1. AMT exemption amount increased in 2008. For a single individual the amount has increased to

A. $ 46,200.
B. $ 69,950.
C. $ 34,975. 
D. $ 6,400.

2. The minimum AMT exemption amount for a child has increased to $6,400. The AMT exemption amount is now limited to certain children under age

A. 13.
B. 17.
C. 18. 
D. 24.

3. Congress has extended the special rule for certain credits allowed against the AMT. The credits that can be applied against the AMT include the following, except

A. Child and dependent care expenses credit.
B. Credit for the elderly or the disabled.
C. Education credits.
D. None of the above.

4. Tax-exempt interest on the following bond is not an item of the preference and therefore is not subject to the AMT if the bonds were issued after July 30, 2008.

A. An exempt facility bond for which 95 percent or more of the net proceeds are to be used to provide qualified residential rental projects.
B. A qualified mortgage bond.
C. A qualified veteran's mortgage bond.
D. Any of the above.

5. An AMT adjustment is required for depreciation of qualified assistance property that is eligible for the special depreciation allowance.          

True False

6. If you claimed the standard deduction for the regular tax and it includes a net disaster loss attributable to a federally declared disaster, that net disaster loss is also allowable as a deduction for the AMT.

True False

7. The following is a true statement regarding benefits for the Kansas and the Midwestern disaster areas that apply to the AMT.

A. AMT adjustment is required for depreciation of qualified recovery assistance property that is eligible for the special depreciation allowance.
B. The 50% limit on the alternative tax net operating loss deduction (ATNOLD) does not apply to the portion of an ATNOLD attributable to qualified recovery assistance losses.
C. The exemption amount on Form 8914 that is allowable for the regular tax if you provide housing for a person displaced by the Midwestern severe storms, tornadoes, and flooding is also allowable for the AMT.
D. The interest on qualified Midwestern disaster area bonds is a tax preference item, therefore include it on Form 6251, line 12.

8. For 2009, the AMT exemption amount has

A. Decreased to $46,200 for a single taxpayer.
B. Increased to $70,950 for married filing jointly or qualified widow.
C. Increased to $6,400.
D. Not changed for 2009.

9. Certain credits still allowed against AMT. The special rule that allows the credit for child and dependent care expenses, credit for the elderly or the disabled, education credits, mortgage interest credit; and the District of Columbia first-time homebuyer credit to be applied against the AMT was scheduled to expire at the end of 2008. However, Congress has

A. Extend the special rule through 2009, so those credits can be applied against the AMT for 2009.
B. Expanded this special rule to include the personal use part of the alternative motor vehicle credit.
C. Allowed the special rule to apply to the nonbusiness energy property credit.
D. All of the above.

10. Qualified motor vehicle tax allowed against AMT, if you claim the standard deduction for the regular tax and it includes any state or local sales or excise tax on the purchase of a qualified motor vehicle, that tax

A. Is not allowed as a deduction for the AMT.
B. Is also allowed as a deduction for the AMT.
C. Can be claimed directly on Form 1040.
D. None of the above.

11. The following is not an item of tax preference and therefore is not subject to the AMT.

A. Tax-exempt interest on certain housing bonds.
B. Tax-exempt interest on specific private bonds issued in 2009 or 2010.
C. Tax-exempt interest on a specified private activity bond issued in 2009 or 2010 to currently refund a private activity bond issued after 2003 and before 2009.
D. Any of the above.

12. For 2009, the maximum adoption credit has increased to

A. $11,650.
B. $182,180.
C. $12,150.
D. $1,950.

13. The rules regarding the age of a child whose investment income may be taxed at the parent's tax rate changed for 2008. These rules continue to apply to a child under age 18 at the end of the year but, beginning in 2008, will also apply in certain cases to a child who

A. Was age 18 at the end of 2008 and not have earned income that was more that half of the child's support.
B. Was age 24 at the end of 2008 and did not have earned income that was more than half of the child's support.
C. Either A or B above.
D. None of the above.

14. The amount of taxable investment income a child can have without being subject to tax at the parent's rate has increased to $1,900 for 2009.

True False

15. For 2009, the following are changes that have been made to the definition of qualifying child, except

A. A child cannot be your qualifying child if he or she files a joint return, unless the return was filed only as a claim for refund.
B. If the parents of a child can claim the child as a qualifying child but no parent so claims the child, no one else can claim the child as a qualifying child.
C. Your child is a qualifying child for purposes of the child tax credit only if you can an do claim an exemption for him or her.
D. To be your qualifying child, the child must be younger than you.

16. For 2009, the amount your earned income must exceed to claim the additional child credit is

A. Reduced to $8,500.
B. Reduced to $3,000.
C. Increased to $1,000.
D. Increased to $1,900.

17. The calculation of the tentative refundable credit has been revised to reflect changes made by the Tax Extenders and Alternative Minimum Tax Relief Act of 2008.

True False

18. For 2009, qualified individuals with small businesses may be eligible to make smaller estimated tax payments. If you qualify, your required annual payment for 2009 is the smaller of 90% of the tax shown on your 2008 tax return or 90% of the tax shown on your 2009 tax return. You are a qualified individual if

A. More than 50% of your gross income was from a business that had an average of fewer that 500 employees in 2008.
B. Your adjusted gross income in 2008 was less than $500,000 ($250,000 if you are filing married filing separately for 2009).
C. Both A and B above.
D. More than 90% of your gross income was from a business that had an average of fewer than 500 employees in 2008.

19. If you pay your income tax (including estimated tax payments) by credit or debit card,

A. You can deduct the convenience fee you are charged by the credit card processor to pay using your credit or debit card.
B. You can claim the deduction for the fee charged to your card as a miscellaneous itemized deduction on line 23 of Schedule A (Form 1040).
C. The deduction is subject to the 2% of adjusted gross income floor.
D. All of the above.

20. In 2009, you can deduct the state or local sales and excise taxes imposed on the purchase of a qualified motor vehicle after February 16, 2009, and before January 1, 2010. A qualified motor vehicle includes a passenger automobile, light truck, motorcycle or motor-home. The amount of tax you are able to deduct is limited to the tax is imposed on

A. The first $49,500 of the purchase price.
B. The first $22,500 of the purchase price.
C. The amount over $49,500 of the purchase price.
D. The entire purchase of the vehicle as there is no limit set.

21. The new deduction for sales and excise taxes imposed on purchase of new motor vehicle can be claimed

A. On Schedule A as an itemized deduction.
B. By increasing the amount of your standard deduction.
C. Either A or B above.
D. Directly on Form 1040.

22. The definition of a qualified military benefit has been expanded to include payments by a state or a political subdivision thereof to a member or former member of the uniformed services of the United States or to a dependent of such a member if the payments are made only because of the member's service in a combat zone.

True False

23. You may be able to take this credit if you have earned income from work. Even if your federal income tax withholding is reduced during 2009 because of the credit, you must claim the credit on your return to benefit from it.

A. The Earned Income Credit.
B. Government retiree credit.
C. Making work pay credit.
D. Economic recovery credit.

24. The definition qualified higher education expenses for tax-free distributions from a qualified tuition program is expanded to include amount paid in 2009 or 2010 by a beneficiary enrolled at an eligible educational institution for the purchase of

A. Computer software.
B. Any computer or related peripheral equipment.
C. Fiber optic cable related to computer use, and internet access.
D. Any of the above.

25. For tax years 2009 and 2010, the following changes have been made to the Hope Credit. The modified credit is also referred to as the American Opportunity Tax Credit. The Maximum amount of the Hope Credit increases to

A. $1,800 per student.
B. $2,500 total.
C. $2,500 per student.
D. $3,600 per student.

26. In 2009, the Hope Credit is now a refundable credit, which means that you can receive up to $2,500 even if you owe no taxes.

True False

27. For 2009, the amount of the student loan interest deduction is phased out (gradually reduced) if your filing status is married filing jointly and your filing status is married filing jointly and your modified adjusted gross income (AGI) is between

A. $75,000 and $120,000.
B. $120,000 and $150,000.
C. $150,000 or more.
D. $60,000 and $75,000.

28. For Archer MSA purposes for 2009, the following is a true statement

A. The minimum annual deductible of a high deductible health plan increases to $2,000 ($4,000 for family coverage).
B. The maximum annual deductible of a high deductible health plan increases to $3,000 ($6,050 for family coverage).
C. The maximum out-of-pocket expenses limit increases to $4,000 ($7,350 for family coverage).
D. All of the above.

29. For 2009, for HSA purposes, the minimum and other out-of-pocket expenses limit increases to

A. $3,000 ($5,950 for family coverage).
B. $1,150 ($2,300 for family coverage).
C. $5,800 ($11,600 for family coverage).
D. $1,100 ($2,200 for family coverage).

30.  The maximum HSA contribution increases to $3,000 ($5,950 for family coverage). The maximum additional contribution for individuals age 55 or older increases to $1,000.

True False

31. If you are age 71 or over, you can include qualified long-term care premiums as medical expenses up to

A. $350.
B. $600.
C. $3,180.
D. $3,980.

32. A special rule allows amounts in a health FSA to be distributed to reservist ordered or called to active duty. This rule applies to distributions after June 17, 2008, if the plan has been amended to allow these distributions. A qualified reservist distribution is allowed if

A. The individual was, by reason of being a member of a reserve component, order, or called to active duty for a period in excess of 179 days or for an indefinite period.
B. The distribution is made during the period beginning on the date of such order or call and ending on the last date that reimbursements could be made for the plan year which includes the date of such order or call.
C. Both A and B above.
D. None of the above.

33. For home sales after 2007, the maximum exclusion on the sale of a main home by a unmarried surviving spouse is _______________ if the sale occurs no later than 2 years after the date of the other spouse's death.

A. $250,000.
B. $150,000.
C. $500,000.
D. $100,000.

34. The rule for exclusion on sale of main home by surviving spouse applies

A. Only if the requirements for joint filers relating to ownership and use were mete immediately before the date of such death.
B. If during the 2-year period ending on the date of such death, there was no sale or exchange of a main home by either spouse which qualified for the exclusion.
C. Both A and B above.
D. None of the above.

35. If you are a first-time homebuyer and purchased your home in 2009, you may be able to claim a one-time tax credit equal to

A. $8,000, but only half of that amount if married filing separately.
B. 10% of the purchase price of your home.
C. The lesser of A or B above.
D. Both A and B above.

36. You may be able to claim the first-time homebuyer credit if

A. You purchase your main home in the United States after April 8, 2008, and before December 1, 2009.
B. You (and your spouse if married) did not own any other main home during the 3 year period ending on the date or purchase.
C. If you constructed your main home, you are treated as having purchased it on the date you first occupied it.
D. All of the above.

37. You cannot claim the First-Time Homebuyer Credit if

A. You are a nonresident alien.
B. Your home is located out-side the United States.
C. You acquired your home by gift or inheritance.
D. Any of the above.

38. If you or your spouse is an employee, enrolled volunteer, or volunteer leader of the Peace Corps, you may be able to exclude from income a gain from selling your main home, even if you did not live in it for 2 years during the 5-year period ending on the date of sale.

True False

39. A limit on the exclusion for payments made on a per diem or other periodic basic under a long-term care insurance contract increases for 2009 to

A. $150 per day.
B. $250 per day.
C. $280 per day.
D. $500 per day.

40. Under the limit on Long-term Care and accelerate death benefits exclusion, the excludable amount for any period is figured by subtracting any reimbursement received (through insurance or otherwise) for the cost of qualified long-term care services during the period from

A. The cost of qualified long-term care services during the period.
B. The dollar amount for the period ($280 per day in 2009).
C. The larger of A or B above.
D. The smaller of A or B above.

41. If your AGI is above a certain amount, you may lose part of your itemized deductions. In 2009, this amount is

A. Increased to $166,800.
B. Increased to $199,000.
C. Increased to $500,000.
D. Increased to $150,000.

42. Beginning with exchanges completed after May 22, 2008, the exchange of stock in a mutual ditch, reservoir, or irrigation company may qualify for the nonrecognition of gain or loss under section 1031.

True False

43. For tax years beginning after 2007, the 5% maximum tax rate on qualified dividends and net capital gain (the excess of net long-term capital gain over net short-term capital loss) is increased to 28%.

True False

44. Revocation of release of claim to an exemption for tax years beginning July 2, 2008, new rules apply to allow the custodial parent to revoke a release of claim to exemption that was previously released to the noncustodial parent on Form 8332. If the custodial parent provides notice of revocation to the noncustudial parent in 2009, the earliest tax year the revocation can be effective is the tax year beginning in

A. 2008.
B. 2009.
C. 2010.
D. 2012.

45. The amount you can deduct for each exemption has increased to $3,650 for 2009. You lose part of the benefit of your exemption if your AGI is above a certain amount. For Head of Households in 2009, the phaseout begins at

A. $125,100.
B. $166,800.
C. $208,500.
D. $250,200.

46. The standard deduction for people who do not itemize their deductions on Schedule A (Form 1040) is, in most cases, higher for 2009 that it was for 2008. The following deduction can increase your standard deduction for 2009.

A. Certain real estate taxes.
B. A net disaster loss.
C. State or local sales tax imposed on purchase of a qualified "motor" vehicle (including motohome) in 2009 after February 16, 2009.
D. Any of the above.

47. For 2009, the standard mileage rate for the cost of operating your car for business use it

A. 14 cents per mile.
B. 55 cents per mile.
C. 58 cents per mile.
D. 24 cents per mile.

48. For 2009, the standard mileage rate for the cost of operating your car for medical reasons or as part of deductible move is

A. 14 cents per mile.
B. 55 cents per mile.
C. 58.5 cents per mile.
D. 24 cents per mile.

49. For any tax year beginning in 2009, you can exclude from gross income _________ of unemployment compensation you receive during the year.

A. $1,600.
B. $2,400.
C. $3,000.
D. $4,500.

50. The social security and Medicare wage threshold for household employees is $1,600 for 2008. This means that if you pay a household employee cash wages of less that $1,600 in 2008, you only have to report and pay social security and Medicare taxes on that employee's 2008 wages.

True False

51. For 2008, you can choose a 3,4, or 5-year carryback period for the part of your 2008 NOL that is an Eligible Small Business (ESB) loss. An ESB loss is

A. The amount that would be the 2008 NOL if only income, gains, losses, and deductions attributable to ESBs were taken into account.
B. The 2008 NOL.
C. The smaller of A or B above.
D. The greater of A or B above.

52. A separate election statement is required to elect to deduct up to $5,000 of business start-up and organizational costs paid or incurred after September 8, 2008.  

True False

53. The American Recovery and Reinvestment Act of 2009 (ARRA) allows a credit against employment taxes for providing COBRA premium assistance eligible individuals. For periods of COBRA continuation coverage beginning after February 16, 2009, a group health plan must treat an assistance eligible individuals as having paid the required COBRA continuation coverage premium if the individual elects COBRA coverage and pays

A. 5% of the amount of the premiums.
B. 10% of the amount of the premiums.
C. 35% of the amount of the premiums.
D. 65% of the amount of the premiums.

54. Eligible small business employers may be able to claim a credit for differential wage payments made to qualified employees after 2008 and before 2010. The credit is _________ of qualified differential wage payments made to each qualified employee.

A. 10% of the first $10,000.
B. 15% of the first $15,000.
C. 20% of the first $20,000.
D. 30% of the first $30,000.

55. You may be able to take an additional first-year special depreciation allowance for certain qualified property. The allowance is an additional deduction of ___________ of the property's depreciable basis.

A. 30%.
B. 20%.
C. 50%.
D. 40%.

56. The following property does not qualify for the additional special depreciation deduction.  

A. Tangible property depreciated under the modified accelerated cost recovery system (MACRS) with a recovery period of 20 year or less.
B. Water utility property.
C. Off-the-shelf computer software.
D. None of the above.

57. Property that qualifies for the additional special depreciation allowance must

A. Have been acquired qualified property by purchase after December 31, 2007, and before January 1, 2009.
B. Been placed in service after December 31, 2007, and before January 1, 2009 (before January 31, 2007, for certain transportation property and certain property with long production period).
C. Have original use that begins with you after December 21, 2007.
D. All of the above.

58. The maximum section 179 expense deduction you can elect for qualified section 179 property you placed in service in tax year that begin in 2009 remains the same at $250,000.

True False

59. The total depreciation deduction (including the section 179 expense deduction) you can take for a passenger automobile (that is not a truck or a van) you use in your business and first placed in service in 2009 is

A. $3,060.
B. $11,060.
C. $2,960.
D. $10,960.

60. For tax years beginning in 2007, 2008, or 2009, the percentage used to figure the domestic production activities deduction increased to

A. 3%.
B. 6%.
C. 10%.
D. 15%.

61. Generally, a policyholder owning one or more employer-owned life insurance contracts issued after August 16, 2006, is required to file a report for each tax year the contract is owned.

True False

62. You can generally exclude a limited amount of the value of qualified parking and commuter highway vehicle transportation and transit passes you provide to an employee from the employee's wages. For 2008, the monthly exclusion for qualified parking increases to

A. $115.
B. $220.
C. $180.
D. $95.

63. For 2009, the following statement is true regarding Health Savings Accounts (HSAs).

A. A qualifying high deductible health plan (HDHP) must have a deductible of at least $1,150 for self-only coverage.
B. A qualifying high deductible health plan (HDHP) must have a deductible of at least $2,300 for family coverage.
C. Must limit annual out-of-pocket expenses of the beneficiary to $5,800 for self-only coverage and $11,600 for family coverage.
D. All of the above.

64. For 2008, an employer providing a passenger automobile for personal use of an employee may determine the value of the personal use by using the vehicle cents-per-mile value rule if the vehicle's fair market value on the date it is first made available to the employer does not exceed __________ to a passenger automobile.

A. $15,000.
B. $17,000.
C. $15,900.
D. $11,600.

65. Disqualified corporation's interest expenses paid or accrued in the current tax year will not be disallowed by section 163(j) if

A. Interest paid or accrued (directly or indirectly) to a related person not subject to U.S. income tax on the interest.
B. Interest paid or accrued (directly or indirectly) to a taxable real estate investment trust (as defined in section 856(1) by a subsidiary of the trust.
C. The corporation's debt to equity ratio at the end of the tax year does not exceed 1.5 to 1.
D. All of the above.

66. Generally, all amounts deferred under a nonqualified deferred compensation plan for the tax you and all preceding tax years are included in your employee's wages in the current year, unless the plan meets certain requirements.

True False

67. The following change affects S corporations

A. The capital gain of an S corporation is not treated as passive investment income.
B. An electing small business trust may be able to deduct interest expense on indebtedness it incurred to acquire stock in an S corporation.
C. For tax years ending on or before December 31, 2007, certain corporations with reasonable cause for not timely filing Form 2553, Election by a Small Business Corporation, can request to have the form treated as timely filed by filing it as an attachment to Form 1120S, U.S. Income Tax Return for an S Corporation.
D. All of the above.

68. The maximum amount of net earnings subject to the social security part of the self-employment tax years beginning in 2008 has increased to $102,000. All net earnings are subject to Medicare part of the tax that are at least

A. $200.
B. $400.
C. $600.
D. $6,300.

69. The maximum amount of wages subject to the social security tax for 2008 is $102,000. The limit on the amount of wages subject to the Medicare tax is

A. $400.
B. $102,000.
C. No limit.
D. $4,200.

70. For 2009, the standard mileage rate for the cost of operating your care for business use is

A. 48.5 cents per mile.
B. 50.50 cents per mile.
C. 58.5 cents per mile.
D. 55 cents per mile.

71. The Work Opportunity Credit has been extended to cover members of targeted groups who begin work for you before September 1, 2011. For tax years beginning after December 31, 2006, there is an alternative minimum tax limitation with respect to this credit.

True False

72. The Work Opportunity Credit has been extended to cover members of targeted groups who begin work for you before September 1, 2011. Members of targeted groups are

A. Long-term family assistance recipients.
B. Food stamp recipients who are not at least 18 when hired.
C. Food stamp recipients who are age 40 or over.
D. All of the above.

73. For individuals who begin to work for you after May 25, 2007, the qualified veterans group is expanded to include veterans entitled to compensation for a service connected disability an who, during the one-year period ending on the hiring date, were

A. Discharged or released from active duty in the U.S. Armed Forces.
B. Unemployed for a period or periods totaling at least 6 months.
C. Either A or B above.
D. Individuals with first-year wages taken into account of $32,000.

74. The following statement is not true regarding the Work Opportunity Credit.

A. For individuals who begin work for you after May 25, 2007, the high-risk youth group has been renamed "Designated Community Residents".
B. The high-risk youth group has been expanded to include individuals who are at least age 18 but not yet age 40.
C. For tax year beginning after 2006, the Work Opportunity Credit is allowed against both the regular tax and the alternative minimum tax.
D. The high-risk youth group does not include residents of rural renewal counties.

75. Tax changes for disaster areas include

A. Kansas disaster areas.
B. Mid-Western disaster areas.
C. Special rules for individuals impacted by Hurricanes Katrina, Rita, and Wilma.
D. All of the above.

76. Tax relief for Kansas disaster area is provided by the Food, Conservation, and Energy Act of 2008 for taxpayers of Kiowa County, Kansas, and the surrounding areas who were affected by the storms and tornadoes that began on May 4, 2007. The special tax relief provisions apply for

A. Casualty and theft losses and net operating losses.
B. Special depreciation allowance and section 179 expense deductions.
C. Demolition and clean-up costs and employee retention credits.
D. Any of the above.

77. The tax relief for the Mid-Western disaster areas are for those areas for which a major disaster was declared by the President during the period beginning on May 20, 2008, and ending on July 31, 2008, in the state of Arkansas, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, or Wisconsin, as a result of the severe storms, tornadoes, or flooding that occurred on the applicable disaster date. Special tax provisions include

A. Casualty and Theft losses.
B. Education credits.
C. Exclusion of certain cancellation of indebtedness.
D. All of the above.

78. If you claimed a casualty or theft loss deduction and in a later year you received more reimbursement than expected, you generally do not recompute the tax for the year in which you claim the deduction. You must include the reimbursement in your income for the year in which it was received unless the destruction of your main home was caused by Hurricane Katrina, Rita, or Wilma, and in a later year you received a hurricane relief grant and reduce the amount by the amount of the grant.

True False

79. The annual exclusion for gifts of present interests made to a donee during the 2009 is

A. $12,000.
B. $13,000.
C. $10,000.
D. $128,000.

80. An estate tax return for a U.S. citizen or resident needs to be filed only if the gross estate exceeds $2 million for decedents dying during 2009.

True False

81. For estates of decedents dying, and gifts made after 2006, the maximum rate for the estate tax and the gift tax for 2007, 2008, and 2009 is

A. 45%.
B. 38%.
C. 28%.
D. 15%.

82. For 2009, the maximum foreign earned income exclusion amount has increased to

A. $87,600.
B. $91,400.
C. $14,016.
D. $14,624.

83. If you expatriated after June 16, 2008, new expatriation rules apply to you if

A. Your average annual net income tax for the 5 years ending before the date of expatriation or termination of residency is more than $139,000 (if you expatriated or terminated residency before January 1, 2009).
B. Your net worth is $2 million or more on the date of your expatriation or termination of residency.
C. You fail to certify on Form 8854 that you have complied with all U.S. federal tax obligations for the 5 years receding the date of your expatriation or termination of residency.
D. Any of the above.

84. The treatment of a regulated investment company (RIC) has been extended through 2009.

True False

85. The limit on annual addition for 403(b) plans has increased to

A. $46,000.
B. $35,000.
C. $16,000.
D. $56,000.

86. If you received a military death gratuity or SGLI Payment, you may contribute all or part of the amount received to your Roth IRA or to a Coverall Education Savings Account (ESA). The contribution is treated as a rollover an this type of rollover counts when figuring the annual limit on the number of rollovers allowed.

True False

87. If you are Head of household for 2009, you may be able to claim the retirement savings contributions credit if your modified AGI is not more than

A. $55,500.
B. $41,625.
C. $27,750.
D. $39,750.

88. For 2009, your Roth IRA contribution limit is reduced (phased out) if

A. Your filing status is married filing jointly or qualifying widow(er) and your modified AGI is at least $166,000.
B. Your filing status is single, head of household, or married filing separately and you did not live with your spouse at any time in 2009 and your modified AGI is at least $105,000.
C. Your filing status is married filing separately, you lived with your spouse at any time during the year, and your modified AGI is more than $0.
D. Any of the above.

89. If you are married filing jointly or qualifying widow(er), you cannot make a Roth IRA contribution if your modified AGI is

A. $176,000 or more.
B. $120,000 or more.
C. $10,000 or more.
D. $166,000 or more.

90. For 2009, if you are covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is over a certain amount based on your filing status. If you lived with your spouse or file a joint return, you cannot take a deduction for contributions to a traditional IRA if your modified AGI is

A. $109,000 or more.
B. $65,000 or more.
C. $10,000 or more.
D. $76,000 or more.

91. Generally, all amounts deferred under a nonqualified deferred compensation plan for the tax year and all preceding tax year are included in your employees' wages in the current year, unless the plan meets certain requirements.

True False

92. For 2008, a defined contribution plan's maximum annual contributions and other additions (excluding earnings) to the account of a participant has increased to

A. $46,000.
B. 100% of the compensation actually paid to the participant.
C. The smaller of A or B above.
D. The greater of A or B above.

93. Eligibility to receive qualified reservist distributions has been extended to individuals ordered or called to active duty after 2007. The additional 10% tax on early distributions will apply to these distributions.

True False

94. If you are a qualified airline employee, you may contribute, to a Roth IRA, any portion of an airline payment you receive from a commercial airline carrier involved in certain bankruptcy proceedings.

True False

95. Prior to 2008, you could only rollover (convert) amounts from either a traditional, SEP, or SIMPLE IRA into a Roth IRA. After 2007, you can rollover amounts from the following plans into a Roth IRA, except:

A. A tax-sheltered annuity plan (section 403(b) plan).
B. A qualified pension, profit-sharing or stock plan (including a 401(k) plan).
C. An annuity plan.
D. None of the above.

96. If you are a qualified taxpayer and you received qualified settlement income in connection with the Exxon Valdez litigation, you can contribute all or part of the amount received to an eligible retirement plan. This include a

A. Traditional IRA.
B. Roth IRA.
C. Qualified verified retirement plan.
D. Any of the above.

97. If you are age 50 or older before 2009 and contributions on your behalf were made only to Roth IRAs, your contribution limit for 2008 will generally be

A. $6,000.
B. You taxable compensation for the year.
C. The lesser of A or B above.
D. $5,000.

98. Salary reduction contributions that your employer could make on your behalf under a SIMPLE plan increased to

A. $5,000.
B. $10,500.
C. $6,000.
D. None of the above.

99. You may choose to withdraw an economic stimulus payment that was directly deposited to your traditional or Roth IRA in 2008. If you choose to withdraw any or all of the payment, that portion of the payment is treated as contributed or distributed from your IRA and the amount is included in your income and subject to addition tax or penalty.

True False

100. The contributions limit to your traditional IRA for 2008 will be increased to

A. $5,000.
B. Your taxable compensation for the year.
C. The smaller of A or B above.
D. $6,000.