Questions from Taxation

Q: The tax law provides for both refundable and nonrefundable credits. What

The tax law provides for both refundable and nonrefundable credits. What is the difference between the two types of credit?

Q: Congress enacted the earned income credit to relieve the burden of the

Congress enacted the earned income credit to relieve the burden of the payroll tax on low-income workers. Why didn’t Congress accomplish this goal by providing a payroll tax exemption for a base amoun...

Q: Ms. Jobe has been very ill since the beginning of the

Ms. Jobe has been very ill since the beginning of the year and unable to attend to any financial matters. Her CPA advised that she request an automatic extension of time to file her prior year Form 10...

Q: Explain why AGI is considered a better measure of individual disposable income

Explain why AGI is considered a better measure of individual disposable income than taxable income.

Q: University K is located in a small town that depends on real

University K is located in a small town that depends on real property taxes for revenue. Over the past decade, University K has expanded by purchasing a number of commercial buildings and personal res...

Q: Discuss possible tax policy reasons why individuals who are age 65 or

Discuss possible tax policy reasons why individuals who are age 65 or older receive an additional standard deduction.

Q: Identify the reasons why individual taxpayers benefit more from above-the

Identify the reasons why individual taxpayers benefit more from above-the-line deductions than from itemized deductions.

Q: While checking the computations on his Form 1040, Mr. Gordon

While checking the computations on his Form 1040, Mr. Gordon realized he had misclassified a $10,800 expense as a business deduction on Schedule C. The expense should have been an itemized deduction o...

Q: Individuals who plan to bunch itemized deductions into one year can either

Individuals who plan to bunch itemized deductions into one year can either postpone the payment of expenses from an earlier year or accelerate the payment of expenses from a later year. Which techniqu...

Q: Describe the restrictions on tax benefits available to an individual taxpayer who

Describe the restrictions on tax benefits available to an individual taxpayer who is claimed as a dependent on another taxpayer’s Form 1040.