Question 1

On October 2, Ross quits his job with Blue Corporation. If requested by Ross, Blue Corporation must furnish a Form W-2 to Ross within 45 days after the date of the request or the final wage payment, whichever is later.

Accepted Answer

A) True 
 B)False

Question 2

The disabled access credit is computed at the rate of 50% of all access expenditures incurred by the taxpayer during the year.

Accepted Answer

A) True 
 B)False

Question 3

Cardinal Corporation hires two persons certified to be eligible employees for the work opportunity tax credit under the general rules (e.g., food stamp recipients) , each of whom is paid $9,000 during the year. As a result of this event, Cardinal Corporation may claim a work opportunity credit of:

Accepted Answer

A)  $1,440.
B)  $2,880.
C)  $4,800.
D)  $7,200.
E)  None of the above.F) A) and B)
G) A) and C)

Question 4

George and Jill are husband and wife, ages 67 and 65 respectively. During the year, they receive Social Security benefits of $4,000 and have adjusted gross income of $11,000. Assuming they file a joint return, their tax credit for the elderly, before considering any possible limitation due to their tax liability, is:

Accepted Answer

A)  $1,125.
B)  $750.
C)  $450.
D)  $375.E) C) and D)
F) A) and B)

Question 5

Identify the statement below that is false.

Accepted Answer

A)  If an employer is not required to withhold income taxes from an employee's wages, the wages are not taxable to the employee.
B)  In certain situations, income tax withholding by an employer is voluntary.
C)  An employer must deposit with the government an amount of FICA tax that is twice the amount withheld from the employee's salary (i.e., the employee's and employer's shares) .
D)  If an excess amount of FICA has been withheld for an employee because the employee has multiple jobs, the employee may claim a credit for the excess amount withheld on his or her income tax return.
E)  None of the above statements are false.F) All of the above
G) A) and E)

Question 6

In describing FICA taxes, which (if any)  of the following statements is incorrect?

Accepted Answer

A)  The base amounts for 2018 probably will increase from the 2017 amounts.
B)  The base amounts for the Social Security and Medicare portions are the same.
C)  If both spouses work, excess FICA taxes need not result.
D)  Excess FICA taxes can be claimed as an income tax credit.E) A) and C)
F) B) and D)

Question 7

If an employee holds two jobs during the year, an overwithholding of FICA tax will result.

Accepted Answer

A) True 
 B)False

Question 8

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:

Accepted Answer

A)  $0.
B)  $1,000.
C)  $1,500.
D)  $2,000.E) A) and B)
F) None of the above

Question 9

Which of the following statements concerning the credit for child and dependent care expenses is not correct?

Accepted Answer

A)  A taxpayer is not allowed both an exclusion from income and the credit for child and dependent care expenses on the same amount.
B)  A taxpayer is not allowed both a deduction as a medical expense and the credit for child and dependent care expenses on the same amount.
C)  If a taxpayer's adjusted gross income exceeds $43,000, the rate for the credit for child and dependent care expenses is 20%.
D)  If a taxpayer's adjusted gross income exceeds $15,000 but is not over $17,000, the rate for the credit for child and dependent care expenses is 35%.
E)  All of the above statements are correct.F) C) and E)
G) A) and C)

Question 10

Which, if any, of the following correctly describes the earned income credit?

Accepted Answer

A)  Would be available regardless of the amount of the taxpayer's adjusted gross income.
B)  Not available to a surviving spouse.
C)  A taxpayer must have a qualifying child to take advantage of the credit.
D)  Is a refundable credit.E) B) and C)
F) A) and D)

Question 11

Which of the following statements regarding the adoption expenses credit is not true?

Accepted Answer

A)  The adoption expenses credit is a nonrefundable credit.
B)  The adoption expenses credit starts to be phased out in 20176 beginning when a taxpayer's modified AGI exceeds $203,540.
C)  No adoption expenses credit is a available in 2017 if a taxpayer's modified AGI exceeds $243,540
D)  The adoption expenses credit is limited to no more than $14,000 per eligible child in 2017.
E)  All of the above statements are true.F) All of the above
G) B) and C)

Question 12

All foreign taxes qualify for the foreign tax credit.

Accepted Answer

A) True 
 B)False

Question 13

In the event that overwithholding of FICA tax occurs because the taxpayer has more than one employer, the excess amount should be claimed as a credit on the Federal income tax return of the employee.

Accepted Answer

A) True 
 B)False

Question 14

A LIFO method is applied to general business credit carryovers, carrybacks, and utilization of credits earned during a particular year.

Accepted Answer

A) True 
 B)False

Question 15

The components of the general business credit include all of the following except:

Accepted Answer

A)  Credit for employer-provided child care.
B)  Disabled access credit.
C)  Research activities credit.
D)  Tax credit for rehabilitation expenditures.
E)  All of the above are components of the general business credit.F) B) and C)
G) A) and E)

Question 16

Bob and Sally are married, file a joint tax return, report AGI of $116,000, and have two children. Del is beginning her freshman year at State College during Fall 2017, and Owen is beginning his senior year at Southwest University during Fall 2017. Owen completed his junior year during the Spring semester of 2016 (i.e., he took a "leave of absence" during the 2016-2017 school year) . Both Del and Owen are claimed as dependents on their parents' tax return. ​
Del's qualifying tuition expenses and fees total $5,000 for the Fall semester, while Owen's qualifying tuition expenses were $6,100 for the Fall 2017 semester. Del's room and board costs were $3,200 for the Fall semester. Owen did not incur room and board costs, as he lived with his aunt and uncle during the year.
​
Full payment is made for the tuition and related expenses for both children at the beginning of each semester. In addition to the children's college expenses, Bob also spent $3,000 on professional education seminars during the year in order to maintain his license as a practicing dentist. Bob attended the seminars during July and August 2017. Compute the available education tax credits for Bob and Sally for 2017.

