Question 1

Which of the following is not a qualifying child for purposes of calculating the EIC?

Accepted Answer

A) Foster child. 
B) Son or daughter. 
C) Grandson or granddaughter. 
D) All of these qualify. 
A) Foster child. 
B) Son or daughter. 
C) Grandson or granddaughter. 
D) All of these qualify.

Question 2

Max and Nora have modified AGI of $75,000,and adopted a little boy from San Antonio,Texas,in the current year and incurred a total of $13,000 in qualified adoption expenses.In addition,Max's employer provided the couple with adoption benefits of $4,000.What is the maximum amount of adoption credit they can take this year?

Accepted Answer

A) $4,000. 
B) $9,000. 
C) $13,460. 
D) $13,000. 
A) $4,000. 
B) $9,000. 
C) $13,460. 
D) $13,000.

Question 3

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

Accepted Answer

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

Question 4

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:

Accepted Answer

A) $0. 
B) $2,800. 
C) $25,210. 
D) $2,711. 
A) $0. 
B) $2,800. 
C) $25,210. 
D) $2,711.

Question 5

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

Accepted Answer

A) $3,356. 
B) $3,373. 
C) $5,572. 
D) $0. 
A) $3,356. 
B) $3,373. 
C) $5,572. 
D) $0.

Question 6

The adoption credit is only available for domestic adoptions.

Accepted Answer

A) True 
 B)False

Question 7

Sandra is single and her son Julius is 12 years old.If her AGI is $79,000,what amount of child tax credit can Sandra claim?

Accepted Answer

A) $800. 
B) $500. 
C) $0. 
D) $1,000. 
A) $800. 
B) $500. 
C) $0. 
D) $1,000.

Question 8

Chris and Sarah are married with three qualifying children.Their AGI is $25,000.How much is their EIC use the EIC formula)? Round your answer to the nearest dollar)

Accepted Answer

A) $6,004. 
B) $3,373. 
C) $6,269. 
D) $506. 
A) $6,004. 
B) $3,373. 
C) $6,269. 
D) $506.

Question 9

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

Accepted Answer

A) Base amount for the credit calculation for joint returns is $5,000. 
B) Base amount for the credit calculation for a joint individual where only one spouse qualifies is $5,000. 
C) Base amount for the credit calculation for a single individual is $5,000. 
D) The maximum allowable credit is based on 15% of the taxpayer's base amount. 
A) Base amount for the credit calculation for joint returns is $5,000. 
B) Base amount for the credit calculation for a joint individual where only one spouse qualifies is $5,000. 
C) Base amount for the credit calculation for a single individual is $5,000. 
D) The maximum allowable credit is based on 15% of the taxpayer's base amount.

Question 10

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) $16,000. 
B) $13,460. 
C) $0. 
D) $6,805. 
A) $16,000. 
B) $13,460. 
C) $0. 
D) $6,805.

Question 11

Warren and Erika paid $9,300 in qualified expenses for their son,Cash,to attend the University of Washington.Cash is in his first year of college and attended full-time.How much is Warren and Erika's American opportunity tax credit,without regard to any AGI limitation?

Accepted Answer

A) $2,500. 
B) $1,800. 
C) $9,300. 
D) $0. 
A) $2,500. 
B) $1,800. 
C) $9,300. 
D) $0.

Question 12

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

Question 13

Mindy and Xavier have 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 have no other credits or additional tax liability)?

Accepted Answer

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

Question 14

A qualifying individual for purposes of the credit for child and dependent care expenses includes a dependent or a spouse of the taxpayer who is incapable of caring for himself or herself.

Accepted Answer

A) True 
 B)False

Question 15

Bob and Joyce are married,file a joint return,and have one dependent child,Dane,age 9.Bob has earned income of $72,000.Joyce was a full-time student for nine months)with no income.They paid a qualified day care center $4,000.What amount of child and dependent care credit can Bob and Joyce receive?

Accepted Answer

A) $800. 
B) $1,200. 
C) $600. 
D) $450. 
A) $800. 
B) $1,200. 
C) $600. 
D) $450.

