Question 1

The maximum lifetime learning credit per taxpayer is $3,000 per year.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A)  Taxpayer may not have earned income. 
B)  Taxpayer may receive social security benefits. 
C)  Taxpayer must be age 65 or older. 
D)  Taxpayer must be retired or on permanent and total disability. 
A)  Taxpayer may not have earned income. 
B)  Taxpayer may receive social security benefits. 
C)  Taxpayer must be age 65 or older. 
D)  Taxpayer must be retired or on permanent and total disability.

Question 3

In the case of the adoption credit,what special rules apply when adopting a child who is a citizen of another country?

Accepted Answer

If the child is not a U.S.citizen or res

Question 4

Which of the following statements is true with regard to child and dependent care expense credit?

Accepted Answer

A)  The maximum amount of expenses for one dependent is 35% of all qualified expenses. 
B)  Married taxpayers may file separate returns and still qualify for the credit. 
C)  If a spouse is attending school full-time,the credit cannot be claimed. 
D)  The credit phases out completely if the taxpayer's AGI exceeds certain amounts. 
A)  The maximum amount of expenses for one dependent is 35% of all qualified expenses. 
B)  Married taxpayers may file separate returns and still qualify for the credit. 
C)  If a spouse is attending school full-time,the credit cannot be claimed. 
D)  The credit phases out completely if the taxpayer's AGI exceeds certain amounts.

Question 5

Tyson is single and cannot be claimed by anyone as a dependent.He is a full-time law student at a local university.His tuition bill was $8,000.He paid the bill by withdrawing $2,000 from his savings account and borrowing the remainder from a local bank.For purposes of the education tax credits,what is the amount of Tyson's qualifying expenses?

Accepted Answer

His qualifying expenses are $8

Question 6

Kylie is a single mom with two dependent children,Tanner,age 7 and Olivia,age 11.She has AGI of $38,000 and paid $5,300 to a qualified day care center for the two children.What amount of credit can Kylie receive for the child and dependent care credit?

Accepted Answer

A)  $600. 
B)  $1,200. 
C)  $1,219. 
D)  $5,300. 
A)  $600. 
B)  $1,200. 
C)  $1,219. 
D)  $5,300.

Question 7

The maximum amount per year of dependent care expenses that can be used for calculating the credit for child and dependent care expenses is $6,000 for two or more qualifying individuals.

Accepted Answer

A) True 
 B)False

Question 8

Dane is a single father with two dependent children,Elle,age 7 and Eva,age 5.He has AGI of $61,000 and paid $6,100 to a qualified day care center for the two children.What amount of child and dependent care credit can Dane receive this year?

Accepted Answer

A)  $600. 
B)  $1,000. 
C)  $1,200. 
D)  $1,220. 
A)  $600. 
B)  $1,000. 
C)  $1,200. 
D)  $1,220.

Question 9

The American opportunity tax and lifetime learning credits are not available to taxpayers who are married filing separately.

Accepted Answer

A) True 
 B)False

Question 10

Taxpayers can claim a child tax credit for each qualifying child.How is a qualifying child defined?

Accepted Answer

A qualifying child is a son or daughter

Question 11

Brian and Clara paid $4,350 in foreign income taxes to Mexico.Their total income was $105,000,which included $16,000 of foreign income.Their U.S.tax liability is $22,750.How much can Brian and Clara claim as foreign tax credit?

Accepted Answer

A)  $0. 
B)  $3,467. 
C)  $4,350. 
D)  $16,000. 
A)  $0. 
B)  $3,467. 
C)  $4,350. 
D)  $16,000.

Question 12

The earned income credit is available for taxpayers with children only.

Accepted Answer

A) True 
 B)False

Question 13

Angelina is single and has modified AGI of $275,000.She adopted a boy from San Antonio,Texas,and incurred a total of $16,000 in qualified adoption expenses.What is the amount of adoption credit she can take?

Accepted Answer

A)  $0. 
B)  $6,805. 
C)  $13,360. 
D)  $16,000. 
A)  $0. 
B)  $6,805. 
C)  $13,360. 
D)  $16,000.

Question 14

Briefly explain how to calculate the child and dependent care credit and how the calculation for the credit is affected if the taxpayer's spouse does not work but is a full-time student instead.

Accepted Answer

The credit is based on a percentage,dete

The maximum lifetime learning credit per taxpayer is $3,000 per year.

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

In the case of the adoption credit,what special rules apply when adopting a child who is a citizen of another country?

Which of the following statements is true with regard to child and dependent care expense credit?

Kylie is a single mom with two dependent children,Tanner,age 7 and Olivia,age 11.She has AGI of $38,000 and paid $5,300 to a qualified day care center for the two children.What amount of credit can Kylie receive for the child and dependent care credit?

The maximum amount per year of dependent care expenses that can be used for calculating the credit for child and dependent care expenses is $6,000 for two or more qualifying individuals.

Dane is a single father with two dependent children,Elle,age 7 and Eva,age 5.He has AGI of $61,000 and paid $6,100 to a qualified day care center for the two children.What amount of child and dependent care credit can Dane receive this year?

The American opportunity tax and lifetime learning credits are not available to taxpayers who are married filing separately.

Taxpayers can claim a child tax credit for each qualifying child.How is a qualifying child defined?

Brian and Clara paid $4,350 in foreign income taxes to Mexico.Their total income was $105,000,which included $16,000 of foreign income.Their U.S.tax liability is $22,750.How much can Brian and Clara claim as foreign tax credit?

The earned income credit is available for taxpayers with children only.

Angelina is single and has modified AGI of $275,000.She adopted a boy from San Antonio,Texas,and incurred a total of $16,000 in qualified adoption expenses.What is the amount of adoption credit she can take?

Briefly explain how to calculate the child and dependent care credit and how the calculation for the credit is affected if the taxpayer's spouse does not work but is a full-time student instead.

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

The maximum lifetime learning credit per taxpayer is $3,000 per year.

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

In the case of the adoption credit,what special rules apply when adopting a child who is a citizen of another country?

Which of the following statements is true with regard to child and dependent care expense credit?

Kylie is a single mom with two dependent children,Tanner,age 7 and Olivia,age 11.She has AGI of $38,000 and paid $5,300 to a qualified day care center for the two children.What amount of credit can Kylie receive for the child and dependent care credit?

The maximum amount per year of dependent care expenses that can be used for calculating the credit for child and dependent care expenses is $6,000 for two or more qualifying individuals.

Dane is a single father with two dependent children,Elle,age 7 and Eva,age 5.He has AGI of $61,000 and paid $6,100 to a qualified day care center for the two children.What amount of child and dependent care credit can Dane receive this year?

The American opportunity tax and lifetime learning credits are not available to taxpayers who are married filing separately.

Taxpayers can claim a child tax credit for each qualifying child.How is a qualifying child defined?

Brian and Clara paid $4,350 in foreign income taxes to Mexico.Their total income was $105,000,which included $16,000 of foreign income.Their U.S.tax liability is $22,750.How much can Brian and Clara claim as foreign tax credit?

The earned income credit is available for taxpayers with children only.

Angelina is single and has modified AGI of $275,000.She adopted a boy from San Antonio,Texas,and incurred a total of $16,000 in qualified adoption expenses.What is the amount of adoption credit she can take?

Briefly explain how to calculate the child and dependent care credit and how the calculation for the credit is affected if the taxpayer's spouse does not work but is a full-time student instead.

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