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 21

Multiple Choice

Review LaterAdd Note

Review Later

What happens if the taxpayer owes an underpayment penalty,but does not compute it on Form 2210?

A) Nothing,unless the taxpayer is audited
B) The taxpayer is immediately sent to the Tax Court
C) The IRS will compute and assess the penalty
D) The penalty is increased by five percentage points

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

Correct Answer

verified

Show Answer

Question 22

Short Answer

Review LaterAdd Note

Review Later

Selene made $54,300 in 2019 working at the local burger joint,Moon Café.How much should her employer withhold from her paycheck for FICA taxes if the calculation is made correctly?

Correct Answer

verified

$4,154 ($5...

View Answer

Show Answer

Question 23

True/False

Review LaterAdd Note

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

Angelena files as a head of household.In 2019,she reported $53,450 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,long-term capital gains tax brackets.)

The taxable income levels in the married filing jointly tax rate schedule are ________ those in the married filing separately schedule.

Wolfina's twins,Romulus and Remus,finished their first year of school at an accredited university in 2019.She paid $10,000 in qualified educational expenses for Romulus and $2,000 of qualifying expenses for Remus.Wolfina is a head of household with an AGI of $85,000.What amount of American opportunity credit may she claim?

A marriage penalty occurs when a couple pays more taxes by filing a joint tax return than they would have paid had they filed married filing separately.

Which of the following items is not added back to regular taxable income in computing alternative minimum taxable income?

For alternative minimum tax purposes,taxpayers are required to add back the regular tax standard deduction amount for their filing status whether or not they itemized deductions for regular tax purposes.

To qualify for the earned income credit,the taxpayer must have a qualified dependent.

Which of the following statements about estimated tax payments and underpayment penalties is true for individual taxpayers?

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?

Linda is a qualifying widow in 2019.In 2019,she reports $80,000 of taxable income (all ordinary) .What is her gross tax liability using the tax rate schedules? (Tax rate schedules.)

Which of the following statements regarding the child and dependent care credit is true?

The Olympians have three children.The kiddie tax applies to unearned income received by which of the following children?

Long-term capital gains,dividends,and taxable interest income are all taxed at preferential rates.

Assume Georgianne underpaid her estimated tax liability by $150 in the first quarter,$500 in the second quarter,$400 in the third quarter,and $200 in the fourth quarter.Calculate her underpayment penalty for the year,assuming the federal short-term interest rate is 5 percent.

Atlas earned $17,300 from his sole proprietorship in 2019.This was his only source of income.How much in self-employment taxes will Atlas be able to deduct?

The late payment penalty is based on the amount of tax owed and the number of days that the tax is not paid.The maximum amount of the penalty is unlimited.

An 80-year-old taxpayer with earned income and no dependent children could qualify for the earned income credit.