University of Arizona Business Law Standard Deduction Question

•1. What is the 2021 standard deduction for a 50-year-old married couple
filing jointly, neither of whom is blind?
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a. $8,100
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b. $12,550
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c. $25,100
d. $18,800
2. What is the standard deduction in 2021 for a single taxpayer?
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a. $6,700
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b. $12,550
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c. $25,100
d. The standard deduction is eliminated for 2021.
3. Harry traveled 300 business miles by car last month and incurred $30 in
parking fees, $50 in tolls, and $90 in gas and oil expenses. If he elected to
use the alternative standard mileage rate, what is his deduction?
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a. $198
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b. $218
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c. $248
d. $338
4. What is the unified estate tax credit applicable to a taxable estate of
$11,700,000 of a decedent dying in 2021?
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a. $1,000,000
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b. $4,625,800
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c. $6,425,800
d. $11,700,000
5. Pass-through business owners of ______________ whose personal
taxable income is greater than the threshold amount but less than the
sum of the threshold amount and $50,000 or $100,000, based on their
filing status, are eligible for a reduced § 199A qualified business income
(QBI) deduction.
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a. specified service trades or businesses (SSTBs)
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b. any business
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c. not-for-profit businesses
d. applicable large employers (ALEs)
6. Barbara is a single taxpayer who had a 2021 adjusted gross income of
$25,000 and who contributed $4,000 to her traditional IRA. Assuming she
has a $2,000 income tax liability for the year, what is her maximum
retirement contribution savings credit?
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a. $200
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b. $800
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c. $1,000
d. $2,000
7. Gail and Bob are married and file a joint tax return in 2021. They had a
$34,000 adjusted gross income and each deferred $2,000 into their
employer’s 401(k) plan. If they have a $500 income tax liability, what is
the amount of their retirement contribution savings credit?
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a. $0
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b. $500
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c. $1,000
d. $2,000
8. Lois, a single taxpayer, contributed $1,200 to her traditional IRA in
2021. If she received a $240 saver’s credit and was not an active
participant in an employer-sponsored retirement plan, how much of the
contribution can she deduct?
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a. $0
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b. $240
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c. $960
d. $1,200
9. In 2021 Jose and his spouse adopted a 7-year-old child and his 22-yearold special needs brother. If Jose’s employer provided $30,000 under its
adoption assistance program, what is the maximum amount of the
adoption assistance they can exclude from income assuming their
combined modified adjusted gross income does not exceed the applicable
amount?
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a. $0
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b. $14,440
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c. $28,880
d. $30,000
10. The premium for the second-lowest-cost health insurance plan that
would cover the family at the silver level of coverage is referred to as
____________and is used to determine any health insurance premium tax
credit.
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a. the benchmark plan
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b. the bronze plan
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c. the qualified plan
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d. the essential health plan
11. Under the American Rescue Plan Act, a taxpayer with a household
income of at least 400% of the federal poverty level who purchases a
health insurance plan from an ACA Exchange that would cover the family
at the silver level of coverage would not be required to contribute more
than ___ of household income for it.
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a. 4.3%
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b. 8.5%
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c. 9.5%
d. 11.6%
12. What is the maximum amount that may be contributed to an
employer’s flexible spending arrangement for medical expenses in 2021?
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a. $2,750
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b. $5,100
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c. $10,200
d. No dollar limit applies to flexible spending account
contributions for medical expenses.
13. Carol is eligible for a $2,000 health insurance premium credit in 2021.
With how much of that credit will she actually be credited if she has a
total income tax liability of only $500?
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a. $0
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b. $500
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c. $1,500
d. $2,000
14. At what percentage of the federal poverty level does a taxpayer who
is otherwise eligible for a health insurance premium credit under the
Affordable Care Act in 2021 lose eligibility because of income?
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a. 133% of the federal poverty level
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b. 200% of the federal poverty level
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c. 400% of the federal poverty level
d. A taxpayer does not lose eligibility for a health insurance
premium credit based on income in 2021.
15. Joyce and Bob, a married couple filing jointly, received an advance
insurance premium tax credit in 2021. When reconciling the tax credit it
was determined they received an excess credit of $3,000. If their
household income is 300% of the federal poverty line, what is the total
amount of credit that must be repaid as additional tax?
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a. $0
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b. $1,000
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c. $2,700
d. $3,000
16. What is the maximum additional health savings account (HSA)
contribution that may be made by a 60-year-old participant because of
age?
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a. $0
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b. $500
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c. $1,000
d. $2,500
17. How frequently may an Archer MSA be rolled over?
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a. Every 6 months
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b. Every 12 months
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c. Every 24 months
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d. An Archer MSA cannot be rolled over
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18. Jack is age 45 and owns a self-only high deductible health policy with a
$5,000 deductible under his HSA. What is his maximum permitted HSA
contribution in 2021?
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a. $3,250
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b. $3,600
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c. $3,750
d. $7,200
19. Al owned a family high deductible health policy as part of his MSA for
the entire year. What is his maximum permitted contribution to the MSA
in 2021 if his deductible is $5,000?
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a. $3,350
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b. $3,750
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c. $5,000
d. $6,650
20. Cheryl took early retirement at age 55 in 2021 and received a $10,000
taxable distribution from her Archer MSA during the year. What, if any,
tax penalty will be imposed on her MSA distribution if no exception to the
penalty applies?
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a. $500
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b. $1,000
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c. $2,000
d. $5,000
21. The maximum available PPP loan is:
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a. $100,000
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b. $10,000,000
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c. $93,333
d. $11,700,000
22. Which of the following charges incurred by a health savings account
owner may be payable under her high deductible health plan before the
deductible is satisfied without causing the HSA to become ineligible?
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a. testing for and treatment of COVID-19
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b. cancer treatment
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c. hypertension medication
d. late stage renal disease
23. The American Rescue Plan Act (ARPA) suspends the federal income tax
on up to _______ of 2020 unemployment compensation (received by each
spouse in the case of a joint tax return) if the taxpayer meets specified
adjusted gross income limits.
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a. $5,100
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b. $10,200
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c. $75,000
d. $150,000
24. What is the minimum federal income tax liability an otherwise eligible
taxpayer must have to claim the maximum child tax credit in 2021?
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a. No federal income tax liability is necessary.
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b. $5,000
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c. $10,000
d. a federal income tax liability equal to $3,000 times the number
of children claimed
25. George is a single taxpayer with one eligible child. At what income
level will his maximum child tax credit begin to phase-out in 2021?
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a. No child tax credit phase-out is required based on a taxpayer’s
income.
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b. $75,000
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c. $112,500
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d. $150,000