[jeff]

Free Study Planner, Notes, Audio, Flashcards: https://www.another71.com/cpa-exam-study-plan/

Free CPA Exam Survival Guide: https://www.another71.com/cpa-exam-survival-guide/

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Anonymous]

@cpamommy Thanks, I Googled the 1244 stock and it's actually $50K for single and $100K for MFJ. Good to know!

[Anonymous]

@CPAby2015 – what are the answers? And, I agree. Some of the questions throw so much at you!

[WANNABE_CPA]

What is the difference in the Deductible amounts of a high deductible plan and under thye same plan, the out of pocket expenses limitation….can you explan? I dont know how to apply these if a question comes related to this?

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[Anonymous]

I'll take a stab at them.

Child care credit one–D

2–A

3–D

[Anonymous]

1 A

2 A

3 D

[CPAfit]

so are we doing the quiz now? Or these are just good to know questions

[Anonymous]

@zubairs – I can quiz now, if you would like. I'm just writing out notes for Corp. Taxes.

@CPAby2015 or CPAMommy – how do you get “D” for the 3rd question?

[CPAfit]

@bucky let's do it in an hour. I just have to finish a couple of Estate, trust and gift MCQs then i'll be good to go.

[Anonymous]

For the third question–You start with 35% for an AGI of $15,000, but for every 2K (or portion of 2K) OVER the 15K you have to deduct 1%. So she makes 15K = (30K-15K) over the floor. Divide that by 2K and you get 7.5, so it is rounded up to 8 because you deduct 1% for any “portion” as well. 35%-8%=27%. 27% of the $2,400 paid to her friend = $648 of child care credit. Don't be impressed. I looked it up.

[Anonymous]

@BuckyCPA3 Let me see if I can explain it to you without looking at the official explanation from my material.

Rule: The taxpayer is entitled for max of $6,000 child care expenses since she has 2 qualified children ($3000 on 1, $6000 on 2+). Tax credit is calculated at 35% of qualified expense subject to phase out of 1% for each $2000 in excess of $15,000 AGI but should not be lower than 20% (basically maximum phase out is 15%).

Calculations: Qualified expenses = $2400 ($3000 is not qualified due to employer provided that and excluded from her income). Phase out = ((30,000 – 15,000)/2,000) x 1% = 7.5% rounded off to 8%. Tax credit rate = 35% – 8% = 27%. Tax credit = $2400 x 27% = $648

[Anonymous]

Oops…mommy got it covered!

[Anonymous]

Thank you both for the explanation! I totally forgot about the $3k/$6k expenses allowed. Ugh, this exam is giving me a headache. So many little rules.

[Anonymous]

For the child care credit does it matter if filing MFJ or is it the same limit regardless?

[Anonymous]

@ Elle The same limit regardless.

[Anonymous]

I'm trying to get through the blaw Ninja MCQ questions today. Averaging 70% right now so not doing too bad. I feel like I'm running out of time. I still have all the corp MCQ to get through, 500 blaw questions left, and ALL the SIMS. And that is just for a first pass. Not feeling great about my timing. 13 days until test.

[Author]

Replies