Question

1 The Browns are filing a joint return and have had a significant increase in income during the tax year. The Browns are concerned they may be subject to altenative minimum tax (AMT). A Married Filing Jointly taxpayer may be subject to alternative minimum tax if his taxable income for regular tax purposes along with certain adjustments and tax preference items exceeds which of the following exemption amounts? a) $41,900 b) $53,900 c) $70,700 d) $83,800 2. The Browns must consider the various adjustments and tax preference items that can affect whether they owe alternative minimum tax (AMT) and the amount. Which of the following is listed incorrectly as an adjustment or tax preference item that could result in the Browns paying alternative minimum tax? Addition of personal exemption b) a) Addition of standard deduction (if claimed) c) d) Addition of itemized deductions claimed for state and local taxes Addition of any refund of state and local taxes included in gross income 3. Ann's husband, Bob, owes a significant amount in delinquent student loans. Ann and Bob want to file a joint return; however, Ann wants to receive her share of the couple's refund. Ann plans to request an injured spouse allocation. Which of the following is a condition which must apply if the taxpayer is to be considered for an injured spouse allocation? a) A separate return must be filed b) The couple may not make estimated tax payments or claim EIC or other refundable credits. c) Ann must not have received or reported income (such as wages, interest, etc.) d) Ann must have received and reported income (such as wages, interest, etc.), filed a joint return, and expected a refund 4. Ann determines that she is an injured spouse after her return is filed. What should she do? a) b) c) d) She should file Form 8857 She should call the IRS to let them know that she is an injured spouse. She should file Form 8379 She will not be allowed to do anything because the refund has already been allocated to the agency that has the lien.

Answer 1

1. Answer is option D (the limit is as per 2016 figures)

2. Answer is option D

3. Answer is option D

You are considered an injured spouse if:

You are not legally obligated to pay the past-due amount, and

You meet any of the following conditions:

You made and reported tax payments (such as federal income tax withholding or estimated tax payments).

You had earned income (such as wages, salaries, or self-employment income) and claimed the earned income credit or the additional child tax credit.

You claimed a refundable tax credit, such as the health coverage tax credit or the refundable credit for prior year minimum tax.

4. Answer is option C

The injured spouse can get back his or her share of the joint overpayment using Form 8379, Injured Spouse Allocation.