Exam 6: Credits and Special Taxes

Avery is a singe 26 year old graduate student at State University with no children. She is a US citizen with a valid Social Security number. Her only income is from a part-time job on campus from which she earned wages of $6,000. Avery qualifies for the earned income credit.

(True/False)

4.9/5

(82)

Question 21

Betty and Steve have a 4-year-old child, Gwen. For 2015, Betty and Steve file married filing jointly and have taxable income of $150,000. Gwen has interest income of $10,000 from a bond portfolio her grandfather gave her and no investment expenses. No election is made to include Gwen's income on Betty and Steve's return. a.For purposes of the parental tax, calculate Gwen's net unearned income. b.Calculate the amount of Gwen's parental tax. c.Calculate Gwen's total tax for 2015.

(Essay)

5.0/5

(86)

Question 22

Calculate the child tax credits for the following taxpayers. Please show your work. a.Ninfa is a single mother with 8-year-old and 9-year-old dependent sons and has $50,000 of AGI. b.Sharon and Mark have one dependent 2-year-old child and $126,300 of AGI. c.Carol is single and has one dependent 18-year-old son and $21,000 of AGI.

(Essay)

4.9/5

(80)

Question 23

The child tax credit is not available for children ages 17 and older.

(True/False)

5.0/5

(80)

Question 24

Marion has an 11-year-old daughter. Please calculate her child and dependent care credit under these two alternatives: a.Marion pays $4,000 a year in day care costs.Her salary is $32,000. b.Marion pays $8,000 a year in day care costs.Her salary is $80,000.

(Essay)

4.9/5

(77)

Question 25

Martin and Rachel are married and have a 3-year-old child. Martin is going to medical school full-time for 12 months of the year and Rachel earns $45,000. Their child is in day care so Martin can go to school while Rachel is at work. The cost of their day care is $10,000. What is their child and dependent care credit? Please show your calculations and explain.

(Essay)

4.9/5

(83)

Question 26

Sheila and Jerry are married taxpayers with $600 of foreign tax withholding from the dividends in a mutual fund. They have enough foreign income from the mutual fund to claim the full $600 as a foreign tax credit. They are in the 35% tax bracket and they itemize deductions. Should they claim the foreign tax credit on the Form 1040 or a deduction for foreign taxes on their Schedule A? Why?

(Essay)

4.8/5

(77)

Question 27

Carla and Bob finalized an adoption in 2015. Their adoption fees totaled $9,500. They have AGI of $207,000 for 2015. What is their adoption credit?

(Multiple Choice)

4.9/5

(82)

Question 28

John graduates from high school in 2015 and enrolls in a private college in the fall. His parents pay $10,000 for his tuition and fees. a.Assuming John's parents have AGI of $46,000, what is the American Opportunity credit they can claim for John? Explain. b.Assuming John's parents have AGI of $175,000, what is the American Opportunity credit they can claim for John? Explain.

(Essay)

4.9/5

(65)

Question 29

Maxine is a 29-year-old single mother. Her tax liability before credits is $1,000 and her earned income credit is $2,500. How much earned income credit will be refunded to Maxine? Explain.

(Essay)

4.7/5

(82)

Question 30

The child tax credit is $1,000 per qualifying child unless it is phased out due to higher levels of parental income.

(True/False)

4.8/5

(73)

Question 31

Hal is enrolled for one class at a local community college; tuition cost him $190. Hal's AGI is $20,000. Hal can take a lifetime learning credit of:

(Multiple Choice)

4.9/5

(82)

Question 32

Which of the following is not a true statement regarding community property law?

(Multiple Choice)

4.7/5

(89)

Question 33

For 2015, Wilson and Virginia Todd qualify for the earned income credit. They have two dependent children, ages 6 months and 4 years at the end of the year. a. Using the EIC tables, calculate the amount of Wilson and Virginia Todd's earned income credit assuming Wilson has earned income of $7,300 and Virginia has no earned income.Their adjusted gross income for 2015 is $9,000. b. Calculate the amount of Wilson and Virginia Todd's earned income credit assuming Wilson has earned income of $14,300 and Virginia has earned income of $2,000.Their adjusted gross income for 2015 is $16,500.

(Essay)

4.8/5

(84)

Question 34

Taxpayers are allowed two tax breaks for adoption expenses. They are allowed:

(Multiple Choice)

4.8/5

(81)

Question 35

Choose the correct statement:

(Multiple Choice)

4.9/5

(82)

Question 36

Alice is a single taxpayer with no dependents that has AGI of $9,000 in 2015. Alice is required to carry minimum essential coverage in 2015.

(True/False)

4.8/5

(73)

Question 37

A tax credit is allowed for qualified adoption expenses paid by taxpayers:

(Multiple Choice)

4.9/5

(78)

Question 38

Brad works at the local pizza shop as a delivery person. He is hoping to change to a position in the kitchen and takes a culinary course at the local community college for $1,400. Assuming he is eligible, Brad's lifetime learning credit is:

(Short Answer)

4.8/5

(92)

Question 39

In the case of the adoption of a child who is not a U.S. citizen or resident of the U.S., the credit for qualified adoption expenses is available:

(Multiple Choice)

4.9/5

(86)

Question 40

Showing 21 - 40 of 109

Avery is a singe 26 year old graduate student at State University with no children. She is a US citizen with a valid Social Security number. Her only income is from a part-time job on campus from which she earned wages of $6,000. Avery qualifies for the earned income credit.

The child tax credit is not available for children ages 17 and older.

Marion has an 11-year-old daughter. Please calculate her child and dependent care credit under these two alternatives: a.Marion pays $4,000 a year in day care costs.Her salary is $32,000. b.Marion pays $8,000 a year in day care costs.Her salary is $80,000.

Carla and Bob finalized an adoption in 2015. Their adoption fees totaled $9,500. They have AGI of $207,000 for 2015. What is their adoption credit?

Maxine is a 29-year-old single mother. Her tax liability before credits is $1,000 and her earned income credit is $2,500. How much earned income credit will be refunded to Maxine? Explain.

The child tax credit is $1,000 per qualifying child unless it is phased out due to higher levels of parental income.

Hal is enrolled for one class at a local community college; tuition cost him $190. Hal's AGI is $20,000. Hal can take a lifetime learning credit of:

Which of the following is not a true statement regarding community property law?

Taxpayers are allowed two tax breaks for adoption expenses. They are allowed:

Choose the correct statement:

Alice is a single taxpayer with no dependents that has AGI of $9,000 in 2015. Alice is required to carry minimum essential coverage in 2015.

A tax credit is allowed for qualified adoption expenses paid by taxpayers:

Brad works at the local pizza shop as a delivery person. He is hoping to change to a position in the kitchen and takes a culinary course at the local community college for $1,400. Assuming he is eligible, Brad's lifetime learning credit is:

In the case of the adoption of a child who is not a U.S. citizen or resident of the U.S., the credit for qualified adoption expenses is available:

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

​Avery is a singe 26 year old graduate student at State University with no children. She is a US citizen with a valid Social Security number. Her only income is from a part-time job on campus from which she earned wages of $6,000. Avery qualifies for the earned income credit.

The child tax credit is not available for children ages 17 and older.

Marion has an 11-year-old daughter. Please calculate her child and dependent care credit under these two alternatives: ​ a.Marion pays $4,000 a year in day care costs.Her salary is $32,000. b.Marion pays $8,000 a year in day care costs.Her salary is $80,000.

Carla and Bob finalized an adoption in 2015. Their adoption fees totaled $9,500. They have AGI of $207,000 for 2015. What is their adoption credit?

Maxine is a 29-year-old single mother. Her tax liability before credits is $1,000 and her earned income credit is $2,500. How much earned income credit will be refunded to Maxine? Explain.

The child tax credit is $1,000 per qualifying child unless it is phased out due to higher levels of parental income.

Hal is enrolled for one class at a local community college; tuition cost him $190. Hal's AGI is $20,000. Hal can take a lifetime learning credit of:

Which of the following is not a true statement regarding community property law?

Taxpayers are allowed two tax breaks for adoption expenses. They are allowed:

Choose the correct statement: ​

​Alice is a single taxpayer with no dependents that has AGI of $9,000 in 2015. Alice is required to carry minimum essential coverage in 2015.

A tax credit is allowed for qualified adoption expenses paid by taxpayers:

​Brad works at the local pizza shop as a delivery person. He is hoping to change to a position in the kitchen and takes a culinary course at the local community college for $1,400. Assuming he is eligible, Brad's lifetime learning credit is:

In the case of the adoption of a child who is not a U.S. citizen or resident of the U.S., the credit for qualified adoption expenses is available:

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

Avery is a singe 26 year old graduate student at State University with no children. She is a US citizen with a valid Social Security number. Her only income is from a part-time job on campus from which she earned wages of $6,000. Avery qualifies for the earned income credit.

Marion has an 11-year-old daughter. Please calculate her child and dependent care credit under these two alternatives: a.Marion pays $4,000 a year in day care costs.Her salary is $32,000. b.Marion pays $8,000 a year in day care costs.Her salary is $80,000.

Choose the correct statement:

Alice is a single taxpayer with no dependents that has AGI of $9,000 in 2015. Alice is required to carry minimum essential coverage in 2015.

Brad works at the local pizza shop as a delivery person. He is hoping to change to a position in the kitchen and takes a culinary course at the local community college for $1,400. Assuming he is eligible, Brad's lifetime learning credit is: