Question 1

What is the difference between a refundable tax credit and a nonrefundable tax credit? Use at least one example of each type of credit in your answer.

Accepted Answer

Tax credits reduce the amount of tax lia

Question 2

What are the requirements that the taxpayer must meet to receive a tax credit for child and dependent care expenses? Briefly discuss.

Accepted Answer

A taxpayer must incur child-care expense

Question 3

Tina has $93,000 total taxable income,which includes $18,000 of taxable income from Japan.She paid $2,200 in foreign income taxes and her U.S.tax liability is $19,610.Tina's foreign tax credit is: (Do not round interim calculations)

Accepted Answer

A)  $0. 
B)  $2,200. 
C)  $3,795. 
D)  $18,000. 
A)  $0. 
B)  $2,200. 
C)  $3,795. 
D)  $18,000.

Question 4

Sandra is single and her son Julius is 12 years old.If her AGI is $79,000,what amount of child tax credit can Sandra claim?

Accepted Answer

A)  $0. 
B)  $500. 
C)  $800. 
D)  $1,000. 
A)  $0. 
B)  $500. 
C)  $800. 
D)  $1,000.

Question 5

A student can only receive the lifetime learning credit if he/she is enrolled in a degree program.

Accepted Answer

A) True 
 B)False

Question 6

Andrew and Eunice are married filing jointly with AGI of $48,000.They contributed $1,800 to a qualified retirement plan.How much is their retirement savings contributions credit?

Accepted Answer

A)  $0. 
B)  $180. 
C)  $900. 
D)  $1,800. 
A)  $0. 
B)  $180. 
C)  $900. 
D)  $1,800.

Question 7

Tai and Song are ages 69 and 59,respectively,and file a joint return.They have AGI of $20,000 and received $2,000 in nontaxable social security benefits.How much can Tai and Song take as a credit for the elderly or the disabled?

Accepted Answer

A)  $0. 
B)  $1,125. 
C)  $2,000. 
D)  $7,500. 
A)  $0. 
B)  $1,125. 
C)  $2,000. 
D)  $7,500.

Question 8

Noah and Olivia have two boys,Jordan,age 6 and Jack,age 5.Their AGI is $176,000.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 9

Discuss the limitations of the lifetime learning credit.Briefly explain how AGI affects the amount of credit available.

Accepted Answer

The lifetime learning credit is limited

Question 10

Chris and Sarah are married with three qualifying children.Their AGI is $25,000.How much is their EIC (use the EIC formula)? (Round your answer to the nearest dollar)

Accepted Answer

A)  $496. 
B)  $3,305. 
C)  $5,777. 
D)  $6,143. 
A)  $496. 
B)  $3,305. 
C)  $5,777. 
D)  $6,143.

Question 11

Cooper is a single dad with 1 child and his TOTAL tax liability for the current tax year is $2,100.His EIC amount is $3,094 and he had no withholdings during the year.What amount of tax refund or tax owed would be on Cooper's tax return?

Accepted Answer

A)  $0. 
B)  $994 tax refund. 
C)  $2,100 tax owed. 
D)  $3,094 tax refund. 
A)  $0. 
B)  $994 tax refund. 
C)  $2,100 tax owed. 
D)  $3,094 tax refund.

Question 12

Nick and Katelyn paid $1,600 and $2,100 in qualifying expenses for their two daughters,Nicole and Naomi,respectively,to attend the University of Nevada.Nicole is a sophomore and Naomi is a freshman.Nick and Katelyn's AGI is $202,000.What is their allowable American opportunity tax credit after the credit phaseout 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.

Question 13

Max paid $2,500 in foreign income taxes to Peru.His total income was $65,000,which included $9,000 of foreign income.His U.S.tax liability is $17,750.How much can Max claim as foreign tax credit? (Do not round interim calculations)

Accepted Answer

A)  $2,458. 
B)  $2,500. 
C)  $3,350. 
D)  $9,000. 
A)  $2,458. 
B)  $2,500. 
C)  $3,350. 
D)  $9,000.

Question 14

Which of the following statements is not true with regard to the child and dependent care expense credit?

Accepted Answer

A)  The maximum amount of expenses for one dependent is $3,000. 
B)  Married taxpayers must file joint returns. 
C)  A non-working spouse attending school full-time is deemed to have earned income of $250 per month for one qualifying person. 
D)  The maximum amount of expenses for two or more dependents is $6,000. 
A)  The maximum amount of expenses for one dependent is $3,000. 
B)  Married taxpayers must file joint returns. 
C)  A non-working spouse attending school full-time is deemed to have earned income of $250 per month for one qualifying person. 
D)  The maximum amount of expenses for two or more dependents is $6,000.

Question 15

Julia and Omar are married and file a joint tax return.They have two dependent daughters,ages 14 and 18.If their AGI is $98,000,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 16

Dean and Sue are married filing jointly with AGI of $28,000.They made a $1,500 contribution to a qualified retirement plan.How much is their retirement savings contributions credit?

Accepted Answer

A)  $0. 
B)  $150. 
C)  $300. 
D)  $750. 
A)  $0. 
B)  $150. 
C)  $300. 
D)  $750.

Question 17

Sean and Jenny are married,file a joint return and have two dependent children,Blake,age 9 and Jake,age 5.Sean has earned income of $72,000.Jenny was a full-time student (for nine months)with no income.They paid a qualified day care center $7,000.What amount of child and dependent care credit can Sean and Jenny receive?

Accepted Answer

A)  $600. 
B)  $900. 
C)  $1,000. 
D)  $1,200. 
A)  $600. 
B)  $900. 
C)  $1,000. 
D)  $1,200.

Question 18

Name the two credits that are available as education credits and briefly discuss the criteria to claim the credits.

Accepted Answer

The two credits available are the Americ

Question 19

Juliann reported foreign income tax of $1,000 on foreign income of $8,000.Her worldwide taxable income was $89,000 and her U.S.tax liability was $23,000.What is the amount of foreign tax credit she is allowed? Briefly explain your answer.

Accepted Answer

FTC = $1,000: The amount of foreign tax

Question 20

Thomas and Emma are married,file a joint return,and have three qualifying children.Their AGI was $21,000.What is their EIC?

Accepted Answer

A)  $1,461. 
B)  $3,305. 
C)  $5,372. 
D)  $6,143. 
A)  $1,461. 
B)  $3,305. 
C)  $5,372. 
D)  $6,143.

What is the difference between a refundable tax credit and a nonrefundable tax credit? Use at least one example of each type of credit in your answer.

What are the requirements that the taxpayer must meet to receive a tax credit for child and dependent care expenses? Briefly discuss.

Tina has $93,000 total taxable income,which includes $18,000 of taxable income from Japan.She paid $2,200 in foreign income taxes and her U.S.tax liability is $19,610.Tina's foreign tax credit is: (Do not round interim calculations)

Sandra is single and her son Julius is 12 years old.If her AGI is $79,000,what amount of child tax credit can Sandra claim?

A student can only receive the lifetime learning credit if he/she is enrolled in a degree program.

Andrew and Eunice are married filing jointly with AGI of $48,000.They contributed $1,800 to a qualified retirement plan.How much is their retirement savings contributions credit?

Tai and Song are ages 69 and 59,respectively,and file a joint return.They have AGI of $20,000 and received $2,000 in nontaxable social security benefits.How much can Tai and Song take as a credit for the elderly or the disabled?

Noah and Olivia have two boys,Jordan,age 6 and Jack,age 5.Their AGI is $176,000.What amount of child tax credit can they claim?

Discuss the limitations of the lifetime learning credit.Briefly explain how AGI affects the amount of credit available.

Chris and Sarah are married with three qualifying children.Their AGI is $25,000.How much is their EIC (use the EIC formula)? (Round your answer to the nearest dollar)

Cooper is a single dad with 1 child and his TOTAL tax liability for the current tax year is $2,100.His EIC amount is $3,094 and he had no withholdings during the year.What amount of tax refund or tax owed would be on Cooper's tax return?

Max paid $2,500 in foreign income taxes to Peru.His total income was $65,000,which included $9,000 of foreign income.His U.S.tax liability is $17,750.How much can Max claim as foreign tax credit? (Do not round interim calculations)

Which of the following statements is not true with regard to the child and dependent care expense credit?

Julia and Omar are married and file a joint tax return.They have two dependent daughters,ages 14 and 18.If their AGI is $98,000,what amount of child tax credit can they claim?

Dean and Sue are married filing jointly with AGI of $28,000.They made a $1,500 contribution to a qualified retirement plan.How much is their retirement savings contributions credit?

Name the two credits that are available as education credits and briefly discuss the criteria to claim the credits.

Juliann reported foreign income tax of $1,000 on foreign income of $8,000.Her worldwide taxable income was $89,000 and her U.S.tax liability was $23,000.What is the amount of foreign tax credit she is allowed? Briefly explain your answer.

Thomas and Emma are married,file a joint return,and have three qualifying children.Their AGI was $21,000.What is their EIC?

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

What is the difference between a refundable tax credit and a nonrefundable tax credit? Use at least one example of each type of credit in your answer.

What are the requirements that the taxpayer must meet to receive a tax credit for child and dependent care expenses? Briefly discuss.

Tina has $93,000 total taxable income,which includes $18,000 of taxable income from Japan.She paid $2,200 in foreign income taxes and her U.S.tax liability is $19,610.Tina's foreign tax credit is: (Do not round interim calculations)

Sandra is single and her son Julius is 12 years old.If her AGI is $79,000,what amount of child tax credit can Sandra claim?

A student can only receive the lifetime learning credit if he/she is enrolled in a degree program.

Andrew and Eunice are married filing jointly with AGI of $48,000.They contributed $1,800 to a qualified retirement plan.How much is their retirement savings contributions credit?

Tai and Song are ages 69 and 59,respectively,and file a joint return.They have AGI of $20,000 and received $2,000 in nontaxable social security benefits.How much can Tai and Song take as a credit for the elderly or the disabled?

Noah and Olivia have two boys,Jordan,age 6 and Jack,age 5.Their AGI is $176,000.What amount of child tax credit can they claim?

Discuss the limitations of the lifetime learning credit.Briefly explain how AGI affects the amount of credit available.

Chris and Sarah are married with three qualifying children.Their AGI is $25,000.How much is their EIC (use the EIC formula)? (Round your answer to the nearest dollar)

Cooper is a single dad with 1 child and his TOTAL tax liability for the current tax year is $2,100.His EIC amount is $3,094 and he had no withholdings during the year.What amount of tax refund or tax owed would be on Cooper's tax return?

Max paid $2,500 in foreign income taxes to Peru.His total income was $65,000,which included $9,000 of foreign income.His U.S.tax liability is $17,750.How much can Max claim as foreign tax credit? (Do not round interim calculations)

Which of the following statements is not true with regard to the child and dependent care expense credit?

Julia and Omar are married and file a joint tax return.They have two dependent daughters,ages 14 and 18.If their AGI is $98,000,what amount of child tax credit can they claim?

Dean and Sue are married filing jointly with AGI of $28,000.They made a $1,500 contribution to a qualified retirement plan.How much is their retirement savings contributions credit?

Name the two credits that are available as education credits and briefly discuss the criteria to claim the credits.

Juliann reported foreign income tax of $1,000 on foreign income of $8,000.Her worldwide taxable income was $89,000 and her U.S.tax liability was $23,000.What is the amount of foreign tax credit she is allowed? Briefly explain your answer.

Thomas and Emma are married,file a joint return,and have three qualifying children.Their AGI was $21,000.What is their EIC?

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