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

With respect to estimated tax payments for a taxpayer with AGI of $150,000 or lower in the prior year,all of the following are generally true with the exception of

The foreign tax credit is equal to the smaller of foreign taxes paid or accrued in the tax year or the portion of the U.S.income tax liability attributable to the income earned in all foreign countries.

Bob's income can vary widely from year-to-year because much of his compensation comes from sales commissions and bonuses.It generally is in the $200,000 to $300,000 range.To minimize the risk of underpayment penalties for estimated tax he should pay in,through payroll withholding and estimated tax payments,100% of the prior year tax liability.

Kerry is single and has AGI of $25,000 in 2016.During the year he contributes $5,000 to his Roth IRA.What is the amount of qualified retirement savings contributions credit to which he is entitled?

Lee and Whitney incurred qualified adoption expenses in 2015 of $2,000,and then incurred $7,000 more in 2016 when the adoption of their child became final.Their 2015 AGI was $120,000 and their 2016 AGI was $140,000.The allowable adoption credit is