Question 1

Marguerite and Josephus have two children,ages 13 and 10.Their modified AGI is $120,500.What is their child tax credit?

Accepted Answer

A) $900 
B) $1,000 
C) $2,000 
D) None of the above. 
A) $900 
B) $1,000 
C) $2,000 
D) None of the above.

Question 2

Which one of the following is a refundable credit?

Accepted Answer

A) earned income credit 
B) child and dependent care credit 
C) lifetime learning credit 
D) credit for the elderly and disabled 
A) earned income credit 
B) child and dependent care credit 
C) lifetime learning credit 
D) credit for the elderly and disabled

Question 3

Refundable tax credits

Accepted Answer

A) only offset a taxpayer's tax liability. 
B) may only be used if the taxpayer is receiving a refund. 
C) have all expired but may be reinstated with new tax legislation. 
D) allow the excess over the taxpayer's tax liability to be paid to the taxpayer. 
A) only offset a taxpayer's tax liability. 
B) may only be used if the taxpayer is receiving a refund. 
C) have all expired but may be reinstated with new tax legislation. 
D) allow the excess over the taxpayer's tax liability to be paid to the taxpayer.

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Describe the differences between the American Opportunity Tax credit and the Lifetime Learning credit.

Accepted Answer

The American Opportunity Tax Credit (AOT

Question 6

If an individual is liable for self-employment tax,a portion of the self-employment tax is

Accepted Answer

A) a for AGI deduction. 
B) from AGI as an itemized deduction. 
C) a Schedule C business expense. 
D) nondeductible. 
A) a for AGI deduction. 
B) from AGI as an itemized deduction. 
C) a Schedule C business expense. 
D) nondeductible.

Question 7

In lieu of a foreign tax credit,a taxpayer may elect to take a deduction for foreign taxes paid or accrued.

Accepted Answer

A) True 
 B)False

Question 8

Harley's tentative minimum tax is computed by multiplying the AMT tax rates by her

Accepted Answer

A) taxable income. 
B) alternative minimum tax base. 
C) alternative minimum taxable income. 
D) tentative alternative taxable income. 
A) taxable income. 
B) alternative minimum tax base. 
C) alternative minimum taxable income. 
D) tentative alternative taxable income.

Question 9

An example of an AMT tax preference is a portion of the excluded gain on qualified small business corporation stock (Sec.1202 stock).

Accepted Answer

A) True 
 B)False

Question 10

The nonrefundable disabled access credit is available to eligible small businesses for expenditures incurred to make existing business facilities accessible to disabled individuals.

Accepted Answer

A) True 
 B)False

Question 11

Taxpayers with income below phase-out amounts are allowed a child credit of $1,000 for each qualifying child under age 17.

Accepted Answer

A) True 
 B)False

Question 12

The alternative minimum tax applies to individuals only if it exceeds the taxpayer's regular income tax liability.

Accepted Answer

A) True 
 B)False

Question 13

Marvin and Pamela are married,file a joint return,and have two children,ages 9 and 11.Their combined AGI is $65,000.Marvin's earned income is $40,000; Pamela's is $25,000.They incur $6,500 of child-care expenses to enable them to be employed during the current year.Their child and dependent care credit is

Accepted Answer

A) $1,200. 
B) $1,300. 
C) $1,800. 
D) $6,000. 
A) $1,200. 
B) $1,300. 
C) $1,800. 
D) $6,000.

Question 14

Runway Corporation has $2 million of gross receipts in the preceding year.For purposes of the disabled access credit,what is the maximum number of full-time employees the corporation can have in the preceding year?

Accepted Answer

A) 10 
B) 15 
C) 20 
D) 30 
A) 10 
B) 15 
C) 20 
D) 30

Question 15

Layla earned $20,000 of general business credits from her sole proprietorship.Her regular tax liability is $45,000,and her tentative minimum tax is $49,000.During the current year Layla will apply general business credits of

Accepted Answer

A) $-0-. 
B) $4,000. 
C) $20,000. 
D) $45,000. 
A) $-0-. 
B) $4,000. 
C) $20,000. 
D) $45,000.

Question 16

Mark and Stacy are married,file a joint return,and have one child,age 3.Their combined AGI is $55,000.Mark and Stacy incur $3,500 of child-care expenses during the current year.Mark's employer reimburses him $1,500 under a qualified dependent care assistance plan.The child and dependent care credit is

Accepted Answer

A) $300. 
B) $600. 
C) $700. 
D) $1,200. 
A) $300. 
B) $600. 
C) $700. 
D) $1,200.

Question 17

John has $55,000 net earnings from a sole proprietorship.John is also employed by a major corporation and is paid $25,000.John's self-employment tax (rounded)for 2013 is

Accepted Answer

A) $3,886. 
B) $4,208. 
C) $7,771. 
D) $8,415. 
A) $3,886. 
B) $4,208. 
C) $7,771. 
D) $8,415.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

To claim the Lifetime Learning Credit,a student must take at least one-half of a full-time course load during the year.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is not a qualifying property for the residential energy efficient property (REEP)credit?

