Exam 14: 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?

Reva and Josh Lewis had alternative minimum taxable income of $350,000 in 2015 and file a joint return. For purposes of computing the alternative minimum tax, their exemption is

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

Rex has the following AMT adjustment factors: -Depreciation of real property acquired in 1996 using MACRS is $22,000 while depreciation for AMT purposes is $15,000. -R&E expenditures amounting to $60,000 are expensed. The net adjustment is

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

A taxpayer acquired new equipment to be used in her business this year. For AMT purposes, depreciation must be recalculated using the straight-line method over the same recovery period used for regular tax purposes.

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

Refundable tax credits

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

Dwayne has general business credits totaling $30,000 before limitation. His regular tax liability is $83,000 and his tentative minimum tax is $79,000. What amount of general business credit can Dwayne take this year?

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

Kerry is single and has AGI of $25,000 in 2015. 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?

Casualty and theft losses in excess of 10% of AGI are deductible for AMT purposes.

For purposes of the AMT, only the foreign tax credit and refundable personal credits are allowed to reduce the tentative minimum tax.

Research expenses eligible for the research credit include costs that are incident to the development or improvement of a product or component.

The alternative minimum tax applies to individuals, corporations, estates, and trusts.

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?

Self-employment taxes include components for

Self-employed individuals are subject to the self-employment tax if their net earnings are more than the personal exemption amount.

Which one of the following is a refundable credit?