Question 1

A qualifying individual for the purposes of the child and dependent care expenses credit includes all of the following except:

Accepted Answer

A)  A dependent under the age of 13. 
B)  An adult child who is incapable of caring for himself/herself. 
C)  A dependent child,age of 17 who attends school full time. 
D)  A spouse who is incapable of caring for himself/herself. 
A)  A dependent under the age of 13. 
B)  An adult child who is incapable of caring for himself/herself. 
C)  A dependent child,age of 17 who attends school full time. 
D)  A spouse who is incapable of caring for himself/herself.

Question 2

The maximum allowable lifetime learning credit per year is $2,000 per student.

Accepted Answer

A) True 
 B)False

Question 3

The retirement savings contributions credit is available for married filing joint taxpayers only.

Accepted Answer

A) True 
 B)False

Question 4

A taxpayer can receive both American opportunity tax and lifetime learning credits for the same education expenses in the same tax year.

Accepted Answer

A) True 
 B)False

Question 5

In which of the following situations would a taxpayer be better off to take the foreign taxes paid as an itemized deduction rather than as a foreign tax credit?

Accepted Answer

A)  The foreign tax paid was less than 10% of AGI. 
B)  The foreign tax paid was to a South American country. 
C)  The foreign tax paid was a property tax. 
D)  The foreign tax paid was an income tax. 
A)  The foreign tax paid was less than 10% of AGI. 
B)  The foreign tax paid was to a South American country. 
C)  The foreign tax paid was a property tax. 
D)  The foreign tax paid was an income tax.

Question 6

Andrew and Marina are married filing joint and have modified AGI of $77,500.Andrew made a contribution to a qualified retirement plan of $2,000 during the year.How much is their retirement savings contributions credit?

Accepted Answer

A)  $0. 
B)  $1,000. 
C)  $1,250. 
D)  $2,500. 
A)  $0. 
B)  $1,000. 
C)  $1,250. 
D)  $2,500.

Question 7

Andy and Delilah both work and have one qualifying child.They had AGI of $21,000.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

Juan paid $1,750 in qualifying expenses for his daughter who attended a community college.How much is Juan'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 9

The maximum allowable American opportunity tax credit for the current tax year is $2,500 per student.

Accepted Answer

A) True 
 B)False

Question 10

The retirement savings contributions credit is available for head of household taxpayers only.

Accepted Answer

A) True 
 B)False

Question 11

Mindy and Xavier had a tax liability of $475 before EIC.Their EIC for the current year is $2,578.What is their total tax refund or tax liability for the current year (assume they no other credits or additional tax liability)?

Accepted Answer

A)  $0. 
B)  $475 tax liability. 
C)  $2,103 tax refund. 
D)  $2,578 tax refund. 
A)  $0. 
B)  $475 tax liability. 
C)  $2,103 tax refund. 
D)  $2,578 tax refund.

Question 12

Brendan paid $950 to Brazil in foreign income taxes.His total income was $52,500,which included $12,000 of investment income from Brazil.His U.S.tax liability is $8,000.Brendan's foreign tax credit is:

Accepted Answer

A)  $0. 
B)  $950. 
C)  $1,829. 
D)  $12,000. 
A)  $0. 
B)  $950. 
C)  $1,829. 
D)  $12,000.

Question 13

Rolando and Silvia have modified AGI of $230,000.They adopted a boy from Guatemala,whose adoption became final in the current year.They incurred a total of $15,000 in qualified adoption expenses.What is the amount of adoption credit they can claim in the current year?

Accepted Answer

A)  $2,598. 
B)  $13,190. 
C)  $15,000. 
D)  $23,000. 
A)  $2,598. 
B)  $13,190. 
C)  $15,000. 
D)  $23,000.

Question 14

Molly is single with AGI of $22,500.During the year,she contributed $900 to an IRA.What amount of retirement savings contributions credit can Molly claim?

Accepted Answer

A)  $0. 
B)  $90. 
C)  $180. 
D)  $900. 
A)  $0. 
B)  $90. 
C)  $180. 
D)  $900.

Question 15

April and Joey are both 74 years old and received $1,500 in nontaxable social security benefits.Their AGI for the year was $18,000.How much can April and Joey claim as a credit for the elderly or the disabled?

Accepted Answer

A)  $300. 
B)  $1,125. 
C)  $1,500. 
D)  $2,000. 
A)  $300. 
B)  $1,125. 
C)  $1,500. 
D)  $2,000.

Question 16

Matt is a single father.He paid $5,000 in qualifying expenses for his son,Kyle,to attend the University of Oregon.Kyle is a sophomore.Matt's AGI is $47,000.What is his allowable American opportunity tax credit after the credit phaseout based on AGI is taken into account?

Accepted Answer

A)  $0. 
B)  $2,500. 
C)  $4,000. 
D)  $5,000. 
A)  $0. 
B)  $2,500. 
C)  $4,000. 
D)  $5,000.

Question 17

The maximum allowable credit for the elderly or the disabled is equal to 30% of the taxpayer's base amount.

Accepted Answer

A) True 
 B)False

Question 18

Edward and Ethel are ages 71 and 59,respectively,and file a joint return.They have AGI of $11,000 and received $2,000 in nontaxable social security benefits.How much can Edward and Ethel take as a credit for the elderly or the disabled?

Accepted Answer

A)  $375. 
B)  $1,125. 
C)  $2,000. 
D)  $2,500. 
A)  $375. 
B)  $1,125. 
C)  $2,000. 
D)  $2,500.

