Question 1

Green Company, in the renovation of its building, incurs $9,000 of expenditures that qualify for the disabled access credit. The disabled access credit is:

Accepted Answer

A)  $8,750. 
B)  $4,500. 
C)  $4,375. 
D)  $4,250. 
A)  $8,750. 
B)  $4,500. 
C)  $4,375. 
D)  $4,250. C

Question 2

In describing FICA taxes, which if any) of the following statements is incorrect?

Accepted Answer

A)  The base amounts for 2019 probably will increase from the 2018 amounts. 
B)  The base amounts for the Social Security and Medicare portions are the same. 
C)  If both spouses work, excess FICA taxes need not result. 
D)  Excess FICA taxes can be claimed as an income tax credit. 
A)  The base amounts for 2019 probably will increase from the 2018 amounts. 
B)  The base amounts for the Social Security and Medicare portions are the same. 
C)  If both spouses work, excess FICA taxes need not result. 
D)  Excess FICA taxes can be claimed as an income tax credit. B

Question 3

Kevin and Sue have two children, ages 8 and 14. They spend $6,200 per year on eligible employment related expenses for the care of their children after school. Kevin earned a salary of $20,000 and Sue earned a salary of $18,000. What is the amount of the credit for child and dependent care expenses?

Accepted Answer

A)  $690 
B)  $713 
C)  $1,380 
D)  $1,426 
A)  $690 
B)  $713 
C)  $1,380 
D)  $1,426 A

Question 4

The earned income credit is available only if the taxpayer has at least one qualifying child in the household.

Accepted Answer

A) True 
 B)False

Question 5

The child tax credit is based on the number of the taxpayer's qualifying children under age 17.

Accepted Answer

A) True 
 B)False

Question 6

The purpose of the work opportunity tax credit is to encourage employers to hire individuals from specified target groups traditionally subject to high rates of unemployment.

Accepted Answer

A) True 
 B)False

Question 7

The disabled access credit was enacted to encourage small businesses to make their businesses more accessible to disabled individuals.

Accepted Answer

A) True 
 B)False

Question 8

The incremental research activities credit is 20% of the qualified research expenses that exceed the base amount.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following correctly reflects current rules regarding estimated tax payments for individuals?

Accepted Answer

A)  Employees are not subject to the estimated tax payment provisions. 
B)  Any penalty imposed for underpayment is deductible for income tax purposes. 
C)  Married taxpayers may not make joint estimated tax payments unless they file a joint income tax return. 
D)  No quarterly payments are required if the taxpayer's estimated tax is under $1,000. 
A)  Employees are not subject to the estimated tax payment provisions. 
B)  Any penalty imposed for underpayment is deductible for income tax purposes. 
C)  Married taxpayers may not make joint estimated tax payments unless they file a joint income tax return. 
D)  No quarterly payments are required if the taxpayer's estimated tax is under $1,000.

Question 10

Which of the following best describes the treatment applicable to unused business credits?

Accepted Answer

A)  Unused amounts are carried forward indefinitely. 
B)  Unused amounts are first carried back one year and then forward for 20 years. 
C)  Unused amounts are first carried back one year and then forward for 10 years. 
D)  Unused amounts are first carried back three years and then carried forward for 15 years. 
A)  Unused amounts are carried forward indefinitely. 
B)  Unused amounts are first carried back one year and then forward for 20 years. 
C)  Unused amounts are first carried back one year and then forward for 10 years. 
D)  Unused amounts are first carried back three years and then carried forward for 15 years.

Question 11

George and Jill are husband and wife, ages 67 and 65 respectively. During the year, they receive Social Security benefits of $4,000 and have adjusted gross income of $11,000. Assuming they file a joint return, their tax credit for the elderly, before considering any possible limitation due to their tax liability, is:

Accepted Answer

A)  $1,125. 
B)  $750. 
C)  $450. 
D)  $375. 
A)  $1,125. 
B)  $750. 
C)  $450. 
D)  $375.

Question 12

If the cost of a building constructed and placed into service by an eligible small business in the current year includes the cost of a wheelchair ramp, the cost of the ramp qualifies for the disabled access credit.

Accepted Answer

A) True 
 B)False

Question 13

A taxpayer who qualifies for the low-income housing credit claims the credit over a 20-year period.

Accepted Answer

A) True 
 B)False

Question 14

Explain the purpose of the tax credit for rehabilitation expenditures and describe the general characteristics of its computation.

Accepted Answer

The rehabilitation expenditures credit i

Question 15

The tax benefits resulting from tax credits and tax deductions are affected by the tax rate bracket of the taxpayer.

Accepted Answer

A) True 
 B)False

Question 16

Unless a taxpayer is disabled, the tax credit for the elderly or disabled is available only if the taxpayer is at least 59 1/2 years old.

Accepted Answer

A) True 
 B)False

Question 17

An employer's tax deduction for wages is affected by the work opportunity tax credit.

Accepted Answer

A) True 
 B)False

Question 18

Rex and Dena are married and have two children, Michelle age 7) and Nancy age 5). During 2018, Rex earned a salary of $24,500, received interest income of $300, and filed a joint income tax return with Dena. Dena had $0 gross income. Their earned income credit for the year is:

Accepted Answer

A)  $0. 
B)  $5,426. 
C)  $5,621. 
D)  $5,716. 
A)  $0. 
B)  $5,426. 
C)  $5,621. 
D)  $5,716.

Question 19

Certain high-income individuals are subject to three additional Medicare taxes-on wages, unearned income, and tax credits claimed.