Accepted Answer

A) geothermal heat pumps 
B) residential wind property 
C) metal or asphalt roofs with special coatings 
D) solar hot water heaters 
A) geothermal heat pumps 
B) residential wind property 
C) metal or asphalt roofs with special coatings 
D) solar hot water heaters

Marguerite and Josephus have two children,ages 13 and 10.Their modified AGI is $120,500.What is their child tax credit?

Which one of the following is a refundable credit?

Refundable tax credits

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

Describe the differences between the American Opportunity Tax credit and the Lifetime Learning credit.

If an individual is liable for self-employment tax,a portion of the self-employment tax is

In lieu of a foreign tax credit,a taxpayer may elect to take a deduction for foreign taxes paid or accrued.

Harley's tentative minimum tax is computed by multiplying the AMT tax rates by her

An example of an AMT tax preference is a portion of the excluded gain on qualified small business corporation stock (Sec.1202 stock).

The nonrefundable disabled access credit is available to eligible small businesses for expenditures incurred to make existing business facilities accessible to disabled individuals.

Taxpayers with income below phase-out amounts are allowed a child credit of $1,000 for each qualifying child under age 17.

The alternative minimum tax applies to individuals only if it exceeds the taxpayer's regular income tax liability.

Runway Corporation has $2 million of gross receipts in the preceding year.For purposes of the disabled access credit,what is the maximum number of full-time employees the corporation can have in the preceding year?

Layla earned $20,000 of general business credits from her sole proprietorship.Her regular tax liability is $45,000,and her tentative minimum tax is $49,000.During the current year Layla will apply general business credits of

John has $55,000 net earnings from a sole proprietorship.John is also employed by a major corporation and is paid $25,000.John's self-employment tax (rounded)for 2013 is

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

To claim the Lifetime Learning Credit,a student must take at least one-half of a full-time course load during the year.

Which of the following is not a qualifying property for the residential energy efficient property (REEP)credit?

An Introduction to Taxation

Determination of Tax

Gross Income: Inclusions

Gross Income: Exclusions

Property Transactions: Capital Gains and Losses

Deductions and Losses

Itemized Deductions

Losses and Bad Debts

Employee Expenses and Deferred Compensation

Depreciation, cost Recovery, amortization, and Depletion

Accounting Periods and Methods

Property Transactions: Nontaxable Exchanges

Property Transactions: Section 1231 and Recapture

Tax Research

Corporations

Partnerships and S Corporations

Taxes and Investment Planning

Filters

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

Marguerite and Josephus have two children,ages 13 and 10.Their modified AGI is $120,500.What is their child tax credit?

Which one of the following is a refundable credit?

Refundable tax credits

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

Describe the differences between the American Opportunity Tax credit and the Lifetime Learning credit.

If an individual is liable for self-employment tax,a portion of the self-employment tax is

In lieu of a foreign tax credit,a taxpayer may elect to take a deduction for foreign taxes paid or accrued.

Harley's tentative minimum tax is computed by multiplying the AMT tax rates by her

An example of an AMT tax preference is a portion of the excluded gain on qualified small business corporation stock (Sec.1202 stock).

The nonrefundable disabled access credit is available to eligible small businesses for expenditures incurred to make existing business facilities accessible to disabled individuals.

Taxpayers with income below phase-out amounts are allowed a child credit of $1,000 for each qualifying child under age 17.

The alternative minimum tax applies to individuals only if it exceeds the taxpayer's regular income tax liability.

Runway Corporation has $2 million of gross receipts in the preceding year.For purposes of the disabled access credit,what is the maximum number of full-time employees the corporation can have in the preceding year?

Layla earned $20,000 of general business credits from her sole proprietorship.Her regular tax liability is $45,000,and her tentative minimum tax is $49,000.During the current year Layla will apply general business credits of

John has $55,000 net earnings from a sole proprietorship.John is also employed by a major corporation and is paid $25,000.John's self-employment tax (rounded)for 2013 is

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

To claim the Lifetime Learning Credit,a student must take at least one-half of a full-time course load during the year.

Which of the following is not a qualifying property for the residential energy efficient property (REEP)credit?

An Introduction to Taxation

Determination of Tax

Gross Income: Inclusions

Gross Income: Exclusions

Property Transactions: Capital Gains and Losses

Deductions and Losses

Itemized Deductions

Losses and Bad Debts

Employee Expenses and Deferred Compensation

Depreciation, cost Recovery, amortization, and Depletion

Accounting Periods and Methods

Property Transactions: Nontaxable Exchanges

Property Transactions: Section 1231 and Recapture

Tax Research

Corporations

Partnerships and S Corporations

Taxes and Investment Planning

Filters