Exam 8: Individual Income Tax Computation and Tax Credits

Carolyn has an AGI of $38,000 (all from earned income),two qualifying children,and is filing as a head of household.What amount of earned income credit is she entitled to? (Exhibit 8-10 in the text)

Which of the following is not typical of taxpayers who are most likely affected by the AMT?

The earned income credit is sometimes referred to as a negative income tax.

Depending on the year,the original (unextended)due date for an individual's tax return may be after April 15.

Which of the following suggests that a working taxpayer is an independent contractor rather than an employee?

Akiko and Hitachi (married filing jointly for 2017)are both educators.They attended a conference to further their job-related skills.Tuition for the conference was $2,000 for each person.Their AGI was $118,000.How much lifetime learning credit can they claim?

Which of the following statements regarding late filing penalties is true?

Which of the following is not a barrier to income shifting among family members?

The amount of expenditures eligible for the child and dependent care credit is the least of three amounts.Which of the following is not one of those amounts?

Persephone has a regular tax liability of $12,475 and a tentative minimum tax of $11,500.Given just this information,what is her alternative minimum tax liability for the year?

Jackson earned a salary of $254,000 in 2017.What amount of FICA taxes should Jackson's employer withhold from his paycheck?

Long-term capital gains,dividends,and taxable interest income are all taxed at preferential rates.

If there is not enough gross tax liability to use the foreign tax credit,________.

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

Which of the following statements regarding the child tax credit is false?

The late payment penalty is based on the amount of tax owed and the number of days that the tax is not paid.The maximum amount of the penalty is unlimited.

Regular taxable income is the starting point for determining the alternative minimum tax.

How could an individual obtain a business tax credit?

Quantitatively,what is the relationship between the AGI phase-out thresholds for the child tax credit?

Rhianna and Jay are married filing jointly in 2017.They have six children for whom they may claim the child tax credit.Their AGI was $123,440.What amount of child tax credit may they claim on their 2017 tax return?