Question 16

Andrew and Eunice are married filing jointly with AGI of $48,000.They contributed $1,800 to a qualified retirement plan.How much is their retirement savings contributions credit?

Accepted Answer

A) $0. 
B) $900. 
C) $180. 
D) $1,800. 
A) $0. 
B) $900. 
C) $180. 
D) $1,800.

Question 17

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 18

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 19

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.

Accepted Answer

A) True 
 B)False

Question 20

Rudy and Rebecca have AGI of $156,000.They have twin daughters,Ashley and Amy,ages 5.What amount of child tax credit can they claim?

Accepted Answer

A) $2,300. 
B) $1,000. 
C) $0. 
D) $2,000. 
A) $2,300. 
B) $1,000. 
C) $0. 
D) $2,000.

Which of the following is not a qualifying child for purposes of calculating the EIC?

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

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:

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

The adoption credit is only available for domestic adoptions.

Sandra is single and her son Julius is 12 years old.If her AGI is $79,000,what amount of child tax credit can Sandra claim?

Chris and Sarah are married with three qualifying children.Their AGI is $25,000.How much is their 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?

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?

Warren and Erika paid $9,300 in qualified expenses for their son,Cash,to attend the University of Washington.Cash is in his first year of college and attended full-time.How much is Warren and Erika's American opportunity tax credit,without regard to any AGI limitation?

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?

Mindy and Xavier have 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 have no other credits or additional tax liability)?

A qualifying individual for purposes of the credit for child and dependent care expenses includes a dependent or a spouse of the taxpayer who is incapable of caring for himself or herself.

Bob and Joyce are married,file a joint return,and have one dependent child,Dane,age 9.Bob has earned income of $72,000.Joyce was a full-time student for nine months)with no income.They paid a qualified day care center $4,000.What amount of child and dependent care credit can Bob and Joyce receive?

Andrew and Eunice are married filing jointly with AGI of $48,000.They contributed $1,800 to a qualified retirement plan.How much is their retirement savings contributions credit?

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

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.

Rudy and Rebecca have AGI of $156,000.They have twin daughters,Ashley and Amy,ages 5.What amount of child tax credit can they claim?

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 Line 12 of Form 1040 and Schedule C

Capital Gains and Other Sales of Property Schedule D and Form 4797

Rental Property, royalties, and Income From Flow-Through Entities Line 17, form 1040, and Schedule E

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

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

Which of the following is not a qualifying child for purposes of calculating the EIC?

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

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:

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

The adoption credit is only available for domestic adoptions.

Sandra is single and her son Julius is 12 years old.If her AGI is $79,000,what amount of child tax credit can Sandra claim?

Chris and Sarah are married with three qualifying children.Their AGI is $25,000.How much is their 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?

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?

Warren and Erika paid $9,300 in qualified expenses for their son,Cash,to attend the University of Washington.Cash is in his first year of college and attended full-time.How much is Warren and Erika's American opportunity tax credit,without regard to any AGI limitation?

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?

Mindy and Xavier have 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 have no other credits or additional tax liability)?

A qualifying individual for purposes of the credit for child and dependent care expenses includes a dependent or a spouse of the taxpayer who is incapable of caring for himself or herself.

Bob and Joyce are married,file a joint return,and have one dependent child,Dane,age 9.Bob has earned income of $72,000.Joyce was a full-time student for nine months)with no income.They paid a qualified day care center $4,000.What amount of child and dependent care credit can Bob and Joyce receive?

Andrew and Eunice are married filing jointly with AGI of $48,000.They contributed $1,800 to a qualified retirement plan.How much is their retirement savings contributions credit?

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

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.

Rudy and Rebecca have AGI of $156,000.They have twin daughters,Ashley and Amy,ages 5.What amount of child tax credit can they claim?

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 Line 12 of Form 1040 and Schedule C

Capital Gains and Other Sales of Property Schedule D and Form 4797

Rental Property, royalties, and Income From Flow-Through Entities Line 17, form 1040, and Schedule E

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