Question 1

In determining the amount of the child and dependent care credit, there is a limit of $2,000 on the amount of qualified expenses for one dependent.

Accepted Answer

A) True 
 B)False  False

Question 2

For 2018, Wilson and Virginia Todd qualify for the earned income credit.They file married filing jointly and have two dependent children, ages 6 months and 4 years at the end of the year.
a.Using the EIC tables, calculate the amount of Wilson and Virginia Todd's earned income credit assuming Wilson has earned income of $7,300 and Virginia has no earned income.Their adjusted gross income for 2018 is $9,000.
b.Calculate the amount of Wilson and Virginia Todd's earned income credit assuming Wilson has earned income of $14,300 and Virginia has earned income of $2,000.Their adjusted gross income for 2018 is $16,500.

Accepted Answer

a.Earned income credit:$2,930
The Todd's earned income is less than the phase-out amount so they do not need to consider AGI.​
b.Earned income credit:$5,716
Amount from table for earned income of $16,300
​
​
The Todd's earned income is less than the phase-out amount so they do not need to consider AGI.
​

Question 3

Clark, a widower, maintains a household for himself and his two dependent preschool children.For the year ended December 31, 2018, Clark earned a salary of $32,000.He paid $3,600 to a housekeeper to care for his children in his home, and also paid $1,500 to a kiddie play camp for child care.He had no other income or expenses during 2018.Before considering any limitation due to tax liability, how much can Clark claim as a child and dependent care credit in 2018?

Accepted Answer

A) $910 
B) $1,300 
C) $1,326 
D) $5,100 
E) None of the above 
A) $910 
B) $1,300 
C) $1,326 
D) $5,100 
E) None of the above C

Question 4

Which of the following is not an exemption from minimum essential coverage for health insurance:

Accepted Answer

A) the taxpayer had coverage for all but 1 month during the year 
B) the taxpayer's income is less than 200% of the federal poverty level 
C) the taxpayer was in jail 
D) the taxpayer spent 350 days out of the United States during the year 
A) the taxpayer had coverage for all but 1 month during the year 
B) the taxpayer's income is less than 200% of the federal poverty level 
C) the taxpayer was in jail 
D) the taxpayer spent 350 days out of the United States during the year

Question 5

Steve goes to Tri-State University and pays $40,000 in tuition.Steve works to pay for his schooling and has an AGI of $37,000.How much is his American Opportunity tax credit?

Accepted Answer

A) $2,000 
B) $2,500 
C) $4,000 
D) $1,000 
E) He does not qualify for the American Opportunity tax credit. 
A) $2,000 
B) $2,500 
C) $4,000 
D) $1,000 
E) He does not qualify for the American Opportunity tax credit.

Question 6

Amounts paid to a relative generally do not qualify as child care expenses.

Accepted Answer

A) True 
 B)False

Question 7

Calculate the total child tax credit and other dependent credit for the following taxpayers.Please show your work.
a.Ninfa is a single mother with 8-year-old and 9-year-old dependent sons and has $50,000 of AGI.
b.Sharon and Mark have one dependent 2-year-old child and $426,300 of AGI.
c.Carol is single and has one dependent 18-year-old son and $21,000 of AGI.

Accepted Answer

a.$4,000.Ninfa's income is less than the

Question 8

What would generally reduce income taxes more: a $100 tax credit or a $100 tax deduction?

Accepted Answer

Tax credits reduce taxes more than deduc

Question 9

In 2018, Brady purchases a 2018 Nissan Leaf electric vehicle for his personal use.He is eligible to claim a credit of $7,500.He is in the 35 percent marginal tax bracket and his regular tax liability before credits is $14,800.What is the tax benefit Brady realizes from this purchase?

Accepted Answer

$7,500.The $7,500 cr

Question 10

Jasmine is a single marketing manager with a college degree.She continually updates her marketing knowledge and gets fresh ideas by taking classes at the local community college.This year she spent $1,500 on course tuition and fees.If Jasmine has AGI of $59,000, how much lifetime learning credit can she claim on her tax return? Explain.

Accepted Answer

$240.Jasmine's income is too high to qua

Question 11

Which one of the following taxpayers qualify for the earned income credit in 2018?

Accepted Answer

A) A 70-year-old doctor whose practice had a net loss and who has an AGI of $5,000. 
B) An 18-year-old college student who earns $8,000 at a part-time job. 
C) A couple who have a combined AGI of $17,000 and three children but file separately. 
D) A single, 31-year-old construction worker with $22,000 of AGI and two children. 
E) None of the above qualifies for the earned income credit. 
A) A 70-year-old doctor whose practice had a net loss and who has an AGI of $5,000. 
B) An 18-year-old college student who earns $8,000 at a part-time job. 
C) A couple who have a combined AGI of $17,000 and three children but file separately. 
D) A single, 31-year-old construction worker with $22,000 of AGI and two children. 
E) None of the above qualifies for the earned income credit.

Question 12

Curly and Rita are married, file a joint return, and have two dependent children, ages 11 and 13.Their AGI is $417,000.By how much is their child credit reduced in 2018?

Accepted Answer

A) $0 
B) $1,150 
C) $3,150 
D) $850 
E) $4,000 
A) $0 
B) $1,150 
C) $3,150 
D) $850 
E) $4,000

Question 13

For the 2018 tax year, Sally, who is single, reported the following items of income: $\begin{array}{llcc}
  \text { Interest income } &\$600  \
 \text {Wages  } &\$4,100\
 \text { Earnings from self-employment } &\$3,000\
\end{array}$
 She maintains a household for herself and her 1-year-old son who qualifies as her dependent.What is the earned income credit available to her for 2018, using the tables?

Accepted Answer

A) $503 
B) $1,369 
C) $2,423 
D) $2,627 
E) None of the above 
A) $503 
B) $1,369 
C) $2,423 
D) $2,627 
E) None of the above

Question 14

Maxine is a 29-year-old single mother.Her tax liability before any credits is $1,000 and her earned income credit is $2,500.What is the amount of Maxine's refund? Explain.

Accepted Answer

$1,500.The full earned income

Question 15

Which of the following is not a requirement to claim an earned income credit?

Accepted Answer

A) Social Security number 
B) At least one child claimed as a dependent 
C) At least $1 of earned income 
D) US citizenship or resident alien status 
A) Social Security number 
B) At least one child claimed as a dependent 
C) At least $1 of earned income 
D) US citizenship or resident alien status

Question 16

Denise is divorced and files a single tax return claiming her two children, ages 7 and 9, as dependents.Her AGI for 2018 is $81,500.Denise's child tax credit for 2018 is:

Accepted Answer

A) $0 
B) $1,000 
C) $1,000. 
D) $2,000 
E) $4,000 
A) $0 
B) $1,000 
C) $1,000. 
D) $2,000 
E) $4,000

Question 17

In 2018, Erin purchased a solar system to generate electricity for her home, at a cost of $5,000.
a.How much is her tax credit in 2018?
b.If she had purchased a solar heating system for her swimming pool at a cost of $3,500, how much could she claim as a tax credit?
c.If she had purchased a $5,000 solar electric system and a $4,500 solar heating system for her principal home (not for the swimming pool), how much could she claim as a tax credit?
d.If she had purchased the electric system for her principal residence and the solar heating system for a second residence, how much could she claim as a tax credit?

Accepted Answer

a.30% of the cost of the improvement, or

Question 18

Phillip and Naydeen Rivers are married with two dependent children.The family has household income of $39,360 in 2018.They paid $11,000 for health care for the year through the health care exchange.A designated silver plan would have cost $9,800.What is the Rivers' premium tax credit?

Accepted Answer

A) $0 
B) $1,767 
C) $8,033 
D) $11,000 
E) $9,800 
A) $0 
B) $1,767 
C) $8,033 
D) $11,000 
E) $9,800

Question 19

Jessica and Robert have two young children.They have $7,000 of qualified child care expenses and an AGI of $22,000 in 2018.What is their allowable child and dependent care credit?

Accepted Answer

A) $0 
B) $1,860 
C) $2,000 
D) $6,000 
E) $7,000 
A) $0 
B) $1,860 
C) $2,000 
D) $6,000 
E) $7,000

Question 20

To qualify for the additional child tax credit:

Accepted Answer

A) The typical child tax credit must be limited by tax liability. 
B) The taxpayer must have earned income of over $2,500. 
C) The taxpayer must have at least one qualifying child. 
D) All of the above are required to qualify for the additional child tax credit 
A) The typical child tax credit must be limited by tax liability. 
B) The taxpayer must have earned income of over $2,500. 
C) The taxpayer must have at least one qualifying child. 
D) All of the above are required to qualify for the additional child tax credit

In determining the amount of the child and dependent care credit, there is a limit of $2,000 on the amount of qualified expenses for one dependent.

