Question 1

Which of the common deductions below are allowed for regular tax purposes but not for AMT purposes?

Accepted Answer

A) The interest deduction for up to $100,000 of home equity debt which is not used to purchase or improve part of a principal residence 
B) Cash charitable contributions 
C) Moving expenses 
D) IRAs 
A) The interest deduction for up to $100,000 of home equity debt which is not used to purchase or improve part of a principal residence 
B) Cash charitable contributions 
C) Moving expenses 
D) IRAs

Question 2

Taxpayer Q has net taxable income of $30,000 from Country Y which imposes a 40 percent income tax.In addition to the income from Country Y,taxpayer Q has net taxable income from U.S.sources of $120,000,and U.S.tax liability,before the foreign tax credit,of $41,750.What is the amount of Q's foreign tax credit?

Accepted Answer

A) $2,400 
B) $8,350 
C) $12,000 
D) $30,000 
E) None of the above 
A) $2,400 
B) $8,350 
C) $12,000 
D) $30,000 
E) None of the above

Question 3

Clark,a widower,maintains a household for himself and his two dependent preschool children.For the year ended December 31,2017,Clark earned a salary of $32,000.He paid $3,600 to a housekeeper to care for his children in his home,and also paid $1,500 to a kiddie play camp for child care.He had no other income or expenses during 2017.How much can Clark claim as a child and dependent care credit in 2017?

Accepted Answer

A) $910 
B) $1,300 
C) $1,326 
D) $5,100 
E) None of the above 
A) $910 
B) $1,300 
C) $1,326 
D) $5,100 
E) None of the above

Question 4

Alice is a single taxpayer with no dependents that has AGI of $9,000 in 2017.Alice is required to carry minimum essential coverage in 2017.

Accepted Answer

A) True 
 B)False

Question 5

New York is a community property state.

Accepted Answer

A) True 
 B)False

Question 6

​Avery is a single 26 year old graduate student at State University with no children.She is a US citizen with a valid Social Security number.Her only income is from a part-time job on campus from which she earned wages of $6,000.Avery qualifies for the earned income credit.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

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

Question 8

A tax credit is allowed for qualified adoption expenses paid by taxpayers:

Accepted Answer

A) And an additional credit is allowed for qualified adoption expenses paid for by taxpayers' employers. 
B) And an income exclusion is allowed for qualified adoption expenses paid for by taxpayers' employers. 
C) And is available each year qualifying expenses are incurred. 
D) And is not subject to a phase-out based on adjusted gross income. 
A) And an additional credit is allowed for qualified adoption expenses paid for by taxpayers' employers. 
B) And an income exclusion is allowed for qualified adoption expenses paid for by taxpayers' employers. 
C) And is available each year qualifying expenses are incurred. 
D) And is not subject to a phase-out based on adjusted gross income.

Question 9

Calculate the child tax credits for the following taxpayers.Please show your work.
a.Ninfa is a single mother with 8-year-old and 9-year-old dependent sons and has $50,000 of AGI.
b.Sharon and Mark have one dependent 2-year-old child and $126,300 of AGI.
c.Carol is single and has one dependent 18-year-old son and $21,000 of AGI.

Accepted Answer

a.$2,000.Ninfa's income is less than the

Question 10

Which of the following is not an adjustment or tax preference item for 2017 for purposes of the individual alternative minimum tax (AMT)?

Accepted Answer

A) State income tax refunds 
B) Certain passive losses 
C) Miscellaneous itemized deductions 
D) Cash charitable contributions 
E) All of the above are adjustment or tax preference items for AMT. 
A) State income tax refunds 
B) Certain passive losses 
C) Miscellaneous itemized deductions 
D) Cash charitable contributions 
E) All of the above are adjustment or tax preference items for AMT.

Question 11

In 2017,which of the following children would have income taxed at their parents' rates?

Accepted Answer

A) A 13-year-old child with salary income of $12,000 
B) A 12-year-old child with net unearned income of $2,000 
C) A non-student,19-year-old child with net unearned income of $12,000 
D) A 9-year-old child with salary income of $1,000 
E) All of the above 
A) A 13-year-old child with salary income of $12,000 
B) A 12-year-old child with net unearned income of $2,000 
C) A non-student,19-year-old child with net unearned income of $12,000 
D) A 9-year-old child with salary income of $1,000 
E) All of the above

Question 12

​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.

