2017 Federal Tax Updates Course

Student Login

.

Forgot? Show

Stay Logged In

.

My Profile

Sign Up

Log Out

Javascript Required

For testing.

2017 Filing a Tax Return Tax Updates

Once you complete the 2017 filing a tax return tax updates course you will have satisfied the 3 hours of continuing education which satisfies the required 3 hours Updates part of the 20 hour tax course.

Tax School Home Page

Student Instructions: Follow the following 4 steps:

Step	Instructions - You must do all of the following (steps 1 - 4)	Links:

1	Print the checklist:
2	Read the reading material.	Reading Material
3	Submit the answers to the Review Questions online (the questions on this page). Scroll down for all questions on this page. When you are ready to submit click on the Review Questions link. Make sure you either write your answers or print the page before you click on the Review Questions link.	Review-Questions
4	Complete a category final on the reading material: Category Final. You have 30 minutes to complete 20 questions for this exam. You must study the reading material. You won't have time to look up questions in the reading material.	Category Final

Important: If you fail a topic you can try again until you pass. You can try again as many times as you need in order to pass. Every time you try the questions will be different.

Most forms are in Adobe Acrobat PDF format. You will need Adobe Reader to view and print these forms. If you do not already have Adobe Reader installed on your computer, you may download the software for free.

Review Questions

Question

1 of 25

The tax rate of ________ affects singles whose income exceeds $413,200 ($464,850 for married taxpayers filing a joint return), up from $406,750 and $457,600, respectively.

A. 39.6 percent
B. 15.3 percent
C. 18.9 percent
D. 31.3 percent

| ___

feedback

2 of 25

The Affordable Care Act contains provisions for health insurance coverage and financial assistance options for individuals and families. This new law is administered by the Internal Revenue Service and is included in the tax code. The provisions require

A. You and each member of your family to have qualifying health insurance and it is called minimum essential coverage.
B. That you and everyone on your tax return must have minimum essential health coverage in order to avoid a penalty on your tax return.
C. That you or your family members be exempt from coverage or make a shared responsibility payment when you file your federal income tax return if you don't qualify to be exempt.
D. All of the above

| ___

3 of 25

The Small Business Health Care Tax Credit is a tax incentive offered to employers to help fill the health care coverage gap. The Small Business Health Care Tax credit is

A. Specifically targeted for those businesses with high income workers.
B. Designed to encourage small employers to offer health insurance coverage for the first time or maintain coverage they already have.
C. Available to large employers that pay at least half the cost of single coverage for their employees.
D. All of the above

| ___

4 of 25

Starting in 2014, individuals and families who get their health insurance coverage through the Health Insurance Marketplace may be eligible for the Premium Tax Credit. In general, you may be eligible for the Premium Tax Credit

A. If you buy health insurance through the Health Insurance Marketplace.

B. If you are ineligible for coverage through an employer or government plan and are within the income limits.

C. Both A and B above.

D. If your income is 200 percent below the poverty line to qualify.

| ___

5 of 25

The limitation for itemized deductions to be claimed on tax year 2015 returns of individuals begins with incomes of

A. $259,250 or more.
B. $309,900 or more.
C. $258,250 or more.
D. None of the above.

| ___

6 of 25

The limitation for itemized deductions to be claimed on tax year 2015 returns of married filing jointly individuals begins with incomes of

A. $258,250 or more.
B. $308,975 or more.
C. $309,900 or more.
D. None of the above.

| ___

7 of 25

The individual shared responsibility provision requires you and each member of your family to

A. Have minimum essential health coverage.
B. Have an exemption from the responsibility of having minimum essential coverage.
C. Make a share responsibility payment when you file your return in 2016.
D. Any of the above.

| ___

8 of 25

The exemption is subject to a phase-out that begins with adjusted gross incomes of

A. $250,000
B. $258,250
C. $289,000
D. None of the above

| ___

9 of 25

Starting January 1, 2015, if you rollover one IRA to another IRA, you are done, you cannot rollover another IRA for another 12 months without incurring the early withdrawal penalties. This means that whatever IRAs you were not able to rollover

A. Will not be liable for excess contribution penalties and the 6 percent excise tax on excess contribution amounts.
B. Must be included in your gross income and that you must pay the tax on the amount and the 10 percent early withdrawal penalty on these amounts which you included in your federal gross income.
C. Cannot be transferred from IRA trustee to another to avoid it being considered a rollover.
D. None of the above

| ___

10 of 25

In order to get advance payments of your premium tax credit, you must purchase your minimum essential health coverage through the Health Insurance Marketplace, better known simply as the Marketplace. Part of the Affordable Care Act is

A. That you don't need to provide information about your family size for the year.
B. That you cannot get any assistance payments in advance.
C. The financial assistance in the form of the premium tax credit for taxpayers who qualify for the credit.
D. That you don't need to provide the correct qualifying information to the Marketplace about your expected household income.

| ___

11 of 25

The married filing jointly Alternative Minimum Tax exemption amount for tax year 2015 is ______ for married couples filing jointly.

A. $83,400
B. $52,800
C. $80,800
D. $92,100

| ___

12 of 25

The maximum Earned Income Credit amount is ________ for taxpayers filing jointly who have 3 or more qualifying children,

A. $6,044
B. $6,242
C. $5,300
D. $3,950

| ___

13 of 25

Estates of decedents who die during 2015 have a basic exclusion amount of

A. $14,000
B. $5,250,000
C. $4,200,000
D. $5,340,000

| ___

14 of 25

The annual dollar limit on employee contributions to employer-sponsored healthcare flexible spending arrangements (FSA)

A. Is $2,550 for tax year 2015.
B. Remains unchanged at $3,500 for tax year 2015.
C. Remains unchanged at $5,500 for tax year 2015.
D. None of the above.

| ___

15 of 25

The small employer health insurance credit provides that the maximum credit is phased out based on the employer’s number of full-time equivalent employees in excess of 10 and the employer’s average annual wages in excess of

A. $24,400 for tax year 2015.
B. $25,000 for tax year 2015.
C. $13,900 for tax year 2015.
D. None of the above.

| ___

16 of 25

For tax years beginning after December 31, 2012, a 0.9% Additional Medicare Tax applies to Medicare wages, self-employment income, and railroad retirement (RRTA) compensation based on incomes of married filing jointly taxpayers that exceeds

A. $250,000
B. $125,000
C. $200,000
D. None of the above.

| ___

17 of 25

The Medicaid payments that may be excluded from income are the payments excludable under Section 131 of the Internal Revenue Code. These are the Medicaid waiver payments. To be excludable

A. The individuals that would require this type of care are individuals who would not need to be in a hospital, nursing facility or care facility in order to get this type of care.
B. The payments must fall under the “difficulty of care” category.
C. The care must be provided in the place where the care recipient lives with the caretaker living somewhere else.
D. All of the above.

| ___

18 of 25

How are you considered exempt depends on your exemption eligibility. Being exempt from acquiring minimum essential health coverage has to do with your income. Additionally,

A. You may be considered exempt if there is a gap in coverage of less than eight consecutive months.
B. If the minimum amount of your annual premium is more than 8 percent of your household income, you may be exempt.
C. If you are going through some kind of hardship you cannot be exempt for that reason.
D. If you belong to a group which is exempt from the requirement to acquire coverage will not help you from being exempt as an individual.

| ___

19 of 25

Form 1095-A will required of those who purchased their health insurance from the health insurance marketplace. Taxpayers will be required to disclose their health insurance which is purchased through the health insurance Marketplace. Then there is Form 1095-B which is required

A. Of individuals whom are not exempt from minimum essential coverage.
B. By law of providers to furnish Form 1095-B to the recipients of minimum coverage.
C. Both A and B above.
D. None of the above.

| ___

20 of 25

All Medicare wages, railroad retirement (RRTA) compensation, and self-employment income currently subject to Medicare Tax are subject to Additional Medicare Tax

A. To account for their Additional Medicare Tax liability.
B. If there is no employer match for Additional Medicare Tax.
C. If paid in excess of the applicable threshold for the taxpayer’s filing status.
D. None of the above.

| ___

21 of 25

These are combined to determine if income exceeds the Additional Medicare Tax threshold

A. Medicare wages and self-employment income.
B. Self-employment income and estimated tax payments.
C. Railroad retirement (RRTA) compensation and Medicare wages.
D. Any of the above.

| ___

22 of 25

There are no special rules for nonresident aliens and U.S. citizens living abroad for purposes of the additional Medicare tax provision. Medicare wages, railroad retirement (RRTA) compensation, and self-employment income earned by such individuals will

A. Will not be subject to Additional Medicare Tax, even if it is in excess of the applicable threshold for their filing status.
B. Will also be subject to Additional Medicare Tax, if in excess of the applicable threshold for their filing status.
C. Will be taxable where there is no employer match for Additional Medicare Tax.
D. None of the above.

| ___

23 of 25

An employer is responsible for withholding the Additional Medicare Tax from wages or railroad retirement (RRTA) compensation it pays to an employee in excess of $200,000 in a calendar year

A. Regardless of filing status.
B. Based on your filing status.
C. Only if you let your employer know your filing status on Form W-4.
D. None of the above.

| ___

24 of 25

An employer is required to begin withholding Additional Medicare Tax in the pay period in which it pays wages or railroad retirement (RRTA) compensation in excess of $200,000 to an employee

A. And instruct the taxpayer to continue to make estimated payments.
B. And stop withholding once compensation exceeds $150,000.
C. And stop withholding once compensation reaches $200,000.
D. And continue to withhold it each pay period until the end of the calendar year.

| ___

25 of 25

To account for their Additional Medicare Tax liability, some taxpayers may need to

A. Take into account their filing status.
B. Pay taxes in excess of the applicable threshold for their filing status.
C. Adjust their withholding or make estimated tax payments.
D. None of the above.

| ___

Please Note: If you filled out the answers directly on this page, please print this page or write down the answers before you proceed to submit them by clicking on "Review Questions" link in step 3 above.

Back to Tax School Homepage

Revised: 08/01/16

Back