Question 1

For 2017,which of the following is a tax adjustment or tax preference item for the individual AMT computation?

Accepted Answer

A) Deduction of charitable contribution of tangible personal property 
B) IRA contribution deduction 
C) Miscellaneous itemized deductions 
D) Moving expense deduction 
E) None of the above 
A) Deduction of charitable contribution of tangible personal property 
B) IRA contribution deduction 
C) Miscellaneous itemized deductions 
D) Moving expense deduction 
E) None of the above

Question 2

Molly and Steve are married and live in Texas.Molly earns a salary of $50,000 and Steve owns a rental property that gives him $35,000 of income.If they filed separate tax returns,what amount of income would Steve report?

Accepted Answer

A) $35,000 
B) $85,000 
C) $42,500 
D) $60,000 
E) None of the above 
A) $35,000 
B) $85,000 
C) $42,500 
D) $60,000 
E) None of the above

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Which of the following itemized deductions may not be deducted in computing the individual alternative minimum tax?

Accepted Answer

A) Qualified home mortgage interest 
B) State income taxes 
C) Medical expenses (limited to 10 percent of AGI) 
D) Charitable deductions 
E) All of the above 
A) Qualified home mortgage interest 
B) State income taxes 
C) Medical expenses (limited to 10 percent of AGI) 
D) Charitable deductions 
E) All of the above

Question 5

Bob and Carol file their tax returns using the married filing jointly status.Their AGI is $132,500.They have two children,ages 11 and 7.How much child tax credit can Bob and Carol claim for their two children?

Accepted Answer

A) $0 
B) $850 
C) $875 
D) $1,150 
E) None of the above is correct. 
A) $0 
B) $850 
C) $875 
D) $1,150 
E) None of the above is correct.

Question 6

What is the maximum investment income a taxpayer is allowed to have and still be allowed to claim the earned income credit? Why is there an earned income credit in the law?

Accepted Answer

A taxpayer may have a maximum of $3,450

Question 7

Vicky is a single,21 year-old,full-time student who purchased health care through the state health care exchange for the full year.Her part-time job pays her $12,000 in 2017.She files her own tax return but is claimed as a dependent by her parents.Vicky is eligible for the premium tax credit.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following types of income is not subject to the "kiddie tax?"

Accepted Answer

A) Interest income 
B) Dividend income 
C) Salary income 
D) Capital gains on stock sales 
E) All of the above are subject to the "kiddie tax" 
A) Interest income 
B) Dividend income 
C) Salary income 
D) Capital gains on stock sales 
E) All of the above are subject to the "kiddie tax"

Question 9

Steve goes to Tri-State University and pays $40,000 in tuition.Steve works a part-time job to pay for his schooling and has an AGI of $17,000.How much is his American Opportunity tax credit?

Accepted Answer

A) $2,000 
B) $2,500 
C) $4,000 
D) $1,000 
E) He does not qualify for the American Opportunity tax credit. 
A) $2,000 
B) $2,500 
C) $4,000 
D) $1,000 
E) He does not qualify for the American Opportunity tax credit.

Question 10

​Household income for purpose of the individual shared responsibility payment includes all of the following except:

Accepted Answer

A) ​AGI of the taxpayer 
B) ​AGI of the taxpayer's dependents 
C) ​Any tax-exempt income 
D) ​Nontaxable Social Security benefits 
E) ​All of the above are included in household income 
A) ​AGI of the taxpayer 
B) ​AGI of the taxpayer's dependents 
C) ​Any tax-exempt income 
D) ​Nontaxable Social Security benefits 
E) ​All of the above are included in household income

Question 11

For 2017,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 2017 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 2017 is $16,500.​

Accepted Answer

The answer of For 2017,Wilson and Virginia Todd qualify for...

Question 12

Which one of the following conditions must be satisfied in order for a married taxpayer to be taxed on only his income if he resides in a community property state?

Accepted Answer

A) The husband and wife must live apart for the entire year. 
B) The husband and wife must live apart for more than half the year. 
C) The husband and wife must be in the process of filing for a divorce. 
D) Only one of the spouses can be working and earning an income. 
E) None of the above. 
A) The husband and wife must live apart for the entire year. 
B) The husband and wife must live apart for more than half the year. 
C) The husband and wife must be in the process of filing for a divorce. 
D) Only one of the spouses can be working and earning an income. 
E) None of the above.

Question 13

For 2017,Beatrice qualifies for the earned income credit.She has one daughter who is 7 years old.Her earned income and adjusted gross income for 2017 are $6,200.
a.Using the EIC tables,calculate the amount of her 2017 earned income credit.
b.​
Calculate the amount of Beatrice's 2017 earned income credit assuming her earned income for 2017 is $8,500 and her adjusted gross income is $10,000.

Accepted Answer

The answer of For 2017,Beatrice qualifies for the earned income...

