Exam 30: Special Tax Computation Methods,tax Credits,and Payment of Tax

To help retain its talented workforce,Zapper Corporation opens a child care facility in the building next to its offices.It spends $200,000 on rent,salaries and supplies.With respect to the $200,000 expenditure,Zapper will be entitled to a tax credit and a tax deduction of

Hong earns $138,500 in her job as a physician's assistant.She also has her own business selling cosmetics.This business generated $10,000 of earnings.What is Hong's self-employment tax for 2018?

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

Beth and Jay project the following taxes for the current year: Regular tax $50,000 AMT 10,000 Self-employment tax 12,000 How much in estimated tax payments (including withholding from wages and quarterly estimated payments)should the taxpayers pay this year in order to avoid underpayment penalties under the following assumptions regarding the preceding tax year? a.Preceding tax year-AGI of $140,000 and total taxes of $30,000. b.Preceding tax year-AGI of $175,000 and total taxes of $48,000.

A couple has filed a joint tax return since they were first married.Because of self-employment income and significant investment income,they have made joint quarterly estimated tax payments.Before year-end the couple has divorced,and they will each file their own individual returns.The estimated payments made jointly while still married earlier in the year will be divided evenly between the two individual returns.

Reva and Josh Lewis had alternative minimum taxable income of $1,200,000 in 2019 and file a joint return.For purposes of computing the alternative minimum tax,their exemption is

Which statement is correct?

Which one of the following is a refundable credit?

A credit for rehabilitation expenditures is available to a business for the purchase price of a building which has received the certified historic structure designation.

Assume a taxpayer projects that his total income tax for the year will $25,000.A taxpayer with savings should prefer to structure his tax prepayments so that he will receive a tax refund of $2,500 rather than a tax due of $2,500.

Taxpayers with income below phase-out amounts are allowed a child credit of $2,000 for each qualifying child under age 19 or under age 24 if a full-time student.

A taxpayer is paying alternative minimum tax this year.The AMT is primarily due to timing differences,resulting in the creation of a minimum tax credit.The taxpayer will apply the minimum tax credit

In 2019,Charlton and Cindy have alternative minimum taxable income of $230,000 and file a joint return.For purposes of computing the alternative minimum tax,their exemption is

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

Nonrefundable credits may offset tax liability but may not result in additional payments to the taxpayer.

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

If an individual is liable for self-employment tax,a portion of the self-employment tax is

Joan earns $119,900 in her job as a physician's assistant.She also has her own business selling cosmetics.This business generated $15,000 of earnings.What is Joan's self-employment tax for 2019?

Shafiq,age 16,works part-time at the local supermarket after school and on vacations.He plans to open a Roth IRA to save for his future.Shafiq makes less than $10,000 per year.He can take advantage of the qualified retirement savings contributions credit ("saver's credit").

The child and dependent care credit is partially refundable.