Question 1

Jillian is single and her son,Parker is 12 years old.If her AGI is $76,200,what is her child tax credit for Parker?

Accepted Answer

A)  $0. 
B)  $500. 
C)  $900. 
D)  $1,000. 
A)  $0. 
B)  $500. 
C)  $900. 
D)  $1,000.

Question 2

After years of working with the orphanage and the government,Walt and Kim adopted a little girl from China.The adoption process,which became final in January 2014,incurred the following qualified adoption expenses.What amount of adoption credit can Walt and Kim claim and in what year? Assume there is no credit limitation due to their AGI amount. 2013 $12,500
2014 $2,800

Accepted Answer

A)  $15,300 in 2013. 
B)  $12,500 in 2013 and $2,800 in 2014. 
C)  $13,190 in 2014. 
D)  $15,300 in 2014. 
A)  $15,300 in 2013. 
B)  $12,500 in 2013 and $2,800 in 2014. 
C)  $13,190 in 2014. 
D)  $15,300 in 2014.

Question 3

There are two types of education credits available,American opportunity tax credit and lifetime learning credit.

Accepted Answer

A) True 
 B)False

Question 4

Donna and Walt paid $3,000 in qualified expenses for their son,Jimmy,to attend the South Coast Business College.Jimmy is a business major in his first year.A year ago,Jimmy was arrested and convicted of felony drug possession.He has not been in any trouble since then.What education credits are available for Donna and Walt and how much can they claim?

Accepted Answer

Due to Jimmy's felony drug conviction,th

Question 5

Gina has $39,000 total taxable income,which includes $6,000 of taxable income from Argentina.She paid $1,200 in foreign income taxes and her U.S.tax liability is $3,610.Gina's foreign tax credit is: (Do not round interim calculations)

Accepted Answer

A)  $0. 
B)  $450. 
C)  $555. 
D)  $1,200. 
A)  $0. 
B)  $450. 
C)  $555. 
D)  $1,200.

Question 6

DJ and Nicolette paid $1,600 in qualifying expenses for their daughter Nicole to attend the University of Nevada.Nicole is a sophomore.DJ and Nicolette's AGI is $175,000.What is their maximum allowable American opportunity tax credit after the credit phase-out based on AGI is taken into account?

Accepted Answer

A)  $0. 
B)  $400. 
C)  $600. 
D)  $1,600. 
A)  $0. 
B)  $400. 
C)  $600. 
D)  $1,600.

Question 7

The child tax credit is reduced if AGI exceeds $110,000 for married filing joint taxpayers.

Accepted Answer

A) True 
 B)False

Question 8

Harrison is single and his son Jack is 12 years old.If his AGI is $195,000,what amount of child tax credit can Harrison claim?

Accepted Answer

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

Question 9

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

Accepted Answer

A)  If a dependent pays for qualified expenses,the expenses are deemed paid by the taxpayer. 
B)  If a relative makes payments for qualified expenses directly to the institution on behalf of the student,the expenses are deemed paid by the student. 
C)  If a student receives a scholarship that is excluded from gross income,that amount should reduce qualified expenses. 
D)  Payments made using borrowed funds are not considered qualified expenses. 
A)  If a dependent pays for qualified expenses,the expenses are deemed paid by the taxpayer. 
B)  If a relative makes payments for qualified expenses directly to the institution on behalf of the student,the expenses are deemed paid by the student. 
C)  If a student receives a scholarship that is excluded from gross income,that amount should reduce qualified expenses. 
D)  Payments made using borrowed funds are not considered qualified expenses.

Question 10

Which of the following statements is true about education credits?

Accepted Answer

A)  A taxpayer may be eligible to claim the education credits regardless of their AGI amount. 
B)  A taxpayer can use the same qualifying expenses for both the American opportunity tax and lifetime learning credits. 
C)  A taxpayer cannot claim an American opportunity tax credit or lifetime learning credit in the same year he/she takes a tax-free distribution from a Coverdell Education Savings Account. 
D)  The lifetime learning credit may be limited by AGI levels and may completely phase out when modified AGI exceeds a certain amount (the amount depending on the tax year). 
A)  A taxpayer may be eligible to claim the education credits regardless of their AGI amount. 
B)  A taxpayer can use the same qualifying expenses for both the American opportunity tax and lifetime learning credits. 
C)  A taxpayer cannot claim an American opportunity tax credit or lifetime learning credit in the same year he/she takes a tax-free distribution from a Coverdell Education Savings Account. 
D)  The lifetime learning credit may be limited by AGI levels and may completely phase out when modified AGI exceeds a certain amount (the amount depending on the tax year).

Question 11

The maximum amount of earned income credit for a joint taxpayer with one child in 2014 is $3,305.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not a qualifying child for purposes of calculating the EIC?

Accepted Answer

A)  Son or daughter. 
B)  Grandson or granddaughter. 
C)  Foster child. 
D)  All of these qualify. 
A)  Son or daughter. 
B)  Grandson or granddaughter. 
C)  Foster child. 
D)  All of these qualify.

Question 13

The earned income credit is adjusted each year for inflation.

Accepted Answer

A) True 
 B)False

Question 14

A taxpayer may become ineligible for earned income credit if he/she has excessive disqualified income such as dividends or interest.

Accepted Answer

A) True 
 B)False

Question 15

Arin and Bo have $74,000 total taxable income,which includes $13,500 of taxable income from France.They paid $1,600 in foreign income taxes,and their U.S.tax liability is $17,610.Arin and Bo's foreign tax credit is:

Accepted Answer

A)  $0. 
B)  $600. 
C)  $1,600. 
D)  $3,213. 
A)  $0. 
B)  $600. 
C)  $1,600. 
D)  $3,213.

