Question
Which of the following best describes the effect of a tax credit? A. It reduces a person's gross income. B. It reduces a person's adjusted
Which of the following best describes the effect of a tax credit?
A.It reduces a person's gross income.
B.It reduces a person's adjusted gross income.
C.It reduces a person's taxable income.
D.It reduces a person's tax liability.
2) Which of the following credits is refundable?
A.Family tax credit.
B.Adoption credit.
C.Lifetime learning credit.
D.Foreign tax credit.
4)A single individual is reporting the following items for the current year:
AGI prior to the foreign earned income exclusion | $220,000 |
Foreign earned income exclusion | 80,000 |
Net investment income | 25,000 |
Given a 3.8% Unearned Income Medicare Contribution Tax rate, what is the amount of liability associated with this surtax?
A.$0
B.$570
C.$760
D.$950
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