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

Jake and Christina are married and file a joint return for 2013 with taxable income of $100,000 and tax preferences and adjustments of $20,000 for AMT purposes.Their regular tax liability is $16,858.What is the amount of their total tax liability?

Hong earns $127,300 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 2013? A)$268 B)$290 C)$1,412 D)$1,530

Medical expenses in excess of 10% of AGI are deductible when computing AMT.

The general business credit is a refundable credit.

Tom and Anita are married,file a joint return with an AGI of $165,000,and have one dependent child,Tim,who is a first-time freshman in college.The following expenses are incurred and paid in 2013: What is the maximum education credit allowed to Tom and Anita?

Carlotta,Inc.has $50,000 foreign-source income and $150,000 worldwide income.Its U.S.tax on its worldwide income is $42,000 and it paid foreign taxes of $16,000.What is the corporation's foreign tax credit?

In computing AMTI,tax preference items are

Carlotta,Inc.has $50,000 foreign-source income and $150,000 worldwide income.Its U.S.tax on its worldwide income is $42,000 and it paid foreign taxes of $12,000.What is the corporation's foreign tax credit?

Annie has taxable income of $100,000,a regular tax liability of $21,293,a positive AMT adjustment due to limitations on itemized deductions of $20,000,and tax preferences of $25,000 in 2013.Annie is single and takes a $3,900 personal exemption for herself only.What is Annie's AMT for 2013?

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 2013 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 2013 is

Dwayne has general business credits totaling $30,000 before limitation.His regular tax liability is $83,000 and his tentative minimum tax is $79,000.What amount of general business credit can Dwayne take this year?

Shawn has a regular tax liability of $13,429,taxable income of $70,000,tax preferences of $25,000,and positive adjustments attributable to limitations on itemized deductions of $15,000 this year.Shawn is single and takes a $3,900 personal exemption for herself only.Shawn's alternative minimum tax for 2013 is

If a taxpayer's AGI is greater than $150,000,no penalty will be imposed if the taxpayer pays estimated tax payments in 2013 equal to what percentage of 2012's income tax liability?

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

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

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

Unused foreign tax credits are carried back and forward how many years when the limitation is not exceeded?

Discuss tax-planning options available for expenses incurred for child and dependent care.

If an individual is classified as an employee,the employer is required to withhold the employee's share of the FICA tax and to provide a matching amount.

Kerry is single and has AGI of $25,000 in 2013.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?