Question 1

Which of the following statements regarding adoption credits is not true?

Accepted Answer

A)  There is a dollar limit to the maximum credit allowed per adopted child. 
B)  Form 8839 must be filed to claim the credit. 
C)  Adoption of foreign country children does not qualify for the credit. 
D)  Adoption of a child of taxpayer's spouse does not qualify. 
A)  There is a dollar limit to the maximum credit allowed per adopted child. 
B)  Form 8839 must be filed to claim the credit. 
C)  Adoption of foreign country children does not qualify for the credit. 
D)  Adoption of a child of taxpayer's spouse does not qualify. C

Question 2

The earned income credit (EIC)is ONLY available for taxpayers with children.

Accepted Answer

A) True 
 B)False  False

Question 3

Which of the following statements regarding adoption credits is not true?

Accepted Answer

A)  Qualified expenses do not include employer reimbursements. 
B)  An eligible child may be up to the age of 18. 
C)  The credit may be claimed regardless of the taxpayer's modified AGI amounts. 
D)  Qualified expenses include adoption fees,attorney fees and court costs. 
A)  Qualified expenses do not include employer reimbursements. 
B)  An eligible child may be up to the age of 18. 
C)  The credit may be claimed regardless of the taxpayer's modified AGI amounts. 
D)  Qualified expenses include adoption fees,attorney fees and court costs. C

Question 4

The credit for child and dependent care expenses can only be claimed if a taxpayer incurs employment-related expenses to care for one or more qualifying individuals.

Accepted Answer

A) True 
 B)False

Question 5

Bob and Joyce are married,file a joint return,and have one dependent child,Dane,age 9.Bob has earned income of $72,000.Joyce was a full-time student (for nine months)with no income.They paid a qualified day care center $4,000.What amount of child and dependent care credit can Bob and Joyce receive?

Accepted Answer

A)  $450. 
B)  $600. 
C)  $800. 
D)  $1,200. 
A)  $450. 
B)  $600. 
C)  $800. 
D)  $1,200.

Question 6

The maximum child tax credit is $1,000 per child.

Accepted Answer

A) True 
 B)False

Question 7

Shawn and Dahlia are married; both work and have one qualifying child.They had AGI of $19,000.What is their EIC?

Accepted Answer

A)  $0. 
B)  $496. 
C)  $3,305. 
D)  $5,460. 
A)  $0. 
B)  $496. 
C)  $3,305. 
D)  $5,460.

Question 8

Which of the account contributions qualify for the retirement savings contributions credit?

Accepted Answer

A)  IRA. 
B)  401(k). 
C)  SEP. 
D)  All of these qualify. 
A)  IRA. 
B)  401(k). 
C)  SEP. 
D)  All of these qualify.

Question 9

Warren and Erika paid $9,300 in qualified expenses for their son,Cash,to attend the University of Washington.Cash is in his first year of college and attended full-time.How much is Warren and Erika's American opportunity tax credit,without regard to any AGI limitation?

Accepted Answer

A)  $0. 
B)  $1,800. 
C)  $2,500. 
D)  $9,300. 
A)  $0. 
B)  $1,800. 
C)  $2,500. 
D)  $9,300.

Question 10

The American opportunity tax credit phases out beginning at $80,000 of modified AGI for single taxpayers.

Accepted Answer

A) True 
 B)False

Question 11

The foreign tax credit is available only to individuals born in a foreign country.

Accepted Answer

A) True 
 B)False

Question 12

The main goal of Congress in offering tax credits is to collect additional revenues.

Accepted Answer

A) True 
 B)False

Question 13

The maximum contribution amount for the retirement savings contributions credit for each tax year is 20% of a taxpayer's AGI.

Accepted Answer

A) True 
 B)False

Question 14

Rudy and Rebecca have AGI of $156,000.They have twin daughters,Ashley and Amy,ages 5.What amount of child tax credit can they claim?

Accepted Answer

A)  $0. 
B)  $1,000. 
C)  $2,000. 
D)  $2,300. 
A)  $0. 
B)  $1,000. 
C)  $2,000. 
D)  $2,300.

Question 15

Qualifying expenses for the American opportunity tax and lifetime learning credits include room and board.

Accepted Answer

A) True 
 B)False

Question 16

The earned income credit (EIC)is a nonrefundable credit.

Accepted Answer

A) True 
 B)False

Question 17

Presley and Jake are married filing joint taxpayers.They have twin sons,ages 7.If their AGI is $116,950,what amount of child tax credit can they claim?

Accepted Answer

A)  $0. 
B)  $1,000. 
C)  $1,650. 
D)  $2,000. 
A)  $0. 
B)  $1,000. 
C)  $1,650. 
D)  $2,000.

Question 18

Casey and Lupe have AGI of $125,000.They have twin daughters,Ashley and Alley,ages 5.What amount of child tax credit can they claim?

Accepted Answer

A)  $0. 
B)  $1,000. 
C)  $1,250. 
D)  $2,000. 
A)  $0. 
B)  $1,000. 
C)  $1,250. 
D)  $2,000.

Question 19

Which of the following conditions must be met for a taxpayer to be able to claim the foreign tax credit without filing Form 1116?

Accepted Answer

A)  All of the foreign-source income is passive income. 
B)  Total foreign taxes paid were less than $300 ($600 if married filing jointly). 
C)  Taxpayer is not subject to foreign tax limitation rules. 
D)  All of these must be met. 
A)  All of the foreign-source income is passive income. 
B)  Total foreign taxes paid were less than $300 ($600 if married filing jointly). 
C)  Taxpayer is not subject to foreign tax limitation rules. 
D)  All of these must be met.

Question 20

Conner and Matsuko paid $1,000 and $2,000,in qualifying expenses for their two sons,Jason and Justin,respectively,to attend Arizona State University.Jason is a sophomore and Justin is a freshman.Conner and Matsuko's AGI is $195,000.What is their allowable American opportunity tax credit after the credit phase-out based on AGI is taken into account?

Accepted Answer

A)  $0. 
B)  $2,000. 
C)  $3,050. 
D)  $3,700. 
A)  $0. 
B)  $2,000. 
C)  $3,050. 
D)  $3,700.

Which of the following statements regarding adoption credits is not true?

The earned income credit (EIC)is ONLY available for taxpayers with children.

Which of the following statements regarding adoption credits is not true?

The credit for child and dependent care expenses can only be claimed if a taxpayer incurs employment-related expenses to care for one or more qualifying individuals.

Bob and Joyce are married,file a joint return,and have one dependent child,Dane,age 9.Bob has earned income of $72,000.Joyce was a full-time student (for nine months)with no income.They paid a qualified day care center $4,000.What amount of child and dependent care credit can Bob and Joyce receive?

The maximum child tax credit is $1,000 per child.

Shawn and Dahlia are married; both work and have one qualifying child.They had AGI of $19,000.What is their EIC?

Which of the account contributions qualify for the retirement savings contributions credit?

Warren and Erika paid $9,300 in qualified expenses for their son,Cash,to attend the University of Washington.Cash is in his first year of college and attended full-time.How much is Warren and Erika's American opportunity tax credit,without regard to any AGI limitation?

The American opportunity tax credit phases out beginning at $80,000 of modified AGI for single taxpayers.

The foreign tax credit is available only to individuals born in a foreign country.

The main goal of Congress in offering tax credits is to collect additional revenues.

The maximum contribution amount for the retirement savings contributions credit for each tax year is 20% of a taxpayer's AGI.

Rudy and Rebecca have AGI of $156,000.They have twin daughters,Ashley and Amy,ages 5.What amount of child tax credit can they claim?

Qualifying expenses for the American opportunity tax and lifetime learning credits include room and board.

The earned income credit (EIC)is a nonrefundable credit.

Presley and Jake are married filing joint taxpayers.They have twin sons,ages 7.If their AGI is $116,950,what amount of child tax credit can they claim?

Casey and Lupe have AGI of $125,000.They have twin daughters,Ashley and Alley,ages 5.What amount of child tax credit can they claim?

Which of the following conditions must be met for a taxpayer to be able to claim the foreign tax credit without filing Form 1116?

Introduction to Taxation, the Income Tax Formula, and Form 1040ez

Expanded Tax Formula, Forms 1040a and 1040, and Basic Concepts

Gross Income: Inclusions and Exclusions

Adjustments for Adjusted Gross Income

Itemized Deductions

Self-Employed Business Income

Capital Gains and Other Sales of Property

Rental Property, Royalties, and Income From Flow-Through Entities

Payroll Taxes

Retirement and Other Tax-Deferred Plans and Annuities

Special Property Transactions

At-Riskpassive Activity Loss Rules and the Individual Alternative Minimum Tax

Partnership Taxation

Corporate Taxation

Filters

Exam 9: Tax Credits

Which of the following statements regarding adoption credits is not true?

The earned income credit (EIC)is ONLY available for taxpayers with children.

Which of the following statements regarding adoption credits is not true?

The credit for child and dependent care expenses can only be claimed if a taxpayer incurs employment-related expenses to care for one or more qualifying individuals.

Bob and Joyce are married,file a joint return,and have one dependent child,Dane,age 9.Bob has earned income of $72,000.Joyce was a full-time student (for nine months)with no income.They paid a qualified day care center $4,000.What amount of child and dependent care credit can Bob and Joyce receive?

The maximum child tax credit is $1,000 per child.

Shawn and Dahlia are married; both work and have one qualifying child.They had AGI of $19,000.What is their EIC?

Which of the account contributions qualify for the retirement savings contributions credit?

Warren and Erika paid $9,300 in qualified expenses for their son,Cash,to attend the University of Washington.Cash is in his first year of college and attended full-time.How much is Warren and Erika's American opportunity tax credit,without regard to any AGI limitation?

The American opportunity tax credit phases out beginning at $80,000 of modified AGI for single taxpayers.

The foreign tax credit is available only to individuals born in a foreign country.

The main goal of Congress in offering tax credits is to collect additional revenues.

The maximum contribution amount for the retirement savings contributions credit for each tax year is 20% of a taxpayer's AGI.

Rudy and Rebecca have AGI of $156,000.They have twin daughters,Ashley and Amy,ages 5.What amount of child tax credit can they claim?

Qualifying expenses for the American opportunity tax and lifetime learning credits include room and board.

The earned income credit (EIC)is a nonrefundable credit.

Presley and Jake are married filing joint taxpayers.They have twin sons,ages 7.If their AGI is $116,950,what amount of child tax credit can they claim?

Casey and Lupe have AGI of $125,000.They have twin daughters,Ashley and Alley,ages 5.What amount of child tax credit can they claim?

Which of the following conditions must be met for a taxpayer to be able to claim the foreign tax credit without filing Form 1116?

Introduction to Taxation, the Income Tax Formula, and Form 1040ez

Expanded Tax Formula, Forms 1040a and 1040, and Basic Concepts

Gross Income: Inclusions and Exclusions

Adjustments for Adjusted Gross Income

Itemized Deductions

Self-Employed Business Income

Capital Gains and Other Sales of Property

Rental Property, Royalties, and Income From Flow-Through Entities

Payroll Taxes

Retirement and Other Tax-Deferred Plans and Annuities

Special Property Transactions

At-Riskpassive Activity Loss Rules and the Individual Alternative Minimum Tax

Partnership Taxation

Corporate Taxation

Filters