Taxpayers are allowed two tax breaks for adoption expenses.They are allowed: $\text { Quali fied Expenses }$ $\begin{array}{lll} &\text { Paid personally }&\text { Paid by employer }\\ \text { a. } & \text { Credit } & \text { Credit } \\ \text { b. } & \text { Exclusion } & \text { Credit } \\ \text { c. } & \text { Exclusion } & \text { Exclusion } \\ \text { d. } & \text { Credit } & \text { Exclusion } \end{array}$

The answer of Taxpayers are allowed two tax breaks for...

Exam 6: Credits and Special Taxes

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 $55,000,how much lifetime learning credit can she claim on her tax return? Explain.

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Question 1

Correct Answer:

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$240.Jasmine's income is too high to qualify for the full lifetime learning credit.The credit phases out between $53,000 and $63,000 of AGI.Jasmine can claim $240 = [20% x $1,500 x $63,000 - $55,000)/
$10,000)].

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

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(True/False)

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Question 2

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True

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

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Question 3

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False

Edward has business operations in Country F and Country G.He pays tax to Country F of $12,000 on $30,000 of income and pays tax to Country G of $4,000 on $10,000 of income.In addition to the income from Country F and Country G,Edward has $100,000 of income from U.S.sources and a total U.S.tax liability,before the foreign tax credit,of $49,000. What amount of foreign tax credit may Edward claim on his U.S.tax return?

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Question 4

Carla and Bob finalized an adoption in 2013.Their adoption fees totaled $9,500.They have AGI of $205,000 for 2013.What is their adoption credit?

(Multiple Choice)

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Question 5

Jeff and Geri are married and have AGI of $95,000 and three young children.Geri pays $6,000 a year to day care providers so she can teach a yoga class and do household errands.Geri earns $4,000 teaching the yoga class.How much child and dependent care credit can Jeff and Geri claim? Why?

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Question 6

Unearned income of a 16-year-old child may be taxed at his or her parents' income tax rate.

(True/False)

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Question 7

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.

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Question 8

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

(Multiple Choice)

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Question 9

Jeff is a stay-at-home father who earns $500 from odd jobs and takes care of his daughter.His wife,Michelle,is the bread-winner and brings in $60,000 of income a year.In addition to the care provided by Jeff,Michelle pays $4,500 in child care. In the current year,how much are Jeff and Michelle's qualifying expenses for the child care credit?

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Question 10

Daddy Warbucks is in the process of adopting Annie from a New York orphanage.He pays $5,000 in 2011,$7,000 in 2012,and $4,500 in 2013.Daddy Warbucks' AGI for 2013 is $165,000. a.How much is the adoption credit that Daddy Warbucks may claim for 2013 if the adoption becomes final in 2013? b.How much is the adoption credit that Daddy Warbucks may claim for 2013 if the adoption becomes final in 2014? c.How much is the adoption credit that Daddy Warbucks may claim for 2013 if the adoption falls through and is never finalized?

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Question 11

Steve goes to Tri-State University and pays $40,000 in tuition.Steve works a part-time job to pay for his schooling and has an AGI of $17,000.How much is his American Opportunity Credit?

(Multiple Choice)

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Question 12

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?

(Multiple Choice)

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Question 13

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 highest tax bracket,35%,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?

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Question 14

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 15

Taxpayers are allowed two tax breaks for adoption expenses.They are allowed: $\text { Quali fied Expenses }$ Paid personally Paid by employer a. Credit Credit b. Exclusion Credit c. Exclusion Exclusion d. Credit Exclusion

(Short Answer)

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Question 16

Choose the correct statement:

(Multiple Choice)

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Question 17

Glen and Mary have two children,Chad,age 12,and Linda,age 8.For 2013,Chad has $4,000 in net unearned income and Linda has net unearned income of $1,000.If the total parental tax for 2013 is $1,400,how would the tax be allocated between Chad and Linda?

(Multiple Choice)

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Question 18

The total expenses that can be taken as a credit for all tax years for adoption of a child without "special needs" is $6,000.

(True/False)

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Question 19

The earned income credit:

(Multiple Choice)

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Question 20

Showing 1 - 20 of 83

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

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

Carla and Bob finalized an adoption in 2013.Their adoption fees totaled $9,500.They have AGI of $205,000 for 2013.What is their adoption credit?

Jeff and Geri are married and have AGI of $95,000 and three young children.Geri pays $6,000 a year to day care providers so she can teach a yoga class and do household errands.Geri earns $4,000 teaching the yoga class.How much child and dependent care credit can Jeff and Geri claim? Why?

Unearned income of a 16-year-old child may be taxed at his or her parents' income tax rate.

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.

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

Steve goes to Tri-State University and pays $40,000 in tuition.Steve works a part-time job to pay for his schooling and has an AGI of $17,000.How much is his American Opportunity Credit?

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?

Taxpayers are allowed two tax breaks for adoption expenses.They are allowed: $\text { Quali fied Expenses }$ Paid personally Paid by employer a. Credit Credit b. Exclusion Credit c. Exclusion Exclusion d. Credit Exclusion

Choose the correct statement:

Glen and Mary have two children,Chad,age 12,and Linda,age 8.For 2013,Chad has $4,000 in net unearned income and Linda has net unearned income of $1,000.If the total parental tax for 2013 is $1,400,how would the tax be allocated between Chad and Linda?

The total expenses that can be taken as a credit for all tax years for adoption of a child without "special needs" is $6,000.

The earned income credit:

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

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

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

Carla and Bob finalized an adoption in 2013.Their adoption fees totaled $9,500.They have AGI of $205,000 for 2013.What is their adoption credit?

Jeff and Geri are married and have AGI of $95,000 and three young children.Geri pays $6,000 a year to day care providers so she can teach a yoga class and do household errands.Geri earns $4,000 teaching the yoga class.How much child and dependent care credit can Jeff and Geri claim? Why?

Unearned income of a 16-year-old child may be taxed at his or her parents' income tax rate.

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.

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

Steve goes to Tri-State University and pays $40,000 in tuition.Steve works a part-time job to pay for his schooling and has an AGI of $17,000.How much is his American Opportunity Credit?

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?

Taxpayers are allowed two tax breaks for adoption expenses.They are allowed: Quali fied Expenses \text { Quali fied Expenses } Quali fied Expenses Paid personally Paid by employer a. Credit Credit b. Exclusion Credit c. Exclusion Exclusion d. Credit Exclusion

Choose the correct statement:

Glen and Mary have two children,Chad,age 12,and Linda,age 8.For 2013,Chad has $4,000 in net unearned income and Linda has net unearned income of $1,000.If the total parental tax for 2013 is $1,400,how would the tax be allocated between Chad and Linda?

The total expenses that can be taken as a credit for all tax years for adoption of a child without "special needs" is $6,000.

The earned income credit:

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

Taxpayers are allowed two tax breaks for adoption expenses.They are allowed: $\text { Quali fied Expenses }$ Paid personally Paid by employer a. Credit Credit b. Exclusion Credit c. Exclusion Exclusion d. Credit Exclusion