Question 1

Which of the following is not True of the lifetime learning credit?

Accepted Answer

A)  It is a nonrefundable credit. 
B)  The credit can be claimed by taxpayers who have graduated from college and are taking professional training courses to improve their job skills. 
C)  A taxpayer with multiple dependents can claim a credit for each dependent's qualifying expenses. 
D)  The credit is subject to phase out based on the taxpayer's AGI. 
A)  It is a nonrefundable credit. 
B)  The credit can be claimed by taxpayers who have graduated from college and are taking professional training courses to improve their job skills. 
C)  A taxpayer with multiple dependents can claim a credit for each dependent's qualifying expenses. 
D)  The credit is subject to phase out based on the taxpayer's AGI.

Question 2

Taxpayers are generally allowed to carry back and/or carry forward unused business credits.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following best describes the manner in which self-employed taxpayers may deduct self-employment taxes?

Accepted Answer

A)  Deduct employer portion from AGI. 
B)  Deduct entire amount from AGI. 
C)  Deduct employer portion for AGI. 
D)  Deduct entire amount for AGI. 
E)  No deduction. 
A)  Deduct employer portion from AGI. 
B)  Deduct entire amount from AGI. 
C)  Deduct employer portion for AGI. 
D)  Deduct entire amount for AGI. 
E)  No deduction.

Question 4

Business credits are generally refundable credits.

Accepted Answer

A) True 
 B)False

Question 5

Jerusha is married and she files a separate tax return in 2018. She claimed the standard deduction for regular tax purposes ($12,000). She had no other adjustments. Her regular taxable income was $67,800. What is Jerusha's AMTI?

Accepted Answer

$79,800
An

Question 6

Keith and Nicole are married filing joint with two daughters who qualify as dependents. Their gross income for 2018 is $25,500. Are they required to file a tax return? How do you know this without memorizing the gross income thresholds? In 2018, the standard deduction for taxpayers filing a joint return is $24,000.

Accepted Answer

Yes, Keith and Nicole are required to fi

Question 7

Asteria earned a $25,500 salary as an employee in 2018. How much should her employer have withheld from her paycheck for FICA taxes? (Rounded to the nearest whole dollar amount).

Accepted Answer

A)  $370 
B)  $1,581 
C)  $1,951 
D)  $3,902 
A)  $370 
B)  $1,581 
C)  $1,951 
D)  $3,902

Question 8

Demeter is a single taxpayer. Her AGI in 2018 is $209,200. Demeter may claim a child tax credit for her daughter Persephone. What amount of child tax credit is Demeter entitled to claim after any applicable phase-out?

Accepted Answer

$1,500.
$2,000 − 500

Question 9

Parents may claim a child and dependent care credit for expenses incurred in providing for their dependents while the parents work as long as the children are over age 14 and under age 20 at year end.

Accepted Answer

A) True 
 B)False

Question 10

Atlas earned $17,300 from his sole proprietorship in 2018. This was his only source of income. How much in self-employment taxes will Atlas be able to deduct?

Accepted Answer

$1,222
Answer comput

Question 11

Long-term capital gains are taxed at the stated AMT rate for purposes of the alternative minimum tax.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following statements regarding the child and dependent care credit is True?

Accepted Answer

A)  A married couple must file jointly to claim the credit. 
B)  A taxpayer may claim a credit for dependent care expenses for a dependent who is 14 years old or older but only if the dependent lives in the taxpayer's home for the entire year. 
C)  All else equal, a taxpayer making qualifying expenditures for three children may claim more dependent care credit than a taxpayer making (the same amount of) qualifying expenditures for two children. 
D)  None of these statements is True. 
A)  A married couple must file jointly to claim the credit. 
B)  A taxpayer may claim a credit for dependent care expenses for a dependent who is 14 years old or older but only if the dependent lives in the taxpayer's home for the entire year. 
C)  All else equal, a taxpayer making qualifying expenditures for three children may claim more dependent care credit than a taxpayer making (the same amount of) qualifying expenditures for two children. 
D)  None of these statements is True.

