc. ,began a child care facility for its employees during the year.The corporation incurred the following expenses:
   What is the amount of Hawaii's credit for employer-provided child care?

Accepted Answer

The credit is ($138,000 × .25)

Question 6

All of the following statements are true regarding the Lifetime Learning Credit except which one?

Accepted Answer

A) In order to qualify for the Lifetime Learning Credit,a student must be enrolled 1/2 time. 
B) Qualifying expenses include those for tuition and related fees but not for room and board. 
C) The Lifetime Learning credit may be claimed for any degree or nondegree course at a college or university that helps an individual acquire or improve their job skills. 
D) The Lifetime Learning credit and the American Opportunity Tax credit may not be taken in the same tax year with respect to the same student's tuition and related fees. 
A) In order to qualify for the Lifetime Learning Credit,a student must be enrolled 1/2 time. 
B) Qualifying expenses include those for tuition and related fees but not for room and board. 
C) The Lifetime Learning credit may be claimed for any degree or nondegree course at a college or university that helps an individual acquire or improve their job skills. 
D) The Lifetime Learning credit and the American Opportunity Tax credit may not be taken in the same tax year with respect to the same student's tuition and related fees.

Question 7

Ivan has generated the following taxes and credits this year:
   How much general business credit will he apply to the current year tax liability?

Accepted Answer

@#IMG-DLM& The general business credit is applied

Question 8

Max and Alexandra are married and incur $5,500 of qualifying expenses to care for their two children,ages 2 and 5.Max's earned income is $35,000 and Alexandra's earnings from a part-time job are $5,000.What is the amount of the qualifying expenses for purposes of computing the child and dependent care credit?

Accepted Answer

A) $3,000 
B) $5,000 
C) $5,500 
D) $6,000 
A) $3,000 
B) $5,000 
C) $5,500 
D) $6,000

Question 9

Assume you plan to volunteer at a Volunteer Income Tax Assistance (VITA)program for low income taxpayers and wish to prepare so you can help your clients achieve the maximum tax savings.Briefly discuss tax credits with which you should become familiar.

Accepted Answer

For low-income workers,the earned income

Question 10

The general business credits are refundable credits.

Accepted Answer

A) True 
 B)False

Question 11

Form 6251,Alternative Minimum Tax,must be filed in any of the following situations except:

Accepted Answer

A) The taxpayer has general business tax credits that are limited by the tentative minimum tax. 
B) The AMT base exceeds the exemption amounts and an individual has AMT adjustments or tax preference items. 
C) The tentative minimum tax exceeds the regular tax. 
D) The earned income tax credit exceeds the tentative minimum tax. 
A) The taxpayer has general business tax credits that are limited by the tentative minimum tax. 
B) The AMT base exceeds the exemption amounts and an individual has AMT adjustments or tax preference items. 
C) The tentative minimum tax exceeds the regular tax. 
D) The earned income tax credit exceeds the tentative minimum tax.

Question 12

Sonya started a self-employed consulting business in the last part of the year and earned $40,000.She had been employed as manager in a consulting firm prior to starting her own business and had earned $125,000.
(a)What is Sonya's self employment tax for 2016?
(b)What is Sonya's deduction for AGI for the SE tax?

Accepted Answer

@#IMG-DLM& Her employee wages from her prior job e

Question 13

Individuals who do not have minimum essential health insurance coverage will pay an excise tax.

Accepted Answer

A) True 
 B)False

Question 14

Nonrefundable personal tax credits can only offset an individual's regular tax,not AMT.

Accepted Answer

A) True 
 B)False

Question 15

Carlotta,Inc.has $50,000 foreign-source income and $150,000 worldwide income.Its U.S.tax on its worldwide income is $42,000 and it paid foreign taxes of $12,000.What is the corporation's foreign tax credit?

Accepted Answer

A) $4,000 
B) $12,000 
C) $14,000 
D) $42,000 
A) $4,000 
B) $12,000 
C) $14,000 
D) $42,000

Question 16

Marvin and Pamela are married,file a joint return,and have two children,ages 9 and 11.Their combined AGI is $65,000.Marvin's earned income is $40,000;Pamela's is $25,000.They incur $6,500 of child-care expenses to enable them to be employed during the current year.Their child and dependent care credit is

Accepted Answer

A) $1,200. 
B) $1,300. 
C) $1,800. 
D) $6,000. 
A) $1,200. 
B) $1,300. 
C) $1,800. 
D) $6,000.

Question 17

Tyne is single and has AGI of $25,000 in 2016.During the year,she contributes $3,000 to her Roth IRA.What is the amount of Tyne's qualified retirement savings contributions credit?

Accepted Answer

The credit is computed on a ma

Question 18

A corporation has $100,000 of U.S.source taxable income and $300,000 of foreign source taxable income from countries X and Y for a total worldwide taxable income of $400,000.Countries X and Y levy a total of $60,000 in foreign taxes upon the foreign source taxable income.U.S.taxes before credits are $140,000.The foreign tax credit limitation is

Accepted Answer

A) $35,000. 
B) $60,000. 
C) $80,000. 
D) $105,000. 
A) $35,000. 
B) $60,000. 
C) $80,000. 
D) $105,000.

