Aurora, a self employee taxpayer. reports all her income on schedule C. during the tax interview,...
Aurora, a self employee taxpayer. reports all her
income on schedule C. during the tax interview, Aurora tax
professional determines that Aurora may qualify for the earned
income credit. the tax professional must____.
a. inform Aurora about her eligibility for the credit an attach
documentation of her income and expenses to the return.
b. document the question they asked and Aurora's answer to the
question pertaining to the income.
c. prepare the to include only the expenses that will
generate the most credit.
d. tell Aurora that the return will most likely be audited by the
internal revenue service.
Homework Answers
Option B.
Document the question they asked and Aurora's answer to the question pertaining to the income.
All additional inquiries made and clients response must be documented
Add Answer to:
Aurora, a self employee taxpayer. reports all her
income on schedule C. during the tax interview,...
Question 41 of 75. Aurora, a self-employed taxpayer, reports all her income on Sc hedule C....
Question 41 of 75. Aurora, a self-employed taxpayer, reports all her income on Sc hedule C. During the tax interview, Aurora's Tax Professional determines that Auror O Inform Aurora about her eligibility for the O Document the questions they asked and Aurora's answers to the questions pertaining to the O Prepare the return in a way that is disadvantageous to the taxpayer. OTell Aurora that the return will most likely be audited by the Internal Revenue Service. credit and attach...
Zahra, a self-employed, single taxpayer, reports all her income on Schedule C. During the tax interview,...
Zahra, a self-employed, single taxpayer, reports all her income on Schedule C. During the tax interview, her Tax Professional determines that Zahra may qualify for the Earned Income Credit. To confirm her eligibility for this credit, the Tax Professional should: Accept Zahra's statement of expenses with no additional questions asked. Explain to Zahra that she must report all her business income and expenses. Ignore items that might reduce Zahra's refund. Provide amounts for Zahra's business expenses typical for her line...
a ref Question 34 of 75. If a self-employed taxpayer fails to bring documentation to prove...
a ref Question 34 of 75. If a self-employed taxpayer fails to bring documentation to prove theit income but wants to claims the Earned income Credit, the Child Tax Credit/Additional Child Tax Credit, andlor the American Opportunity Credit, the Tax Professional O Must be given other evidence that the self-employment income is correct and complete before completing and signing the O Cannot prepare the return. Que return Pen OMay not claim any of these credits on the taxpayer's return. Should...
1).- Anita is a self employed beautician, This year her net income reported on schedule c...
1).- Anita is a self employed beautician, This year her net income reported on schedule c was 43600. How much self employment tax must she pay on schedule SE? a) 3180 b) 6160 c)6671 d) none because her income from self employment is under 128400, Anita is not subject to the self employment tax. 2.- Which of these is NOT an eligibility requirement for the premium tax credit? a) not eligible for a government health insurance program ...
Question 23 of 75. Realize our potential: H&R Block Which of the following tax benefits may...
Question 23 of 75. Realize our potential: H&R Block Which of the following tax benefits may reduce a taxpayer's tax liability below zero? Adjustment Deduction. Nonrefundable credit. Refundable credit. Time remaining 77:17 Mark for follow up Question 24 of 75. Review the following choices, then choose the only response that does NOT describe a due diligence requirement for an individual who is paid to prepare returns for taxpayers claiming the head of household filing status and/or one or more of...
1.) Ruth and Steve will file a joint return. During the year, they received dividends from...
1.) Ruth and Steve will file a joint return. During the year,
they received dividends from a mutual fund investment, and they
received a 2019 Form 1099-DIV reporting a distribution of $1,000 in
total ordinary dividends, shown in box 1, and qualified dividends
of $1,000, shown in box 2. Their only other income was from wages.
Their taxable income for the year was $86,500. How much tax will
they pay on their dividend income?
A. $150
B.$200
C.$220
D.$300
Question...
A taxpayer is NOT eligible to claim the Earned Income Tax Credit (EITC) if they had...
A taxpayer is NOT eligible to claim the Earned Income Tax Credit (EITC) if they had investment income in 2019 totaling more than: $3,000 $3,350 $3,450 $3,600 To BIOGR In 2018, Kirsten and Jeff paid $2,000 of qualified domestic adoption expenses. The adoption did not become final until 2019, and they paid an additional $3,000 in qualified expenses that year. Their modifiechadjustedng gross income was $165,000. What is the maximum amount they may be eligible to claim for the Adoption...
INCOME TAX RETURN PROBLEM Below is the taxpayer information for Beverly Johnson: Beverly (SS# 138-09-1983, date...
