Question 1

A parent may elect to include a child's income in the parent's return if:

Accepted Answer

A) The child is under age 18. 
B) The child's income is only from interest and dividend distributions. 
C) The child's gross income is more than $1,000 and less than $10,000. 
D) All of the above must be met for a parent to elect to include a child's income in the parent's return. 
A) The child is under age 18. 
B) The child's income is only from interest and dividend distributions. 
C) The child's gross income is more than $1,000 and less than $10,000. 
D) All of the above must be met for a parent to elect to include a child's income in the parent's return.

Question 2

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

Accepted Answer

A) Interest income 
B) Dividend income 
C) Salary income 
D) Capital gains on stock sales 
E) All of the above are subject to the "kiddie tax" 
A) Interest income 
B) Dividend income 
C) Salary income 
D) Capital gains on stock sales 
E) All of the above are subject to the "kiddie tax"

Question 3

Assume Karen is 12 years old and her only income is $2,500 of interest income from a bank account with money her parents have given her to save for college.What are the options Karen has for filing her tax return?

Accepted Answer

A) Karen must file a separate tax return and report all of her interest income at her separate rate of tax. 
B) Karen must file a separate tax return and report all of her interest income at her parents' rate of tax. 
C) Karen can file a separate tax return or her parents can elect to include her in their tax return,paying tax on $500 of her interest income at their rate of tax. 
D) Karen can file a separate return or her parents can elect to include her in their tax return,paying tax on the full $2,500 of her interest income at their rate of tax. 
A) Karen must file a separate tax return and report all of her interest income at her separate rate of tax. 
B) Karen must file a separate tax return and report all of her interest income at her parents' rate of tax. 
C) Karen can file a separate tax return or her parents can elect to include her in their tax return,paying tax on $500 of her interest income at their rate of tax. 
D) Karen can file a separate return or her parents can elect to include her in their tax return,paying tax on the full $2,500 of her interest income at their rate of tax.

Question 4

The foreign tax credit applies only to foreign corporations.

Accepted Answer

A) True 
 B)False

Question 5

William and Irma have two children,Tom,age 13,and Sara,age 8.For 2013,Tom and Sara have a total parental tax of $5,600.Tom's net unearned income is $15,000,while Sara's net unearned income is $5,000.How much of the parental tax would be allocated to Sara on her 2013 tax return?

Accepted Answer

A) $0 
B) $1,400 
C) $1,866 
D) $2,800 
E) None of the above 
A) $0 
B) $1,400 
C) $1,866 
D) $2,800 
E) None of the above

Question 6

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

Question 7

In 2013,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 8

What is the maximum investment income a taxpayer is allowed to have and still be allowed to claim the earned income credit? Why is there an earned income credit in the law?

Accepted Answer

A taxpayer may have a maximum of $3,300

Question 9

New York is a community property state.

Accepted Answer

A) True 
 B)False

Question 10

For 2013,which of the following is a tax adjustment or tax preference item for the individual AMT computation?

Accepted Answer

A) Deduction of charitable contribution of tangible personal property 
B) IRA contribution deduction 
C) Miscellaneous itemized deductions 
D) Moving expense deduction 
E) None of the above 
A) Deduction of charitable contribution of tangible personal property 
B) IRA contribution deduction 
C) Miscellaneous itemized deductions 
D) Moving expense deduction 
E) None of the above

Question 11

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 12

Bob and Carol file their tax returns using the married filing jointly status.Their AGI is $131,000.They have two children,ages 11 and 7.How much child tax credit can Bob and Carol claim for their two children?

Accepted Answer

A) $2,000 
B) $1,000 
C) $1,050 
D) $950 
E) None of the above is correct 
A) $2,000 
B) $1,000 
C) $1,050 
D) $950 
E) None of the above is correct

Question 13

Keith has a 2013 tax liability of $2,250 before taking into account his American Opportunity credit.He paid $2,700 in qualifying expenses,was a full-time student,was not claimed as a dependent on his parents' return,and his American Opportunity credit was not subject to phase out.What is the amount of his American Opportunity credit allowed?

Accepted Answer

A) $2,175 
B) $1,500 
C) $1,350 
D) $2,700 
E) $0 
A) $2,175 
B) $1,500 
C) $1,350 
D) $2,700 
E) $0

Question 14

Robert and Mary file a joint tax return for 2013,with adjusted gross income of $33,000.Robert and Mary earned income of $20,000 and $12,000 respectively,during 2013.In order for Mary to be gainfully employed,they pay the following child care expenses for their 4 year-old son,John: Union Day Care Center $\quad \$ 1,500$
Wilma, baby sitter (Robert's mother) $\quad \$ 1,000$ What is the amount of the child and dependent care credit they should report on their tax return for 2013?

