What is the maximum investment income a taxpayer is allowed to have and still be allowed to claim the earned income credit?$ Why is there an investment income limit in the tax law regarding the credit? The earned income credit is meant to assist

Q: Please answer with reason for all why the option is correct and why the other options are incorrect…

A: Adjusted gross income refers to the income earned after deducting the operating expenses including…

Q: what is omar's self-employment tax liability?

A: The applicable self-employment tax rate on Omar's net earnings from self-employment is 2.9% because…

Q: What is meant by a tax shelter?

A: Tax shelter is a provision for tax payer to deduct the taxable income. This provision gives certain…

Q: Describe the difference between a tax credit and a tax deduction Which is more beneficial to the…

A: Tax Deduction/Credit Tax deductions lowers the amount of tax owed where as tax credit  reduce the…

Q: What is the consequence of the purchases of a OPT-taxpayer from a VAT taxpayer?

A: VAT Taxpayer: In the European Community, the Value Added Tax, or VAT, is a wide ranging taxation…

Q: The use of the earned income credit could result in a taxpayer receiving a refund even though the…

A: Earned Income Credit(EIC) is a type of tax credit available to U.S. Citizens that earn low income…

Q: report expenses using correct tax categories because

A: The accountants have to report expenses under correct categories always.

Q: can you help me how to Explain how an employer can receive a credit against the FUTA tax due.

A: FUTA stands for Federal Unemployment Tax Act under federal law of US. FUTA tax is paid by the…

Q: . What is the amount of tax Jacob will owe on the income allocation if the income is qualified…

A:

Q: Among the highlights of train law, which do you think is disadvantageous for the taxpayer? Explain

A: TRAIN is an acronym popularly used for The Tax Reform for Acceleration and Inclusion Act. It is an…

Q: deductions from gross income? *

A: Correct Answer :- C   discounts given to senior citizens on certain goods and services.

Q: What are child tax credits and payroll taxes? Explain the advantages and disadvantages. which…

A: Child Tax Credits  In America, child tax credits are given to every family in which dependent child…

Q: Which of the following is subject to the creditable withholding tax system?

A: Creditable withholding tax is an advance income tax of the particular tax payee. This would mean…

Q: Why would a taxpayer file a tax return if not required to do so?

A: A person is required to file the income tax return as per their respective country’s taxation law.…

Q: Which of the following is an adjustment that will generally result in lower tax liability for an…

A: A tax is a charge which is levied by the government on the taxable income of a taxpayer. A tax…

Q: Louis spent $200 playing bingo at his church. Since the profits went to the church, Louis can deduct…

A: Games are generally organised by charitable institutions. Bingo is a game and which is organised by…

Q: A taxpayer uses

A: There are two basis in accounting  acrual and cash.                In accural basis…

Q: How is the unearned income of children treated for tax purposes?  Can parents include the children’s…

A: Unearned income includes investment-type income such as taxable interest, ordinary dividends, and…

Q: In terms of the tax formula applicable to individual taxpayers, which, if any, of the following…

A: Deductions for AGI means above the line deduction which a taxpayer can deduct from his gross income…

Q: yer. Whether taxpayers rent or own their residence. Taxpayer’s filing status (e.g., single, married,…

A: An itemised deduction is expense that can be deducted from adjusted gross income to lower  taxable…

Q: Describe the difference between the standard deduction and itemized deductions. How should a…

A: Lets understand the basics. In US taxation, there are two type of deduction specified. Tax payer can…

Q: Which tax is NOT withheld from an employee?  Select one: Federal tax State tax Mortgage tax All of…

A:

Q: Describe some reasons why it is a good idea to file a tax return if you have earned income, even if…

A: If there is no tax liability, even then the Income-tax return (ITR) is mandatory to file if the…

Q: What is the tax implication if the employment is one of contract of service rather than contract for…

A: The tax implications for you differ depending on whether you're considered an employee (contract of…

Q: Income

A: An individual retirement account or IRA is a gateway to save for retirement and cut down taxes as…

Q: Which of the following is true regarding Social Security benefits? a. Tax-exempt interest income…

A: Social Security benefits refers to the payments received from the Social Security Administration, a…

Q: Briefly describe why the obligation to pay taxes for citizens who have taxable income is a form of…

A: What is Taxation?  Taxation is a not a word it means when an authority i.e respective government ,…

Q: Read Section 1374 for built-in-gain tax 1. When does the tax apply?

A: The answer for the question on the Section 1374 for built - in - gain tax is given hereunder :…

Q: For an accrual basis taxpayer, which of the following statements is TRUE  regarding prepaid income?…

A: In accrual basis of accounting, when any amount is received against a service which has not yet been…

Q: Chuck, a single taxpayer, earns $75, 400 in taxable income and $10, 200 in interest from an…

A: Tax refers to the amount charged by the government to the individual or organization on the income…

Q: Is estate tax a type of debt? What happens if a person doesn't pay estate tax?

A: The estate tax is a tax imposed after a person's death on the transfer of property and other assets.…

Q: Which of the following is a test used to determine a taxpayer's tax home? The main place of…

A: Tax liability of the taxpayer is based on the residential status of the taxpayer or place where the…

Q: 1. What is more valuable to a taxpayer, a $100 tax credit or a $100 tax deduction? Why?

A: Companies and individuals have to pay taxes to the government as per the taxation rules and…

Q: How do taxpayers determine whether they should deduct their itemized deductions or utilize the…

A: How do taxpayers determine whether they should deduct their itemized deductions or utilize the…

Q: As You Read QUESTION What could happen if your employer did not deduct federal income taxes from…

A: Introduction:- A paycheck, also known as a paycheck is a paper document issued by an employer as…

Q: What is the statute of limitations for income tax returns?

A: Given: The concept of a statute of limitations for the income tax returns.

Q: The Tax Code differentiates between qualified option plans, including incentive plans, and…

A: Stock options:  Stock options are the stock-based compensation plans provided in the form of an…

Q: A taxpayer can not claim the hefalth insurance premium tax credit if?

A: Tax is the charge which is charged on the taxable income of a taxpayer and each taxpayer wants to…