AFSP Exam Practice Test Questions And
Answers Verified 100% Correct
An employee stock ownership plan (ESOP) - ANSWER -an employee-owner
program that provides a company's workforce with an ownership interest in the
company. In an ESOP, companies provide their employees with stock ownership,
often at no upfront cost to the employees.
401(k) payin cap for 2019 is - ANSWER -$19,000....$25,000 for people age 50 or
older
Education expenses considered qualified education expenses under the education
savings bond
program are - ANSWER -education expenses incurred at an eligible educational
institution by the taxpayer for the
taxpayer, the taxpayer's spouse or a dependent claimed by the taxpayer. Such
expenses include:
Tuition and fees;
Contributions to a qualified tuition program; and
Contributions to a Coverdell education savings account (ESA)
Are room and board qualified education expenses for purposes of the education
savings bond program? - ANSWER -NO
An eligible educational institution for purposes of the education savings bond
program is broadly
defined as
And includes: - ANSWER -one eligible to participate in a student aid program
administered by the U.S. Department of
Education and includes:
College;
University;
,Vocational school; and
Other post-secondary educational institution.
(virtually all accredited U.S. public,
nonprofit, and proprietary post-secondary institutions.)
Montana New Apprenticeship Credit: - ANSWER -Nonrefundable
No carryover
$750 for each new registered apprentice
$1,500 for each new registered apprentice who is
a veteran
Shareholders and partners can claim their
distributive share of credit
Employers must apply to the Department of Labor and Industry before claiming
this credit on their return.
(MT) For dependent information, when a child is disabled, make sure to ask for -
ANSWER -a physician's certification if this is the first time the additional
exemption is claimed (mark disabled on MT dependent information)
If the taxpayer wants to designate a person other than the paid preparer as third
party designee, use - ANSWER -the dedicated section on page 2 (of MT return
Form 2, p. 2)
Montana Taxable Income (calculation) - ANSWER -Starts with Fed AGI
Plus MT Additions
Minus MT Subtractions
Minus Standard or Itemized Deductions
Minus Personal and Dependents Exemptions
CAUTION
No Qualified Business Income Deduction
Do not forget to mark the box if you itemize your deductions
, MT MSA Special Rule for 2018 - ANSWER -Taxpayers with excess contributions
can withdraw their excess contribution without penalty. After 2018, any
withdrawal would have to be a qualified withdrawal.
Excess contributions occur when overall contributions in prior years were more
than the overall amount of deductions based on such contributions on prior
Montana income tax returns.
MT Standard Deduction- - ANSWER -20% of MT AGI
MT Maximum deduction for Single and MFS - ANSWER -$4,580
MT Maximum deduction for HoH and MFJ - ANSWER -$9,160
(MT Itemized deductions) State and Local Taxes deduction is limited to -
ANSWER -$10,000
(MT Itemized deductions) Vehicle registration fees
must be split between: - ANSWER -The value-based taxes (line 5d)
and
The registration fees (line 6)
MT Charitable contributions limits are - ANSWER -the federal limits, substituting
Fed AGI with MT AGI
Use the Tax Liability Schedule if: - ANSWER --You are a nonresident
-You are a part-year resident
-You are a resident owing either:
-Recapture Taxes
-Tax on Lump Sum Distributions
-Tax on Deferred Foreign Income (DFI) and
an election was made not to use the DFI
against the NOL
Answers Verified 100% Correct
An employee stock ownership plan (ESOP) - ANSWER -an employee-owner
program that provides a company's workforce with an ownership interest in the
company. In an ESOP, companies provide their employees with stock ownership,
often at no upfront cost to the employees.
401(k) payin cap for 2019 is - ANSWER -$19,000....$25,000 for people age 50 or
older
Education expenses considered qualified education expenses under the education
savings bond
program are - ANSWER -education expenses incurred at an eligible educational
institution by the taxpayer for the
taxpayer, the taxpayer's spouse or a dependent claimed by the taxpayer. Such
expenses include:
Tuition and fees;
Contributions to a qualified tuition program; and
Contributions to a Coverdell education savings account (ESA)
Are room and board qualified education expenses for purposes of the education
savings bond program? - ANSWER -NO
An eligible educational institution for purposes of the education savings bond
program is broadly
defined as
And includes: - ANSWER -one eligible to participate in a student aid program
administered by the U.S. Department of
Education and includes:
College;
University;
,Vocational school; and
Other post-secondary educational institution.
(virtually all accredited U.S. public,
nonprofit, and proprietary post-secondary institutions.)
Montana New Apprenticeship Credit: - ANSWER -Nonrefundable
No carryover
$750 for each new registered apprentice
$1,500 for each new registered apprentice who is
a veteran
Shareholders and partners can claim their
distributive share of credit
Employers must apply to the Department of Labor and Industry before claiming
this credit on their return.
(MT) For dependent information, when a child is disabled, make sure to ask for -
ANSWER -a physician's certification if this is the first time the additional
exemption is claimed (mark disabled on MT dependent information)
If the taxpayer wants to designate a person other than the paid preparer as third
party designee, use - ANSWER -the dedicated section on page 2 (of MT return
Form 2, p. 2)
Montana Taxable Income (calculation) - ANSWER -Starts with Fed AGI
Plus MT Additions
Minus MT Subtractions
Minus Standard or Itemized Deductions
Minus Personal and Dependents Exemptions
CAUTION
No Qualified Business Income Deduction
Do not forget to mark the box if you itemize your deductions
, MT MSA Special Rule for 2018 - ANSWER -Taxpayers with excess contributions
can withdraw their excess contribution without penalty. After 2018, any
withdrawal would have to be a qualified withdrawal.
Excess contributions occur when overall contributions in prior years were more
than the overall amount of deductions based on such contributions on prior
Montana income tax returns.
MT Standard Deduction- - ANSWER -20% of MT AGI
MT Maximum deduction for Single and MFS - ANSWER -$4,580
MT Maximum deduction for HoH and MFJ - ANSWER -$9,160
(MT Itemized deductions) State and Local Taxes deduction is limited to -
ANSWER -$10,000
(MT Itemized deductions) Vehicle registration fees
must be split between: - ANSWER -The value-based taxes (line 5d)
and
The registration fees (line 6)
MT Charitable contributions limits are - ANSWER -the federal limits, substituting
Fed AGI with MT AGI
Use the Tax Liability Schedule if: - ANSWER --You are a nonresident
-You are a part-year resident
-You are a resident owing either:
-Recapture Taxes
-Tax on Lump Sum Distributions
-Tax on Deferred Foreign Income (DFI) and
an election was made not to use the DFI
against the NOL
