Question 1

For 2015, the maximum amount of expenses that qualify for the child and dependent care credit is the same for three dependents as it is for two dependents.

Accepted Answer

A) True 
 B)False

Question 2

Amounts paid to a relative generally do not qualify as child care expenses.

Accepted Answer

A) True 
 B)False

Question 3

Which one of the following taxpayers qualify for the earned income credit?

Accepted Answer

A) A 70-year-old doctor whose practice had a net loss and who has an AGI of $5,000 in 2015. 
B) An 18-year-old college student who earns $8,000 at a part-time job. 
C) A couple who have a combined AGI of $17,000 and three children but file separately. 
D) A 31-year-old construction worker with $22,000 of AGI and two children. 
E) None of the above qualifies for the earned income credit. 
A) A 70-year-old doctor whose practice had a net loss and who has an AGI of $5,000 in 2015. 
B) An 18-year-old college student who earns $8,000 at a part-time job. 
C) A couple who have a combined AGI of $17,000 and three children but file separately. 
D) A 31-year-old construction worker with $22,000 of AGI and two children. 
E) None of the above qualifies for the earned income credit.

Question 4

In 2015, which of the following children would have income taxed at their parents' rates?

Accepted Answer

A) A 13-year-old child with salary income of $12,000 
B) A 12-year-old child with net unearned income of $2,000 
C) A non-student, 19-year-old child with net unearned income of $12,000 
D) A 9-year-old child with salary income of $1,000 
E) All of the above 
A) A 13-year-old child with salary income of $12,000 
B) A 12-year-old child with net unearned income of $2,000 
C) A non-student, 19-year-old child with net unearned income of $12,000 
D) A 9-year-old child with salary income of $1,000 
E) All of the above

Question 5

​Household income for purpose of the individual shared responsibility payment includes all of the following except:

Accepted Answer

A) ​AGI of the taxpayer 
B) ​AGI of the taxpayer's dependents 
C) ​Any tax-exempt income 
D) ​Untaxed Social Security benefits 
E) ​All of the above are included in household income 
A) ​AGI of the taxpayer 
B) ​AGI of the taxpayer's dependents 
C) ​Any tax-exempt income 
D) ​Untaxed Social Security benefits 
E) ​All of the above are included in household income

Question 6

​Household income for purpose of the premium tax credit includes all of the following except:

Accepted Answer

A) ​AGI of the taxpayer 
B) ​AGI of the taxpayer's dependents 
C) ​Any tax-exempt income 
D) ​Untaxed Social Security benefits 
E) ​All of the above are included in household income 
A) ​AGI of the taxpayer 
B) ​AGI of the taxpayer's dependents 
C) ​Any tax-exempt income 
D) ​Untaxed Social Security benefits 
E) ​All of the above are included in household income

Question 7

Molly and Steve are married and live in Texas. Molly earns a salary of $50,000 and Steve owns a rental property that gives him $35,000 of income. If they filed separate tax returns, what amount of income would Steve report?

Accepted Answer

A) $35,000 
B) $85,000 
C) $42,500 
D) $60,000 
E) None of the above 
A) $35,000 
B) $85,000 
C) $42,500 
D) $60,000 
E) None of the above

Question 8

Most states are community property states.

Accepted Answer

A) True 
 B)False

Question 9

The child and dependent care provisions:

Accepted Answer

A) Apply only to children under age 15. 
B) Are available only to single parents. 
C) Are available for spouses incapable of self-care. 
D) Are allowed only for taxpayers earning less than $43,000. 
A) Apply only to children under age 15. 
B) Are available only to single parents. 
C) Are available for spouses incapable of self-care. 
D) Are allowed only for taxpayers earning less than $43,000.

Question 10

Rachel and Rob are married and living together in California. Their income is:
a.If Rachel files a separate return, how much income should she report?
b.If Rob and Rachel live in Texas, what should Rachel report as income?

Accepted Answer

a. 50% of Rob's salary, $60,000, plus 50

Question 11

In 2015, the child tax credit available to married taxpayers filing jointly is phased out, beginning at:

Accepted Answer

A) $55,000 
B) $75,000 
C) $95,000 
D) $110,000 
A) $55,000 
B) $75,000 
C) $95,000 
D) $110,000

Question 12

Net unearned income of certain minor children is taxed at their parents' tax rates.

Accepted Answer

A) True 
 B)False

Question 13

To be eligible for the earned income credit for 2015, a taxpayer must have a "qualifying child."

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is true of the alternative minimum tax?

Accepted Answer

A) The alternative minimum tax is designed to ensure that high income taxpayers do not pay excessive amounts of income tax. 
B) For 2015, the alternative minimum tax rates are 20 percent and 30 percent, depending on the taxpayer's income. 
C) The amount of a taxpayer's state income tax may not be deducted for the purpose of computing the alternative minimum tax. 
D) All tax-exempt interest is a tax preference item for the alternative minimum tax. 
E) None of the above are true. 
A) The alternative minimum tax is designed to ensure that high income taxpayers do not pay excessive amounts of income tax. 
B) For 2015, the alternative minimum tax rates are 20 percent and 30 percent, depending on the taxpayer's income. 
C) The amount of a taxpayer's state income tax may not be deducted for the purpose of computing the alternative minimum tax. 
D) All tax-exempt interest is a tax preference item for the alternative minimum tax. 
E) None of the above are true.

Question 15

​After raising two children, Anh, a single 48 year old, decided to go to college to get a degree. She spent two years in community college and earned an Associates degree. In 2015, she is enrolled half-time at State University to earn a Bachelor's degree in Accounting and also works part-time. Anh is eligible for the American Opportunities tax credit.

