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

Jeffery and Cassie, who are married with modified AGI of $90,000, are sending their son to his first year of college. Their total tuition and related payments during 2015 amounted to $5,500. They have not taken advantage of any other type of tax benefit related to educational expenses. Their American Opportunity Tax Credit for 2015 is

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

An individual with AGI equal to or less than $150,000 in the prior year may generally avoid penalties for underpayment of estimated tax in each of the following cases with the exception 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?

Qualified tuition and related expenses eligible for the American Opportunity Tax Credit are limited to those incurred the first two years of postsecondary education.

Kors Corporation has 30 employees and $5 million of gross receipts. Kors spends $15,000 for qualified structural improvements for access for the disabled. The disabled access credit is

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

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

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?

Bud and Stella are married, file a joint return, and have one child, age 3. Their combined AGI is $35,000. Bud and Stella incur $3,500 of child-care expenses during the current year. The child and dependent care credit is

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.

Drake and Davina are married and file a joint return for 2015 with taxable income of $100,000 and tax preferences and adjustments of $51,000 for AMT purposes. Their regular tax liability is $16,713. What is the amount of their total tax liability?

The alternative minimum tax applies to individuals only if it exceeds the taxpayer's regular income tax liability.

Describe the differences between the American Opportunity Tax credit and the Lifetime Learning credit.

Discuss when Form 6251, Alternative Minimum Tax, must be filed.

Harley's tentative minimum tax is computed by multiplying the AMT tax rates by her

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.

Jake and Christina are married and file a joint return for 2015 with taxable income of $100,000 and tax preferences and adjustments of $20,000 for AMT purposes. Their regular tax liability is $16,713. What is the amount of their total tax liability?

Tyler and Molly, who are married filing jointly with $210,000 of AGI in 2015, incurred the following expenses in their efforts to adopt a child: The adoption was finalized in 2015. What is the amount of the allowable adoption credit in 2015?

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