Question 1

The child tax credit of $1,000 per child is available for taxpayers with children under the age of 16.

Accepted Answer

A) True 
 B)False

Question 2

Joseph paid $1,750 in qualifying expenses for his daughter who attended a community college.How much is Joseph's lifetime learning credit without regard to AGI limitations or other credits?

Accepted Answer

A)  $250. 
B)  $350. 
C)  $825. 
D)  $1,750. 
A)  $250. 
B)  $350. 
C)  $825. 
D)  $1,750.

Question 3

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

Accepted Answer

A)  The American opportunity tax credit is only available for the first two years of postsecondary education. 
B)  The lifetime learning credit is limited to $2,000 per taxpayer per year. 
C)  The American opportunity tax credit is limited to $2,500 per student per year. 
D)  A taxpayer cannot receive the American opportunity tax credit if he/she has a felony drug conviction. 
A)  The American opportunity tax credit is only available for the first two years of postsecondary education. 
B)  The lifetime learning credit is limited to $2,000 per taxpayer per year. 
C)  The American opportunity tax credit is limited to $2,500 per student per year. 
D)  A taxpayer cannot receive the American opportunity tax credit if he/she has a felony drug conviction.

Question 4

A qualifying individual for purposes of the credit for child and dependent care expenses includes a dependent or a spouse of the taxpayer who is incapable of caring for himself or herself.

Accepted Answer

A) True 
 B)False

Question 5

In order to be eligible for the credit for the elderly or the disabled,the taxpayer must be age 55 or older or have retired on permanent disability.

Accepted Answer

A) True 
 B)False

Question 6

Kyle and Alyssa paid $1,000 and $2,000 in qualifying expenses for their two daughters Jane and Jill,respectively,to attend the University of California.Jane is a sophomore and Jill is a freshman.Kyle and Alyssa's AGI is $132,000 and they file a joint return.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)  $3,000. 
D)  $3,700. 
A)  $0. 
B)  $2,000. 
C)  $3,000. 
D)  $3,700.

Question 7

Max and Nora have modified AGI of $75,000,and adopted a little boy from San Antonio,Texas,in the current year and incurred a total of $13,000 in qualified adoption expenses.In addition,Max's employer provided the couple with adoption benefits of $4,000.What is the maximum amount of adoption credit they can take this year?

Accepted Answer

A)  $4,000. 
B)  $9,000. 
C)  $13,000. 
D)  $13,190. 
A)  $4,000. 
B)  $9,000. 
C)  $13,000. 
D)  $13,190.

Question 8

Which of the following statements is false regarding the earned income credit (EIC)?

Accepted Answer

A)  Maximum amount of the credit depends on the earned income and number of children. 
B)  The credit is refundable. 
C)  If certain requirements are met,a taxpayer may receive advance payments of EIC. 
D)  A taxpayer without children cannot claim the credit. 
A)  Maximum amount of the credit depends on the earned income and number of children. 
B)  The credit is refundable. 
C)  If certain requirements are met,a taxpayer may receive advance payments of EIC. 
D)  A taxpayer without children cannot claim the credit.

Question 9

The American opportunity tax and lifetime learning credits are available to taxpayers without any limitations due to AGI amounts.

Accepted Answer

A) True 
 B)False

Question 10

A student can only receive the American opportunity tax credit if he/she is enrolled in the first four years of postsecondary education.

Accepted Answer

A) True 
 B)False

Question 11

The maximum adoption credit is 50% of all qualified expenses.

Accepted Answer

A) True 
 B)False

Question 12

Debbie files as head of household and has AGI of $35,500.During the year,she contributed $1,000 to a 401(k).What amount of retirement savings contributions credit can Debbie take?

Accepted Answer

A)  $0. 
B)  $100. 
C)  $200. 
D)  $1,000. 
A)  $0. 
B)  $100. 
C)  $200. 
D)  $1,000.

Question 13

There is no maximum amount for the adoption credit.

Accepted Answer

A) True 
 B)False

Question 14

The retirement savings contributions credit is available regardless of the income level of the taxpayer.

Accepted Answer

A) True 
 B)False

Question 15

All taxpayers must file Form 1116 to receive the foreign tax credit.

Accepted Answer

A) True 
 B)False

Question 16

Kevin paid $2,550 in qualifying expenses for his daughter,Jasmine,who attended a community college.What is Kevin's lifetime learning credit without regard to AGI limitations or other credits?

Accepted Answer

A)  $510. 
B)  $1,650. 
C)  $2,000. 
D)  $2,550. 
A)  $510. 
B)  $1,650. 
C)  $2,000. 
D)  $2,550.

Question 17

Waseem has $103,000 total taxable income,which includes $11,000 of taxable income from India.He paid $4,000 in foreign income taxes and his U.S.tax liability is $21,610.Waseem's foreign tax credit is: (Do not round interim calculations)

Accepted Answer

A)  $0. 
B)  $2,200. 
C)  $2,308. 
D)  $4,000. 
A)  $0. 
B)  $2,200. 
C)  $2,308. 
D)  $4,000.

