Question 1

During 2016,Barry (who is single and has no children)earned a salary of $13,000.He is age 30.His earned income credit for the year is:

Accepted Answer

A) $0. 
B) $144. 
C) $362. 
D) $506. 
A) $0. 
B) $144. 
C) $362. 
D) $506. B

Question 2

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. 
E) None of the above. 
A) $8,750. 
B) $4,500. 
C) $4,375. 
D) $4,250. 
E) None of the above. C

Question 3

Child and dependent care expenses include amounts paid for general household services.

Accepted Answer

A) True 
 B)False  True

Question 4

Qualified research and experimentation expenditures are not only eligible for the 20% tax credit,but also can be expensed in the year incurred.

Accepted Answer

A) True 
 B)False

Question 5

The maximum credit for child and dependent care expenses is $2,100 if only one spouse is employed and the other spouse is a full-time student.

Accepted Answer

A) True 
 B)False

Question 6

An employee with outside income may be able to avoid the penalty for underpayment of estimated tax by having his employer increase income tax withholdings.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

All foreign taxes qualify for the foreign tax credit.

Accepted Answer

A) True 
 B)False

Question 9

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 10

A taxpayer may qualify for the credit for child and dependent care expenses if the taxpayer's dependent is under age 17.

Accepted Answer

A) True 
 B)False

Question 11

In May 2016,Blue Corporation hired Camilla,Jolene,and Tyrone,all of whom are certified as long-term family assistance recipients.Each employee is paid $12,000 during 2016.Camilla and Tyrone continued to work for Blue Corporation in 2017,earning $14,000 each.Blue hired no additional employees during 2017.
a.Compute Blue Corporation's work opportunity tax credits for 2016 and 2017.
b.Assume Blue Corporation pays total wages of $500,000 to its employees during 2016 and $560,000 during 2017.How much may Blue Corporation claim as a wage deduction for 2016 and 2017 if the work opportunity tax credit is claimed in both years?

Accepted Answer

​
 a.The work opportunity tax credit for

Question 12

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

Question 13

Black Company paid wages of $180,000,of which $40,000 was qualified wages for the work opportunity tax credit under the general rules.Black Company's deduction for wages for the year is:

Accepted Answer

A) $140,000. 
B) $164,000. 
C) $166,000. 
D) $180,000. 
E) None of the above. 
A) $140,000. 
B) $164,000. 
C) $166,000. 
D) $180,000. 
E) None of the above.

Question 14

Cardinal Corporation hires two persons certified to be eligible employees for the work opportunity tax credit under the general rules (e.g. ,food stamp recipients),each of whom is paid $9,000 during the year.As a result of this event,Cardinal Corporation may claim a work opportunity credit of:

Accepted Answer

A) $1,440. 
B) $2,880. 
C) $4,800. 
D) $7,200. 
E) None of the above. 
A) $1,440. 
B) $2,880. 
C) $4,800. 
D) $7,200. 
E) None of the above.

Question 15

Steve records a tentative general business credit of $110,000 for the current year.His net regular tax liability before the general business credit is $125,000,and his tentative minimum tax is $100,000.Compute Steve's allowable general business credit for the year.

Accepted Answer

Steve's allowable general business credi

Question 16

Cheryl is single,has one child (age 6),and files as head of household during 2016.Her salary for the year is $19,500.She qualifies for an earned income credit of the following amount.

Accepted Answer

A) $0. 
B) $3,064. 
C) $3,164. 
D) $3,373. 
A) $0. 
B) $3,064. 
C) $3,164. 
D) $3,373.

Question 17

Employers are encouraged by the work opportunity tax credit to hire individuals who have been long-term recipients of family assistance welfare benefits.

Accepted Answer

A) True 
 B)False

Question 18

Describe the withholding requirements applicable to employers.

Accepted Answer

Employers are required to withhold emplo

Question 19

An expatriate who works in a country with an income tax rate higher than the U.S.rate probably will find the foreign earned income exclusion preferable to the foreign tax credit.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following issues does not need resolution in an employer's effort to comply with employment tax payment requirements?

Accepted Answer

A) Ascertaining which employees and wages are covered by employment taxes and are subject to withholding for income taxes. 
B) Arriving at the amount to be paid and/or withheld. 
C) Reporting and paying employment taxes and income taxes withheld to the IRS on a timely basis through the use of proper forms. 
D) Each of the above issues needs to be resolved. 
E) None of the above is relevant to the employer. 
A) Ascertaining which employees and wages are covered by employment taxes and are subject to withholding for income taxes. 
B) Arriving at the amount to be paid and/or withheld. 
C) Reporting and paying employment taxes and income taxes withheld to the IRS on a timely basis through the use of proper forms. 
D) Each of the above issues needs to be resolved. 
E) None of the above is relevant to the employer.

