ACC4328 Ch. 13
Terms in this set (10)
Nonrefundable credits are those that reduce the taxpayer's tax liability but are not paid when the amount of the credit (or credits) exceeds the taxpayer's tax liability.
The earned income credit, a form of a negative income tax, is a refundable credit.
Unused foreign tax credits can be carried back three years and forward fifteen years.
An individual generally may claim a credit for adoption expenses in the year in which the expenses are paid.
A taxpayer may qualify for the credit for child and dependent care expenses if the taxpayer's dependent is under age 17.
Refundable tax credits include the:
a. Tax credit for rehabilitation expenses.
b. Foreign tax credit.
c. Earned income credit.
d. Credit for certain retirement plan contributions.
e. None of these choices are correct.
C)Earned Income Credit
George and Martha are married and file a joint tax return claiming their two children, ages 10 and 8 as dependents. Assuming their AGI is $119,650, George and Martha's child tax credit is:
Which of the following statements is true regarding the education tax credits?
a. The lifetime learning credit is available for qualifying tuition and related expenses incurred by students pursuing only graduate degrees.
b. The American Opportunity credit permits a maximum credit of 20% of qualified expenses up to $10,000 per year.
c. Continuing education expenses do not qualify for either education credit.
d. The American Opportunity credit is calculated per taxpayer, while the lifetime learning credit is available per eligible student.
e. None of these statements are true
E)None of these statements are true
Which of the following correctly reflects current rules regarding estimated tax payments for individuals?
a. Married taxpayers may not make joint estimated tax payments unless they file a joint income tax return.
b. No quarterly payments are required if the taxpayer's estimated tax is under $1,000.
c. Employees are not subject to the estimated tax payment provisions.
d. Any penalty imposed for underpayment is deductible for income tax purposes.
B)No quarterly payments are required if the taxpayer's estimated tax is under $1,000
The ceiling amounts and percentages for 2017 for the two portions of the self-employment tax are:
Social Security portion Medicare portion
$118,500; 2.9%Unlimited; 13.3%
$127,200; 12.4%Unlimited; 2.9%
$118,500; 12.4%Unlimited; 2.9%
$127,200; 15.3%Unlimited; 2.9%