Accepted Answer

A) $390 
B) $260 
C) $650 
D) $625 
E) None of the above 
A) $390 
B) $260 
C) $650 
D) $625 
E) None of the above

Question 15

In 2013,Brady purchases a 2013 Nissan Leaf electric vehicle for his personal use.He is eligible to claim a credit of $7,500.He is in the 35 percent marginal tax bracket and his regular
tax liability before credits is $14,800.What is the tax benefit Brady realizes from this purchase?

Accepted Answer

$7,500.The $7,500 cr

Question 16

Which of the common deductions below are allowed for regular tax purposes but not for AMT purposes?

Accepted Answer

A) The interest deduction for up to $100,000 of home equity debt which is not used to purchase or improve part of a principal residence 
B) Cash charitable contributions 
C) Moving expenses 
D) IRAs 
A) The interest deduction for up to $100,000 of home equity debt which is not used to purchase or improve part of a principal residence 
B) Cash charitable contributions 
C) Moving expenses 
D) IRAs

Question 17

Calculate the child 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 $125,100 of AGI.
c.Carol is single and has one dependent 18-year-old son.

Accepted Answer

a.$2,000.Ninfa's income is less than the

Question 18

Jenny adopts a Vietnamese orphan.The adoption takes 3 years,two trips to Vietnam,and becomes final in 2013.She pays $10,000 in 2011,$5,000 in 2012,and $5,000 in 2013 of qualified adoption expenses.She has AGI of $150,000.
a.What is the adoption credit Jenny can claim in 2013?
b.How much credit could she claim if the adoption falls through and is never finalized?

Accepted Answer

a.Jenny can claim the maximum credit of

Question 19

Explain what type of education qualifies for the American Opportunity credit and what type of education qualifies for the lifetime learning credit.

Accepted Answer

The American Opportunity credit covers t

Question 20

In all community property states,income from community property is community income.

Accepted Answer

A) True 
 B)False

A parent may elect to include a child's income in the parent's return if:

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

Assume Karen is 12 years old and her only income is $2,500 of interest income from a bank account with money her parents have given her to save for college.What are the options Karen has for filing her tax return?

The foreign tax credit applies only to foreign corporations.

William and Irma have two children,Tom,age 13,and Sara,age 8.For 2013,Tom and Sara have a total parental tax of $5,600.Tom's net unearned income is $15,000,while Sara's net unearned income is $5,000.How much of the parental tax would be allocated to Sara on her 2013 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.

In 2013,which of the following children would have income taxed at their parents' rates?

What is the maximum investment income a taxpayer is allowed to have and still be allowed to claim the earned income credit? Why is there an earned income credit in the law?

New York is a community property state.

For 2013,which of the following is a tax adjustment or tax preference item for the individual AMT computation?

The child and dependent care provisions:

Bob and Carol file their tax returns using the married filing jointly status.Their AGI is $131,000.They have two children,ages 11 and 7.How much child tax credit can Bob and Carol claim for their two children?

In 2013,Brady purchases a 2013 Nissan Leaf electric vehicle for his personal use.He is eligible to claim a credit of $7,500.He is in the 35 percent marginal tax bracket and his regular tax liability before credits is $14,800.What is the tax benefit Brady realizes from this purchase?

Which of the common deductions below are allowed for regular tax purposes but not for AMT purposes?

Explain what type of education qualifies for the American Opportunity credit and what type of education qualifies for the lifetime learning credit.

In all community property states,income from community property is community income.

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

A parent may elect to include a child's income in the parent's return if:

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

Assume Karen is 12 years old and her only income is $2,500 of interest income from a bank account with money her parents have given her to save for college.What are the options Karen has for filing her tax return?

The foreign tax credit applies only to foreign corporations.

William and Irma have two children,Tom,age 13,and Sara,age 8.For 2013,Tom and Sara have a total parental tax of $5,600.Tom's net unearned income is $15,000,while Sara's net unearned income is $5,000.How much of the parental tax would be allocated to Sara on her 2013 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.

In 2013,which of the following children would have income taxed at their parents' rates?

What is the maximum investment income a taxpayer is allowed to have and still be allowed to claim the earned income credit? Why is there an earned income credit in the law?

New York is a community property state.

For 2013,which of the following is a tax adjustment or tax preference item for the individual AMT computation?

The child and dependent care provisions:

Bob and Carol file their tax returns using the married filing jointly status.Their AGI is $131,000.They have two children,ages 11 and 7.How much child tax credit can Bob and Carol claim for their two children?

In 2013,Brady purchases a 2013 Nissan Leaf electric vehicle for his personal use.He is eligible to claim a credit of $7,500.He is in the 35 percent marginal tax bracket and his regular tax liability before credits is $14,800.What is the tax benefit Brady realizes from this purchase?

Which of the common deductions below are allowed for regular tax purposes but not for AMT purposes?

Explain what type of education qualifies for the American Opportunity credit and what type of education qualifies for the lifetime learning credit.

In all community property states,income from community property is community income.

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