Accepted Answer

A)  $3,100
B)  $5,000
C)  $5,480
D)  $5,600E) B) and D)
F) B) and C)

Question 17

If the cost of a building constructed and placed into service by an eligible small business in the current year includes the cost of a wheelchair ramp, the cost of the ramp qualifies for the disabled access credit.

Accepted Answer

A) True 
 B)False

Question 18

The credit for child and dependent care expenses is an example of a refundable credit.

Accepted Answer

A) True 
 B)False

Question 19

Only married taxpayers with children are qualified to receive the earned income credit.

Accepted Answer

A) True 
 B)False

Question 20

An individual generally may claim a credit for adoption expenses in the year in which the expenses are paid.

Accepted Answer

A) True 
 B)False

Exam 13: Tax Credits and Payment Procedures

A LIFO method is applied to general business credit carryovers, carrybacks, and utilization of credits earned during a particular year.

Correct Answer
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Which of the following statements regarding the adoption expenses credit is not true?

Correct Answer
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Correct Answer
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Which of the following statements concerning the credit for child and dependent care expenses is not correct?

Correct Answer
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In describing FICA taxes, which (if any) of the following statements is incorrect?

Correct Answer
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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:

Correct Answer
verified

In the event that overwithholding of FICA tax occurs because the taxpayer has more than one employer, the excess amount should be claimed as a credit on the Federal income tax return of the employee.

Correct Answer
verified

Only married taxpayers with children are qualified to receive the earned income credit.

Correct Answer
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Cardinal Corporation hires two persons certified to be eligible employees for the work opportunity tax credit under the general rules (e.g., food stamp recipients) , each of whom is paid $9,000 during the year. As a result of this event, Cardinal Corporation may claim a work opportunity credit of:

Correct Answer
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Identify the statement below that is false.

Correct Answer
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On October 2, Ross quits his job with Blue Corporation. If requested by Ross, Blue Corporation must furnish a Form W-2 to Ross within 45 days after the date of the request or the final wage payment, whichever is later.

Correct Answer
verified

If the cost of a building constructed and placed into service by an eligible small business in the current year includes the cost of a wheelchair ramp, the cost of the ramp qualifies for the disabled access credit.

Correct Answer
verified

All foreign taxes qualify for the foreign tax credit.

Correct Answer
verified

If an employee holds two jobs during the year, an overwithholding of FICA tax will result.

Correct Answer
verified

The disabled access credit is computed at the rate of 50% of all access expenditures incurred by the taxpayer during the year.

Correct Answer
verified

An individual generally may claim a credit for adoption expenses in the year in which the expenses are paid.

Correct Answer
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Which, if any, of the following correctly describes the earned income credit?

Correct Answer
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The credit for child and dependent care expenses is an example of a refundable credit.

Correct Answer
verified

Correct Answer
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The components of the general business credit include all of the following except:

Correct Answer
verified

Exam 13: Tax Credits and Payment Procedures

A LIFO method is applied to general business credit carryovers, carrybacks, and utilization of credits earned during a particular year.

Correct AnswerverifiedShow Answer

Which of the following statements regarding the adoption expenses credit is not true?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following statements concerning the credit for child and dependent care expenses is not correct?

Correct AnswerverifiedShow Answer

In describing FICA taxes, which (if any) of the following statements is incorrect?

Correct AnswerverifiedShow Answer

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:

Correct AnswerverifiedShow Answer

In the event that overwithholding of FICA tax occurs because the taxpayer has more than one employer, the excess amount should be claimed as a credit on the Federal income tax return of the employee.

Correct AnswerverifiedShow Answer

Only married taxpayers with children are qualified to receive the earned income credit.

Correct AnswerverifiedShow Answer

Cardinal Corporation hires two persons certified to be eligible employees for the work opportunity tax credit under the general rules (e.g., food stamp recipients) , each of whom is paid $9,000 during the year. As a result of this event, Cardinal Corporation may claim a work opportunity credit of:

Correct AnswerverifiedShow Answer

Identify the statement below that is false.

Correct AnswerverifiedShow Answer

On October 2, Ross quits his job with Blue Corporation. If requested by Ross, Blue Corporation must furnish a Form W-2 to Ross within 45 days after the date of the request or the final wage payment, whichever is later.

Correct AnswerverifiedShow Answer

If the cost of a building constructed and placed into service by an eligible small business in the current year includes the cost of a wheelchair ramp, the cost of the ramp qualifies for the disabled access credit.

Correct AnswerverifiedShow Answer

All foreign taxes qualify for the foreign tax credit.

Correct AnswerverifiedShow Answer

If an employee holds two jobs during the year, an overwithholding of FICA tax will result.

Correct AnswerverifiedShow Answer

The disabled access credit is computed at the rate of 50% of all access expenditures incurred by the taxpayer during the year.

Correct AnswerverifiedShow Answer

An individual generally may claim a credit for adoption expenses in the year in which the expenses are paid.

Correct AnswerverifiedShow Answer

Which, if any, of the following correctly describes the earned income credit?

Correct AnswerverifiedShow Answer

The credit for child and dependent care expenses is an example of a refundable credit.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The components of the general business credit include all of the following except:

Correct AnswerverifiedShow Answer

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