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

Nonrefundable personal tax credits are allowed against the taxpayer's tax liability before other credits are claimed.

Tyne is single and has AGI of $25,000 in 2013.During the year,she contributes $3,000 to her Roth IRA.What is the amount of Tyne's qualified retirement savings contributions credit?

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

Ava has net earnings from self-employment of $125,000.She also earned salary of $170,000 from a job held earlier in the year.How much Additional Medicare Tax will be owed on the self-employment income?

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

For purposes of the AMT,the standard deduction,but not the personal and dependency exemptions,is allowed.

Timothy and Alice,who are married with modified AGI of $90,000,are sending their daughter to her first year of college.Their total tuition and related payments during the year amounted to $13,000.In addition,their daughter received a $10,000 scholarship to cover tuition.They have not taken advantage of any other type of tax benefit related to educational expenses.Their American Opportunity Tax Credit is

Joe has $130,000 net earnings from a sole proprietorship.Joe's self-employment tax (rounded)for 2013 is

If an individual is an employee and also has self-employment income,the maximum tax base for computing self-employment tax is reduced by the wages that are subject to the FICA tax.

Nick and Nicole are both 68 years old and file a joint return.They have AGI of $15,000 and receive nontaxable Social Security payments of $4,200 during the current year.What is the amount of the tax credit for the elderly?

Discuss the tax planning techniques available to a U.S.citizen who is on a foreign job assignment.

Suzanne,a single taxpayer,has the following tax information for the current year. • Charitable contribution of real property with a FMV of $25,000 (adjusted basis $20,000)for which a $25,000 deduction was taken. • Research and experimental expenses of $40,000 deducted in full for regular tax. Suzanne's total tax preferences and adjustments equals

A taxpayer will be ineligible for the earned income credit if he or she has disqualified investment income of more than $3,300.Disqualified income includes all the following except

In 2013 Charlton and Cindy have alternative minimum taxable income of $130,000 and file a joint return.For purposes of computing the alternative minimum tax,their exemption 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

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

Brad and Shelly's daughter is starting her freshman year of college.Brad and Shelly will be able to claim the American Opportunity Tax Credit for a percentage of the cost of tuition and room and board.

If estimated tax payments equal or exceed 100% of the actual tax liability for the prior year,there is generally (assuming AGI less than or equal to $150,000)no penalty for underpayment of estimated taxes.

A self-employed individual has earnings from his business of $300,000.For the earnings in excess of the $113,700,he will only have to pay the 2.9% Medicare tax.

A taxpayer who paid AMT in prior years,but is not subject to the AMT in the current year,may be entitled to an AMT credit against his regular tax liability in the current year.