Question 13

If a married couple has one primary breadwinner, filing a joint return will likely result in a marriage penalty.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements regarding FICA taxes is True?

Accepted Answer

A)  Low income employees are not required to pay FICA taxes. 
B)  An employee who has two different employers during the year may be entitled to a tax credit for overpaid FICA taxes. 
C)  The maximum amount of Medicare taxes an employee is required to pay is capped each year but the maximum amount of Social Security taxes is not. 
D)  The wage base limit for Social Security taxes depends on the taxpayer's filing status. 
A)  Low income employees are not required to pay FICA taxes. 
B)  An employee who has two different employers during the year may be entitled to a tax credit for overpaid FICA taxes. 
C)  The maximum amount of Medicare taxes an employee is required to pay is capped each year but the maximum amount of Social Security taxes is not. 
D)  The wage base limit for Social Security taxes depends on the taxpayer's filing status.

Question 15

Montague (age 15) is claimed as a dependent by his parents Matt and Mary. In 2018, Montague received $5,000 of qualified dividends and he received $800 from a part time job. What is his taxable income for 2018?

Accepted Answer

A)  $0 
B)  $3,900 
C)  $4,650 
D)  $4,750 
A)  $0 
B)  $3,900 
C)  $4,650 
D)  $4,750

Question 16

In 2018, Athena reported $39,600 of taxable income. Of this, $34,600 came from her work at the local library and the remaining $5,000 was from capital gains to be taxed at preferential rates. Compute her tax liability for 2018 as a single taxpayer. Use Tax Rate Schedule.)

Accepted Answer

$4,111.50.

Question 17

All capital gains are taxed at preferential rates.

Accepted Answer

A) True 
 B)False

Question 18

Jack paid $5,000 in daycare expenses for his five-year-old daughter so he could work. His AGI for the year was $37,500 (all earned income). What is the amount of his child and dependent care credit?

Accepted Answer

$690
Answe

Question 19

Apollo is single and his AMT base is $100,250. This amount includes $500 of qualified dividends (the dividends were taxed at 15% in determining the regular tax liability). What is Apollo's tentative minimum tax?

Accepted Answer

$26,010
An

Question 20

Which of the following tax credits is fully refundable?

Accepted Answer

A)  American opportunity credit. 
B)  Dependent care credit. 
C)  Earned income credit. 
D)  None of the choices are correct. 
A)  American opportunity credit. 
B)  Dependent care credit. 
C)  Earned income credit. 
D)  None of the choices are correct.

Which of the following is not True of the lifetime learning credit?

Taxpayers are generally allowed to carry back and/or carry forward unused business credits.

Which of the following best describes the manner in which self-employed taxpayers may deduct self-employment taxes?

Business credits are generally refundable credits.

Jerusha is married and she files a separate tax return in 2018. She claimed the standard deduction for regular tax purposes ($12,000). She had no other adjustments. Her regular taxable income was $67,800. What is Jerusha's AMTI?

Asteria earned a $25,500 salary as an employee in 2018. How much should her employer have withheld from her paycheck for FICA taxes? (Rounded to the nearest whole dollar amount).

Demeter is a single taxpayer. Her AGI in 2018 is $209,200. Demeter may claim a child tax credit for her daughter Persephone. What amount of child tax credit is Demeter entitled to claim after any applicable phase-out?

Parents may claim a child and dependent care credit for expenses incurred in providing for their dependents while the parents work as long as the children are over age 14 and under age 20 at year end.

Atlas earned $17,300 from his sole proprietorship in 2018. This was his only source of income. How much in self-employment taxes will Atlas be able to deduct?

Long-term capital gains are taxed at the stated AMT rate for purposes of the alternative minimum tax.

Which of the following statements regarding the child and dependent care credit is True?

If a married couple has one primary breadwinner, filing a joint return will likely result in a marriage penalty.

Which of the following statements regarding FICA taxes is True?

