14. Is the following statement correct regarding exclusions or deductions. A. an HSA contribution is a deduction from federal gross income. B. Federal tax deductions and exclusion from federal income taxes are the same thing. C. The taxpayer can exclude the amount paid for their individual life insurance premium. D. Qualified charitable contributions are allowable as an itemized deduction on the schedule A form

14. Is the following statement correct regarding exclusions or deductions. A. an HSA contribution is a deduction from federal gross income. B. Federal tax deductions and exclusion from federal income taxes are the same thing. C. The taxpayer can exclude the amount paid for their individual life insurance premium. D. Qualified charitable contributions are allowable as an itemized deduction on the schedule A form

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter5: Deductions For And From Agi

Section: Chapter Questions

Problem 33MCQ

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14. Is the following statement correct regarding exclusions or deductions. A. an HSA contribution is a deduction from federal gross income. B. Federal tax deductions and exclusion from federal income taxes are the same thing. C. The taxpayer can exclude the amount paid for their individual life insurance premium. D. Qualified charitable contributions are allowable as an itemized deduction on the schedule A form
Which of the following is true regarding Social Security benefits? a. Tax-exempt interest income must be included in the formula used to determine if Social Security is included in taxable income. b. Up to 100 percent of Social Security benefits received may be included in taxable income. c. The Social Security inclusion formula is the same amount for each filing status. d. Social Security benefits are always excluded because wages are subject to Social Security tax when earned.
Which of the following is true regarding Social Security benefits? a.Up to 100 percent of Social Security benefits received may be included in taxable income. b.Social Security benefits are always excluded because wages are subject to Social Security tax when earned. c.The Social Security inclusion formula is the same amount for each filing status. d.Tax-exempt interest income must be included in the formula used to determine if Social Security is included in taxable income.
Taxable income is a) gross income less deductions b) total income excluding exempt less deductions and exemptions c) gross income less state taxes, mortgage interest, and charitable contributions d) the sum of everything a person makes
Identify the correct statement regarding the calculation of taxable income of a natural person O A. Deductions relating to section 11(a) of the Income Tax Act 58 of 1962 are accounted for before deductions relating to retirement contributions O B. Donations that are not paid to a public benefit organisation are accounted for under section 11(a) of the Income Tax Act 58 of 1962 deductions when calculating taxable income. O C. Taxable capital gains are not taken into account when calculating taxable income as they relate to receipts of capital nature. O D. Retirement fund deductions are accounted for after all deductions have been taken into account when calculating taxable income. Previous page DAN P COM0027 C e hp
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Which of the following statements are NOT correct? i. A registered taxpayer can claim input tax credit for items used for its exempt activities. ii. A registered taxpayer can claim input tax credit for items used for zero-rated activities. iii. The VAT rate Exempt supplies is 0%. iv. Zero-rated goods or services are taxable for VAT at 0%. Question 6Answer a. i, ii and iv b. i, and iii c. i only d. None of the above
Which of the following statements is most correct? a.Tax preference items for the alternative minimum tax are always added back to regular taxable income. b.Itemized deductions that are added back to regular taxable income for the alternative minimum tax are preference items. c.Tax preference items for the alternative minimum tax can be an increase or decrease to regular taxable income. d.All taxpayers are able to deduct the full exemption in the calculation of the alternative minimum tax.
which of the following is not a covid-19 tax relief provision available to a self-employed taxpayer? A. payroll tax deferral B. sick leave credit C. family leave credit D. self-employed tax rate reduction E. all the above
Which of the following statements is NOT correct? The registered taxpayer can claim input tax credit for items used for its exempt activities. a registered taxpayer can claim input tax credit for items used for zero-rated activities. The VAT rate exempt supplies is 0%. Zero-rated goods or services are taxable for VAT at 0% i only None of the above i, ii and iv. i and iii
Which of the following statements is incorrect with respect to determining E&P? All tax-exempt income should be added back to taxable income. Dividends received deductions should be added back to taxable income. Charitable contributions in excess of the 10% taxable income limit should be subtracted from taxable income. Federal income tax refunds should be added back to taxable income. None of the above statements are incorrect MY ANSWER: 5. None of the above. Reasoning: All the above statements are correct with regard to the calculation of current E&P. E&P is the ability of the company to pay dividends to its shareholders. Am I correct? If not, please explain. Thank you in advance!
In addition to the basic tax assessed on the taxpayer, the following civil penalties will also be collected: Surcharge Interest I only c. Both I and II Il only d. Neither I nor Il