FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 13: Tax Credits and Payment Procedures

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 51

Multiple Choice

Review LaterAdd Note

Review Later

Cheryl is single,has one child (age 6) ,and files as head of household during 2012.Her salary for the year is $19,000.She qualifies for an earned income credit of the following amount:

A) $0.
B) $305.
C) $2,864.
D) $3,169.
E) None of the above.

F) B) and D)
G) C) and D)

Correct Answer

verified

Show Answer

Question 52

True/False

Review LaterAdd Note

Review Later

The earned income credit,a form of a negative income tax,is a nonrefundable credit.

A) True
B) False

Correct Answer

verified

Show Answer

Question 53

Multiple Choice

Review LaterAdd Note

An employer calculates the amount of income tax withheld from salary or wages based on the information an employee provides on the following form:

Employers are encouraged by the work opportunity tax credit to hire individuals who have been long-term recipients of family assistance welfare benefits.

During 2012,Barry (who is single and has no children) earned a salary of $13,000.He is age 30.His earned income credit for the year is:

Explain the purpose of the tax credit for rehabilitation expenditures and describe the general characteristics of its computation.

On October 2,2012,Ross quits his job with Blue Corporation.If requested by Ross,Blue Corporation must furnish a Form W-2 to Ross within 60 days after the date of the request or the final wage payment,whichever is later.

An employer's tax deduction for wages is not affected by the work opportunity tax credit.

BlueCo incurs $700,000 during the year to construct a facility that will be used exclusively for the care of its employees' pre-school age children during normal working hours.The credit for employer-provided child care available to BlueCo this year is $175,000.

An expatriate who works in a country with an income tax rate higher than the U.S.rate probably will find the foreign earned income exclusion preferable to the foreign tax credit.

In terms of the withholding procedures,which statement does not reflect current rules?

Expenses that are reimbursed by a taxpayer's employer under a dependent care assistance program canalso qualify for the credit for child and dependent care expenses.

Realizing that providing for a comfortable retirement is up to them,Jim and Julie commit to making regular contributions to their IRAs,beginning this year.Consequently,they each make a $2,000 contribution to their traditional IRA.If their AGI is $35,000 on their joint return,what is the amount of their credit for certain retirement plan contributions?

Identify the statement below that is false.

Which of the following statements is true regarding the education tax credits?

Cardinal Company incurs $800,000 during the year to construct a facility that will be used exclusively for the care of its employees' pre-school age children during normal working hours.Assuming Cardinal claims the credit for employer-provided child care this year,its basis in the newly constructed facility is $640,000.

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.

Some foreign taxes do not qualify for the foreign tax credit.

Steve has a tentative general business credit of $110,000 for the current year.His net regular tax liability before the general business credit is $125,000,and his tentative minimum tax is $100,000.Compute Steve's allowable general business credit for the year.

An eligible taxpayer may elect to receive advance payments of the earned income credit from his or her employer.