True False Gerald and Mary each make a $3,000 contribution to their tradtional I

Question

True

False

Gerald and Mary each make a $3,000 contribution to their tradtional IRA in 2013.  If their AGI is $45,000 on their joint return, what is the amount of their credit for certain retirement plan contributions?

$6,000.

$3,000.

$800.

$400.

Taylor and Jordan are married and file a joint tax return claiming their two children, ages 12 and 9 as dependents.  Their AGI for 2013 is $100,000.  Taylor and Jordan's child tax credit for 2013 is:

$0.

$1,700.

$1,900.

$2,000.

a. Self-employed taxpayers are allowed an itemized deduction for all of the self-employment taxes paid. b. Self-employed taxpayers are allowed a deduction from their net earnings from self-employment at one-half self-employment rate in determining the self-employment tax. c. Individuals with net earnings of $1,000 or more from self-employment are subject to the tax. d. Self-employed taxpayers pay only the employee's one-half portion of the tax.

Explanation / Answer

1. B

2. B (limited to 10,000 x 50%= 5,000)

3. FALSE (its $6,000)

4. D (limited to 2,000 per person--> 2000x2=4000x10%=400)

5. D (limited to 1,000 per qualifying child under the age of 13)

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