Question 18

Which of the following is a refundable credit?

Accepted Answer

A)  Foreign tax credit (FT
C) . 
B)  Lifetime learning credit. 
C)  Earned income credit (EI
C) . 
D)  Child and dependent care expenses credit. 
A)  Foreign tax credit (FT
C) . 
B)  Lifetime learning credit. 
C)  Earned income credit (EI
C) . 
D)  Child and dependent care expenses credit.

Question 19

Credit for child and dependent care expenses can only be claimed on a Form 1040.

Accepted Answer

A) True 
 B)False

Question 20

Kobe is a single dad with two dependent children,Lizzie,age 7 and Leslie,age 3.He has AGI of $51,000 and paid $6,300 to a qualified day care center.What amount of credit can Kobe receive for the child and dependent care credit?

Accepted Answer

A)  $600. 
B)  $1,200. 
C)  $1,260. 
D)  $6,300. 
A)  $600. 
B)  $1,200. 
C)  $1,260. 
D)  $6,300.

The child tax credit of $1,000 per child is available for taxpayers with children under the age of 16.

Joseph paid $1,750 in qualifying expenses for his daughter who attended a community college.How much is Joseph's lifetime learning credit without regard to AGI limitations or other credits?

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

A qualifying individual for purposes of the credit for child and dependent care expenses includes a dependent or a spouse of the taxpayer who is incapable of caring for himself or herself.

In order to be eligible for the credit for the elderly or the disabled,the taxpayer must be age 55 or older or have retired on permanent disability.

Which of the following statements is false regarding the earned income credit (EIC)?

The American opportunity tax and lifetime learning credits are available to taxpayers without any limitations due to AGI amounts.

A student can only receive the American opportunity tax credit if he/she is enrolled in the first four years of postsecondary education.

The maximum adoption credit is 50% of all qualified expenses.

Debbie files as head of household and has AGI of $35,500.During the year,she contributed $1,000 to a 401(k).What amount of retirement savings contributions credit can Debbie take?

There is no maximum amount for the adoption credit.

The retirement savings contributions credit is available regardless of the income level of the taxpayer.

All taxpayers must file Form 1116 to receive the foreign tax credit.

Kevin paid $2,550 in qualifying expenses for his daughter,Jasmine,who attended a community college.What is Kevin's lifetime learning credit without regard to AGI limitations or other credits?

Waseem has $103,000 total taxable income,which includes $11,000 of taxable income from India.He paid $4,000 in foreign income taxes and his U.S.tax liability is $21,610.Waseem's foreign tax credit is: (Do not round interim calculations)

Which of the following is a refundable credit?

Credit for child and dependent care expenses can only be claimed on a Form 1040.

Kobe is a single dad with two dependent children,Lizzie,age 7 and Leslie,age 3.He has AGI of $51,000 and paid $6,300 to a qualified day care center.What amount of credit can Kobe receive for the child and dependent care credit?

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

The child tax credit of $1,000 per child is available for taxpayers with children under the age of 16.

Joseph paid $1,750 in qualifying expenses for his daughter who attended a community college.How much is Joseph's lifetime learning credit without regard to AGI limitations or other credits?

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

A qualifying individual for purposes of the credit for child and dependent care expenses includes a dependent or a spouse of the taxpayer who is incapable of caring for himself or herself.

In order to be eligible for the credit for the elderly or the disabled,the taxpayer must be age 55 or older or have retired on permanent disability.

Which of the following statements is false regarding the earned income credit (EIC)?

The American opportunity tax and lifetime learning credits are available to taxpayers without any limitations due to AGI amounts.

A student can only receive the American opportunity tax credit if he/she is enrolled in the first four years of postsecondary education.

The maximum adoption credit is 50% of all qualified expenses.

Debbie files as head of household and has AGI of $35,500.During the year,she contributed $1,000 to a 401(k).What amount of retirement savings contributions credit can Debbie take?

There is no maximum amount for the adoption credit.

The retirement savings contributions credit is available regardless of the income level of the taxpayer.

All taxpayers must file Form 1116 to receive the foreign tax credit.

Kevin paid $2,550 in qualifying expenses for his daughter,Jasmine,who attended a community college.What is Kevin's lifetime learning credit without regard to AGI limitations or other credits?

Waseem has $103,000 total taxable income,which includes $11,000 of taxable income from India.He paid $4,000 in foreign income taxes and his U.S.tax liability is $21,610.Waseem's foreign tax credit is: (Do not round interim calculations)

Which of the following is a refundable credit?

Credit for child and dependent care expenses can only be claimed on a Form 1040.

Kobe is a single dad with two dependent children,Lizzie,age 7 and Leslie,age 3.He has AGI of $51,000 and paid $6,300 to a qualified day care center.What amount of credit can Kobe receive for the child and dependent care credit?

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