Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
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Question
Chapter 6, Problem 17MCQ
To determine
Concept Introduction:
Withholding taxes are deduction made by the taxpayer on behalf of the government and the taxpayers pays the withholdings to the government later. There are specific provisions for withholding under the income tax rules.
To choose: The payment that requires compulsory tax withholding.
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A taxpayer would be required to pay Social Security and Medicare taxes for a domestic employee in all but one of the following situations. In which situation would this not be required?
a.A cook who is paid $35,000 a year
b.A nanny who earns $22,000 a year
c.A baby-sitter who earns $1,300 a year
d.A cleaning lady who is paid $8,000 a year
e.The taxpayer would not have to pay Social Security and Medicare taxes in any of the above situations.
Choose the response that accurately completes the following sentence. A taxpayer claiming the Premium Tax Credit:
May be claimed as a dependent on another person's return, as long as they are under age 27.
May have employer-sponsored health care coverage.
Will receive a refund if the amount of the credit is larger than the tax they owe.
Must have purchased private coverage through a plan outside the Marketplace.
Which of the following statements regarding deductions for home office expenses is true?
A.Deductions may be taken only if the home office is used for the taxpayer’s main business.
B.Deductions may be claimed for regular use of a part of the home that is also used regularly by other family members for meals or homework.
C.Deductions may be claimed if the taxpayer chooses to work from home in the evenings after spending the day in his office provided by his employer.
D.Deductions may be taken if the home office is used regularly for meeting clients or customers in the normal course of the taxpayer’s business.
Chapter 6 Solutions
Income Tax Fundamentals 2020
Ch. 6 - E Corporation is a subchapter S corporation owned...Ch. 6 - Income and loss from which of the following...Ch. 6 - Which of the following entities is likely to have...Ch. 6 - Which of the following is an acceptable method of...Ch. 6 - Which of the following entities is required to...Ch. 6 - Prob. 6MCQCh. 6 - B Corporation, a calendar year-end, accrual basis...Ch. 6 - Prob. 8MCQCh. 6 - Prob. 9MCQCh. 6 - Prob. 10MCQ
Ch. 6 - Prob. 11MCQCh. 6 - Prob. 12MCQCh. 6 - For 2019, Roberta is a self-employed truck driver...Ch. 6 - Prob. 14MCQCh. 6 - Prob. 15MCQCh. 6 - Which of the following employees would not be...Ch. 6 - Prob. 17MCQCh. 6 - Prob. 18MCQCh. 6 - Prob. 19MCQCh. 6 - Christine and Doug are married. In 2019, Christine...Ch. 6 - Prob. 1PCh. 6 - Prob. 2PCh. 6 - Geraldine is an accrual basis taxpayer who has the...Ch. 6 - Prob. 4PCh. 6 - Prob. 5PCh. 6 - Prob. 7PCh. 6 - Prob. 8PCh. 6 - Refer to the previous problem 8. If Stan's parents...Ch. 6 - Prob. 10PCh. 6 - Prob. 11PCh. 6 - Otto and Monica are married taxpayers who file a...Ch. 6 - Prob. 13PCh. 6 - Prob. 14PCh. 6 - Prob. 15PCh. 6 - Prob. 16PCh. 6 - Sally hires a maid to work in her home for $280...Ch. 6 - Prob. 18PCh. 6 - Rachel is single and has wages of $150,000 and...Ch. 6 - Married taxpayers Otto and Ruth are both...
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