Exam 13: Tax Credits and Payment Procedures

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.

If an employee holds two jobs during the year, an overwithholding of FICA tax will result.

George and Martha are married and file a joint tax return claiming their two children, ages 10 and 8 as dependents. Assuming their AGI is $119,650, George and Martha's child tax credit is:

Which of the following statements regarding the adoption expenses credit is not true?

An individual generally may claim a credit for adoption expenses in the year in which the expenses are paid.

Which of the following statements concerning the credit for child and dependent care expenses is not correct?

In the event that overwithholding of FICA tax occurs because the taxpayer has more than one employer, the excess amount should be claimed as a credit on the Federal income tax return of the employee.

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:

The credit for child and dependent care expenses is an example of a refundable credit.

Bob and Sally are married, file a joint tax return, report AGI of $116,000, and have two children. Del is beginning her freshman year at State College during Fall 2017, and Owen is beginning his senior year at Southwest University during Fall 2017. Owen completed his junior year during the Spring semester of 2016 (i.e., he took a "leave of absence" during the 2016-2017 school year). Both Del and Owen are claimed as dependents on their parents' tax return. ​ Del's qualifying tuition expenses and fees total $5,000 for the Fall semester, while Owen's qualifying tuition expenses were $6,100 for the Fall 2017 semester. Del's room and board costs were $3,200 for the Fall semester. Owen did not incur room and board costs, as he lived with his aunt and uncle during the year. ​ Full payment is made for the tuition and related expenses for both children at the beginning of each semester. In addition to the children's college expenses, Bob also spent $3,000 on professional education seminars during the year in order to maintain his license as a practicing dentist. Bob attended the seminars during July and August 2017. Compute the available education tax credits for Bob and Sally for 2017.

On October 2, Ross quits his job with Blue Corporation. If requested by Ross, Blue Corporation must furnish a Form W-2 to Ross within 45 days after the date of the request or the final wage payment, whichever is later.

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

The disabled access credit is computed at the rate of 50% of all access expenditures incurred by the taxpayer during the year.

Identify the statement below that is false.

All foreign taxes qualify for the foreign tax credit.

Only married taxpayers with children are qualified to receive the earned income credit.

The components of the general business credit include all of the following except:

Which, if any, of the following correctly describes the earned income credit?

A LIFO method is applied to general business credit carryovers, carrybacks, and utilization of credits earned during a particular year.

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: