Final Exam > Results Page
final exam score:
final exam status:
80%
Question 1
Correct
The threshold amount for the additional Medicare tax on earned income for a married person filing separately is:
(You Answered) (Correct Answer) $125,000
$200,000
$250,000
$500,000
Question 2
Correct
Which statement concerning the additional Medicare tax on earned income is correct?
(You Answered) (Correct Answer) Earnings below the threshold amount are not impacted by the tax.
The threshold amounts are adjusted annually for inflation.
There is employer matching for the tax.
Employers must notify employees about the new tax.
Question 3
Incorrect
For self-employed individuals, which statement concerning the additional Medicare tax on earned income is not correct?
The threshold amount is reduced by wages taken into account in determining the additional Medicare tax on those wages.
(You Answered) They cannot deduct the tax.
The additional Medicare tax is a “tax” for purposes of estimated taxes.
(Correct Answer) The threshold amounts for net earnings from self-employment are different than the threshold amounts for those with wages.
Question 4
Correct
If MAGI exceeds the applicable threshold amount for the additional Medicare tax on net investment income, the tax applies to:
Net investment income over the threshold amount
(You Answered) (Correct Answer) The lesser of net investment income or MAGI in excess of the threshold amount
All net investment income, including amounts otherwise excludable from income tax
All taxable investment income without regard to investment deductions
Question 5
Correct
Which filing status has a different threshold amount for earned income than for net investment income?
Single
Married filing separately
(You Answered) (Correct Answer) Qualifying widow(er)
Joint filer
Question 6
Correct
Which is not treated as investment income for purposes of the additional Medicare tax on net investment income?
Trading in financial instruments
Trading in commodities
Interest income
(You Answered) (Correct Answer) The portion of gain on the sale of a home excluded because of the home sale exclusion
Question 7
Incorrect
The additional Medicare tax can be paid by all of the following except:
Increasing income tax withholding on wages
(Correct Answer) Asking the payor of investment income to withhold the tax
Including the tax in estimated tax payments
(You Answered) Both a. and c.
Question 8
Correct
In doing investment planning to minimize or avoid the additional Medicare tax on net investment income, which of the following is not a factor?
Transaction costs
The moves in the stock market
Personal income needs
(You Answered) (Correct Answer) None of the above
Question 9
Correct
In 2013, which strategy will not help to minimize or avoid the additional Medicare tax on net investment income?
Electing not to treat capital gains and dividends as investment income for purposes of deducting investment interest (assuming the taxpayer itemizes)
(You Answered) (Correct Answer) Making a Roth IRA conversion
Contributing appreciated securities to charity (assuming the taxpayer itemizes)
Shifting income to family members in lower tax brackets (with the kiddie tax in mind)
Question 10
Correct
Which MAGI-cutting strategy will help to minimize or avoid the additional Medicare tax on net investment income?
Making tax-deductible IRA contributions
Contributing to an FSA
Taking capital losses
(You Answered) (Correct Answer) All of the above