Exam 6: Credits and Special Taxes

Phillip and Naydeen Rivers are married with two dependent children. The family has household income of $38,160 in 2015. They paid $11,000 for health care for the year. A designated silver plan would have cost $9,800. What is the Rivers' premium tax credit?

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(Multiple Choice)

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Question 1

Correct Answer:

Verified

Vicky is a single, 21 year-old, full-time student who purchased health care through the state health care exchange for the full year. Her part-time job pays her $12,000 in 2015. She files her own tax return but is claimed as a dependent by her parents. Vicky is eligible for the premium tax credit.

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(True/False)

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Question 2

Correct Answer:

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False

List at least two AMT preferences and/or adjustments and show the simplified formula for calculating AMT. Do not include dollar exemption amounts or the tax rate schedule.

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(Essay)

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Question 3

Correct Answer:

Verified

(1) Adjustments and preferences would include the standard deduction, personal and dependency exemptions, property tax and other taxes allowed as itemized deductions, interest on home equity debt for personal purposes, state income tax refunds, private activity bond interest, and other items.
(2) The simplified formula is:
Regular taxable income (before exemptions and standard deduction)
Plus or minus AMT tax preferences and adjustments
Equals Alternative Minimum Taxable Income (AMTI)
Less AMT exemption (phased out to zero as AMTI increases)
Equals amount subject to AMT
Multiplied by the AMT tax rate(s)
Equals tentative minimum tax
Less regular tax
Equals amount of AMT due with return, if a positive amount

Which of the following types of income is not subject to the "kiddie tax?"

(Multiple Choice)

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Question 4

Fletch and Cammie Gates are married with three dependent children and household income of $50,238 in 2015. The Gates purchased health care insurance on their state's exchange for total premiums of $6,000. A designated silver plan for their family in their state costs $9,700. Calculate the Gates' premium tax credit.

(Essay)

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Question 5

Which of the following is not an adjustment or tax preference item for 2015 for purposes of the individual alternative minimum tax (AMT)?

(Multiple Choice)

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Question 6

Salary earned by minors may be taxed at their parents' tax rate.

(True/False)

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Question 7

The total expenses that can be taken as a credit for all tax years for adoption of a child without "special needs" is $10,000.

(True/False)

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Question 8

For 2015, Beatrice qualifies for the earned income credit. She has one daughter who is 7 years old. Her earned income and adjusted gross income for 2015 are $6,200. a.Using the EIC tables, calculate the amount of her 2015 earned income credit. b. Calculate the amount of Beatrice's 2015 earned income credit assuming her earned income for 2015 is $8,500 and her adjusted gross income is $10,000.

(Essay)

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Question 9

Jessica and Robert have two young children. They have $7,000 of qualified child care expenses and an AGI of $22,000 in 2015. What is their allowable child and dependent care credit?

(Multiple Choice)

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Question 10

Taxpayer Q has net taxable income of $30,000 from Country Y which imposes a 40 percent income tax. In addition to the income from Country Y, taxpayer Q has net taxable income from U.S. sources of $120,000, and U.S. tax liability, before the foreign tax credit, of $41,750. What is the amount of Q's foreign tax credit?

(Multiple Choice)

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Question 11

a. Norm and Linda are married, file a joint return, and have one 5-year-old child. Their adjusted gross income is $136,000. What is their child credit for the current year? b. If Norm and Linda had a 3-year-old as well as the 5-year-old and an 18-year-old from Linda's first marriage, what would their child tax credit be for the current year? C. above, how many qualifying children do Norm and Linda have? Explain.

(Essay)

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Question 12

Clark, a widower, maintains a household for himself and his two dependent preschool children. For the year ended December 31, 2015, Clark earned a salary of $32,000. He paid $3,600 to a housekeeper to care for his children in his home, and also paid $1,500 to a kiddie play camp for child care. He had no other income or expenses during 2015. How much can Clark claim as a child and dependent care credit in 2015?

(Multiple Choice)

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Question 13

To qualify for the additional child tax credit

(Multiple Choice)

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Question 14

Jasmine is a single marketing manager with a college degree. She continually updates her marketing knowledge and gets fresh ideas by taking classes at the local community college. This year she spent $1,500 on course tuition and fees. If Jasmine has AGI of $57,000, how much lifetime learning credit can she claim on her tax return? Explain.

(Essay)

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Question 15

Caprice is a single 42-year-old with income of $12,000 in 2015. She lacked minimum essential coverage for 7 months in 2015. What is her individual shared responsibility payment amount?

(Multiple Choice)

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Question 16

The alternative minimum tax must be paid only if the tentative minimum tax exceeds a taxpayer's regular tax liability.

