Question 1

Which of the following statements concerning tax credits is true?

Accepted Answer

A)  The tax benefit a taxpayer receives from a credit depends on the taxpayer's marginal tax rate. 
B)  Refundable tax credits are limited to a taxpayer's gross tax liability. 
C)  Tax credits are generally more beneficial than tax deductions. 
D)  None of the these is a true statement. 
A)  The tax benefit a taxpayer receives from a credit depends on the taxpayer's marginal tax rate. 
B)  Refundable tax credits are limited to a taxpayer's gross tax liability. 
C)  Tax credits are generally more beneficial than tax deductions. 
D)  None of the these is a true statement.

Question 2

Harrison received a qualified dividend. Without knowing any additional facts, which of the following statements is true regarding the rate at which the dividend will be taxed to Harrison?

Accepted Answer

A)  The dividend will be taxed at a 15% tax rate. 
B)  The dividend will be taxed at a 20% tax rate. 
C)  The entire dividend will be taxed at either 15% or the entire dividend will be taxed at 20% depending on Harrison's marginal ordinary income tax rate. 
D)  None of the choices are correct. 
A)  The dividend will be taxed at a 15% tax rate. 
B)  The dividend will be taxed at a 20% tax rate. 
C)  The entire dividend will be taxed at either 15% or the entire dividend will be taxed at 20% depending on Harrison's marginal ordinary income tax rate. 
D)  None of the choices are correct.

Question 3

Akiko and Hitachi (married filing jointly for 2018) are both educators. They attended a conference to further their job-related skills. Tuition for the conference was $2,000 for each person. Their AGI was $120,000. How much lifetime learning credit can they claim?

Accepted Answer

$560
Answe

Question 4

The tax rate schedules are set up to tax lower levels of income at higher tax rates than higher levels of income.

Accepted Answer

A) True 
 B)False

Question 5

Persephone has a regular tax liability of $12,475 and a tentative minimum tax of $11,500. Given just this information, what is her alternative minimum tax liability for the year?

Accepted Answer

A)  $0 
B)  $11,500 
C)  $975 
D)  $12,475 
A)  $0 
B)  $11,500 
C)  $975 
D)  $12,475

Question 6

Taxpayers are not required to file a tax return unless their gross income passes a certain threshold. This threshold is generally the ________.

Accepted Answer

A)  applicable standard deduction amount 
B)  AMT exemption amount 
C)  twice the applicable standard deduction amount 
D)  applicable standard deduction amount plus the personal exemption amount 
A)  applicable standard deduction amount 
B)  AMT exemption amount 
C)  twice the applicable standard deduction amount 
D)  applicable standard deduction amount plus the personal exemption amount

Question 7

Apollo is single and his AMT base is $100,250. This amount includes $500 of qualified dividends (the dividends were taxed at 15% in determining the regular tax liability). What is Apollo's tentative minimum tax?

Accepted Answer

$26,010
An

Question 8

Maria and Tony are married. They are preparing to file their 2018 tax return. If they were to file as single taxpayers, Maria and Tony would report $10,000 and $70,000 of taxable income, respectively. On their joint tax return, their taxable income is $80,000. How much of a marriage penalty or benefit will Maria and Tony experience in 2018? (Use Tax Rate Schedule.)

Accepted Answer

Filing jointly will result in a "marriag

Question 9

In 2018, John (52 years old) files as a head of household with one 18-year old dependent (qualifying) child. John is eligible to claim a $700 American opportunity credit for the year. John did not have any taxes withheld by his employer during the year and he did not make any estimated tax payments. After taking credits into account, what is the amount of John's taxes payable or refund assuming that his AGI is $26,000 (all from salary) and his taxable income is $8,000?

Accepted Answer

Refund of $2,288.
Answer compu

Question 10

Self-employed taxpayers are allowed to deduct the full amount of the self-employment taxes they pay.

Accepted Answer

A) True 
 B)False

Question 11

The AMT exemption amount is phased-out for high income taxpayers.

Accepted Answer

A) True 
 B)False

Question 12

If a married couple has one primary breadwinner, filing a joint return will likely result in a marriage penalty.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements regarding FICA taxes is true?

Accepted Answer

A)  Low income employees are not required to pay FICA taxes. 
B)  An employee who has two different employers during the year may be entitled to a tax credit for overpaid FICA taxes. 
C)  The maximum amount of Medicare taxes an employee is required to pay is capped each year but the maximum amount of Social Security taxes is not. 
D)  The wage base limit for Social Security taxes depends on the taxpayer's filing status. 
A)  Low income employees are not required to pay FICA taxes. 
B)  An employee who has two different employers during the year may be entitled to a tax credit for overpaid FICA taxes. 
C)  The maximum amount of Medicare taxes an employee is required to pay is capped each year but the maximum amount of Social Security taxes is not. 
D)  The wage base limit for Social Security taxes depends on the taxpayer's filing status.

Question 14

Which of the following statements concerning a comparison between employees and independent contractors is most accurate?

