Question 1

Unearned income of a 16-year-old child may be taxed at his or her parents' income tax rate.

Accepted Answer

A) True 
 B)False

Question 2

For all taxpayers, except those married filing separately, the individual alternative minimum tax rate for 2014 is 26 percent on the first $182,500 of income and 28 percent on income above $182,500.

Accepted Answer

A) True 
 B)False

Question 3

For 2014, Wilson and Virginia Todd qualify for the earned income credit. They 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 $7,200 and Virginia has no earned income. Their adjusted gross income for 2014 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 2014 is $16,500.

Accepted Answer

The answer of For 2014, Wilson and Virginia Todd qualify...

Question 4

Married taxpayers must file a joint tax return to claim the child and dependent care credit.

Accepted Answer

A) True 
 B)False

Question 5

New York is a community property state.

Accepted Answer

A) True 
 B)False

Question 6

​Phillip and Naydeen Rivers are married with two dependent children. The family has household income of $35,325 in 2014. They paid $11,000 for health care for the year. A designated silver plan would have cost $9,800. What is the Rivers' premium tax credit?

Accepted Answer

A) ​$0 
B) ​$1,413 
C) ​$8,387 
D) ​$9,587 
E) ​$9,800 
A) ​$0 
B) ​$1,413 
C) ​$8,387 
D) ​$9,587 
E) ​$9,800

Question 7

Assume Alan's parents make gifts of $10,000 to him every year starting at age one, and that Alan's parents are in the 35 percent income tax bracket, and that Alan is now 15 years old and has $11,700 of interest income for 2014.
​
a. Calculate the tax on Alan's interest income.
b. Explain why the "kiddie tax" rules are in the law.

Accepted Answer

a. Alan's tax will be $0 on the first $1

Question 8

To be eligible for the earned income credit for 2014, a taxpayer must have a "qualifying child."

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

The American Opportunity credit covers t

Question 10

List at least two AMT preferences and/or adjustments and show the simplified formula for calculating AMT. Do not include dollar exemption amounts or the tax rate schedule.

Accepted Answer

(1) Adjustments and preferences would in

Question 11

In 2014, Brady purchases a 2014 Nissan Leaf electric vehicle for his personal use. He is eligible to claim a credit of $7,500. He is in the 35 percent marginal tax bracket and his regular
tax liability before credits is $14,800. What is the tax benefit Brady realizes from this purchase?

Accepted Answer

$7,500. The $7,500 c

Question 12

Edward has business operations in Country F and Country G. He pays tax to Country F of $12,000 on $30,000 of income and pays tax to Country G of $4,000 on $10,000 of income. In addition to the income from Country F and Country G, Edward has $100,000 of income from U.S. sources and a total U.S. tax liability, before the foreign tax credit, of $42,000.
​
What amount of foreign tax credit may Edward claim on his U.S. tax return?

Accepted Answer

The answer of Edward has business operations in Country F...

Question 13

Martin and Rachel are married and have a 3-year-old child. Martin is going to medical school full-time for 12 months of the year and Rachel earns $45,000. Their child is in day care so Martin can go to school while Rachel is at work. The cost of their day care is $10,000. What is their child and dependent care credit? Please show your calculations and explain.

Accepted Answer

$600. Martin is credited with $250 a mon

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Net unearned income of certain minor children is taxed at their parents' tax rates.

Accepted Answer

A) True 
 B)False

Question 16

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?SalaryDividends
b.If they live in California (a community property state), what income should Patricia show on her separate return?SalaryDividends

Accepted Answer

The answer of Patricia and Cliff are married but file...

Question 17

Which of the following tax credits is not available for the 2014 tax year?

Accepted Answer

A) Foreign tax credits 
B) Earned income credit 
C) Adoption credit 
D) Child and dependent care credit 
E) All of the above are available credits 
A) Foreign tax credits 
B) Earned income credit 
C) Adoption credit 
D) Child and dependent care credit 
E) All of the above are available credits

Question 18

The foreign tax credit applies only to foreign corporations.

Accepted Answer

A) True 
 B)False

Unearned income of a 16-year-old child may be taxed at his or her parents' income tax rate.

For all taxpayers, except those married filing separately, the individual alternative minimum tax rate for 2014 is 26 percent on the first $182,500 of income and 28 percent on income above $182,500.

Married taxpayers must file a joint tax return to claim the child and dependent care credit.

New York is a community property state.

Phillip and Naydeen Rivers are married with two dependent children. The family has household income of $35,325 in 2014. They paid $11,000 for health care for the year. A designated silver plan would have cost $9,800. What is the Rivers' premium tax credit?

To be eligible for the earned income credit for 2014, a taxpayer must have a "qualifying child."

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

List at least two AMT preferences and/or adjustments and show the simplified formula for calculating AMT. Do not include dollar exemption amounts or the tax rate schedule.

In 2014, Brady purchases a 2014 Nissan Leaf electric vehicle for his personal use. He is eligible to claim a credit of $7,500. He is in the 35 percent marginal tax bracket and his regular tax liability before credits is $14,800. What is the tax benefit Brady realizes from this purchase?

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

Net unearned income of certain minor children is taxed at their parents' tax rates.

Which of the following tax credits is not available for the 2014 tax year?

The foreign tax credit applies only to foreign corporations.

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

Unearned income of a 16-year-old child may be taxed at his or her parents' income tax rate.

For all taxpayers, except those married filing separately, the individual alternative minimum tax rate for 2014 is 26 percent on the first $182,500 of income and 28 percent on income above $182,500.

Married taxpayers must file a joint tax return to claim the child and dependent care credit.

New York is a community property state.

​Phillip and Naydeen Rivers are married with two dependent children. The family has household income of $35,325 in 2014. They paid $11,000 for health care for the year. A designated silver plan would have cost $9,800. What is the Rivers' premium tax credit?

To be eligible for the earned income credit for 2014, a taxpayer must have a "qualifying child."

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

List at least two AMT preferences and/or adjustments and show the simplified formula for calculating AMT. Do not include dollar exemption amounts or the tax rate schedule.

In 2014, Brady purchases a 2014 Nissan Leaf electric vehicle for his personal use. He is eligible to claim a credit of $7,500. He is in the 35 percent marginal tax bracket and his regular tax liability before credits is $14,800. What is the tax benefit Brady realizes from this purchase?

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

Net unearned income of certain minor children is taxed at their parents' tax rates.

Which of the following tax credits is not available for the 2014 tax year?

The foreign tax credit applies only to foreign corporations.

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

Phillip and Naydeen Rivers are married with two dependent children. The family has household income of $35,325 in 2014. They paid $11,000 for health care for the year. A designated silver plan would have cost $9,800. What is the Rivers' premium tax credit?