please answer the following questions Examination Questions 45 Hour Federal Tax
ID: 2602738 • Letter: P
Question
please answer the following questions
Examination Questions 45 Hour Federal Tax Law Single and 22 years old, was unemployed for a few months during 2015. He eamed $6,700 in wages Off, and he received $1,400 in unemployment compensation afterwards. He had no other ven though he had gross income of $8,100, he did not have to pay income tax because his gross income than the filing requiremnent for a single person under age 65. He filed a return only to have his withheld income. E income tax refunded to him. In 2016 Ray made no estimated tax owe for the underpayment penalty in 2016? Ray began regular work as an independent contractor and eamed $28,000 payments in 2016 and he did owe tax at the end of the year. What amount does Ray A. $0 B. $555 C. $558 D. $630 21. The payment transaction limit for which a taxpayer can use a debit or credit card to make a payment for a Form 1040 tax return, for the current tax year, is how many times per year? A. 1 time per year C. 3 times per year D. 4 times per year at is the user fee when a taxpayer enters into a standard installment agreement or a payroll deduction A. $50 agreement with the IRS allowing for periodic partial payments of taxes owed? B. $125 D. $300 23. K a taxpayer files a claim for a loss from worthless securities or bad debt deduction, he or she must keep records t support items shown for how many years after the return was filed? A. 5 years B. 7 years C. 8 years D. No limit Lesson 2 24. Which of the following Federal tax forms could a single filing taxpayer use if his or her taxable income is $175,000? A. Form 1040EZ B. Form 1040A D. All of the above 25 An individual can use Form 1040NR-EZ instead of Form 1040NR if all of the following items apply except: 2 A The taxpayer does not claim any dependents B. The taxpayer cannot be claimed as a dependent on another person's U.S. tax retum If the taxpayer was married, he or she claims an exemption for his or her spouse e taxpayer does not claim any tax credits 26. Emily Smith files her tax return on the basis of a fiscal year. Her records show that she received income in November 2015 and February 2016 from which there was backup withholding ($100 and $50, respectively). Emily takes credit for what amount of backup withholding on her tax return for the fiscal year ending September 30, 20167 A. $0 B. $50 C. $100Explanation / Answer
Answer 20.
A. $0
The taxpayer does not owe a penalty if the total tax shown on his or her return minus the amount he or she paidthrough withholding (including excess Social Security and tier 1 railroad retirement (RRTA) tax withholding) is lessthan $1,000. Also, the taxpayer does not owe a penalty if he or she had no tax liability last year and he or she was aU.S. citizen or resident for the whole year. For this rule to apply, the taxpayer’s tax year must have included all 12months of the year. The taxpayer had no tax liability for 2016 if his or her total tax was zero or he or she was notrequired to file an income tax return.
Ray does not owe the underpayment penalty for 2014 because he had no tax liability in 2016.
Answer 21.
B. 2 Times per year
Maximum Payment: 2 Per Year
( Form 1040 Current Year Balance Due Payments)
Answer 22.
C.$225
The IRS charges a user fee of $225 when you enter into a standard installment agreement or a payroll deduction agreement.
Answer 23.
B. 7 Years
Keep records for seven years if you file a claim for a loss from worthless securities or bad debt deduction.
Answer 24.
C. Form 1040
You should file Form 1040 if:
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