Question 1

The earned income credit is adjusted each year for inflation.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) Adoption of foreign country children does not qualify for the credit. 
B) Adoption of a child of taxpayer's spouse does not qualify. 
C) Form 8839 must be filed to claim the credit. 
D) There is a dollar limit to the maximum credit allowed per adopted child. 
A) Adoption of foreign country children does not qualify for the credit. 
B) Adoption of a child of taxpayer's spouse does not qualify. 
C) Form 8839 must be filed to claim the credit. 
D) There is a dollar limit to the maximum credit allowed per adopted child.

Question 3

Juliann reported foreign income tax of $1,000 on foreign income of $8,000.Her worldwide taxable income was $89,000 and her U.S.tax liability was $23,000.What is the amount of foreign tax credit she is allowed? Briefly explain your answer.

Accepted Answer

FTC = $1,000: The amount of foreign tax

Question 4

Sam and Edna are married with three dependents.They enrolled in a qualified plan through the Marketplace at a cost of $4,900 per year.Their household income was $64,500.Their SLCSP premium is $5,540.What is their premium tax credit?

Accepted Answer

A) $4,900. 
B) $4,676. 
C) $5,540. 
D) $864. 
A) $4,900. 
B) $4,676. 
C) $5,540. 
D) $864.

Question 5

The credit for child and dependent care expenses can only be claimed if a taxpayer incurs employment-related expenses to care for one or more qualifying individuals.

Accepted Answer

A) True 
 B)False

Question 6

Tai and Song are ages 69 and 59,respectively,and file a joint return.They have AGI of $20,000 and received $2,000 in nontaxable social security benefits.How much can Tai and Song take as a credit for the elderly or the disabled?

Accepted Answer

A) $2,000. 
B) $1,125. 
C) $7,500. 
D) $0. 
A) $2,000. 
B) $1,125. 
C) $7,500. 
D) $0.

Question 7

Max paid $2,500 in foreign income taxes to Peru.His total income was $65,000,which included $9,000 of foreign income.His U.S.tax liability is $17,750.How much can Max claim as foreign tax credit? Do not round interim calculations.)

Accepted Answer

A) $3,350. 
B) $9,000. 
C) $2,458. 
D) $2,500. 
A) $3,350. 
B) $9,000. 
C) $2,458. 
D) $2,500.

Question 8

Gina has $39,000 total taxable income,which includes $6,000 of taxable income from Argentina.She paid $1,200 in foreign income taxes and her U.S.tax liability is $3,610.Gina's foreign tax credit is: Do not round interim calculations)

Accepted Answer

A) $555. 
B) $0. 
C) $1,200. 
D) $450. 
A) $555. 
B) $0. 
C) $1,200. 
D) $450.

Question 9

The maximum amount of earned income credit for a joint taxpayer with one child in 2016 is $3,373.

Accepted Answer

A) True 
 B)False

Question 10

Cooper is a single dad with 1 child and his TOTAL tax liability for the current tax year is $2,100.His EIC amount is $3,094 and he had no withholdings during the year.What amount of tax refund or tax owed would be on Cooper's tax return?

Accepted Answer

A) $3,094 tax refund. 
B) $2,100 tax owed. 
C) $994 tax refund. 
D) $0. 
A) $3,094 tax refund. 
B) $2,100 tax owed. 
C) $994 tax refund. 
D) $0.

Question 11

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?

Accepted Answer

A) $3,000. 
B) $1,431. 
C) $1,060. 
D) $5,300. 
A) $3,000. 
B) $1,431. 
C) $1,060. 
D) $5,300.

Question 12

A qualifying individual for the purposes of the child and dependent care expenses credit includes all of the following except:

Accepted Answer

A) A dependent child,age of 17 who attends school full time. 
B) An adult child who is incapable of caring for himself/herself. 
C) A spouse who is incapable of caring for himself/herself. 
D) A dependent under the age of 13. 
A) A dependent child,age of 17 who attends school full time. 
B) An adult child who is incapable of caring for himself/herself. 
C) A spouse who is incapable of caring for himself/herself. 
D) A dependent under the age of 13.

Question 13

Presley and Jake are married filing joint taxpayers.They have twin sons,ages 7.If their AGI is $116,950,what amount of child tax credit can they claim?

Accepted Answer

A) $1,650. 
B) $1,000. 
C) $0. 
D) $2,000. 
A) $1,650. 
B) $1,000. 
C) $0. 
D) $2,000.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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 16

The earned income credit EIC)is a nonrefundable credit.

