Questions -

Q1. Which of the following statements is not true regarding the credit for the elderly or the disabled?

Taxpayer may not have earned income.

Taxpayer may receive social security benefits.

Taxpayer must be over age 65.

Taxpayer must be retired or on permanent and total disability.

Q2. Which of the following statements is incorrect?

Individual-based retirement plans include a Roth IRA.

Distributions from a pension plan may be made in a lump sum or may be spread out in payments over many years.

Tax-deferred plans can be created for purposes other than retirement.

If a pension plan is funded with contributions that have not been taxed, the distributions will not be taxed.

Q3. Ladaris has two jobs. She earned $112,000 from her first job and $10,000 from her second job. How much total FICA taxes will Ladaris have withheld from her wages from working two jobs?

$6,248.20

$6,785.65.

$6,813.20.

$6,893.00.

Q4. Mahmet earned wages of $115,650 during 2013. He is single and claims two withholding allowances. How much FICA tax is Mahmet's employer responsible to remit in 2013?

$17,452.66.

$17,542.66.

$17,573.56.

$17,694.45.

Q5. Tai and Song are ages 69 and 59, respectively, and file a joint return. They have AGI of $20,000 and received $2,000 in nontaxable social security benefits. How much can Tai and Song take as a credit for the elderly or the disabled?

$0.

$1,125.

$2,000

$7,500.

Q6. Marci has two jobs and both employers withheld FICA tax. From her first job, she earned $98,600 and from her second job she earned $18,700. How much can Marci claim on her Form 1040 as excess social security tax paid in 2013?

$0.

$200.46.

$204.60.

$223.20.

Q7. Kobe is a single dad with two dependent children, Lizzie, age 7 and Leslie, age 3. He has AGI of $51,000 and paid $6,300 to a qualified day care center. What amount of credit can Kobe receive for the child and dependent care credit?

$600.

$1,200.

$1,260.

$6,300.

Q8. Employers with a payroll tax liability of less than $2,500 at the end of any quarter pay their tax liability:

Directly to the authorized depository after the end of the quarter when Form 941 is filed.

Directly to the authorized depository on the same day the Form 941 is mailed.

Directly only if they use the EFTPS form of payment before Form 941 is filed.

Directly to the Internal Revenue Service when they file Form 941.

Q9. Which of the following statements is incorrect?

An annuity is a series of payments pursuant to a contract.

A payment to a beneficiary from a pension plan is called a distribution.

Contributions to a pension plan can only be made by the beneficiary.

With a qualified pension plan, earnings on plan assets are not taxed in the year earned.

Q10. Kylie is a single mom with two dependent children, Tanner, age 7 and Olivia, age 11. She has AGI of $38,000 and paid $5,300 to a qualified day care center for the two children. What amount of credit can Kylie receive for the child and dependent care credit?

$600.

$1,200.

$1,219.

$5,300.