A surviving spouse becomes subject to the 39.6% tax rate when taxable income exceeds:
$225,000
$400,000
$425,000
XX$450,000
Final Exam > Question 2
A single filer with taxable income over $400,000 has collectibles gains of $100,000. What is the maximum tax rate on these gains?
15%
20%
25%
XX28%
Final Exam > Question 3
The AMT exemption amount in 2013 for a head of household is:
$40,375
XX$51,900
$80,750
$115,400
Final Exam > Question 4
Which statement about the Medicare surtax on earned income is not correct?
The rate is 0.9% on earnings over a threshold amount.
Employers must begin to withhold the tax when taxable compensation exceeds $200,000.
XXSelf-employed individuals are exempt from the tax.
There is no employer matching for this tax.
Final Exam > Question 5
Which of the following types of income is subject to the NII tax?
XXBusiness income that is passive to the taxpayer
Distributions from 401(k) plans
Social Security benefits
Alimony
Final Exam > Question 6
The maximum pre-tax contribution by an employee to a medical FSA in 2013 is:
XX$2,500
$6,000
$100,000
Whatever limit the employer sets
Final Exam > Question 7
Withdrawals from a Coverdell ESA are tax free for each of the following items except:
Tuition at a private high schoo
Tutoring
Computer equipment
XXAmounts used to figure the American opportunity credit
Final Exam > Question 8
Which of the following statements about the PEP limitation is not correct?
The reduction is 2% for each $2,500 ($1,250 for married filing separately) by which AGI exceeds a threshold amount.
XXThe deduction for personal and dependency exemptions can never be reduced by more than 80%.
The threshold amounts for 2013 are $250,000 for singles; $275,000 for heads of households, $300,000 for joint filers, and $150,000 for married persons filing separately.
The threshold amounts will be indexed for inflation starting in 2014.
Final Exam > Question 9
A taxpayer, age 58, has high medical bills in 2013 that are not reimbursed by insurance or any other plan. What is the AGI floor for figuring deductible medical expenses?
5%
7.5%
XX10%
20%
Final Exam > Question 10
The maximum Sec. 179 deduction in 2013 is:
$25,000
$139,000
XX$500,000
$2 million