Exam 9: Tax Credits Form 1040, lines 46 Through 54 and Lines 66a Through 73

Which of the following conditions must be met for a taxpayer to be able to claim the foreign tax credit without filing Form 1116?

The American opportunity tax and lifetime learning credits are available to taxpayers without any limitations due to AGI amounts.

Credit for child and dependent care expenses can only be claimed on a Form 1040.

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

The child tax credit of $1,000 per child is available for taxpayers with children under the age of 16.

What are the requirements that the taxpayer must meet to receive a tax credit for child and dependent care expenses? Briefly discuss.

Debbie files as head of household and has AGI of $35,500.During the year,she contributed $1,000 to a 401k).What amount of retirement savings contributions credit can Debbie take?

What is the difference between a refundable tax credit and a nonrefundable tax credit? Use at least one example of each type of credit in your answer.

Name the two credits that are available as education credits and briefly discuss the criteria to claim the credits.

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

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?

Which of the following statements regarding adoption credits is true?

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?

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

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?

The foreign tax credit is available only to individuals born in a foreign country.

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

Kevin paid $2,550 in qualifying expenses for his daughter,Jasmine,who attended a community college.What is Kevin's lifetime learning credit without regard to AGI limitations or other credits?

There is no maximum amount for the adoption credit.

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