Exam 6: Credits and Special Taxes

Explain what type of educational expenses qualify for the American Opportunity tax credit and what type of educational expenses qualify for the lifetime learning credit.

(Essay)

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Question 61

For 2016, which of the following is a tax adjustment or tax preference item for the individual AMT computation?

(Multiple Choice)

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Question 62

Margo and her spouse have health insurance for the entire year through the state health care exchange. Margo will need to pay her spouse's individual shared responsibility.

(True/False)

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Question 63

Jessica and Robert have two young children. They have $7,000 of qualified child care expenses and an AGI of $22,000 in 2016. What is their allowable child and dependent care credit?

(Multiple Choice)

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Question 64

Rachel and Rob are married and living together in California. Their income is: a.If Rachel files a separate return, how much income should she report? b.If Rob and Rachel live in Texas, what should Rachel report as income?

(Essay)

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Question 65

In 2016, Erin purchased a solar system to generate electricity for her home, at a cost of $5,000. A)How much is her tax credit in 2016? B)If she had purchased a solar heating system for her swimming pool at a cost of $3,500, how much could she claim as a tax credit? C)If she had purchased a $5,000 solar electric system and a $4,500 solar heating system for her principal home (not for the swimming pool), how much could she claim as a tax credit? D)If she had purchased the electric system for her principal residence and the solar heating system for a second residence, how much could she claim as a tax credit?

(Essay)

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Question 66

For 2016, Wilson and Virginia Todd qualify for the earned income credit. They file married filing jointly and have two dependent children, ages 6 months and 4 years at the end of the year. a. Using the EIC tables, calculate the amount of Wilson and Virginia Todd's earned income credit assuming Wilson has earned income of $7,300 and Virginia has no earned income.Their adjusted gross income for 2016 is $9,000. b. Calculate the amount of Wilson and Virginia Todd's earned income credit assuming Wilson has earned income of $14,300 and Virginia has earned income of $2,000.Their adjusted gross income for 2016 is $16,500.

(Essay)

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Question 67

Which of the common deductions below are allowed for both regular tax purposes and for AMT purposes?

(Multiple Choice)

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Question 68

After raising two children, Anh, a single 48 year old, decided to go to college to get a degree. She spent two years in community college and earned an Associates degree. In 2016, she is enrolled half-time at State University to earn a Bachelor's degree in Accounting and also works part-time. Anh is eligible for the American Opportunities tax credit.

(True/False)

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Question 69

The alternative minimum tax must be paid only if the tentative minimum tax exceeds a taxpayer's regular tax liability.

(True/False)

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Question 70

Betty and Steve have a 4-year-old child, Gwen. For 2016, Betty and Steve file married filing jointly and have taxable income of $150,000. Gwen has interest income of $10,000 from a bond portfolio her grandfather gave her and no investment expenses. No election is made to include Gwen's income on Betty and Steve's return. a.For purposes of the parental tax, calculate Gwen's net unearned income. b.Calculate the amount of Gwen's parental tax. c.Calculate Gwen's total tax for 2016.

(Essay)

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Question 71

What would reduce income taxes more: a $100 tax credit or a $100 tax deduction?

(Essay)

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Question 72

Brad works at the local pizza shop as a delivery person. He is hoping to change to a position in the kitchen and takes a culinary course at the local community college for $1,400. Assuming he is eligible, Brad's lifetime learning credit is:

(Short Answer)

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Question 73

The child tax credit is $1,000 per qualifying child unless it is phased out due to higher levels of parental income.

(True/False)

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Question 74

In all community property states, income from community property is community income.

(True/False)

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Question 75

Dan and Maureen file a joint income tax return for 2016. They have two dependent children, ages 7 and 9. Together they earn wages of $152,000. They also receive taxable interest income of $8,000 and interest on City of Los Angeles bonds of $12,000. During 2016, they received a state income tax refund of $3,000 relating to their 2015 state income tax return on which they itemized deductions. Their expenses for the year consist of the following: Calculate Dan and Maureen's tentative minimum tax liability assuming an AMT exemption amount of $83,800, before any phase-outs. Show your calculations.

