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

Mortgage interest paid on a mortgage obtained to buy a principal residence,deductible for regular income tax purposes,is also an allowable deduction for AMT.

A credit is available to encourage employers to provide child care for employees.The employer can either operate its own child care facility for its employees or pay a separate qualified child care facility under contract.

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.

Jay and Cara's daughter is starting her freshman year of college.Jay and Cara will be able to claim the American Opportunity Tax Credit for a percentage of the cost of tuition,required fees and course materials,but the room and board charges will not qualify for the credit.

In computing AMTI,all of the following must be added back except

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

The health insurance premium assistance credit is designed to help lower and middle income taxpayers who purchase their own health insurance directly from an insurance company or through a state or federal exchange.

Which of the following statements is not correct regarding the residential energy efficient property (REEP)credit?

Lee and Whitney incurred qualified adoption expenses in 2018 of $2,000,and then incurred $7,000 more in 2019 when the adoption of their child became final.Their 2018 AGI was $120,000 and their 2019 AGI was $140,000.The allowable adoption credit is

In computing AMTI,adjustments are