Montague (age 15) is claimed as a dependent by his parents Matt and Mary. In 2018, Montague received $5,000 of qualified dividends and he received $800 from a part time job. What is his taxable income for 2018?

In 2018, Athena reported $39,600 of taxable income. Of this, $34,600 came from her work at the local library and the remaining $5,000 was from capital gains to be taxed at preferential rates. Compute her tax liability for 2018 as a single taxpayer. Use Tax Rate Schedule.)

All capital gains are taxed at preferential rates.

Jack paid $5,000 in daycare expenses for his five-year-old daughter so he could work. His AGI for the year was $37,500 (all earned income). What is the amount of his child and dependent care credit?

Apollo is single and his AMT base is $100,250. This amount includes $500 of qualified dividends (the dividends were taxed at 15% in determining the regular tax liability). What is Apollo's tentative minimum tax?

Which of the following tax credits is fully refundable?

An Introduction to Tax

Tax Compliance, the IRS, and Tax Authorities

Tax Planning Strategies and Related Limitations

Individual Income Tax Overview, Dependents, and Filing Status

Gross Income and Exclusions

Individual Deductions

Investments

Business Income, Deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Compensation

Retirement Savings and Deferred Compensation

Tax Consequences of Home Ownership

Filters

Exam 8: Individual Income Tax Computation and Tax Credits

Which of the following is not True of the lifetime learning credit?

Taxpayers are generally allowed to carry back and/or carry forward unused business credits.

Which of the following best describes the manner in which self-employed taxpayers may deduct self-employment taxes?

Business credits are generally refundable credits.

Jerusha is married and she files a separate tax return in 2018. She claimed the standard deduction for regular tax purposes ($12,000). She had no other adjustments. Her regular taxable income was $67,800. What is Jerusha's AMTI?

Asteria earned a $25,500 salary as an employee in 2018. How much should her employer have withheld from her paycheck for FICA taxes? (Rounded to the nearest whole dollar amount).

Demeter is a single taxpayer. Her AGI in 2018 is $209,200. Demeter may claim a child tax credit for her daughter Persephone. What amount of child tax credit is Demeter entitled to claim after any applicable phase-out?

Parents may claim a child and dependent care credit for expenses incurred in providing for their dependents while the parents work as long as the children are over age 14 and under age 20 at year end.

Atlas earned $17,300 from his sole proprietorship in 2018. This was his only source of income. How much in self-employment taxes will Atlas be able to deduct?

Long-term capital gains are taxed at the stated AMT rate for purposes of the alternative minimum tax.

Which of the following statements regarding the child and dependent care credit is True?

If a married couple has one primary breadwinner, filing a joint return will likely result in a marriage penalty.

Which of the following statements regarding FICA taxes is True?

Montague (age 15) is claimed as a dependent by his parents Matt and Mary. In 2018, Montague received $5,000 of qualified dividends and he received $800 from a part time job. What is his taxable income for 2018?

In 2018, Athena reported $39,600 of taxable income. Of this, $34,600 came from her work at the local library and the remaining $5,000 was from capital gains to be taxed at preferential rates. Compute her tax liability for 2018 as a single taxpayer. Use Tax Rate Schedule.)

All capital gains are taxed at preferential rates.

Jack paid $5,000 in daycare expenses for his five-year-old daughter so he could work. His AGI for the year was $37,500 (all earned income). What is the amount of his child and dependent care credit?

Apollo is single and his AMT base is $100,250. This amount includes $500 of qualified dividends (the dividends were taxed at 15% in determining the regular tax liability). What is Apollo's tentative minimum tax?

Which of the following tax credits is fully refundable?

An Introduction to Tax

Tax Compliance, the IRS, and Tax Authorities

Tax Planning Strategies and Related Limitations

Individual Income Tax Overview, Dependents, and Filing Status

Gross Income and Exclusions

Individual Deductions

Investments

Business Income, Deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Compensation

Retirement Savings and Deferred Compensation

Tax Consequences of Home Ownership

Filters