Which of the following choices are forms of tax prepayments? Multiple select question. An overpayment of taxes in the prior year that was applied as an estimated payment for the current year A tax credit used to reduce the tax liability in the current year A tax refund received in the current year for the prior year Estimated tax payments the taxpayer made directly to the IRS Income tax withheld from a taxpayer's salary or wages by an employer
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John Lake is a single, individual taxpayer. Lake is the sole owner of Kale, Inc., an S corporation with a November 30 year end. Lake had a $500 overpayment in Year 2 that was applied to the Year 3 tax liability. Lake pays estimated taxes. Lake's Year 3 estimated tax based on Year 2 income was $1,600. Kale files Form 1120S. U.S. Income Tax Return for an S Corporation. Select from the option list provided the applicable date for each scenario below. Each choice may be used once, more than once, or not at all. For question 5., enter the appropriate amount in the associated cell. Enter the amount as a positive whole number. If the amount is zero, enter a zero (0). 1. What is the due date for Kale's Year 2 Form 1120S? February 15, Year 3 2. When is the final date Lake can contribute to his IRA for Year 2? April 15, Year 3 3. What is the latest date Lake can pay any Year 2 income tax due without interest? 4. When is the earliest date Lake is required to make an estimated tax payment for Year 3 after the Year 2 overpayment is applied? 5. What is the amount of Lake's first estimated tax payment after the Year 2 overpayment is applied? 6. If Lake elects to file an extension on the individual Year 2 return, what would be the due date? 7. During Year 4, Lake presented new information about his Year 1 Form 1040, which would result in a refund. Assuming the return was filed by the original due date, what is the latest date Lake can file an amended Year 1 return and still receive the refund?
Akash M.
Aaron received a state income tax refund in 2021 for state taxes he overpaid in 2020. He was able to reduce his 2020 federal tax liability by itemizing and claiming a deduction for state and local income taxes paid that year. When Aaron files his 2021 return, he may need to report all or part of the state tax refund he received in 2021 as:
'Which of the following statements is incorrect with respect to determining current E & P? Dividends received deductions should be subtracted from taxable income_ Federal income tax refunds should be added back to taxable income_ Current-year charitable contributions in excess of the 10% of taxable income limit should be subtracted from taxable income. All tax-exempt income should be added back to taxable income'
Babar A.
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