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

Joan earns $118,700 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 Joan's self-employment tax for 2017?

Self-employment taxes include components for

Business energy tax credits are available to businesses that invest in energy-conserving solar energy properties.

For purposes of the child and dependent care credit,qualifying employment-related expenses cannot include payments to a relative.

The child and dependent care credit is partially refundable.

Taxpayers with income below phase-out amounts are allowed a child credit of $1,000 for each qualifying child under age 19 or under age 24 if a full-time student.

Tyler and Molly,who are married filing jointly with $210,000 of AGI in 2017,incurred the following expenses in their efforts to adopt a child: The adoption was finalized in 2017.What is the amount of the allowable adoption credit in 2017?

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

Reva and Josh Lewis had alternative minimum taxable income of $350,000 in 2017 and file a joint return.For purposes of computing the alternative minimum tax,their exemption is

Tyne is single and has AGI of $25,000 in 2017.During the year,she contributes $3,000 to her Roth IRA.What is the amount of Tyne's qualified retirement savings contributions credit?

Sonya started a self-employed consulting business in the last part of the year and earned $40,000.She had been employed as manager in a consulting firm prior to starting her own business and had earned $135,000. (a)What is Sonya's self employment tax for 2016? (b)What is Sonya's deduction for AGI for the SE tax?

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

Drake and Davina are married and file a joint return for 2017 with taxable income of $100,000 and tax preferences and adjustments of $51,000 for AMT purposes.Their regular tax liability is $16,478.What is the amount of their total tax liability?

A corporation has $100,000 of U.S.source taxable income and $300,000 of foreign source taxable income from countries X and Y for a total worldwide taxable income of $400,000.Countries X and Y levy a total of $60,000 in foreign taxes upon the foreign source taxable income.U.S.taxes before credits are $140,000.The foreign tax credit limitation is

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

In calculating a taxpayer's AMT,adjustments for timing differences will be made for all of the following assets except for

In computing the alternative minimum taxable income,no deduction is allowed for

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

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