Question 1

If taxpayers fail to provide their bank with an identification number,they are subject to backup withholding on interest payments.

Accepted Answer

A) True 
 B)False

Question 2

Elwin worked at three jobs during 2013.He earned $30,000,$27,000,and $9,000,respectively,from the jobs.What amount can Elwin apply as a credit against his 2013 income tax liability for overpayment of FICA taxes?

Accepted Answer

A) $0 
B) $91.80 
C) $45.90 
D) $37.20 
E) None of the above 
A) $0 
B) $91.80 
C) $45.90 
D) $37.20 
E) None of the above

Question 3

Taxpayers with large amounts of deductions may claim extra withholding allowances on their Form W-4s.

Accepted Answer

A) True 
 B)False

Question 4

Marty earned $5,000 in interest income from the Honey Springs Bank.She failed to notify the bank that she was not subject to backup withholding.
a.If Marty's taxable income puts her in the 25 percent bracket,how much would Honey Springs Bank withhold on the $5,000 of interest earnings?
b.If Marty's taxable income puts her in the 15 percent bracket,how much would Honey Springs Bank withhold on the $5,000 of interest earnings?

Accepted Answer

a.The bank should withhold at

Question 5

Melody and Todd are married and have employee wages of $250,000 each in 2013.They have no other income.How much additional 0.9% Medicare surtax will Melody and Todd have to pay or receive as a refund when they file their 2013 income tax return?

Accepted Answer

A) $1,350 will be due with their return in addition to amounts withheld. 
B) $1,350 will be refunded with their return. 
C) $900 will be refunded with their return. 
D) $3,600 will be due with their return in addition to amounts withheld. 
A) $1,350 will be due with their return in addition to amounts withheld. 
B) $1,350 will be refunded with their return. 
C) $900 will be refunded with their return. 
D) $3,600 will be due with their return in addition to amounts withheld.

Question 6

Gambling winnings must be reported to the IRS,but withholding of taxes on winnings is never required.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following items may be subject to the self-employment tax?

Accepted Answer

A) A partner's distributive share of partnership income 
B) Dividend income 
C) Capital gains 
D) Interest income 
E) None of the above 
A) A partner's distributive share of partnership income 
B) Dividend income 
C) Capital gains 
D) Interest income 
E) None of the above

Question 8

For 2013,the maximum base amount for computing the Medicare portion of the self-employment tax is
$135,000.

Accepted Answer

A) True 
 B)False

Question 9

A credit against the FUTA tax is available for state unemployment tax paid by the employer.

Accepted Answer

A) True 
 B)False

Question 10

When required,gambling winnings are reported by the gambling establishment on Form 1099-MISC.

Accepted Answer

A) True 
 B)False

Question 11

Ellen uses the head of household filing status and has a dependent daughter.Ellen has self-employment income of $310,000 as an architect and $10,000 of self-employment losses from a jewelry making business.
a.What is Ellen's 0.9% additional Medicare tax for 2013?
b.Is Ellen allowed to deduct a portion of this with her other Medicare taxes as an adjustment for AGI on the front page of her income tax return?

Accepted Answer

a.$900 = $310,000 -

Question 12

In 2013,the maximum amount of wages subject to the Social Security portion of the FICA tax is
$113,700.

Accepted Answer

A) True 
 B)False

Question 13

Employees with self-employment income who also have W-2 income may be able to avoid making estimated tax payments by filing a new Form W-4 and increasing the amount of their withholding.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following amounts paid by an employer to an employee is not subject to withholding?

Accepted Answer

A) Commissions 
B) Travel expense reimbursements from an accountable plan 
C) Salary 
D) Bonus 
E) All of the above are subject to withholding 
A) Commissions 
B) Travel expense reimbursements from an accountable plan 
C) Salary 
D) Bonus 
E) All of the above are subject to withholding

Question 15

Which of the following statements is true with regard to the reimbursement of employee business expenses?

Accepted Answer

A) Reimbursements of ordinary and necessary expenses are subject to federal income tax withholding. 
B) Excess reimbursements of ordinary and necessary expenses are never subject to withholding. 
C) Reimbursements received by an employee under a plan which contains a requirement to return excess amounts,and the employee does so,are automatically excluded from the definition of wages subject to withholding. 
D) Provided that reimbursements are received by an employee under a plan which requires the employee to substantiate the expenses to his employer,the amounts are automatically excluded from the definition of wages subject to withholding,without regard to whether the employee actually substantiates the expenditures. 
E) All of the above are true statements. 
A) Reimbursements of ordinary and necessary expenses are subject to federal income tax withholding. 
B) Excess reimbursements of ordinary and necessary expenses are never subject to withholding. 
C) Reimbursements received by an employee under a plan which contains a requirement to return excess amounts,and the employee does so,are automatically excluded from the definition of wages subject to withholding. 
D) Provided that reimbursements are received by an employee under a plan which requires the employee to substantiate the expenses to his employer,the amounts are automatically excluded from the definition of wages subject to withholding,without regard to whether the employee actually substantiates the expenditures. 
E) All of the above are true statements.

