Exam 28: Special Tax Computation Methods,tax Credits,and Payment of Tax

Tyne is single and has AGI of $25,000 in 2015.During the year,she contributes $3,000 to her Roth IRA.What is the amount of Tyne's qualified retirement savings contributions credit?

Assume a taxpayer determines that his total income tax for the year is $25,000 at the time he files his tax return.Given the fixed tax liability,a taxpayer with savings should prefer a tax refund of $2,500 over a tax due of $2,500.

Jorge has $150,000 net earnings from a sole proprietorship.Jorge's self-employment tax (rounded)for 2015 is

John has $55,000 net earnings from a sole proprietorship.John is also employed part-time by a major corporation and is paid $25,000.John's self-employment tax (rounded)for 2015 is

Layla earned $20,000 of general business credits from her sole proprietorship.Her regular tax liability is $45,000,and her tentative minimum tax is $49,000.During the current year Layla will apply general business credits of

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

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

If an individual is classified as an employee,the employer is required to withhold the employee's share of the FICA tax and to provide a matching amount.

A taxpayer at risk for AMT should consider which of the following decisions?

Which of the following statements is incorrect regarding qualifying criteria for the health insurance premium tax credit?

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

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?

Lavonne has a regular tax liability of $13,294 on taxable income of $70,000.She also has tax preferences of $25,000 and positive adjustments attributable to limitations on itemized deductions of $15,000.Lavonne is single and takes a $4,000 personal exemption for herself only.Lavonne's alternative minimum tax for 2015 is

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

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?

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.

In lieu of a foreign tax credit,a taxpayer may elect to take a deduction for foreign taxes paid or accrued.

In the fall of 2015,Gina went back to school to earn a master of taxation degree.She incurred $7,000 of qualified educational expenses and her modified AGI for the year was $57,000.Her Lifetime Learning Credit is

During the year,Jim incurs $50,000 of rehabilitation expenditures in connection with a certified historic structure used in his business.The adjusted basis of the structure was $40,000 at the time the rehabilitation began. a.What is the amount,if any,of his rehabilitation credit for the year? b.What is the depreciable basis of the rehabilitation expenditures?