Question

spital administrator during of $7,961. She also earns credit for excess Social Security Kathryn earns a salary of $150,000 from Hospitals, Inc. as a hospital adminis 2018 Hornitals. Inc, withholds OASDI taxes in the amount of $7.961 SL $20.000 of wages from CPR Experts where she teaches CPR. CPR Experts with taxes in the amount of $1,240. What is Kathryn's available credit for excess Son taxes withheld, assuming Kathryn's tax due before application of the credit is $8002 a $0. b. $440. c. $800. d. $1,240. 5. Which of the following statements concerning business credits is correct? a. The investment credit consists of the sum of two different credits (1) the rehabilitation credit, and (2) the qualifying gasification project credit. b. The amount of the rehabilitation credit is 20 percent of the qualified rehabilitation expenditures for certified historic structures. C. The work opportunity credit is a credit for employees of certain high risk jobs to provide them with an additional benefit because of the risks involved in their job (for example, police officers). d. The employer-provided child care credit allows a credit for employer provided payments to 3rd party caregivers.

Answer 1

4) In above situation, withhold tax is $ 7961 from OASDI and $1240 from cpr Experts amounts to total $ 9201. Total  tax due before application of the credit is $800 hence there will be credit of $800. Therefore option no (c) is the correct.

5) Option no (d) is concerned with Business Credits.