Payroll Withholding
What form does an employee fill out to determine their number of withholdings?
What is a W4?
What form are Employers generally required to file quarterly to show amounts of wages paid and amount of income tax and FICA tax withholding due?
What is Form 941?
Name one thing a partner's interest in a partnership is decreased by.
What are Losses of the partnership, Capital losses of the partnership, Distributions by the partnership, etc.?
John contributes land with an adjusted basis of $75,000 and a FMV of $80,000 to a partnership for a 50% interest. What is John's basis in the partnership?
What is $75,000?
Name the standard deduction amounts for Single and Married Filing Jointly.
What is $12,000 and $24,000?
Are tips subject to income taxes and/or employment taxes?
What are both?
What form is used to report wages, tips and other compensation paid to employees?
What is Form W-2?
Which of the following is a partnership for tax purposes?
a.Emeril and Rachel purchase a food truck and sell prepared food dishes at various spots around the city.
b.Jimmy and Stephen both purchase a small stock interest in a manufacturing corporation as an investment.
c.Melissa purchases a shoe store and hires her sister, Whitney, to manage the store.
d.Monica and Chandler form a corporation to acquire a trucking business.
e.None of these choices are correct
What is "a"?
John contributes land with an adjusted basis of $75,000 and a FMV of $80,000 to a partnership for a 50% interest. What is John's gain or loss on the contribution?
What is $0?
Name 2 tax credits.
What are Child Tax Credit, Child and Dependent Care TC, EIC, American Opportunity and Lifetime Learning Credits, etc.?
Estimated tax payments are due on what dates?
What are April 15, June 15, September 15 and January 15 of the next year?
Jill's employer contributes $2,000 (5% of her $40,000 salary) to a qualified retirement plan for Jill. What kind of pension plan is this? Profit Sharing, ESOP, Defined Contribution or Defined Benefit?
What is Defined Contribution?
Which of the following may not be treated as a partnership for tax purposes?
a.Thelma and Louise establish an LLC to operate an accounting practice.
b.Lucy and Desi purchase real estate together as a business.
c.Arnold and Willis operate a restaurant.
d.Jennifer and Ben form a corporation to purchase and operate a hardware store.
e.All of these choices are partnerships.
What is "d"?
When calculating taxable income, partnerships are not allowed which of the following deductions?
a.Qualified business income deduction.
b.Employee wages.
c.Depreciation.
d.Miscellaneous expenses.
e.Cost of goods sold.
What is "a"?
Name 3 items that would go on Schedule A.
What are medical expenses, interest, taxes, charitable contributions, casualty and theft loss, and other (gambling losses to the extent of winnings)?
Salary, Bonus and Commissions are all examples of amounts paid by employers to an employee that are subject to withholding. What about reimbursement of expenses under a non-accountable plan?
What is yes, they are subject to withholding?
Ed's employer contributes $2,000 to a qualified retirement plan for Ed's benefit in the current year. Ed expects to retire from the current employer at age 65. How will Ed's employer treat the contribution?
What is the $2,000 is deductible in the current year by the employer?
Name something that has to be reported separately on a partnership return.
What is Tax-Exempt Income, Casualty Gains and Losses, Charitable Contributions, Capital Gains and Losses, etc.?
Ted and Tina form XYZ Partnership with both having a 50% interest. Tina contributes land with a basis of $10,000 and a FMV of $30,000. The land is subject to a $25,000 liability. That is Tina's recognized gain or loss on the the contribution?
What is $2,500? $10,000 basis - $12,500 (Ted's 50% portion of transferred liability: $25,000 * 50%) = Gain of $2,500.
What are Wages, Interest, Dividends, Bonuses, Awards, Business Income, Prizes, Scholarships for R&B etc.?
Bob has an income tax liability of $4,000 in the prior year During the current year his projected tax liability will be $3,000. In order to avoid penalty what is the smallest amount of required annual withholding and estimated payments?
What is $2,700? Rule is smaller of prior year tax liability or 90% of current year projected income liability.
Beth's wage income is $50,000 in 2018. What is the combined employer and employee FICA (SS and Medicare) tax rates that apply to Beth's wages?
What is 15.3%?
SS 6.2% EE and ER = 12.4%
Medicare 1.45% EE and ER = 2.9%
Name 2 items that increase a partner's basis in a partnership.
What are additional contributions (cash or property) to the partnership, net ordinary taxable income of the partnership, and capital gains and other income of the partnership?
Kim is a 50% partner in ABC Partnership. Her basis prior to ABC paying Kim a $10,000 cash distribution is $25,000. How much income does Kim recognize as income and what is her basis after the distribution?
What is $0 income and $15,000 basis?
Name Five 1040 Forms and what they are used for.
What is...
A - Itemized Deductions, B - Interest and Ordinary Dividends, C - Small Business Income/Loss, D - Capital Gains and Losses, E - Supplemental/Rental Income/Expenses, F - Farm Income/Expenses, SE - Self Employment Tax Calculations, etc.?