Question 16

Tuan and Marisa are married,file a joint return,and have two dependent children,Zack,age 6 and Aaron,age 5.Tuan has earned income of $72,000.Marisa was a full-time student (for nine months)with no income.They paid a qualified day care center $5,000.How much is Tuan and Marisa's child and dependent care credit for the year?

Accepted Answer

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

Question 17

Which of the following statements regarding adoption credits is true?

Accepted Answer

A)  The maximum credit allowed per adopted child is $16,000. 
B)  Qualified expenses may include reimbursements from employer programs. 
C)  Adoption of foreign children does not qualify for the credit. 
D)  The adoption credit may be limited if AGI amounts exceed certain levels. 
A)  The maximum credit allowed per adopted child is $16,000. 
B)  Qualified expenses may include reimbursements from employer programs. 
C)  Adoption of foreign children does not qualify for the credit. 
D)  The adoption credit may be limited if AGI amounts exceed certain levels.

Question 18

Sam paid the following expenses during October 2014 for his son Aaron's spring 2015 college expenses: Spring 2015 semester begins in January 2015:   In addition,Aaron's uncle paid $500 for college fees on behalf of Aaron directly to the college.Aaron is claimed as Sam's dependent on his tax return.How much of the paid expenses qualify for purposes of the education credit deduction for Sam in 2014?

Accepted Answer

A)  $3,500. 
B)  $11,500. 
C)  $18,000. 
D)  $18,500. 
A)  $3,500. 
B)  $11,500. 
C)  $18,000. 
D)  $18,500.

Question 19

Guillermo and Felicia are married,file a joint return,and have one dependent child; Hannah,age 6.Guillermo has earned income of $38,000.Felicia was a full-time student (for 8 months)with no income.They paid a qualified day care center $4,800.What is the amount of their child and dependent care credit for the year?

Accepted Answer

A)  $0. 
B)  $460. 
C)  $600. 
D)  $4,800. 
A)  $0. 
B)  $460. 
C)  $600. 
D)  $4,800.

Question 20

The maximum American opportunity tax credit is $2,500 per student per year.

Accepted Answer

A) True 
 B)False

Jillian is single and her son,Parker is 12 years old.If her AGI is $76,200,what is her child tax credit for Parker?

There are two types of education credits available,American opportunity tax credit and lifetime learning credit.

Gina has $39,000 total taxable income,which includes $6,000 of taxable income from Argentina.She paid $1,200 in foreign income taxes and her U.S.tax liability is $3,610.Gina's foreign tax credit is: (Do not round interim calculations)

DJ and Nicolette paid $1,600 in qualifying expenses for their daughter Nicole to attend the University of Nevada.Nicole is a sophomore.DJ and Nicolette's AGI is $175,000.What is their maximum allowable American opportunity tax credit after the credit phase-out based on AGI is taken into account?

The child tax credit is reduced if AGI exceeds $110,000 for married filing joint taxpayers.

Harrison is single and his son Jack is 12 years old.If his AGI is $195,000,what amount of child tax credit can Harrison claim?

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

Which of the following statements is true about education credits?

The maximum amount of earned income credit for a joint taxpayer with one child in 2014 is $3,305.

Which of the following is not a qualifying child for purposes of calculating the EIC?

The earned income credit is adjusted each year for inflation.

A taxpayer may become ineligible for earned income credit if he/she has excessive disqualified income such as dividends or interest.

Arin and Bo have $74,000 total taxable income,which includes $13,500 of taxable income from France.They paid $1,600 in foreign income taxes,and their U.S.tax liability is $17,610.Arin and Bo's foreign tax credit is:

Which of the following statements regarding adoption credits is true?

The maximum American opportunity tax credit is $2,500 per student per year.

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

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Exam 9: Tax Credits

Jillian is single and her son,Parker is 12 years old.If her AGI is $76,200,what is her child tax credit for Parker?

There are two types of education credits available,American opportunity tax credit and lifetime learning credit.

Gina has $39,000 total taxable income,which includes $6,000 of taxable income from Argentina.She paid $1,200 in foreign income taxes and her U.S.tax liability is $3,610.Gina's foreign tax credit is: (Do not round interim calculations)

DJ and Nicolette paid $1,600 in qualifying expenses for their daughter Nicole to attend the University of Nevada.Nicole is a sophomore.DJ and Nicolette's AGI is $175,000.What is their maximum allowable American opportunity tax credit after the credit phase-out based on AGI is taken into account?

The child tax credit is reduced if AGI exceeds $110,000 for married filing joint taxpayers.

Harrison is single and his son Jack is 12 years old.If his AGI is $195,000,what amount of child tax credit can Harrison claim?

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

Which of the following statements is true about education credits?

The maximum amount of earned income credit for a joint taxpayer with one child in 2014 is $3,305.

Which of the following is not a qualifying child for purposes of calculating the EIC?

The earned income credit is adjusted each year for inflation.

A taxpayer may become ineligible for earned income credit if he/she has excessive disqualified income such as dividends or interest.

Arin and Bo have $74,000 total taxable income,which includes $13,500 of taxable income from France.They paid $1,600 in foreign income taxes,and their U.S.tax liability is $17,610.Arin and Bo's foreign tax credit is:

Which of the following statements regarding adoption credits is true?

The maximum American opportunity tax credit is $2,500 per student per year.

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