(True/False)

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Question 17

Lee and Pat are married taxpayers living in Louisiana. Lee earns wages of $40,000 and has $5,000 of dividend income from separate property. Lee and Pat have interest income from community property of $10,000. If Lee and Pat file separate income tax returns, what amount of income must be included on Lee's separate tax return?

(Multiple Choice)

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Question 18

Denice is divorced and files a single tax return claiming her two children, ages 7 and 9, as dependents. Her AGI for 2015 is $81,500. Denice's child tax credit for 2015 is:

(Multiple Choice)

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Question 19

Which of the following tax credits is not available for the 2015 tax year?

(Multiple Choice)

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Question 20

Showing 1 - 20 of 109

Phillip and Naydeen Rivers are married with two dependent children. The family has household income of $38,160 in 2015. They paid $11,000 for health care for the year. A designated silver plan would have cost $9,800. What is the Rivers' premium tax credit?

Vicky is a single, 21 year-old, full-time student who purchased health care through the state health care exchange for the full year. Her part-time job pays her $12,000 in 2015. She files her own tax return but is claimed as a dependent by her parents. Vicky is eligible for the premium tax credit.

List at least two AMT preferences and/or adjustments and show the simplified formula for calculating AMT. Do not include dollar exemption amounts or the tax rate schedule.

Which of the following types of income is not subject to the "kiddie tax?"

Which of the following is not an adjustment or tax preference item for 2015 for purposes of the individual alternative minimum tax (AMT)?

Salary earned by minors may be taxed at their parents' tax rate.

The total expenses that can be taken as a credit for all tax years for adoption of a child without "special needs" is $10,000.

Jessica and Robert have two young children. They have $7,000 of qualified child care expenses and an AGI of $22,000 in 2015. What is their allowable child and dependent care credit?

To qualify for the additional child tax credit

Caprice is a single 42-year-old with income of $12,000 in 2015. She lacked minimum essential coverage for 7 months in 2015. What is her individual shared responsibility payment amount?

The alternative minimum tax must be paid only if the tentative minimum tax exceeds a taxpayer's regular tax liability.

Denice is divorced and files a single tax return claiming her two children, ages 7 and 9, as dependents. Her AGI for 2015 is $81,500. Denice's child tax credit for 2015 is:

Which of the following tax credits is not available for the 2015 tax year?

The Individual Income Tax Return

Gross Income and Exclusions

Business Income and Expenses, Part I

Business Income and Expenses, Part II

Itemized Deductions and Other Incentives

Accounting Periods and Methods and Depreciation

Capital Gains and Losses

Withholding, Estimated Payments, and Payroll Taxes

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters

Exam 6: Credits and Special Taxes

​Phillip and Naydeen Rivers are married with two dependent children. The family has household income of $38,160 in 2015. They paid $11,000 for health care for the year. A designated silver plan would have cost $9,800. What is the Rivers' premium tax credit?

List at least two AMT preferences and/or adjustments and show the simplified formula for calculating AMT. Do not include dollar exemption amounts or the tax rate schedule.

Which of the following types of income is not subject to the "kiddie tax?"

Which of the following is not an adjustment or tax preference item for 2015 for purposes of the individual alternative minimum tax (AMT)?

Salary earned by minors may be taxed at their parents' tax rate.

The total expenses that can be taken as a credit for all tax years for adoption of a child without "special needs" is $10,000.

Jessica and Robert have two young children. They have $7,000 of qualified child care expenses and an AGI of $22,000 in 2015. What is their allowable child and dependent care credit?

​To qualify for the additional child tax credit

​Caprice is a single 42-year-old with income of $12,000 in 2015. She lacked minimum essential coverage for 7 months in 2015. What is her individual shared responsibility payment amount?

The alternative minimum tax must be paid only if the tentative minimum tax exceeds a taxpayer's regular tax liability.

Denice is divorced and files a single tax return claiming her two children, ages 7 and 9, as dependents. Her AGI for 2015 is $81,500. Denice's child tax credit for 2015 is:

Which of the following tax credits is not available for the 2015 tax year?

The Individual Income Tax Return

Gross Income and Exclusions

Business Income and Expenses, Part I

Business Income and Expenses, Part II

Itemized Deductions and Other Incentives

Accounting Periods and Methods and Depreciation

Capital Gains and Losses

Withholding, Estimated Payments, and Payroll Taxes

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters

Phillip and Naydeen Rivers are married with two dependent children. The family has household income of $38,160 in 2015. They paid $11,000 for health care for the year. A designated silver plan would have cost $9,800. What is the Rivers' premium tax credit?

To qualify for the additional child tax credit

Caprice is a single 42-year-old with income of $12,000 in 2015. She lacked minimum essential coverage for 7 months in 2015. What is her individual shared responsibility payment amount?