Question 19

In computing the alternative minimum taxable income,no deduction is allowed for

Accepted Answer

A) alimony. 
B) moving expenses. 
C) personal exemptions. 
D) individual retirement account contributions. 
A) alimony. 
B) moving expenses. 
C) personal exemptions. 
D) individual retirement account contributions.

Question 20

The general business credit includes all of the following with the exception of

Accepted Answer

A) research credit. 
B) disabled access credit. 
C) foreign tax credit. 
D) credit for rehabilitation expenditure. 
A) research credit. 
B) disabled access credit. 
C) foreign tax credit. 
D) credit for rehabilitation expenditure.

The earned income credit is available only to taxpayers with qualifying children.

The maximum amount of the American Opportunity Tax Credit for each qualified student is

A wage cap does not exist for which of the following self-employment taxes?

Hawaii,Inc. ,began a child care facility for its employees during the year.The corporation incurred the following expenses: What is the amount of Hawaii's credit for employer-provided child care?

All of the following statements are true regarding the Lifetime Learning Credit except which one?

Ivan has generated the following taxes and credits this year: How much general business credit will he apply to the current year tax liability?

Assume you plan to volunteer at a Volunteer Income Tax Assistance (VITA)program for low income taxpayers and wish to prepare so you can help your clients achieve the maximum tax savings.Briefly discuss tax credits with which you should become familiar.

The general business credits are refundable credits.

Form 6251,Alternative Minimum Tax,must be filed in any of the following situations except:

Individuals who do not have minimum essential health insurance coverage will pay an excise tax.

Nonrefundable personal tax credits can only offset an individual's regular tax,not AMT.

Carlotta,Inc.has $50,000 foreign-source income and $150,000 worldwide income.Its U.S.tax on its worldwide income is $42,000 and it paid foreign taxes of $12,000.What is the corporation's foreign tax credit?

Tyne is single and has AGI of $25,000 in 2016.During the year,she contributes $3,000 to her Roth IRA.What is the amount of Tyne's qualified retirement savings contributions credit?

In computing the alternative minimum taxable income,no deduction is allowed for

The general business credit includes all of the following with the exception of

An Introduction to Taxation

Determination of Tax

Gross Income: Inclusions

Gross Income: Exclusions

Property Transactions: Capital Gains and Losses

Deductions and Losses

Itemized Deductions

Losses and Bad Debts

Employee Expenses and Deferred Compensation

Depreciation, cost Recovery, amortization, and Depletion

Accounting Periods and Methods

Property Transactions: Nontaxable Exchanges

Property Transactions: Section 1231 and Recapture

Tax Research

Corporations

Partnerships and S Corporations

Taxes and Investment Planning

Filters

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

The earned income credit is available only to taxpayers with qualifying children.

The maximum amount of the American Opportunity Tax Credit for each qualified student is

A wage cap does not exist for which of the following self-employment taxes?

Hawaii,Inc. ,began a child care facility for its employees during the year.The corporation incurred the following expenses: What is the amount of Hawaii's credit for employer-provided child care?

All of the following statements are true regarding the Lifetime Learning Credit except which one?

Ivan has generated the following taxes and credits this year: How much general business credit will he apply to the current year tax liability?

Assume you plan to volunteer at a Volunteer Income Tax Assistance (VITA)program for low income taxpayers and wish to prepare so you can help your clients achieve the maximum tax savings.Briefly discuss tax credits with which you should become familiar.

The general business credits are refundable credits.

Form 6251,Alternative Minimum Tax,must be filed in any of the following situations except:

Individuals who do not have minimum essential health insurance coverage will pay an excise tax.

Nonrefundable personal tax credits can only offset an individual's regular tax,not AMT.

Carlotta,Inc.has $50,000 foreign-source income and $150,000 worldwide income.Its U.S.tax on its worldwide income is $42,000 and it paid foreign taxes of $12,000.What is the corporation's foreign tax credit?

Tyne is single and has AGI of $25,000 in 2016.During the year,she contributes $3,000 to her Roth IRA.What is the amount of Tyne's qualified retirement savings contributions credit?

In computing the alternative minimum taxable income,no deduction is allowed for

The general business credit includes all of the following with the exception of

An Introduction to Taxation

Determination of Tax

Gross Income: Inclusions

Gross Income: Exclusions

Property Transactions: Capital Gains and Losses

Deductions and Losses

Itemized Deductions

Losses and Bad Debts

Employee Expenses and Deferred Compensation

Depreciation, cost Recovery, amortization, and Depletion

Accounting Periods and Methods

Property Transactions: Nontaxable Exchanges

Property Transactions: Section 1231 and Recapture

Tax Research

Corporations

Partnerships and S Corporations

Taxes and Investment Planning

Filters