Exam 8: Individual Income Tax Computation and Tax Credits

Angelena files as a head of household.In 2019, she reported $53,450 of taxable income, including a $10,000 qualified dividend.What is her gross tax liability, rounded to the nearest whole dollar amount? (Use the Tax rate schedules, long-term capital gains tax brackets.)

The computation of the alternative minimum tax base begins with regular taxable income.Which of the following is not part of the formula for computing the alternative minimum tax base?

Taxpayers are not required to file a tax return unless their gross income passes a certain threshold.This threshold is generally the ________.

Paul and Melissa plan on filing jointly in 2019.For the year, the couple reported taxable income of $130,000.What is their gross tax liability? (Use Tax rate schedules.)

Which of the following does not affect the amount of the earned income credit?

Selene made $54,300 in 2019 working at the local burger joint, Moon Café.How much should her employer withhold from her paycheck for FICA taxes if the calculation is made correctly?

Individuals may file for and receive a six-month extension of time to file their tax return and pay their taxes without penalty.

Why would a taxpayer file a tax return if not required to do so?

Which of the following statements regarding the earned income credit is true?

Employee status is always better than independent contractor status for a taxpayer because the employee is responsible for paying the employee portion of the FICA taxes.

Which of the following statements regarding the AMT exemption amounts is not true?

If both spouses of a married couple earn roughly equivalent high levels of wages, the couple is likely to pay a marriage penalty due to the nature of the tax rate schedules.

Allen Green is a single taxpayer with an AGI (and modified AGI)of $210,000, which includes $170,000 of salary, $25,000 of interest income, $10,000 of dividends, and $5,000 of long-term capital gains.What is Allen's net investment income tax liability this year, rounded to the nearest whole dollar amount?

Katlyn reported $300 of net income from her sole proprietorship.She is not required to pay self-employment tax.