(Essay)

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Question 76

Patricia and Cliff are married but file separate tax returns. Patricia received a salary of $42,000 and Cliff received $15,000 of dividends from a stock portfolio that is his own separate property. a.If Patricia and Cliff live in a common law state, what income should Patricia show on her separate return? Salary Dividends b.If they live in California (a community property state), what income should Patricia show on her separate return? Salary Dividends

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Question 77

Which of the following is not a true statement regarding community property law?

(Multiple Choice)

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Question 78

New York is a community property state.

(True/False)

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Question 79

Amounts paid to a relative generally do not qualify as child care expenses.

(True/False)

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Question 80

Showing 61 - 80 of 107

Explain what type of educational expenses qualify for the American Opportunity tax credit and what type of educational expenses qualify for the lifetime learning credit.

For 2016, which of the following is a tax adjustment or tax preference item for the individual AMT computation?

Margo and her spouse have health insurance for the entire year through the state health care exchange. Margo will need to pay her spouse's individual shared responsibility.

Jessica and Robert have two young children. They have $7,000 of qualified child care expenses and an AGI of $22,000 in 2016. What is their allowable child and dependent care credit?

Rachel and Rob are married and living together in California. Their income is: a.If Rachel files a separate return, how much income should she report? b.If Rob and Rachel live in Texas, what should Rachel report as income?

Which of the common deductions below are allowed for both regular tax purposes and for AMT purposes?

The alternative minimum tax must be paid only if the tentative minimum tax exceeds a taxpayer's regular tax liability.

What would reduce income taxes more: a $100 tax credit or a $100 tax deduction?

Brad works at the local pizza shop as a delivery person. He is hoping to change to a position in the kitchen and takes a culinary course at the local community college for $1,400. Assuming he is eligible, Brad's lifetime learning credit is:

The child tax credit is $1,000 per qualifying child unless it is phased out due to higher levels of parental income.

In all community property states, income from community property is community income.

Which of the following is not a true statement regarding community property law?

New York is a community property state.

Amounts paid to a relative generally do not qualify as child care expenses.

The Individual Income Tax Return

Gross Income and Exclusions

Business Income and Expenses Part I

Business Income and Expenses Part II

Itemized Deductions and Other Incentives

Accounting Periods and Methods and Depreciation

Capital Gains and Losses

Withholding Estimated Payments and Payroll Taxes

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters

Exam 6: Credits and Special Taxes

Explain what type of educational expenses qualify for the American Opportunity tax credit and what type of educational expenses qualify for the lifetime learning credit.

For 2016, which of the following is a tax adjustment or tax preference item for the individual AMT computation?

​Margo and her spouse have health insurance for the entire year through the state health care exchange. Margo will need to pay her spouse's individual shared responsibility.

Jessica and Robert have two young children. They have $7,000 of qualified child care expenses and an AGI of $22,000 in 2016. What is their allowable child and dependent care credit?

Rachel and Rob are married and living together in California. Their income is: a.If Rachel files a separate return, how much income should she report? b.If Rob and Rachel live in Texas, what should Rachel report as income?

Which of the common deductions below are allowed for both regular tax purposes and for AMT purposes?

The alternative minimum tax must be paid only if the tentative minimum tax exceeds a taxpayer's regular tax liability.

What would reduce income taxes more: a $100 tax credit or a $100 tax deduction?

​Brad works at the local pizza shop as a delivery person. He is hoping to change to a position in the kitchen and takes a culinary course at the local community college for $1,400. Assuming he is eligible, Brad's lifetime learning credit is:

The child tax credit is $1,000 per qualifying child unless it is phased out due to higher levels of parental income.

In all community property states, income from community property is community income.

Which of the following is not a true statement regarding community property law?

New York is a community property state.

Amounts paid to a relative generally do not qualify as child care expenses.

The Individual Income Tax Return

Gross Income and Exclusions

Business Income and Expenses Part I

Business Income and Expenses Part II

Itemized Deductions and Other Incentives

Accounting Periods and Methods and Depreciation

Capital Gains and Losses

Withholding Estimated Payments and Payroll Taxes

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters

Margo and her spouse have health insurance for the entire year through the state health care exchange. Margo will need to pay her spouse's individual shared responsibility.

Brad works at the local pizza shop as a delivery person. He is hoping to change to a position in the kitchen and takes a culinary course at the local community college for $1,400. Assuming he is eligible, Brad's lifetime learning credit is: