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Homework answers / question archive / Which of the following can be used as credit for federal income tax liabilities? a
Which of the following can be used as credit for federal income tax liabilities?
a. Social security tax withheld in excess of $8239.8 if they work for only one employer in a year
b. Overpayment of state income taxes
c. Overpayment of federal income tax from prior year
d. Overpayment of state SDI
a. Incorrect: Credit can be taken of excess social security tax in case of multiple employers. In case of single employer, refund for excess and corrected form w-2 should be asked for.
b. Incorrect : Federal and state income taxes are separate and thus state state tax canot be used for payment owed towards federal income tax.
C. Correct : Overpayment of prior year tax can be either be applied to next year's estimated tax liability or for refund.
d. Incorrect : Federal & State taxes are separate.
