a. True*b. False41. In order to qualify for the work opportunity credit, the worker must have performed services for the employer for at least 400 hours during the year. a. True*b. False42. Although a work opportunity credit usually is available only for qualified first-year wages, qualified second-year wages paid to a long-term family recipient can qualify for the credit. *a. Trueb. False43. The amount of the low-income housing credit may be taken each year for a total of 15 years, beginning with the tax year during which the building is placed in service or, at the building owner's election, the following tax year. a. True*b. False
44. A business qualifies as an "eligible small business" if during the preceding tax year it met either of the following conditions: (1) its gross receipts did not exceed $1 million and (2) it employed no more than 30 full-time employees. a. True*b. False45. A qualified child care facility cannot discriminate in favor of the taxpayer's highly compensated employees. *a. Trueb. False46. Taxpayers may take both a credit for some of the qualified foreign taxes they paid or accrued during the year and a deduction for the rest of the qualified foreign taxes they paid or accrued during the tax year. a. True*b. False47. The deduction for foreign taxes is only allowed in the year in which the foreign taxes are paid or incurred. *a. Trueb. False 48. What is the amount of dependent care credit for a couple with two children where they spend $5,000 for dependent care and the husband earns $40,000 for the year and the wife earns $4,500? a. $1,000b. $990*c. $900d. $0e. None of the above49. What is the amount of dependent care credit allowed Sally Smith, a divorcee, who pays $3,100 for the year to send her daughter to a babysitter while she works? The daughter is claimed as a dependent by the father. Sally has adjusted gross income of $16,500 for the year.
50. Joe College is married and attends State University for 12 months. Joe and his wife have two children. Mrs. College works to help put Joe through school. The children, who are four and five years old, are kept at Sleepy Time Day Care School. The Colleges paid the school $4,600 this year to keep the children. The Colleges had adjusted gross income of $10,000 this year, all of which was earned by Mrs. College. What amount may the Colleges claim as a child care credit?
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- Spring '14
- Taxation in the United States, general business credit