Exam 30: 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 2019 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 2019 is

The Lifetime Learning Credit is partially refundable.

Kerry is single and has AGI of $25,000 in 2019.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?

Jake and Christina are married and file a joint return for 2019 with taxable income of $100,000 and tax preferences and adjustments of $30,000 for AMT purposes.Their regular tax liability is $13,717.What is the amount of their total tax liability?

All of the following are allowable deductions under the alternative minimum tax except

Nonrefundable tax credits

Which of the following expenditures will qualify as a research expenditure for purposes of the research credit?

Individuals without children are eligible for the earned income credit if they meet all the following conditions except

Refundable tax credits

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

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

John has $55,000 of self-employment 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 for 2019 is

Self-employed individuals are subject to the self-employment tax if their net earnings are more than $600.

The general business credit may not exceed the net income tax minus the greater of the tentative minimum tax or

Application of a taxpayer's general business credits are limited this year.Excess general business credits can be carried back one year and carried forward ten years.

The earned income credit is refundable only if a tax has been withheld.

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

When a husband and wife file a joint return and both have self-employment income,the self-employment tax must be computed separately.

Jorge has $150,000 of self-employment earnings from a sole proprietorship.Jorge's self-employment tax for 2019 is

A taxpayer is calculating this year's depreciation deduction on equipment placed in service in 2016.For AMT purposes,depreciation must be recalculated using the straight-line method over the same recovery period used for regular tax purposes.