INCOME TAX RETURN PROBLEM Below is the taxpayer information for Beverly Johnson: Beverly (SS# 138-09-1983, date of birth: April 2, 1968) is a self-employed consultant whose business uses the accrual method of accounting. Her principal business code is 540700. Her business is located at 1501 Broadway, New York, N.Y., 10019. During the year, she had the following income and expense items: Income Professional Fees Earned $250,000 $5,413 $ 15,250 $ 30,500 $ 7,577 $ 6,000 $ 5,552 Expenses Office Expenses...
Stella is a single taxpayer and operates a self-employed business that provides pet-sitting services. The business is...
Stella is a single taxpayer and operates a self-employed
business that provides pet-sitting services. The
business is considered a sole proprietorship for income tax
purposes and represents Stella's only source of income. In 2018,
the standard deduction amount was greater than Stella's total
itemized deductions. Stella does not have any available tax credits
nor did she make any estimated tax payments for her 2018 tax
return.
Stella reports her income and expenses from the business using
the cash method. Stella's automobile was...
8 Credits [1] If a taxpayer qualifies for the Earned Income Credit, such credit can be...
8 Credits [1] If a taxpayer qualifies for the Earned Income Credit, such credit can be subtracted from A. Gross income to arrive at adjusted gross income. B. Adjusted gross income to arrive at taxable income. C. The tax owed, or can result in a refund, but only if the taxpayer had tax withheld from wages. D. The tax owed, or can result in a refund, even if the taxpayer had no tax withheld from wages. [2] Which of the...
Question 41 of 75. Aurora, a self-employed taxpayer, reports all her income on Sc hedule C. During the tax interview, Aurora's Tax Professional determines that Auror O Inform Aurora about her eligibility for the O Document the questions they asked and Aurora's answers to the questions pertaining to the O Prepare the return in a way that is disadvantageous to the taxpayer. OTell Aurora that the return will most likely be audited by the Internal Revenue Service. credit and attach...
a ref Question 34 of 75. If a self-employed taxpayer fails to bring documentation to prove theit income but wants to claims the Earned income Credit, the Child Tax Credit/Additional Child Tax Credit, andlor the American Opportunity Credit, the Tax Professional O Must be given other evidence that the self-employment income is correct and complete before completing and signing the O Cannot prepare the return. Que return Pen OMay not claim any of these credits on the taxpayer's return. Should...
Question 23 of 75. Realize our potential: H&R Block Which of the following tax benefits may reduce a taxpayer's tax liability below zero? Adjustment Deduction. Nonrefundable credit. Refundable credit. Time remaining 77:17 Mark for follow up Question 24 of 75. Review the following choices, then choose the only response that does NOT describe a due diligence requirement for an individual who is paid to prepare returns for taxpayers claiming the head of household filing status and/or one or more of...
1.) Ruth and Steve will file a joint return. During the year,
they received dividends from a mutual fund investment, and they
received a 2019 Form 1099-DIV reporting a distribution of $1,000 in
total ordinary dividends, shown in box 1, and qualified dividends
of $1,000, shown in box 2. Their only other income was from wages.
Their taxable income for the year was $86,500. How much tax will
they pay on their dividend income?
A. $150
B.$200
C.$220
D.$300
Question...
A taxpayer is NOT eligible to claim the Earned Income Tax Credit (EITC) if they had investment income in 2019 totaling more than: $3,000 $3,350 $3,450 $3,600 To BIOGR In 2018, Kirsten and Jeff paid $2,000 of qualified domestic adoption expenses. The adoption did not become final until 2019, and they paid an additional $3,000 in qualified expenses that year. Their modifiechadjustedng gross income was $165,000. What is the maximum amount they may be eligible to claim for the Adoption...
INCOME TAX RETURN PROBLEM Below is the taxpayer information for Beverly Johnson: Beverly (SS# 138-09-1983, date of birth: April 2, 1968) is a self-employed consultant whose business uses the accrual method of accounting. Her principal business code is 540700. Her business is located at 1501 Broadway, New York, N.Y., 10019. During the year, she had the following income and expense items: Income Professional Fees Earned $250,000 $5,413 $ 15,250 $ 30,500 $ 7,577 $ 6,000 $ 5,552 Expenses Office Expenses...
Stella is a single taxpayer and operates a self-employed
business that provides pet-sitting services. The
business is considered a sole proprietorship for income tax
purposes and represents Stella's only source of income. In 2018,
the standard deduction amount was greater than Stella's total
itemized deductions. Stella does not have any available tax credits
nor did she make any estimated tax payments for her 2018 tax
return.
Stella reports her income and expenses from the business using
the cash method. Stella's automobile was...
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