Which of the following is not an exemption from minimum essential coverage for health insurance:

Steve goes to Tri-State University and pays $40,000 in tuition.Steve works to pay for his schooling and has an AGI of $37,000.How much is his American Opportunity tax credit?

Amounts paid to a relative generally do not qualify as child care expenses.

What would generally reduce income taxes more: a $100 tax credit or a $100 tax deduction?

In 2018, Brady purchases a 2018 Nissan Leaf electric vehicle for his personal use.He is eligible to claim a credit of $7,500.He is in the 35 percent marginal tax bracket and his regular tax liability before credits is $14,800.What is the tax benefit Brady realizes from this purchase?

Which one of the following taxpayers qualify for the earned income credit in 2018?

Curly and Rita are married, file a joint return, and have two dependent children, ages 11 and 13.Their AGI is $417,000.By how much is their child credit reduced in 2018?

Maxine is a 29-year-old single mother.Her tax liability before any credits is $1,000 and her earned income credit is $2,500.What is the amount of Maxine's refund? Explain.

Which of the following is not a requirement to claim an earned income credit?

Denise is divorced and files a single tax return claiming her two children, ages 7 and 9, as dependents.Her AGI for 2018 is $81,500.Denise's child tax credit for 2018 is:

Phillip and Naydeen Rivers are married with two dependent children.The family has household income of $39,360 in 2018.They paid $11,000 for health care for the year through the health care exchange.A designated silver plan would have cost $9,800.What is the Rivers' premium tax credit?

Jessica and Robert have two young children.They have $7,000 of qualified child care expenses and an AGI of $22,000 in 2018.What is their allowable child and dependent care credit?

To qualify for the additional child tax credit:

The Individual Income Tax Return

Gross Income and Exclusions

Additional Income Part 1

Additional Income Part 2

Deductions and Adjustments to Income

Accounting Methods and Taxes

Depreciation and Sale of Business Property

Payroll, Estimated Payments, and Retirement Plans

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters

Exam 7: Tax Credits

In determining the amount of the child and dependent care credit, there is a limit of $2,000 on the amount of qualified expenses for one dependent.

Which of the following is not an exemption from minimum essential coverage for health insurance:

Steve goes to Tri-State University and pays $40,000 in tuition.Steve works to pay for his schooling and has an AGI of $37,000.How much is his American Opportunity tax credit?

Amounts paid to a relative generally do not qualify as child care expenses.

What would generally reduce income taxes more: a $100 tax credit or a $100 tax deduction?

In 2018, Brady purchases a 2018 Nissan Leaf electric vehicle for his personal use.He is eligible to claim a credit of $7,500.He is in the 35 percent marginal tax bracket and his regular tax liability before credits is $14,800.What is the tax benefit Brady realizes from this purchase?

Which one of the following taxpayers qualify for the earned income credit in 2018?

Curly and Rita are married, file a joint return, and have two dependent children, ages 11 and 13.Their AGI is $417,000.By how much is their child credit reduced in 2018?

Maxine is a 29-year-old single mother.Her tax liability before any credits is $1,000 and her earned income credit is $2,500.What is the amount of Maxine's refund? Explain.

Which of the following is not a requirement to claim an earned income credit?

Denise is divorced and files a single tax return claiming her two children, ages 7 and 9, as dependents.Her AGI for 2018 is $81,500.Denise's child tax credit for 2018 is:

Phillip and Naydeen Rivers are married with two dependent children.The family has household income of $39,360 in 2018.They paid $11,000 for health care for the year through the health care exchange.A designated silver plan would have cost $9,800.What is the Rivers' premium tax credit?

Jessica and Robert have two young children.They have $7,000 of qualified child care expenses and an AGI of $22,000 in 2018.What is their allowable child and dependent care credit?

To qualify for the additional child tax credit:

The Individual Income Tax Return

Gross Income and Exclusions

Additional Income Part 1

Additional Income Part 2

Deductions and Adjustments to Income

Accounting Methods and Taxes

Depreciation and Sale of Business Property

Payroll, Estimated Payments, and Retirement Plans

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters