Which of the following statements regarding a Qualified Tuition Program (Section 529 plan) is true? a.Contributions to the plan are deductible for AGI. b. Distributions from a Qualified Tuition Program are not allowed for room and board expenses. c. Earnings on the plan assets are not taxable if the money distributed from the plan is used for qualified education expenses. d. A resident of California may not contribute to a Qualified Tuition Program in another state.

Which of the following statements regarding a Qualified Tuition Program (Section 529 plan) is true? a.Contributions to the plan are deductible for AGI. b. Distributions from a Qualified Tuition Program are not allowed for room and board expenses. c. Earnings on the plan assets are not taxable if the money distributed from the plan is used for qualified education expenses. d. A resident of California may not contribute to a Qualified Tuition Program in another state.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Branch could not ignore this. On August 16th, one month after that initial suspicious phone call and fax from MST, Branch asked Robertson, Samlal’s supervisor, to talk to her privately. They went into a conference room and Branch told Robertson about her suspicions that Samlal was using his authority to override the system of internal controls and conducting shady transactions. She mentioned that Samlal directed MST’s off-lease computer equipment to his friend Tim Johnson at Maverick Fitness, and that he gave the Bishop High School account to his friend Albert. Further, he had Enterprise pay to ship the equipment from the University of North Carolina to Maverick, even though this was against company policy. Robertson decided to conduct an internal audit. During the two-week audit, Enterprise discovered that Samlal had diverted part or all of the proceeds from several shipments of computers from April 4, 2018–August 2019. Also, several companies, including Maverick Fitness…
D6) Finance Which portion of an Educational Assistance Payment (EAP) is not taxable to the beneficiary? Canada Education Savings Grant Canada Learning Bond Investment income Refund of contributions
Please use the tables below to help you calculate 2023 tax liability (or refund) in each of the following independent scenarios. Please assume that a taxpayer who is eligible for the Earned Income Tax Credit will be able to take the maximum credit amount, even if the taxpayer's AGI puts her in the phaseout range. In other words, for purposes of this problem only, a taxpayer is either not eligible for the credit or eligible for the maximum credit. Also, please use only the two credits below in your calculation. No. of Children 0 1 2 3 or more Credit Rate 50% of your contribution 20% of your contribution 10% of your contribution 0% of your contribution Earned Income Credit (for Single Taxpayers & Head of Household) Tax Year 2023 Maximum Credit Income at Max Credit $7,840 $11,750 Married Filing Jointly AGI not more than $43,500 $43,501 - $47,500 $47,501 - $73,000 more than $73,000 $600 $3,995 $6,604 $7,430 Taxpayers with investment income of more than $11,000 are not eligible for the…
Tax return preparers should be aware of which of the following? A) Taxpayers who have more than one Form W-2 B) Taxpayers without a state driver's license C) Taxpayers with more than two dependents D) Taxpayers with a non-standard or altered Form W-2
The definition of qualified child for the Child Tax Credit is the same as the General Definition of a Qualified Child EXCEPT FOR, which of the following (more than one may apply) Select one or more: a. A full-time student over the age of 17 but less than 24 is not eligible to be claimed for the Child Tax Credit. b. A qualified child must be under 17 for the Child Tax Credit c. A qualified child cannot be claimed for the Child Tax Credit with only an ITIN (Taxpayer Identification) d. A sister or brother is not eligible for the Child Tax Credit e. A disabled person who is over age 17 is not eligible to be claimed for the Child Tax Credit
Which of the following is a true statement with respect to the gross income test for the qualifying relative dependency exemption? a.The gross income test does not have to be met provided the relative is under age 19 at the end of the tax year. b.The gross income test does not have to be met provided the relative is a student. c.The gross income test does not have to be met provided the relative is under age 24 at the end of the tax year. d.The relative must receive less than $4,200 of gross income in order to qualify. e.All of these choices are correct. Martin, a 50-year-old single taxpayer, paid the full cost of maintaining his dependent mother in a home for the aged for the entire year. What is the amount of Martin's standard deduction for 2019? a.$24,400 b.$19,600 c.$12,200 d.$18,350 e.None of these choices are correct. Which of the following is not a capital asset? a.Stocks b.Land c.Gold d.A personal automobile e.Inventory
Which of the following statements is true? a) If funds are withdrawn from an annuity during liquidation, no federal income tax is paid B) If funds are withdrawn from an annuity, and the annuitant is older than age 75, no federal income tax is paid C) If funds are withdrawn from an annuity during the accumulation period, no federal income tax is paid D) If funds are withdrawn from an annuity before age 591/2, there is a federal income tax penalty in addition to the ordinary income tax
Davis, an officer for a § 501(c)(3) organization, receives benefits in the form of an overly generous health insurance plan; these benefits are inappropriate in the context of a charitable entity of its type. The excess benefits are determined to be "$89800." . Davis does not pay back the excess benefits to the organization before the first-level tax is due. a. Apply the rules for the appropriate excise tax intermediate sanction. The first-level taxes imposed are as follows: On the exempt organization management: $fill in the blank 1 On Davi imposed on Davis.s: $fill in the blank 2. b. A second-level tax in the amount of
A 529-state-approved Individual Retirement Account (IRA) permits parents to invest tax-free dollars into their children’s college education fund (this money may only be used for educational expenses). Another popular plan, the Roth IRA, requires after-tax dollars to be invested in a savings fund that may (or may not) be used for paying future college expenses. Both plansare tax free when the money is eventually withdrawn to assist with college expenses. Clearly, the 529 IRA plan is a better way to save for college expenses than the Roth IRA. Quantify “better” when the marginal income tax rate is 28% and $10,000 each year is invested in a mutual fund earning 8%per year for 10 years. Note: The estimated cost of a college education 10 years from now is $110,000.
Which of the followings is included in taxpayer’s gross income (i.e., taxable)? a.Compensatory damage payments received from physical injury by accident caused by other party. b.Punitive damage payments received. c.Accident and health insurance payments received as loss of income under the policy purchased by the taxpayer. d.Qualified employee discount up to the gross profit percentage for goods. It is nondiscriminatory and employees work for the line of business in which the goods are being sold. e. Employee’s salary during the year, which is contributed to employee’s qualified pension plan.
Which of the following statements is correct? Multiple Choice Taxpayers with household income which is more than 400% of the Federal Poverty Level are eligible to claim the premium tax credit. The premium tax credit is only available when the taxpayer files his or her tax return. The premium tax credit is available only for premium health insurance programs. Taxpayers who receive a credit are not required to file a federal tax return.
3. Which one of the following are valid deductible educational expenses? A. Professional development courses required by an employer for retaining a position. B. A tax seminar attended for reasons unrelated to one’s present job. C. A college or vocational course necessary to be considered for a job. D. A professional continuing education program that qualified the taxpayer for a new job.