Question 1

Hal is enrolled for one class at a local community college;tuition cost him $190.Hal's AGI is $20,000.Hal can take a lifetime learning credit of:

Accepted Answer

A) $0 
B) $38 
C) $100 
D) $190 
E) $250 
A) $0 
B) $38 
C) $100 
D) $190 
E) $250

Question 2

In 2017,Alex has income from wages of $16,000,adjusted gross income of $18,000,and tax liability of $300 before the earned income credit.What is the amount of Alex's earned income credit for 2017,assuming he is single and his 5-year-old dependent son lives with him for the full year?

Accepted Answer

A) $0 
B) $1,000 
C) $3,373 
D) $3,400 
E) None of the above 
A) $0 
B) $1,000 
C) $3,373 
D) $3,400 
E) None of the above

Question 3

If the net unearned income of a minor child is to be taxed at the parents' tax rate,the parents may elect,under certain conditions,to include the child's gross income on their tax return.

Accepted Answer

A) True 
 B)False

Question 4

Jenny adopts a Vietnamese orphan.The adoption takes three years,two trips to Vietnam,and becomes final in 2017.She pays $10,000 in 2015,$5,000 in 2016,and $5,000 in 2017 of qualified adoption expenses.She has AGI of $150,000.
a.What is the adoption credit Jenny can claim in 2017?
b.How much credit could she claim if the adoption falls through and is never finalized?

Accepted Answer

a.Jenny can claim the maximum credit of

Question 5

In 2017,Brady purchases a 2017 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 cr

Question 6

Arthur is divorced with two dependent children,ages 8 and 13.His adjusted gross income is $28,000,and he incurs qualified child care expenses of $6,000,$3,000 for each child.
a.What is the amount of Arthur's qualified child care expenses after any limitation?
b.Calculate the amount of Arthur's child and dependent care credit.

Accepted Answer

The answer of Arthur is divorced with two dependent children,ages...

Question 7

John graduates from high school in 2017 and enrolls in a private college in the fall.His parents pay $10,000 for his tuition and fees.
a.Assuming John's parents have AGI of $46,000,what is the American Opportunity credit they can claim for John? Explain.
b.Assuming John's parents have AGI of $175,000,what is the American Opportunity credit they can claim for John? Explain.

Accepted Answer

a.$2,500.John's parents qualify for the

Question 8

Jim has foreign income.He earns $26,000 from Country A which taxes the income at a 20 percent rate.He also has income from Country B of $18,000.Country B taxes the $18,000 at a 10 percent rate.His U.S.taxable income is $90,000,which includes the foreign income.His U.S.income tax on all sources of income before credits is $19,000.What is his foreign tax credit?

Accepted Answer

A) $6,500 
B) $7,000 
C) $9,289 
D) $19,000 
E) Jim does not qualify for a foreign tax credit. 
A) $6,500 
B) $7,000 
C) $9,289 
D) $19,000 
E) Jim does not qualify for a foreign tax credit.

Question 9

John and Susan file a joint income tax return for 2017.They have two dependent children,students,ages 19 and 20.John earns wages of $108,000 and they have interest income of $2,000.In 2017,they settle a state tax audit and pay $50,000 for back state taxes due to an overly aggressive tax-sheltered investment.
Their other expenses for the year include:
​
   
a.Calculate John and Susan's 2017 regular tax and tentative minimum tax on the schedule provided.​
​
   
b.How much is the total tax liability shown on John and Susan's 2017 Form 1040?

Accepted Answer

The answer of John and Susan file a joint income...

Question 10

Marion has an 11-year-old daughter.Please calculate her child and dependent care credit under these two alternatives:
​
a.Marion pays $4,000 a year in day care costs.Her salary is $32,000.
b.Marion pays $8,000 a year in day care costs.Her salary is $80,000.

Accepted Answer

a.$780,26% of $3,000

Question 11

Carla and Bob finalized an adoption in 2017.Their adoption fees totaled $9,500.They have AGI of $207,540 for 2017.What is their adoption credit?

Accepted Answer

A) $8,075 
B) $8,550 
C) $9,500 
D) $13,400 
A) $8,075 
B) $8,550 
C) $9,500 
D) $13,400

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Sheila and Jerry are married taxpayers with $600 of foreign tax withholding from the dividends in a mutual fund.They have enough foreign income from the mutual fund to claim the full $600 as a foreign tax credit.They are in the 35% tax bracket and they itemize deductions.Should they claim the foreign tax credit on the Form 1040 or a deduction for foreign taxes on their Schedule A? Why?

Accepted Answer

Sheila and Jerry should claim the $600 a

Question 14

Although the alternative minimum tax (AMT)is meant to prevent high-income taxpayers from using tax shelters to avoid paying tax,why might married taxpayers with several children and jobs resulting in high unreimbursed employee business expenses find themselves paying AMT?

Accepted Answer

To compute the AMT,deductions for person

Question 15

Most states are community property states.

Accepted Answer

A) True 
 B)False

Question 16

The total expenses that can be taken as a credit for all tax years for adoption of a child without "special needs" is $10,000.

Accepted Answer

A) True 
 B)False

Question 17

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?