During 2016,Barry (who is single and has no children)earned a salary of $13,000.He is age 30.His earned income credit for the year is:

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:

Child and dependent care expenses include amounts paid for general household services.

Qualified research and experimentation expenditures are not only eligible for the 20% tax credit,but also can be expensed in the year incurred.

The maximum credit for child and dependent care expenses is $2,100 if only one spouse is employed and the other spouse is a full-time student.

An employee with outside income may be able to avoid the penalty for underpayment of estimated tax by having his employer increase income tax withholdings.

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

All foreign taxes qualify for the foreign tax credit.

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

A taxpayer may qualify for the credit for child and dependent care expenses if the taxpayer's dependent is under age 17.

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?

Black Company paid wages of $180,000,of which $40,000 was qualified wages for the work opportunity tax credit under the general rules.Black Company's deduction for wages for the year is:

Cardinal Corporation hires two persons certified to be eligible employees for the work opportunity tax credit under the general rules (e.g. ,food stamp recipients),each of whom is paid $9,000 during the year.As a result of this event,Cardinal Corporation may claim a work opportunity credit of:

Steve records a tentative general business credit of $110,000 for the current year.His net regular tax liability before the general business credit is $125,000,and his tentative minimum tax is $100,000.Compute Steve's allowable general business credit for the year.

Cheryl is single,has one child (age 6),and files as head of household during 2016.Her salary for the year is $19,500.She qualifies for an earned income credit of the following amount.

Employers are encouraged by the work opportunity tax credit to hire individuals who have been long-term recipients of family assistance welfare benefits.

Describe the withholding requirements applicable to employers.

An expatriate who works in a country with an income tax rate higher than the U.S.rate probably will find the foreign earned income exclusion preferable to the foreign tax credit.

Which of the following issues does not need resolution in an employer's effort to comply with employment tax payment requirements?

An Introduction to Taxation and Understanding the Federal 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

Deduction and Losses Certain Itemized Deductions

Investor Losses

Alternative Minimum Tax

Property Transactions Determination of Gain and Loss and Basic Considerations

Property Transactions Nontaxable Exchanges

Property Transactions Capital Gains and Losses

Property Transactions Section 1231 and Recapture Provisions

Accounting Periods and Methods

Deferred Compensation

Corporations and Partnerships

Filters

Exam 13: Tax Credits and Payment Procedures

During 2016,Barry (who is single and has no children)earned a salary of $13,000.He is age 30.His earned income credit for the year is:

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:

Child and dependent care expenses include amounts paid for general household services.

Qualified research and experimentation expenditures are not only eligible for the 20% tax credit,but also can be expensed in the year incurred.

The maximum credit for child and dependent care expenses is $2,100 if only one spouse is employed and the other spouse is a full-time student.

An employee with outside income may be able to avoid the penalty for underpayment of estimated tax by having his employer increase income tax withholdings.

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

All foreign taxes qualify for the foreign tax credit.

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

A taxpayer may qualify for the credit for child and dependent care expenses if the taxpayer's dependent is under age 17.

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?

Black Company paid wages of $180,000,of which $40,000 was qualified wages for the work opportunity tax credit under the general rules.Black Company's deduction for wages for the year is:

Cardinal Corporation hires two persons certified to be eligible employees for the work opportunity tax credit under the general rules (e.g. ,food stamp recipients),each of whom is paid $9,000 during the year.As a result of this event,Cardinal Corporation may claim a work opportunity credit of:

Steve records a tentative general business credit of $110,000 for the current year.His net regular tax liability before the general business credit is $125,000,and his tentative minimum tax is $100,000.Compute Steve's allowable general business credit for the year.

Cheryl is single,has one child (age 6),and files as head of household during 2016.Her salary for the year is $19,500.She qualifies for an earned income credit of the following amount.

Employers are encouraged by the work opportunity tax credit to hire individuals who have been long-term recipients of family assistance welfare benefits.

Describe the withholding requirements applicable to employers.

An expatriate who works in a country with an income tax rate higher than the U.S.rate probably will find the foreign earned income exclusion preferable to the foreign tax credit.

Which of the following issues does not need resolution in an employer's effort to comply with employment tax payment requirements?

An Introduction to Taxation and Understanding the Federal 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

Deduction and Losses Certain Itemized Deductions

Investor Losses

Alternative Minimum Tax

Property Transactions Determination of Gain and Loss and Basic Considerations

Property Transactions Nontaxable Exchanges

Property Transactions Capital Gains and Losses

Property Transactions Section 1231 and Recapture Provisions

Accounting Periods and Methods

Deferred Compensation

Corporations and Partnerships

Filters