Federal Tax Exam 2 UPDATED ACTUAL
Exam Questions and CORRECT Answers
What business deduction is below the line - CORRECT ANSWER - QBI deductions
What is the limit on social security taxes - CORRECT ANSWER - 168,600
What is the income minimum for the additional medicare taxes - CORRECT ANSWER -
200,000
What is the percentage for social security taxes - CORRECT ANSWER - 6.2%
What is the percentage for medicare taxes - CORRECT ANSWER - 1.45%
What is the percentage for additional medicare taxes - CORRECT ANSWER - 0.9%
Are credits or deductions preferred - CORRECT ANSWER - Credits
How much is AOTC refundable - CORRECT ANSWER - 40%
What is the floor for casualty and theft - CORRECT ANSWER - $100
When can you deduct for casualty and theft - CORRECT ANSWER - Declared natural
disasters
How much can one deduct for gambling losses - CORRECT ANSWER - Up to amount of
winnings
, Is gambling deduction, below or above the line - CORRECT ANSWER - Below the line
What is the floor for health expenses deductions - CORRECT ANSWER - 7.5% of taxpayers
AGI
What is acquisition limit for mortgage interest deduction - before 2017 - CORRECT
ANSWER - Up to one million
What is acquisition limit for mortgage interest deduction - after 2017 - CORRECT
ANSWER - Up to $750,000
How do you choose standardized or itemized deductions - CORRECT ANSWER - Whichever
is highest
Does blindness give you extra standard deductions - CORRECT ANSWER - Yes
What age gives you extra standard deductions - CORRECT ANSWER - 65
How do you know a taxpayers certain standard deductions - CORRECT ANSWER - Filing
status
What is the maximum deduction for AOTC - CORRECT ANSWER - 2500
How do you calculate deduction for AOTC - CORRECT ANSWER - 100% for first 2000,
25% for next 2000
What is the age limit on child tax credit - CORRECT ANSWER - 17
What is maximum credit for child - CORRECT ANSWER - 2000
Exam Questions and CORRECT Answers
What business deduction is below the line - CORRECT ANSWER - QBI deductions
What is the limit on social security taxes - CORRECT ANSWER - 168,600
What is the income minimum for the additional medicare taxes - CORRECT ANSWER -
200,000
What is the percentage for social security taxes - CORRECT ANSWER - 6.2%
What is the percentage for medicare taxes - CORRECT ANSWER - 1.45%
What is the percentage for additional medicare taxes - CORRECT ANSWER - 0.9%
Are credits or deductions preferred - CORRECT ANSWER - Credits
How much is AOTC refundable - CORRECT ANSWER - 40%
What is the floor for casualty and theft - CORRECT ANSWER - $100
When can you deduct for casualty and theft - CORRECT ANSWER - Declared natural
disasters
How much can one deduct for gambling losses - CORRECT ANSWER - Up to amount of
winnings
, Is gambling deduction, below or above the line - CORRECT ANSWER - Below the line
What is the floor for health expenses deductions - CORRECT ANSWER - 7.5% of taxpayers
AGI
What is acquisition limit for mortgage interest deduction - before 2017 - CORRECT
ANSWER - Up to one million
What is acquisition limit for mortgage interest deduction - after 2017 - CORRECT
ANSWER - Up to $750,000
How do you choose standardized or itemized deductions - CORRECT ANSWER - Whichever
is highest
Does blindness give you extra standard deductions - CORRECT ANSWER - Yes
What age gives you extra standard deductions - CORRECT ANSWER - 65
How do you know a taxpayers certain standard deductions - CORRECT ANSWER - Filing
status
What is the maximum deduction for AOTC - CORRECT ANSWER - 2500
How do you calculate deduction for AOTC - CORRECT ANSWER - 100% for first 2000,
25% for next 2000
What is the age limit on child tax credit - CORRECT ANSWER - 17
What is maximum credit for child - CORRECT ANSWER - 2000