Question 19

What is the definition of qualifying child for purposes of the earned income credit?

Accepted Answer

A qualifying child is either (a)the taxp

Question 20

Brooke is single with earned income of $18,354 and one qualifying child.Calculate Brooke's earned income credit using the EIC formula.(Round your answer to the nearest dollar)

Accepted Answer

The answer of Brooke is single with earned income of...

A qualifying individual for the purposes of the child and dependent care expenses credit includes all of the following except:

The maximum allowable lifetime learning credit per year is $2,000 per student.

The retirement savings contributions credit is available for married filing joint taxpayers only.

A taxpayer can receive both American opportunity tax and lifetime learning credits for the same education expenses in the same tax year.

In which of the following situations would a taxpayer be better off to take the foreign taxes paid as an itemized deduction rather than as a foreign tax credit?

Andrew and Marina are married filing joint and have modified AGI of $77,500.Andrew made a contribution to a qualified retirement plan of $2,000 during the year.How much is their retirement savings contributions credit?

Andy and Delilah both work and have one qualifying child.They had AGI of $21,000.What is their EIC?

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

The maximum allowable American opportunity tax credit for the current tax year is $2,500 per student.

The retirement savings contributions credit is available for head of household taxpayers only.

Mindy and Xavier had a tax liability of $475 before EIC.Their EIC for the current year is $2,578.What is their total tax refund or tax liability for the current year (assume they no other credits or additional tax liability)?

Brendan paid $950 to Brazil in foreign income taxes.His total income was $52,500,which included $12,000 of investment income from Brazil.His U.S.tax liability is $8,000.Brendan's foreign tax credit is:

Rolando and Silvia have modified AGI of $230,000.They adopted a boy from Guatemala,whose adoption became final in the current year.They incurred a total of $15,000 in qualified adoption expenses.What is the amount of adoption credit they can claim in the current year?

Molly is single with AGI of $22,500.During the year,she contributed $900 to an IRA.What amount of retirement savings contributions credit can Molly claim?

April and Joey are both 74 years old and received $1,500 in nontaxable social security benefits.Their AGI for the year was $18,000.How much can April and Joey claim as a credit for the elderly or the disabled?

Matt is a single father.He paid $5,000 in qualifying expenses for his son,Kyle,to attend the University of Oregon.Kyle is a sophomore.Matt's AGI is $47,000.What is his allowable American opportunity tax credit after the credit phaseout based on AGI is taken into account?

The maximum allowable credit for the elderly or the disabled is equal to 30% of the taxpayer's base amount.

Edward and Ethel are ages 71 and 59,respectively,and file a joint return.They have AGI of $11,000 and received $2,000 in nontaxable social security benefits.How much can Edward and Ethel take as a credit for the elderly or the disabled?

What is the definition of qualifying child for purposes of the earned income credit?

Brooke is single with earned income of $18,354 and one qualifying child.Calculate Brooke's earned income credit using the EIC formula.(Round your answer to the nearest dollar)

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

A qualifying individual for the purposes of the child and dependent care expenses credit includes all of the following except:

The maximum allowable lifetime learning credit per year is $2,000 per student.

The retirement savings contributions credit is available for married filing joint taxpayers only.

A taxpayer can receive both American opportunity tax and lifetime learning credits for the same education expenses in the same tax year.

In which of the following situations would a taxpayer be better off to take the foreign taxes paid as an itemized deduction rather than as a foreign tax credit?

Andrew and Marina are married filing joint and have modified AGI of $77,500.Andrew made a contribution to a qualified retirement plan of $2,000 during the year.How much is their retirement savings contributions credit?

Andy and Delilah both work and have one qualifying child.They had AGI of $21,000.What is their EIC?

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

The maximum allowable American opportunity tax credit for the current tax year is $2,500 per student.

The retirement savings contributions credit is available for head of household taxpayers only.

Mindy and Xavier had a tax liability of $475 before EIC.Their EIC for the current year is $2,578.What is their total tax refund or tax liability for the current year (assume they no other credits or additional tax liability)?

Brendan paid $950 to Brazil in foreign income taxes.His total income was $52,500,which included $12,000 of investment income from Brazil.His U.S.tax liability is $8,000.Brendan's foreign tax credit is:

Rolando and Silvia have modified AGI of $230,000.They adopted a boy from Guatemala,whose adoption became final in the current year.They incurred a total of $15,000 in qualified adoption expenses.What is the amount of adoption credit they can claim in the current year?

Molly is single with AGI of $22,500.During the year,she contributed $900 to an IRA.What amount of retirement savings contributions credit can Molly claim?

April and Joey are both 74 years old and received $1,500 in nontaxable social security benefits.Their AGI for the year was $18,000.How much can April and Joey claim as a credit for the elderly or the disabled?

Matt is a single father.He paid $5,000 in qualifying expenses for his son,Kyle,to attend the University of Oregon.Kyle is a sophomore.Matt's AGI is $47,000.What is his allowable American opportunity tax credit after the credit phaseout based on AGI is taken into account?

The maximum allowable credit for the elderly or the disabled is equal to 30% of the taxpayer's base amount.

Edward and Ethel are ages 71 and 59,respectively,and file a joint return.They have AGI of $11,000 and received $2,000 in nontaxable social security benefits.How much can Edward and Ethel take as a credit for the elderly or the disabled?

What is the definition of qualifying child for purposes of the earned income credit?

Brooke is single with earned income of $18,354 and one qualifying child.Calculate Brooke's earned income credit using the EIC formula.(Round your answer to the nearest dollar)

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