Question
9. Which of the following is not subject to self-employment tax? A. Gain on the sale of real estate held for investment B. Net earnings
9. Which of the following isnotsubject to self-employment tax?
| A. | Gain on the sale of real estate held for investment |
| B. | Net earnings of a self-employed lawyer |
| C. | Distributive share of earnings of a partnership |
| D. | Net earnings of the owner of a shoe store |
| E. | Net earnings of the owner of a dry cleaner |
8. For 2015, Roberta is a self-employed truck driver with earnings of $45,000 from her business. During the year, Roberta received $2,500 in interest income and dividends of $500. She also sold investment property and recognized a $1,500 gain.
What is the amount of Roberta's self-employment tax (Social Security and Medicare taxes) liability for 2015?
| A. | $2,790 |
| B. | $3,443 |
| C. | $6,358 |
| D. | $6,885 |
| E. | $7,115 |
7. Which of the following forms would be used to report wages, tips, and other compensation paid to employees?
| A. | Form W-4 |
| B. | Form W-2G |
| C. | Form W-2 |
| D. | Form 1099-R |
| E. | Form 1099-MISC |
2. Abbe, age 56, is married and has two dependent children over age 17. Abbe has one job, and her husband, age 58, is not employed. If she expects to earn wages of $50,000, how many allowances should Abbe claim on her Form W-4 for 2015?
| A. | 4 |
| B. | 5 |
| C. | 7 |
| D. | 8 |
| E. | 9 |
4. Estimated payments for individual taxpayers are due on the following dates:
| A. | Twice a year on April 15 and September 15 |
| B. | Four times a year on April 15, June15, September 15, and January 15 of next year. |
| C. | Four times a year on April 15, July15, September 15, and December 15 |
| D. | Twice a year on June 15 and December 15. |
5. Which of the following is not true about FICA taxes?
| A. | The FICA tax has two part, Social Security (Old Age, Survivors, and Disability Insurance) and Medicare (hospital insurance). |
| B. | In 2015, the maximum wage base for Social Security tax withholding is $117,000. |
| C. | In 2015, there is no maximum wage base for Medicare tax withholding. |
| D. | When employees work for more than one employer and exceed the maximum wage base for Social Security tax withholding in total, they are not allowed a refund of excess tax withheld. |
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
