The unified estate and gift tax credit exempts people with taxable estates under $11.7 million from paying any estate taxes at all. Should the exemption be set higher? Or lower?

Calculate the tax payable if an individual taxpayer has the following amounts of taxable income. Include Medicare Levy and Medicare Levy surcharge, where applicable.   $17,000 – Non-resident (not a working holiday maker).  $95,000 – Non-resident, (not a working holiday maker.  $100,000 – Resident, with no private health insurance.  $245,000 - Resident; with private health insurance.

What is the tax rate range for Social Security benefits received? How is the deductible amount of personal property tax figured for personal vehicles? Remember, the tax must be calculated based on the vehicle’s value (not its weight) in order to be deducted.  Are donations of time and services deductible? What types of state and local taxes are deductible as itemized deductions on Schedule A?

Ma2.

If an individual itemizes deductions on his or her tax return, he or she may: a. deduct the gross unreimbursed medical expenses paid for the year b. deduct the net unreimbursed medical expenses paid for the year c. deduct 80% of the gross unreimbursed medical expenses paid for the year d. deduct 80% of the net unreimbursed medical expenses paid for the year

Impact on Taxes. From question 24, if Lawrence had forgotten a $5000 tax credit (instead of a $5000 tax deduction), how would his taxes be affected?

Comment on the following items relative to tax planning strategies of a fiduciary entity. A. To reduce taxes for a typical family, should income be shifted to a trust or from a trust? Why? B. To reduce overall taxes, should a high-income, wealthy beneficiary be assigned to the first or second tier of trust distributions? Why?

You have a choice between a tax deduction of $1,000 or a refundable tax credit of $300.  What factors/circumstances will determine which option is the better choice for you?

Consider Taxpayers A and B who are in the same marginal tax bracket because of equal salaries. They each earn an additional $20,000—Taxpayer A by working overtime and Taxpayer B by selling stock resulting in a $20,000 capital gain. Taxpayer A pays tax at the ordinary income tax rate on his additional wages while Taxpayer B benefits from the lower capital gains tax rate on his extra income by selling an investment asset. Is this equitable? Should equivalent incomes be taxed equally?

Which of the following statements is correct? Multiple Choice Taxpayers with household income which is more than 400% of the Federal Poverty Level are eligible to claim the premium tax credit. The premium tax credit is only available when the taxpayer files his or her tax return. The premium tax credit is available only for premium health insurance programs. Taxpayers who receive a credit are not required to file a federal tax return.