1.During the current year, Margie earned wage income of$300,000. If Margie is single, which of the following statementsregarding her Medicare tax liability is true?
a.Margie will owe both the regular 1.45 percent Medicare tax andthe additional .9 percent Medicare tax on her entire wageincome.
b.Margie will owe the regular 1.45 percent Medicare tax on herentire wage income and the additional .9 percent Medicare tax onlyon her wage income in excess of $200,000.
c.Margie will owe the regular 1.45 percent Medicare tax on herentire wage income and the additional .9 percent Medicare tax onlyon her wage income in excess of $250,000.
d.Margie's employer is required to withhold both the regularMedicare tax but does not withhold the additional .9 percentMedicare tax.
2.Ruth Anne, a single taxpayer, reported $152,600 alternativeminimum taxable income before any exemption on her 2016 Form 1040.Calculate Ruth Anne's AMT exemption.
a.$8,225
b.$45,675
c.$53,900
d.None of the above
3.Melissa, age 16, is claimed as a dependent on her parents' taxreturn. This year, Melissa earned $2,000 from babysitting and$1,280 interest income from a savings account. Compute Melissa'sstandard deduction.
a.$2,000
b.$2,350
c.$0
d.$1,050
1.During the current year, Margie earned wage income of$300,000. If Margie is single, which of the following statementsregarding her Medicare tax liability is true?
a.Margie will owe both the regular 1.45 percent Medicare tax andthe additional .9 percent Medicare tax on her entire wageincome.
b.Margie will owe the regular 1.45 percent Medicare tax on herentire wage income and the additional .9 percent Medicare tax onlyon her wage income in excess of $200,000.
c.Margie will owe the regular 1.45 percent Medicare tax on herentire wage income and the additional .9 percent Medicare tax onlyon her wage income in excess of $250,000.
d.Margie's employer is required to withhold both the regularMedicare tax but does not withhold the additional .9 percentMedicare tax.
2.Ruth Anne, a single taxpayer, reported $152,600 alternativeminimum taxable income before any exemption on her 2016 Form 1040.Calculate Ruth Anne's AMT exemption.
a.$8,225
b.$45,675
c.$53,900
d.None of the above
3.Melissa, age 16, is claimed as a dependent on her parents' taxreturn. This year, Melissa earned $2,000 from babysitting and$1,280 interest income from a savings account. Compute Melissa'sstandard deduction.
a.$2,000
b.$2,350
c.$0
d.$1,050
