Individual Taxation Paper 16


In 2011, Karen Miller had an alternative minimum tax liability of $20,000. This was the first year that she paid an alternative minimum tax. When she recomputed her 2011 alternative minimum tax using only exclusion preferences and adjustments, her alternative minimum tax was $9,000. For 2012, Karen had a regular tax liability of $50,000 and a tentative minimum tax of $45,000. What is the amount of Karen’s unused minimum tax credit from 2012 that will carry over to 2013?


The credit for prior year alternative minimum tax liability may be carried


The alternative minimum tax (AMT) is computed as the


The self-employment tax is


An employee who has had social security tax withheld in an amount greater than the maximum for a particular year, may claim


Smith, a retired corporate executive, earned consulting fees of $8,000 and director’s fees of $2,000 in 2012. Smith’s gross income from self-employment for 2012 is


Which one of the following credits is not a component of the general business credit?


Which of the following credits is a combination of several tax credits to provide uniform rules for the current and carrybackcarryover years?


Melvin Crane is sixty-six years old, and his wife, Matilda, is sixty-five. They filed a joint income tax return for 2012, reporting an adjusted gross income of $22,200, on which they owed a tax of $61. They received $3,000 from social security benefits in 2012. How much can they claim on Form 1040 in 2012, as a credit for the elderly?


Nora Hayes, a widow, maintains a home for herself and her two dependent preschool children. In 2012, Nora’s earned income and adjusted gross income was $44,000. During 2012, Nora paid work-related expenses of $6,000 for a housekeeper to care for her children. How much can Nora claim for child care credit in 2012?


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