With regard to wage income:

Group of answer choices

b. employers pay half of the payroll taxes (7.65%) directly, while employees pay the other half through withholding.

c. payroll taxes are only withheld if the employee specifically requests additional withholding.

a. employers pay all of the social security income directly, and employees pay the Medicare tax through withholding.

d. employees never see any reporting of their payroll taxes because they are sent directly from the employers account to the IRS.

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Question 191 pts

Compared to wage income, self-employment income:

Group of answer choices

b. has a lower cap on social security and Medicare taxes.

d. is subject to SECA taxes which must be paid entirely by the taxpayer

a. is always subject to higher social security and Medicare taxes.

c. offers no deductions for SECA tax paid.

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Question 201 pts

The alternative minimum tax (AMT) is a tax system that runs parallel to the normal system, and is designed to impose penalties on middle and upper income taxpayers for excessive use of certain tax preferences.

Group of answer choices

True

False

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Question 211 pts

The Medicare Surtax is:

Group of answer choices

a. a 0.9% surtax on investment income above certain thresholds.

d. a 0.9% surtax that is added on self-employment income that exceeds certain thresholds.

b. a 0.9% surtax that is added to the FICA tax on wages and/or self-employment income that exceeds certain thresholds.

c. A 0.9% surtax on FICA wages only that is to be collected by employers through increased withholding.

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Question 221 pts

Generally, in a grantor trust,

Group of answer choices

d. probate is not avoided

b. the grantor does not retain significant control over the trust

a. the tax liability is paid by either the trustee or its beneficiaries

c. the grantor is responsible for income tax on income from the trust property

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Question 231 pts

Which of the following statements concerning a grantor trust is/are true?

(1) grantor trusts can reduce the cost, delay, and publicity of probate

(2) income from a grantor trust is taxed to the grantor

(3) grantor trusts avoid estate tax

(4) grantor trusts incur gift tax

Group of answer choices

(4) only

(1) and (2) only

(1) only

(2) and (3) only

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Question 241 pts

Which of the following statements about a simple trust is true?

Group of answer choices

d. it distributes all trust income annually

b. it permits distribution of corpus

c. the trustee has discretion whether to accumulate or distribute trust income

a. it permits charitable contributions

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Question 251 pts

A taxpayer is permitted to give at total of up to $15,000 per year (in 2018) to any person without any gift tax consequences, regardless of his/her relationship to the recipient(s).

Group of answer choices

True

False