an employer will provide dependent care benefits to an Box 1 49. In some instances employee. The employer is required to include on the employee\'s W-2 in any benefits over a certain amount. What is that amount? a. Any amount over $7,000. b. Any amount over $6,000 C. Any amount over $5,000. d. Any amount over $4,000. X\'s spouse Y died during the year. \'s only earned income was $20,000. Y\'s only earned income was $65,000. What is X\'s earned income limit for purposes of the 50. child and dependent care credit? c. $45,000 d. $65,000 a. $20,000 b. $32,500 51. Taxpayers who employ an individual to care for their qualified dependent for the purpose of the child and dependent care credit may be subject to employment taxes. Which one of the following statements is correct in this regard? a. They may be subject to federal income tax withholding. b. They may be subject to social security tax withholding. c. They may be subject to Medicare tax withholding. d. All of the above are correct. CHAPTER FOUR - MOVING EXPENSES 52. For purposes of a moving expense deduction, which one of the following statements is correct? a. A house trailer qualifies as a home. b. A second home qualifies as a home. C. A summer beach cottage qualifies as a home. d. All of the above are correct. 53. Which one of the following statements is incorrect in regard to tax deductible moving expenses? a. The move has to be closely related to the start of work. b. Retirees may be permitted to claim a moving expense deduction. c. Self-employed individuals are not eligible to claim a moving expense deduction d. Survivors of employees are permitted to claim a moving expense deductiorn
Answer is C
Some employers may provide childcare benefits like:
On-site care for their employees’ children, direct payment for third-party care, Accounts earmarked for childcare expenses.
Employees can put money from their salaries into these accounts.
If the value of these benefits is more than $5,000, your employer will report everything over $5,000 as taxable income. If the value is less than $5,000, it’s not taxable income.
50, Answer is A
If X’s spouse died during the year and he/she must file a joint return as a surviving spouse, you may, but are not required to, take into account the earned income of your spouse who died during the year
51 Answer is D,
Taxpayer is subjected to all the tax withholding including Income, social security and Medicare tax.
52 answer is B
Your home means your main home (residence). It can be a house, apartment, condominium, houseboat, house trailer, or similar dwelling. It will not include other homes owned or kept up by you or members of your family. It also doesn\'t include a seasonal home, such as a summer beach cottage. Your former home means your home before you left for your new job location. Your new home means your home within the area of your new job location.
53 answer is C
Self-employed can claim moving expenses
They may be able to deduct moving expenses whether you are self-employed or an employee. Your expenses generally must be related to starting work at your new job location.
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