Accepted Answer

a.50% of Rob's salary,$60,000,plus 50% o

Question 18

For the 2017 tax year,Sally,who is single,reported the following items of income: She maintains a household for herself and her 1-year-old son who qualifies as her dependent.What is the earned income credit available to her for 2017,using the tables?

Accepted Answer

A) $503 
B) $1,369 
C) $2,423 
D) $2,627 
E) None of the above 
A) $503 
B) $1,369 
C) $2,423 
D) $2,627 
E) None of the above

Question 19

The American Opportunity tax credit

Accepted Answer

A) Is 50 percent of the first $1,200 of tuition and fees paid and 100 percent of the next $1,200. 
B) Is available for 2 years of post-secondary education. 
C) Is fully refundable even if the credit exceeds the tax liability. 
D) Is available for qualifying expenses paid on behalf of the taxpayer and his or her spouse,in addition to those paid for dependents. 
A) Is 50 percent of the first $1,200 of tuition and fees paid and 100 percent of the next $1,200. 
B) Is available for 2 years of post-secondary education. 
C) Is fully refundable even if the credit exceeds the tax liability. 
D) Is available for qualifying expenses paid on behalf of the taxpayer and his or her spouse,in addition to those paid for dependents.

Question 20

​Which of the following is not a requirement to claim an earned income credit?

Accepted Answer

A) ​Social Security number 
B) ​At least one child claimed as a dependent 
C) ​At least $1 of earned income 
D) ​US citizenship or resident alien status 
A) ​Social Security number 
B) ​At least one child claimed as a dependent 
C) ​At least $1 of earned income 
D) ​US citizenship or resident alien status

Hal is enrolled for one class at a local community college;tuition cost him $190.Hal's AGI is $20,000.Hal can take a lifetime learning credit of:

In 2017,Alex has income from wages of $16,000,adjusted gross income of $18,000,and tax liability of $300 before the earned income credit.What is the amount of Alex's earned income credit for 2017,assuming he is single and his 5-year-old dependent son lives with him for the full year?

If the net unearned income of a minor child is to be taxed at the parents' tax rate,the parents may elect,under certain conditions,to include the child's gross income on their tax return.

In 2017,Brady purchases a 2017 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?

Marion has an 11-year-old daughter.Please calculate her child and dependent care credit under these two alternatives: a.Marion pays $4,000 a year in day care costs.Her salary is $32,000. b.Marion pays $8,000 a year in day care costs.Her salary is $80,000.

Carla and Bob finalized an adoption in 2017.Their adoption fees totaled $9,500.They have AGI of $207,540 for 2017.What is their adoption credit?

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

Although the alternative minimum tax (AMT)is meant to prevent high-income taxpayers from using tax shelters to avoid paying tax,why might married taxpayers with several children and jobs resulting in high unreimbursed employee business expenses find themselves paying AMT?

Most states are community property states.

The total expenses that can be taken as a credit for all tax years for adoption of a child without "special needs" is $10,000.

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?

For the 2017 tax year,Sally,who is single,reported the following items of income: She maintains a household for herself and her 1-year-old son who qualifies as her dependent.What is the earned income credit available to her for 2017,using the tables?

The American Opportunity tax credit

Which of the following is not a requirement to claim an earned income credit?

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

Hal is enrolled for one class at a local community college;tuition cost him $190.Hal's AGI is $20,000.Hal can take a lifetime learning credit of:

In 2017,Alex has income from wages of $16,000,adjusted gross income of $18,000,and tax liability of $300 before the earned income credit.What is the amount of Alex's earned income credit for 2017,assuming he is single and his 5-year-old dependent son lives with him for the full year?

If the net unearned income of a minor child is to be taxed at the parents' tax rate,the parents may elect,under certain conditions,to include the child's gross income on their tax return.

In 2017,Brady purchases a 2017 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?

Marion has an 11-year-old daughter.Please calculate her child and dependent care credit under these two alternatives: ​ a.Marion pays $4,000 a year in day care costs.Her salary is $32,000. b.Marion pays $8,000 a year in day care costs.Her salary is $80,000.

Carla and Bob finalized an adoption in 2017.Their adoption fees totaled $9,500.They have AGI of $207,540 for 2017.What is their adoption credit?

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

Although the alternative minimum tax (AMT)is meant to prevent high-income taxpayers from using tax shelters to avoid paying tax,why might married taxpayers with several children and jobs resulting in high unreimbursed employee business expenses find themselves paying AMT?

Most states are community property states.

The total expenses that can be taken as a credit for all tax years for adoption of a child without "special needs" is $10,000.

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?

For the 2017 tax year,Sally,who is single,reported the following items of income: She maintains a household for herself and her 1-year-old son who qualifies as her dependent.What is the earned income credit available to her for 2017,using the tables?

The American Opportunity tax credit

​Which of the following is not a requirement to claim an earned income credit?

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

Marion has an 11-year-old daughter.Please calculate her child and dependent care credit under these two alternatives: a.Marion pays $4,000 a year in day care costs.Her salary is $32,000. b.Marion pays $8,000 a year in day care costs.Her salary is $80,000.

Which of the following is not a requirement to claim an earned income credit?