Exam 14: Special Tax Computation Methods, tax Credits, and Payment of Tax

Jake and Christina are married and file a joint return for 2017 with taxable income of $100,000 and tax preferences and adjustments of $20,000 for AMT purposes.Their regular tax liability is $16,478.What is the amount of their total tax liability?

A wage cap does not exist for which of the following self-employment taxes?

Evan and Barbara incurred qualified adoption expenses in 2016 of $6,000,and then incurred $9,000 more in 2017 when the adoption of their child became final.Their 2016 AGI was $110,000 and their 2017 AGI was $100,000.The allowable adoption credit is

A taxpayer at risk for AMT should consider which of the following decisions?

All of the following statements regarding self-employment income/tax are true except

Form 6251,Alternative Minimum Tax,must be filed in any of the following situations except

Jeffery and Cassie,who are married with modified AGI of $90,000,are sending their son to his first year of college.Their total tuition and related payments during 2017 amounted to $5,500.They have not taken advantage of any other type of tax benefit related to educational expenses.Their American Opportunity Tax Credit for 2017 is

Kors Corporation has 30 employees and $5 million of gross receipts.Kors spends $15,000 for qualified structural improvements for access for the disabled.The disabled access credit is

The general business credits are refundable credits.

Casualty and theft losses in excess of 10% of AGI are deductible for AMT purposes.

The nonrefundable disabled access credit is available to eligible small businesses for expenditures incurred to make existing business facilities accessible to disabled individuals.

Runway Corporation has $2 million of gross receipts in the preceding year.For purposes of the disabled access credit,what is the maximum number of full-time employees the corporation can have in the preceding year?

A credit for rehabilitation expenditures is available to a business for the purchase price of a building originally placed in service before 1936.

When a husband and wife file a joint return and both have self-employment income,the self-employment tax must be computed separately.

Beth and Jay project the following taxes for the current year: How much in estimated tax payments (including withholding from wages and quarterly estimated payments) should the taxpayers pay this year in order to avoid underpayment penalties under the following assumptions regarding the preceding tax year? a.Preceding tax year-AGI of $140,000 and total taxes of $36,000. b.Preceding tax year-AGI of $155,000 and total taxes of $48,000.

Margo and Jonah have two children,ages 13 and 17.Their modified AGI is $120,500.What is their child tax credit?

Lee and Whitney incurred qualified adoption expenses in 2016 of $2,000,and then incurred $7,000 more in 2017 when the adoption of their child became final.Their 2016 AGI was $120,000 and their 2017 AGI was $140,000.The allowable adoption credit is

If a taxpayer's AGI is greater than $150,000,no penalty will be imposed if the taxpayer pays estimated tax payments in 2017 equal to what percentage of 2016's income tax liability?

Bud and Stella are married,file a joint return,and have one child,age 3.Their combined AGI is $35,000.Bud and Stella incur $3,500 of child care expenses during the current year.The child and dependent care credit is

Refundable tax credits