Accepted Answer

A) True 
 B)False

Question 20

How does the FICA tax compare to the self-employment tax? How are these two taxes similar and how do they differ?

Accepted Answer

These taxes, commonly referred to as "pa

Green Company, in the renovation of its building, incurs $9,000 of expenditures that qualify for the disabled access credit. The disabled access credit is:

In describing FICA taxes, which if any) of the following statements is incorrect?

Kevin and Sue have two children, ages 8 and 14. They spend $6,200 per year on eligible employment related expenses for the care of their children after school. Kevin earned a salary of $20,000 and Sue earned a salary of $18,000. What is the amount of the credit for child and dependent care expenses?

The earned income credit is available only if the taxpayer has at least one qualifying child in the household.

The child tax credit is based on the number of the taxpayer's qualifying children under age 17.

The purpose of the work opportunity tax credit is to encourage employers to hire individuals from specified target groups traditionally subject to high rates of unemployment.

The disabled access credit was enacted to encourage small businesses to make their businesses more accessible to disabled individuals.

The incremental research activities credit is 20% of the qualified research expenses that exceed the base amount.

Which of the following correctly reflects current rules regarding estimated tax payments for individuals?

Which of the following best describes the treatment applicable to unused business credits?

If the cost of a building constructed and placed into service by an eligible small business in the current year includes the cost of a wheelchair ramp, the cost of the ramp qualifies for the disabled access credit.

A taxpayer who qualifies for the low-income housing credit claims the credit over a 20-year period.

Explain the purpose of the tax credit for rehabilitation expenditures and describe the general characteristics of its computation.

The tax benefits resulting from tax credits and tax deductions are affected by the tax rate bracket of the taxpayer.

Unless a taxpayer is disabled, the tax credit for the elderly or disabled is available only if the taxpayer is at least 59 1/2 years old.

An employer's tax deduction for wages is affected by the work opportunity tax credit.

Rex and Dena are married and have two children, Michelle age 7) and Nancy age 5). During 2018, Rex earned a salary of $24,500, received interest income of $300, and filed a joint income tax return with Dena. Dena had $0 gross income. Their earned income credit for the year is:

Certain high-income individuals are subject to three additional Medicare taxes-on wages, unearned income, and tax credits claimed.

How does the FICA tax compare to the self-employment tax? How are these two taxes similar and how do they differ?

An Introduction to Taxation and Understanding the Federal Tax Law

Working With the Tax Law

Tax Formula and Tax Determination an Overview of Property Transactions

Gross Income: Concepts and Inclusions

Gross Income: Exclusions

Deductions and Losses: in General

Deductions and Losses: Certain Business Expenses and Losses

Depreciation, Cost Recovery, Amortization, and Depletion

Deductions: Employee and Self-Employed-Related Expenses

Deductions and Losses: Certain Itemized Deductions

Investor Losses

Alternative Minimum Tax

Property Transactions: Determination of Gain or Loss and Basis Considerations

Property Transactions: Nontaxable Exchanges

Filters

Exam 13: Tax Credits and Payment Procedures

Green Company, in the renovation of its building, incurs $9,000 of expenditures that qualify for the disabled access credit. The disabled access credit is:

In describing FICA taxes, which if any) of the following statements is incorrect?

The earned income credit is available only if the taxpayer has at least one qualifying child in the household.

The child tax credit is based on the number of the taxpayer's qualifying children under age 17.

The purpose of the work opportunity tax credit is to encourage employers to hire individuals from specified target groups traditionally subject to high rates of unemployment.

The disabled access credit was enacted to encourage small businesses to make their businesses more accessible to disabled individuals.

The incremental research activities credit is 20% of the qualified research expenses that exceed the base amount.

Which of the following correctly reflects current rules regarding estimated tax payments for individuals?

Which of the following best describes the treatment applicable to unused business credits?

If the cost of a building constructed and placed into service by an eligible small business in the current year includes the cost of a wheelchair ramp, the cost of the ramp qualifies for the disabled access credit.

A taxpayer who qualifies for the low-income housing credit claims the credit over a 20-year period.

Explain the purpose of the tax credit for rehabilitation expenditures and describe the general characteristics of its computation.

The tax benefits resulting from tax credits and tax deductions are affected by the tax rate bracket of the taxpayer.

Unless a taxpayer is disabled, the tax credit for the elderly or disabled is available only if the taxpayer is at least 59 1/2 years old.

An employer's tax deduction for wages is affected by the work opportunity tax credit.

Rex and Dena are married and have two children, Michelle age 7) and Nancy age 5). During 2018, Rex earned a salary of $24,500, received interest income of $300, and filed a joint income tax return with Dena. Dena had $0 gross income. Their earned income credit for the year is:

Certain high-income individuals are subject to three additional Medicare taxes-on wages, unearned income, and tax credits claimed.

How does the FICA tax compare to the self-employment tax? How are these two taxes similar and how do they differ?

An Introduction to Taxation and Understanding the Federal Tax Law

Working With the Tax Law

Tax Formula and Tax Determination an Overview of Property Transactions

Gross Income: Concepts and Inclusions

Gross Income: Exclusions

Deductions and Losses: in General

Deductions and Losses: Certain Business Expenses and Losses

Depreciation, Cost Recovery, Amortization, and Depletion

Deductions: Employee and Self-Employed-Related Expenses

Deductions and Losses: Certain Itemized Deductions

Investor Losses

Alternative Minimum Tax

Property Transactions: Determination of Gain or Loss and Basis Considerations

Property Transactions: Nontaxable Exchanges

Filters