Accepted Answer

A) True 
 B)False

Question 16

Although the alternative minimum tax (AMT) is meant to prevent high-income taxpayers from using tax shelters to avoid paying tax, why might married taxpayers with several children and jobs resulting in high unreimbursed employee business expenses find themselves paying AMT?

Accepted Answer

To compute the AMT, deductions for perso

Question 17

What is the purpose of the alternative minimum tax?

Accepted Answer

The purpose is to ensure that

Question 18

​Which of the following is not an exemption from minimum essential coverage for health insurance:

Accepted Answer

A) ​the taxpayer had coverage for all but 1 month during the year 
B) the taxpayer's income of less than 200% of the federal poverty level 
C) ​the taxpayer was in jail 
D) ​the taxpayer spent 350 days out of the US during the year 
A) ​the taxpayer had coverage for all but 1 month during the year 
B) the taxpayer's income of less than 200% of the federal poverty level 
C) ​the taxpayer was in jail 
D) ​the taxpayer spent 350 days out of the US during the year

Question 19

William and Irma have two children, Tom, age 13, and Sara, age 8. For 2015, Tom and Sara have a total parental tax of $5,600. Tom's net unearned income is $5,000, while Sara's net unearned income is $15,000. How much of the parental tax would be allocated to Sara on her 2015 tax return?

Accepted Answer

A) $0 
B) $4,200 
C) $2,800 
D) $5,600 
E) None of the above 
A) $0 
B) $4,200 
C) $2,800 
D) $5,600 
E) None of the above

Question 20

If the net unearned income of a minor child is to be taxed at the parents' tax rate, the parents may elect, under certain conditions, to include the child's gross income on their tax return.

Accepted Answer

A) True 
 B)False

For 2015, the maximum amount of expenses that qualify for the child and dependent care credit is the same for three dependents as it is for two dependents.

Amounts paid to a relative generally do not qualify as child care expenses.

Which one of the following taxpayers qualify for the earned income credit?

In 2015, which of the following children would have income taxed at their parents' rates?

Household income for purpose of the individual shared responsibility payment includes all of the following except:

Household income for purpose of the premium tax credit includes all of the following except:

Molly and Steve are married and live in Texas. Molly earns a salary of $50,000 and Steve owns a rental property that gives him $35,000 of income. If they filed separate tax returns, what amount of income would Steve report?

Most states are community property states.

The child and dependent care provisions:

Rachel and Rob are married and living together in California. Their income is: a.If Rachel files a separate return, how much income should she report? b.If Rob and Rachel live in Texas, what should Rachel report as income?

In 2015, the child tax credit available to married taxpayers filing jointly is phased out, beginning at:

Net unearned income of certain minor children is taxed at their parents' tax rates.

To be eligible for the earned income credit for 2015, a taxpayer must have a "qualifying child."

Which of the following is true of the alternative minimum tax?

Although the alternative minimum tax (AMT) is meant to prevent high-income taxpayers from using tax shelters to avoid paying tax, why might married taxpayers with several children and jobs resulting in high unreimbursed employee business expenses find themselves paying AMT?

What is the purpose of the alternative minimum tax?

Which of the following is not an exemption from minimum essential coverage for health insurance:

William and Irma have two children, Tom, age 13, and Sara, age 8. For 2015, Tom and Sara have a total parental tax of $5,600. Tom's net unearned income is $5,000, while Sara's net unearned income is $15,000. How much of the parental tax would be allocated to Sara on her 2015 tax return?

If the net unearned income of a minor child is to be taxed at the parents' tax rate, the parents may elect, under certain conditions, to include the child's gross income on their tax return.

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

For 2015, the maximum amount of expenses that qualify for the child and dependent care credit is the same for three dependents as it is for two dependents.

Amounts paid to a relative generally do not qualify as child care expenses.

Which one of the following taxpayers qualify for the earned income credit?

In 2015, which of the following children would have income taxed at their parents' rates?

​Household income for purpose of the individual shared responsibility payment includes all of the following except:

​Household income for purpose of the premium tax credit includes all of the following except:

Molly and Steve are married and live in Texas. Molly earns a salary of $50,000 and Steve owns a rental property that gives him $35,000 of income. If they filed separate tax returns, what amount of income would Steve report?

Most states are community property states.

The child and dependent care provisions:

Rachel and Rob are married and living together in California. Their income is: a.If Rachel files a separate return, how much income should she report? b.If Rob and Rachel live in Texas, what should Rachel report as income?

In 2015, the child tax credit available to married taxpayers filing jointly is phased out, beginning at:

Net unearned income of certain minor children is taxed at their parents' tax rates.

To be eligible for the earned income credit for 2015, a taxpayer must have a "qualifying child."

Which of the following is true of the alternative minimum tax?

Although the alternative minimum tax (AMT) is meant to prevent high-income taxpayers from using tax shelters to avoid paying tax, why might married taxpayers with several children and jobs resulting in high unreimbursed employee business expenses find themselves paying AMT?

What is the purpose of the alternative minimum tax?

​Which of the following is not an exemption from minimum essential coverage for health insurance:

William and Irma have two children, Tom, age 13, and Sara, age 8. For 2015, Tom and Sara have a total parental tax of $5,600. Tom's net unearned income is $5,000, while Sara's net unearned income is $15,000. How much of the parental tax would be allocated to Sara on her 2015 tax return?

If the net unearned income of a minor child is to be taxed at the parents' tax rate, the parents may elect, under certain conditions, to include the child's gross income on their tax return.

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

Household income for purpose of the individual shared responsibility payment includes all of the following except:

Household income for purpose of the premium tax credit includes all of the following except:

Which of the following is not an exemption from minimum essential coverage for health insurance: