Questions from Federal Taxation

Q: List an advisor’s duties that are excluded under the AICPA’s Statements on

List an advisor’s duties that are excluded under the AICPA’s Statements on Standards for Tax Services.

Q: The credit for employer-provided child care has two major components

The credit for employer-provided child care has two major components, a credit for qualified child care expenses and a credit for qualified child care resources and referral expenditures. a. Discuss...

Q: Although Virginia is entitled to five personal and dependency exemptions on her

Although Virginia is entitled to five personal and dependency exemptions on her income tax return, she claims only one withholding allowance on Form W-4. a. Is it permissible to claim fewer allowance...

Q: Mario is a college student who had no income tax liability in

Mario is a college student who had no income tax liability in the prior year and expects to have no tax liability for the current year. a. What steps should Mario take to avoid having amounts withhel...

Q: What is backup withholding? What is its purpose?

What is backup withholding? What is its purpose?

Q: Vincent anticipates that his actual tax liability for the tax year 2017

Vincent anticipates that his actual tax liability for the tax year 2017 will be $12,000 and that federal income taxes withheld from his salary will be $9,000. Thus, when he files his 2017 income tax r...

Q: An individual has increasing levels of income each year and is uncertain

An individual has increasing levels of income each year and is uncertain regarding the amount of his estimated taxable income for any given year. What tax planning strategy can be used to avoid the pe...

Q: Jennifer recently received a check for $30,000 and securities

Jennifer recently received a check for $30,000 and securities with a fair market value of $200,000 from her former husband pursuant to a divorce. The $30,000 represents a limony and the securities wer...

Q: Dale Eisen is saving as much as possible to fund a down

Dale Eisen is saving as much as possible to fund a down payment on his first home. He is young (25 years old) and healthy, and has declined health insurance coverage offered by his employer because he...

Q: Daryl is an executive who has an annual salary of $120

Daryl is an executive who has an annual salary of $120,000. He is considering early retirement so he can pursue a career as a management consultant. Daryl estimates that he could earn approximately $8...