FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 8: Individual Income Tax Computation and Tax Credits

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 71

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following is typical of taxpayers who are most likely affected by the AMT?

A) Pay high mortgage interest.
B) Pay high state income tax.
C) Pay high property taxes.
D) Have very high capital gains.

E) B) and C)
F) A) and D)

Correct Answer

verified

Show Answer

Question 72

True/False

Review LaterAdd Note

Review Later

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

A) True
B) False

Correct Answer

verified

Show Answer

Question 73

Multiple Choice

Review LaterAdd Note

Which of the following is not an additional tax a taxpayer may have to pay?

All else equal, taxpayers are more likely to be classified as employees rather than independent contractors if they are allowed to determine their own working hours and work without frequent oversight.

Johann had a gross tax liability of $22,508 in 2018, but his employer only withheld taxes of $19,500. Johann's gross tax liability was $21,000 in 2017. Calculate Johann's under/overpayment in each quarter for 2018 tax purposes.

The earned income credit is sometimes referred to as a negative income tax.

All else equal, a reduction in regular income tax rates would require more taxpayers to pay the alternative minimum tax.

If both spouses of a married couple earn roughly equivalent high level of wages, the couple is likely to pay a marriage penalty due to the nature of the tax rate schedules.

Individuals may file for and receive a six-month extension of time to file their tax return and pay their taxes without penalty.

The American opportunity credit is available only for those students who are in their first or second year of postsecondary education.

Angelena files as a head of household. In 2018, she reported $52,300 of taxable income, including a $10,000 qualified dividend. What is her gross tax liability, rounded to the nearest whole dollar amount? (Use the tax rate schedules)

Jamie is single. In 2018, she reported $100,000 of taxable income, including a long-term capital gain of $5,000. What is her gross tax liability, rounded to the nearest whole dollar amount? (Use the tax rate schedules)

Which of the following is not one of the general tax credit categories?

The kiddie tax does not apply to children over 24 years old at the end of the tax year.

Employees are allowed to deduct a portion of the FICA taxes they pay.

In certain circumstances a child with very little income may have at least a portion of their income taxed at the trust and estate tax rates.

Which of the following statements regarding late filing penalties and/or late payment penalties is True?

Hera earned $175,000 salary in 2018. Her husband, Zeus, earned $100,000 salary in 2018. Hera and Zeus file a joint tax return. How much FICA taxes will they owe in 2018?

Which of the following statements regarding late filing penalties is True?

Henry and Janice are married and file jointly. They have an AGI (and modified AGI) of $290,000, which includes $90,000 of salary, $170,000 of active business income, $10,000 of interest income, $15,000 of dividends, and $5,000 of long-term capital gains. What are Henry and Janice's net investment income tax liability this year, rounded to the nearest whole dollar amount?