Question 14

All taxpayers are required to have minimum essential health coverage.​

Accepted Answer

A) True 
 B)False

Question 15

Richard has $30,000 of income from a country that imposes a 40-percent income tax and $30,000 of income from a country that imposes a 34- percent income tax.In addition to the foreign income,he has taxable income from U.S.sources of $120,000 and a U.S.tax liability,before credits,of $45,575.The amount of Richard's foreign tax credit is:

Accepted Answer

[($30,000 + $30,000)/ $180,000

Question 16

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

Accepted Answer

A) The standard deduction 
B) Personal and dependency exemptions 
C) State income taxes,property taxes,and all other taxes deducted on Schedule A 
D) Mortgage interest from the acquisition of a residence costing less than $1 million 
E) Miscellaneous itemized deductions taken on Schedule A 
A) The standard deduction 
B) Personal and dependency exemptions 
C) State income taxes,property taxes,and all other taxes deducted on Schedule A 
D) Mortgage interest from the acquisition of a residence costing less than $1 million 
E) Miscellaneous itemized deductions taken on Schedule A

Question 17

The use of the earned income credit could result in a taxpayer receiving a refund even though he or she has not paid any income taxes.

Accepted Answer

A) True 
 B)False

Question 18

Lee and Pat are married taxpayers living in Louisiana.Lee earns wages of $40,000 and has $5,000 of dividend income from separate property.Lee and Pat have interest income from community property of $10,000.If Lee and Pat file separate income tax returns,what amount of income must be included on Lee's separate tax return?

Accepted Answer

A) $50,000 
B) $30,000 
C) $27,500 
D) $25,000 
E) None of the above 
A) $50,000 
B) $30,000 
C) $27,500 
D) $25,000 
E) None of the above

Question 19

For 2017,the maximum amount of expenses that qualify for the child and dependent care credit is the same for three dependents as it is for two dependents.

Accepted Answer

A) True 
 B)False

Question 20

Denise is divorced and files a single tax return claiming her two children,ages 7 and 9,as dependents.Her AGI for 2017 is $81,500.Denise's child tax credit for 2017 is:

Accepted Answer

A) $0 
B) $350 
C) $1,000 
D) $1,650 
E) $2,000 
A) $0 
B) $350 
C) $1,000 
D) $1,650 
E) $2,000

For 2017,which of the following is a tax adjustment or tax preference item for the individual AMT computation?

Molly and Steve are married and live in Texas.Molly earns a salary of $50,000 and Steve owns a rental property that gives him $35,000 of income.If they filed separate tax returns,what amount of income would Steve report?

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

Which of the following itemized deductions may not be deducted in computing the individual alternative minimum tax?

Bob and Carol file their tax returns using the married filing jointly status.Their AGI is $132,500.They have two children,ages 11 and 7.How much child tax credit can Bob and Carol claim for their two children?

What is the maximum investment income a taxpayer is allowed to have and still be allowed to claim the earned income credit? Why is there an earned income credit in the law?

Vicky is a single,21 year-old,full-time student who purchased health care through the state health care exchange for the full year.Her part-time job pays her $12,000 in 2017.She files her own tax return but is claimed as a dependent by her parents.Vicky is eligible for the premium tax credit.

Which of the following types of income is not subject to the "kiddie tax?"

Steve goes to Tri-State University and pays $40,000 in tuition.Steve works a part-time job to pay for his schooling and has an AGI of $17,000.How much is his American Opportunity tax credit?

Household income for purpose of the individual shared responsibility payment includes all of the following except:

Which one of the following conditions must be satisfied in order for a married taxpayer to be taxed on only his income if he resides in a community property state?

All taxpayers are required to have minimum essential health coverage.

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

The use of the earned income credit could result in a taxpayer receiving a refund even though he or she has not paid any income taxes.

For 2017,the maximum amount of expenses that qualify for the child and dependent care credit is the same for three dependents as it is for two dependents.

Denise is divorced and files a single tax return claiming her two children,ages 7 and 9,as dependents.Her AGI for 2017 is $81,500.Denise's child tax credit for 2017 is:

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

For 2017,which of the following is a tax adjustment or tax preference item for the individual AMT computation?

Molly and Steve are married and live in Texas.Molly earns a salary of $50,000 and Steve owns a rental property that gives him $35,000 of income.If they filed separate tax returns,what amount of income would Steve report?

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

Which of the following itemized deductions may not be deducted in computing the individual alternative minimum tax?

Bob and Carol file their tax returns using the married filing jointly status.Their AGI is $132,500.They have two children,ages 11 and 7.How much child tax credit can Bob and Carol claim for their two children?

What is the maximum investment income a taxpayer is allowed to have and still be allowed to claim the earned income credit? Why is there an earned income credit in the law?

Vicky is a single,21 year-old,full-time student who purchased health care through the state health care exchange for the full year.Her part-time job pays her $12,000 in 2017.She files her own tax return but is claimed as a dependent by her parents.Vicky is eligible for the premium tax credit.

Which of the following types of income is not subject to the "kiddie tax?"

Steve goes to Tri-State University and pays $40,000 in tuition.Steve works a part-time job to pay for his schooling and has an AGI of $17,000.How much is his American Opportunity tax credit?

​Household income for purpose of the individual shared responsibility payment includes all of the following except:

Which one of the following conditions must be satisfied in order for a married taxpayer to be taxed on only his income if he resides in a community property state?

All taxpayers are required to have minimum essential health coverage.​

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

The use of the earned income credit could result in a taxpayer receiving a refund even though he or she has not paid any income taxes.

For 2017,the maximum amount of expenses that qualify for the child and dependent care credit is the same for three dependents as it is for two dependents.

Denise is divorced and files a single tax return claiming her two children,ages 7 and 9,as dependents.Her AGI for 2017 is $81,500.Denise's child tax credit for 2017 is:

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

Household income for purpose of the individual shared responsibility payment includes all of the following except:

All taxpayers are required to have minimum essential health coverage.