Question 16

Household employers are not required to pay FICA taxes on part-time household employees.

Accepted Answer

A) True 
 B)False

Question 17

When taxpayers overpay FICA taxes,the excess taxes may be claimed as a credit against their tax liability.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following types of income is subject to the self-employment tax?

Accepted Answer

A) Interest income 
B) Gain on sale of real estate 
C) Income from a sole proprietor's law practice 
D) Dividends from stock 
E) None of the above 
A) Interest income 
B) Gain on sale of real estate 
C) Income from a sole proprietor's law practice 
D) Dividends from stock 
E) None of the above

Question 19

Mark has two jobs during 2013.One employer withheld and paid FICA taxes on $68,100 of Mark's salary and the other employer withheld and paid FICA taxes on $46,000 in salary paid to Mark.Calculate the amount of Mark's credit for the overpayment of FICA taxes that he should claim on his 2013 Form 1040.

Accepted Answer

$24.80 = 6

Question 20

If an employee does not complete a Form W-4,the employer must withhold tax as if the employee were single with no exemptions.

Accepted Answer

A) True 
 B)False

If taxpayers fail to provide their bank with an identification number,they are subject to backup withholding on interest payments.

Elwin worked at three jobs during 2013.He earned $30,000,$27,000,and $9,000,respectively,from the jobs.What amount can Elwin apply as a credit against his 2013 income tax liability for overpayment of FICA taxes?

Taxpayers with large amounts of deductions may claim extra withholding allowances on their Form W-4s.

Melody and Todd are married and have employee wages of $250,000 each in 2013.They have no other income.How much additional 0.9% Medicare surtax will Melody and Todd have to pay or receive as a refund when they file their 2013 income tax return?

Gambling winnings must be reported to the IRS,but withholding of taxes on winnings is never required.

Which of the following items may be subject to the self-employment tax?

For 2013,the maximum base amount for computing the Medicare portion of the self-employment tax is $135,000.

A credit against the FUTA tax is available for state unemployment tax paid by the employer.

When required,gambling winnings are reported by the gambling establishment on Form 1099-MISC.

In 2013,the maximum amount of wages subject to the Social Security portion of the FICA tax is $113,700.

Employees with self-employment income who also have W-2 income may be able to avoid making estimated tax payments by filing a new Form W-4 and increasing the amount of their withholding.

Which of the following amounts paid by an employer to an employee is not subject to withholding?

Which of the following statements is true with regard to the reimbursement of employee business expenses?

Household employers are not required to pay FICA taxes on part-time household employees.

When taxpayers overpay FICA taxes,the excess taxes may be claimed as a credit against their tax liability.

Which of the following types of income is subject to the self-employment tax?

If an employee does not complete a Form W-4,the employer must withhold tax as if the employee were single with no exemptions.

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

Credits and Special Taxes

Accounting Periods and Methods and Depreciation

Capital Gains and Losses

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters

Exam 9: Withholding, Estimated Payments, and Payroll Taxes

If taxpayers fail to provide their bank with an identification number,they are subject to backup withholding on interest payments.

Elwin worked at three jobs during 2013.He earned $30,000,$27,000,and $9,000,respectively,from the jobs.What amount can Elwin apply as a credit against his 2013 income tax liability for overpayment of FICA taxes?

Taxpayers with large amounts of deductions may claim extra withholding allowances on their Form W-4s.

Melody and Todd are married and have employee wages of $250,000 each in 2013.They have no other income.How much additional 0.9% Medicare surtax will Melody and Todd have to pay or receive as a refund when they file their 2013 income tax return?

Gambling winnings must be reported to the IRS,but withholding of taxes on winnings is never required.

Which of the following items may be subject to the self-employment tax?

For 2013,the maximum base amount for computing the Medicare portion of the self-employment tax is $135,000.

A credit against the FUTA tax is available for state unemployment tax paid by the employer.

When required,gambling winnings are reported by the gambling establishment on Form 1099-MISC.

In 2013,the maximum amount of wages subject to the Social Security portion of the FICA tax is $113,700.

Employees with self-employment income who also have W-2 income may be able to avoid making estimated tax payments by filing a new Form W-4 and increasing the amount of their withholding.

Which of the following amounts paid by an employer to an employee is not subject to withholding?

Which of the following statements is true with regard to the reimbursement of employee business expenses?

Household employers are not required to pay FICA taxes on part-time household employees.

When taxpayers overpay FICA taxes,the excess taxes may be claimed as a credit against their tax liability.

Which of the following types of income is subject to the self-employment tax?

If an employee does not complete a Form W-4,the employer must withhold tax as if the employee were single with no exemptions.

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

Credits and Special Taxes

Accounting Periods and Methods and Depreciation

Capital Gains and Losses

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters