Answer the following statements true (T) or false (F)
1. A taxpayer who paid AMT in prior years, but is not subject to the AMT in the current year, may be entitled to an AMT credit against his regular tax liability in the current year.
2. If an individual is classified as an employee, the employer is required to withhold the employee's share of the FICA tax and to provide a matching amount.
3. Self-employed individuals are subject to the self-employment tax if their net earnings are more than $600.
4. One-half of the self-employment tax imposed is allowed as a for AGI deduction.
1. TRUE
To the extent that AMT is due to temporary differences, a minimum tax credit carryover is generated for use in a future, non-AMT year.
2. TRUE
Determination of employee versus independent contractor status is important because of the employer's requirement to pay and withhold the FICA tax.
3. FALSE
Individuals are subject to self-employment tax if their net earnings are more than $400.
4. TRUE
The tax law allows a self-employed individual to deduct one-half of the self-employment tax as a for AGI deduction.
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