Accepted Answer

A)  Employees and independent contractors deduct business expenses as miscellaneous itemized deductions. 
B)  While employees are typically eligible for nontaxable fringe benefits from employers, independent contractors are not. 
C)  Employers are required to withhold either FICA or self-employment taxes from compensation paid to employees and compensation paid to independent contractors. 
D)  Employers typically withhold federal income taxes from compensation paid to employees and to independent contractors. 
A)  Employees and independent contractors deduct business expenses as miscellaneous itemized deductions. 
B)  While employees are typically eligible for nontaxable fringe benefits from employers, independent contractors are not. 
C)  Employers are required to withhold either FICA or self-employment taxes from compensation paid to employees and compensation paid to independent contractors. 
D)  Employers typically withhold federal income taxes from compensation paid to employees and to independent contractors.

Which of the following statements concerning tax credits is true?

Harrison received a qualified dividend. Without knowing any additional facts, which of the following statements is true regarding the rate at which the dividend will be taxed to Harrison?

Akiko and Hitachi (married filing jointly for 2018) are both educators. They attended a conference to further their job-related skills. Tuition for the conference was $2,000 for each person. Their AGI was $120,000. How much lifetime learning credit can they claim?

The tax rate schedules are set up to tax lower levels of income at higher tax rates than higher levels of income.

Persephone has a regular tax liability of $12,475 and a tentative minimum tax of $11,500. Given just this information, what is her alternative minimum tax liability for the year?

Taxpayers are not required to file a tax return unless their gross income passes a certain threshold. This threshold is generally the ________.

Apollo is single and his AMT base is $100,250. This amount includes $500 of qualified dividends (the dividends were taxed at 15% in determining the regular tax liability). What is Apollo's tentative minimum tax?

Self-employed taxpayers are allowed to deduct the full amount of the self-employment taxes they pay.

The AMT exemption amount is phased-out for high income taxpayers.

If a married couple has one primary breadwinner, filing a joint return will likely result in a marriage penalty.

Which of the following statements regarding FICA taxes is true?

Which of the following statements concerning a comparison between employees and independent contractors is most accurate?

An Introduction to Tax

Tax Compliance, the IRS, and Tax Authorities

Tax Planning Strategies and Related Limitations

Individual Income Tax Overview, Dependents, and Filing Status

Gross Income and Exclusions

Individual Deductions

Investments

Business Income, Deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Compensation

Retirement Savings and Deferred Compensation

Tax Consequences of Home Ownership

Entities Overview

Corporate Operations

Accounting for Income Taxes

Corporate Taxation: Nonliquidating Distributions

Corporate Formation, Reorganization, and Liquidation

Forming and Operating Partnerships

Dispositions of Partnership Interests and Partnership Distributions

S Corporations

State and Local Taxes

The Us Taxation of Multinational Transactions

Transfer Taxes and Wealth Planning

Filters

Exam 8: Individual Income Tax Computation and Tax Credits

Which of the following statements concerning tax credits is true?

Harrison received a qualified dividend. Without knowing any additional facts, which of the following statements is true regarding the rate at which the dividend will be taxed to Harrison?

Akiko and Hitachi (married filing jointly for 2018) are both educators. They attended a conference to further their job-related skills. Tuition for the conference was $2,000 for each person. Their AGI was $120,000. How much lifetime learning credit can they claim?

The tax rate schedules are set up to tax lower levels of income at higher tax rates than higher levels of income.

Persephone has a regular tax liability of $12,475 and a tentative minimum tax of $11,500. Given just this information, what is her alternative minimum tax liability for the year?

Taxpayers are not required to file a tax return unless their gross income passes a certain threshold. This threshold is generally the ________.

Apollo is single and his AMT base is $100,250. This amount includes $500 of qualified dividends (the dividends were taxed at 15% in determining the regular tax liability). What is Apollo's tentative minimum tax?

Self-employed taxpayers are allowed to deduct the full amount of the self-employment taxes they pay.

The AMT exemption amount is phased-out for high income taxpayers.

If a married couple has one primary breadwinner, filing a joint return will likely result in a marriage penalty.

Which of the following statements regarding FICA taxes is true?

Which of the following statements concerning a comparison between employees and independent contractors is most accurate?

An Introduction to Tax

Tax Compliance, the IRS, and Tax Authorities

Tax Planning Strategies and Related Limitations

Individual Income Tax Overview, Dependents, and Filing Status

Gross Income and Exclusions

Individual Deductions

Investments

Business Income, Deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Compensation

Retirement Savings and Deferred Compensation

Tax Consequences of Home Ownership

Entities Overview

Corporate Operations

Accounting for Income Taxes

Corporate Taxation: Nonliquidating Distributions

Corporate Formation, Reorganization, and Liquidation

Forming and Operating Partnerships

Dispositions of Partnership Interests and Partnership Distributions

S Corporations

State and Local Taxes

The Us Taxation of Multinational Transactions

Transfer Taxes and Wealth Planning

Filters