Assignment
1. Which one of the following conditions must be satisfied in order for a married taxpayer to be taxed on only his income if he resides in a community property state?
a. The husband and wife must live apart for the entire year.
b. The husband and wife must live apart for more than half the year.
c. The husband and wife must be in the process of filing for a divorce.
d. Only one of the spouses can be working and earning an income.
e. None of the above.
Question 2
To qualify for the additional child tax credit
a. the typical child yax credit must be limited by tax liability
b. the taxpayer must have earned income of over $3,000
c. the taxpayer must have at least one qualifying child
d. all of the above are required to qualify for the additional child tax credit
Question 3
Jim has foreign income. He earns $26,000 from Country A which taxes the income at a 20 percent rate. He also has income from Country B of $18,000. Country B taxes the $18,000 at a 10 percent rate. His U.S. taxable income is $90,000, which includes the foreign income. His U.S. income tax on all sources of income before credits is $19,000. What is his foreign tax credit?
a. $6,500
b. $7,000
c. $9,289
d. $19,000
e. Jim does not qualify for a foreign tax credit.
Question 4
Household income for purpose of the individual shared responsibility payment includes all of the following except:
a. AGI of the taxpayer
b. AGI of the taxpayer's dependents
c. Any tax-exempt income
d. Untaxed Social Security benefits
e. All of the above are included in household income
Question 5
William and Irma have two children, Tom, age 13, and Sara, age 8. For 2015, Tom and Sara have a total parental tax of $5,600. Tom's net unearned income is $5,000, while Sara's net unearned income is $15,000. How much of the parental tax would be allocated to Sara on her 2015 tax return?
a. $0
b. $4,200
c. $2,800
d. $5,600
e. None of the above
Question 6
Which of the following tax credits is not available for the 2015 tax year?
a. Foreign tax credit
b. Earned income credit
c. Adoption credit
d. Child and dependent care credit
e. All of the above are available credits
Question 7
Which of the following is not an exemption from minimum essential coverage for health insurance:
a. the taxpayer had coverage for all but 1 month during the year
b. the taxpayer's income of less than 200% of the federal poverty level
c. the taxpayer was in jail
d. the taxpayer spent 350 days out of the US during the year
Question 8
Choose the correct statement:
a. A taxpayer may receive a 30-percent credit for installing energy-efficient window shades.
b. A taxpayer may receive a 30-percent credit for installing a windmill, which generates electricity, at his vacation home.
c. A taxpayer may receive a 30-percent credit for installing a solar water-heating panel for his swimming pool.
d. A taxpayer may receive a 30-percent credit for the purchase of a plug-in electric vehicle.
Question 9
The earned income credit:
a. Must be calculated on earned income as well as adjusted gross income in some cases.
b. Can not exceed the amount of the tax liability.
c. Is available only if the taxpayer has qualifying children.
d. Is available to married taxpayers who file separate returns.
Question 10
Glen and Mary have two children, Chad, age 12, and Linda, age 8. For 2015, Chad has $4,000 in net unearned income and Linda has net unearned income of $1,000. If the total parental tax for 2015 is $1,500, how would the tax be allocated between Chad and Linda?
a. $1,500 to Chad and $0 to Linda
b. $1,200 to Chad and $300 to Linda
c. $1,120 to Chad and $280 to Linda
d. $750 to Chad and $750 to Linda
e. None of the above