The 0.9 percent Medicare tax applies to:
|
a. |
Tax exempt income |
|
|
b. |
IRA distributions |
|
|
c. |
Earned income |
|
|
d. |
Gain on the sale of a principal residence |
The 3.8 percent ACA Medicare tax does not apply to:
|
a. |
Wages |
|
|
b. |
Interest |
|
|
c. |
Capital gains |
|
|
d. |
Dividends |
Tom, age 13, is claimed as a dependent by his parents. Tom has unearned income of $3,400 and $300 of income from mowing lawns in the neighborhood. If the first $2,600 of Tom's net unearned income is taxed at 10%, what is Tom’s 2019 income tax liability?
|
a. |
None of these |
|
|
b. |
$260 |
|
|
c. |
$370 |
|
|
d. |
$0 |
|
|
e. |
$459 |
QUESTION 1
Option C is correct. 0.9% Medicare tax applies to Earned Income such as wages.
QUESTION 2
Option A is correct. It is not applicable on earned income such as wages.
QUESTION 3
Tax liability = ((Earned income + Unearned income) - Standard Deduction) x tax rate
= ((300 + 3400) - 1100) x 10% = 265
Therefore Option B is correct.
The 0.9 percent Medicare tax applies to: a. Tax exempt income b. IRA distributions c. Earned...
Melody and Todd are married and have employee wages of $250,000 each in 2019. They have no other income. How much additional 0.9% Medicare tax will Melody and Todd have to pay or receive as a refund when they file their 2019 income tax return? a. $900 will be refunded with their return. b. $3,600 will be due with their return in addition to amounts withheld. c. $1,350 will be due with their return in addition to amounts withheld. d....
QUESTION 1 Tom, age 13, is claimed as a dependent by his parents. Tom has unearned income of $3,400 and $300 of income from mowing lawns in the neighborhood. If the first $2,600 of Tom's net unearned income is taxed at 10%, what is Tom’s 2019 income tax liability? a. None of these b. $260 c. $370 d. $0 e. $459 QUESTION 2 The 3.8 percent ACA Medicare tax does not apply to: a. Wages b. Interest c. Capital gains...
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