Accepted Answer

A) True 
 B)False

Question 13

William and Irma have two children,Tom,age 13,and Sara,age 8.For 2017,Tom and Sara have a total parental tax of $5,600.Tom's net unearned income is $5,000,while Sara's net unearned income is $15,000.How much of the parental tax would be allocated to Sara on her 2017 tax return?

Accepted Answer

A) $0 
B) $4,200 
C) $2,800 
D) $5,600 
E) None of the above 
A) $0 
B) $4,200 
C) $2,800 
D) $5,600 
E) None of the above

Question 14

Maxine is a 29-year-old single mother.Her tax liability before any credits is $1,000 and her earned income credit is $2,500.What is the amount of Maxine's refund? Explain.

Accepted Answer

$1,500.The full earned income

Question 15

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

Accepted Answer

Tax credits reduce taxes more than deduc

Question 16

Taxpayers are allowed two tax breaks for adoption expenses.They are allowed:

Accepted Answer

A) ​ ​
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B) ​ ​
  ​ 
C) ​ ​
  ​ 
D) ​ ​
  ​ 
A) ​ ​
  ​ 
B) ​ ​
  ​ 
C) ​ ​
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D) ​ ​
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Question 17

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.

Accepted Answer

The American Opportunity tax credit cove

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

A taxpayer with earned income of $50,000 is not eligible to claim the credit for child and dependent care expenses.

Accepted Answer

A) True 
 B)False

Question 20

To be eligible for the earned income credit for 2017,a taxpayer must have a "qualifying child."

Accepted Answer

A) True 
 B)False

Which of the common deductions below are allowed for regular tax purposes but not for AMT purposes?

Alice is a single taxpayer with no dependents that has AGI of $9,000 in 2017.Alice is required to carry minimum essential coverage in 2017.

New York is a community property state.

Avery is a single 26 year old graduate student at State University with no children.She is a US citizen with a valid Social Security number.Her only income is from a part-time job on campus from which she earned wages of $6,000.Avery qualifies for the earned income credit.

A tax credit is allowed for qualified adoption expenses paid by taxpayers:

Which of the following is not an adjustment or tax preference item for 2017 for purposes of the individual alternative minimum tax (AMT)?

In 2017,which of the following children would have income taxed at their parents' rates?

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.

William and Irma have two children,Tom,age 13,and Sara,age 8.For 2017,Tom and Sara have a total parental tax of $5,600.Tom's net unearned income is $5,000,while Sara's net unearned income is $15,000.How much of the parental tax would be allocated to Sara on her 2017 tax return?

Maxine is a 29-year-old single mother.Her tax liability before any credits is $1,000 and her earned income credit is $2,500.What is the amount of Maxine's refund? Explain.

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

Taxpayers are allowed two tax breaks for adoption expenses.They are allowed:

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.

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

A taxpayer with earned income of $50,000 is not eligible to claim the credit for child and dependent care expenses.

To be eligible for the earned income credit for 2017,a taxpayer must have a "qualifying child."

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

Which of the common deductions below are allowed for regular tax purposes but not for AMT purposes?

Alice is a single taxpayer with no dependents that has AGI of $9,000 in 2017.Alice is required to carry minimum essential coverage in 2017.

New York is a community property state.

​Avery is a single 26 year old graduate student at State University with no children.She is a US citizen with a valid Social Security number.Her only income is from a part-time job on campus from which she earned wages of $6,000.Avery qualifies for the earned income credit.

A tax credit is allowed for qualified adoption expenses paid by taxpayers:

Which of the following is not an adjustment or tax preference item for 2017 for purposes of the individual alternative minimum tax (AMT)?

In 2017,which of the following children would have income taxed at their parents' rates?

​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.

William and Irma have two children,Tom,age 13,and Sara,age 8.For 2017,Tom and Sara have a total parental tax of $5,600.Tom's net unearned income is $5,000,while Sara's net unearned income is $15,000.How much of the parental tax would be allocated to Sara on her 2017 tax return?

Maxine is a 29-year-old single mother.Her tax liability before any credits is $1,000 and her earned income credit is $2,500.What is the amount of Maxine's refund? Explain.

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

Taxpayers are allowed two tax breaks for adoption expenses.They are allowed:

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.

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

A taxpayer with earned income of $50,000 is not eligible to claim the credit for child and dependent care expenses.

To be eligible for the earned income credit for 2017,a taxpayer must have a "qualifying child."

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

Avery is a single 26 year old graduate student at State University with no children.She is a US citizen with a valid Social Security number.Her only income is from a part-time job on campus from which she earned wages of $6,000.Avery qualifies for the earned income credit.

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.