Exam 9: Tax Credits

Victoria is a single with two qualifying children and AGI of $24,000.What is her EIC?

Jesus and Mindy have modified AGI of $200,000,adopted a girl from Miami,Florida,and incurred a total of $18,000 in qualified adoption expenses.What is the amount of adoption credit they can claim in the current year? (Do not round interim calculations)

Adrienne has total taxable income of $93,000 which includes $10,000 taxable income from India.She paid $2,800 in foreign income taxes,and her U.S.tax liability is $25,210.Adrienne's foreign tax credit is:

The two types of education credits available; American opportunity tax credit and lifetime learning credit,may be used in combination for the same student in any given year to give the taxpayer the greatest tax advantage.

The calculation for the credit for the elderly or disabled requires that the appropriate base amount be adjusted by two items.What are those two items and how is the base amount adjusted?

The maximum amount per year of dependent care expenses that can be used for calculating the credit for child and dependent care expenses is $3,000 for one qualifying individual.

Patricia is single and her son Quinn is age 11.If her AGI is $77,000,what amount of child tax credit can she claim?

Sam is a single father with two dependent twin daughters,Amy and Amanda,ages 4.He has AGI of $31,000 and paid $5,300 to a qualified day care center.What amount of credit can Sam receive for child and dependent care credit?

George is a single father who has 2 qualifying children.His AGI is $25,000.How much is his EIC (use the EIC formula)? (Round your answer to the nearest dollar)

Which of the following statements is not true regarding the credit for the elderly or the disabled?

Lupe paid the following expenses during December 2014 for her son David's spring 2015 college expenses.The semester begins in February 2015. In addition,David's grandfather paid $500 in fees on behalf of David directly to the college.David is claimed as a dependent on Lupe's tax return.How much of the above expenses qualify for purposes of Lupe's education credit deduction in 2014?

Enrique and Anna filed a joint tax return and reported modified AGI of $112,000.They have one qualifying child.What is the amount of their child tax credit?

If the modified AGI of a married filing joint taxpayer exceeds $128,000 in the current tax year,the lifetime learning credit phases out completely.

Vincent and Maria,whose modified AGI is $164,000,adopted a little girl from Mexico which was finalized in 2014.They incurred a total of $16,000 in qualified adoption expenses.What is the amount of adoption credit they can claim in 2014?

A qualifying child for the child tax credit must be a dependent and under the age of 14.

The adoption credit is only available for domestic adoptions.

Clarisse's filing status is head of household.She has modified adjusted gross income of $29,000 and she made a $2,000 contribution to her IRA.What is the amount of her retirement savings contributions credit?

The amount of foreign tax credit is equal to the amount paid to the foreign government but cannot exceed that portion of U.S.income tax attributable to the foreign income.

Ian and Jolene are ages 70 and 72,respectively,and file a joint return.They have AGI of $15,000 and received $1,000 in nontaxable social security benefits.How much can Ian and Jolene take as a credit for the elderly or the disabled?

Kim paid the following expenses during November 2014 for her son Joshua's spring 2015 expenses,which begins in January 2015: In addition,Kim's sister paid $800 for college fees on behalf of Joshua directly to the college.Joshua is claimed as Kim's dependent on her tax return.How much of the paid expenses qualify for purposes of the education credit deduction for Kim in 2014?