Accepted Answer

A) True 
 B)False

Question 17

Tuan and Marisa are married,file a joint return,and have two dependent children,Zack,age 6 and Aaron,age 5.Tuan has earned income of $72,000.Marisa was a full- time student for nine months)with no income.They paid a qualified day care center $5,000.How much is Tuan and Marisa's child and dependent care credit for the year?

Accepted Answer

A) $1,200. 
B) $600. 
C) $1,000. 
D) $900. 
A) $1,200. 
B) $600. 
C) $1,000. 
D) $900.

Question 18

Edward and Ethel are ages 71 and 59,respectively,and file a joint return.They have AGI of $11,000 and received $2,000 in nontaxable social security benefits.How much can Edward and Ethel take as a credit for the elderly or the disabled?

Accepted Answer

A) $375. 
B) $2,000. 
C) $1,125. 
D) $2,500. 
A) $375. 
B) $2,000. 
C) $1,125. 
D) $2,500.

Question 19

Which of the account contributions qualify for the retirement savings contributions credit?

Accepted Answer

A) 401k). 
B) SEP. 
C) IRA. 
D) All of these qualify. 
A) 401k). 
B) SEP. 
C) IRA. 
D) All of these qualify.

Question 20

Donna and Walt paid $3,000 in qualified expenses for their son,Jimmy,to attend the South Coast Business College.Jimmy is a business major in his first year.A year ago,Jimmy was arrested and convicted of felony drug possession.He has not been in any trouble since then.What education credits are available for Donna and Walt and how much can they claim?

Accepted Answer

Due to Jimmy's felony drug conviction,th

The earned income credit is adjusted each year for inflation.

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

Juliann reported foreign income tax of $1,000 on foreign income of $8,000.Her worldwide taxable income was $89,000 and her U.S.tax liability was $23,000.What is the amount of foreign tax credit she is allowed? Briefly explain your answer.

Sam and Edna are married with three dependents.They enrolled in a qualified plan through the Marketplace at a cost of $4,900 per year.Their household income was $64,500.Their SLCSP premium is $5,540.What is their premium tax credit?

The credit for child and dependent care expenses can only be claimed if a taxpayer incurs employment-related expenses to care for one or more qualifying individuals.

Tai and Song are ages 69 and 59,respectively,and file a joint return.They have AGI of $20,000 and received $2,000 in nontaxable social security benefits.How much can Tai and Song take as a credit for the elderly or the disabled?

Max paid $2,500 in foreign income taxes to Peru.His total income was $65,000,which included $9,000 of foreign income.His U.S.tax liability is $17,750.How much can Max claim as foreign tax credit? Do not round interim calculations.)

Gina has $39,000 total taxable income,which includes $6,000 of taxable income from Argentina.She paid $1,200 in foreign income taxes and her U.S.tax liability is $3,610.Gina's foreign tax credit is: Do not round interim calculations)

The maximum amount of earned income credit for a joint taxpayer with one child in 2016 is $3,373.

Cooper is a single dad with 1 child and his TOTAL tax liability for the current tax year is $2,100.His EIC amount is $3,094 and he had no withholdings during the year.What amount of tax refund or tax owed would be on Cooper's tax return?

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?

A qualifying individual for the purposes of the child and dependent care expenses credit includes all of the following except:

Presley and Jake are married filing joint taxpayers.They have twin sons,ages 7.If their AGI is $116,950,what amount of child tax credit can they claim?

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

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

The earned income credit EIC)is a nonrefundable credit.

Edward and Ethel are ages 71 and 59,respectively,and file a joint return.They have AGI of $11,000 and received $2,000 in nontaxable social security benefits.How much can Edward and Ethel take as a credit for the elderly or the disabled?

Which of the account contributions qualify for the retirement savings contributions credit?

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

The earned income credit is adjusted each year for inflation.

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

Juliann reported foreign income tax of $1,000 on foreign income of $8,000.Her worldwide taxable income was $89,000 and her U.S.tax liability was $23,000.What is the amount of foreign tax credit she is allowed? Briefly explain your answer.

Sam and Edna are married with three dependents.They enrolled in a qualified plan through the Marketplace at a cost of $4,900 per year.Their household income was $64,500.Their SLCSP premium is $5,540.What is their premium tax credit?

The credit for child and dependent care expenses can only be claimed if a taxpayer incurs employment-related expenses to care for one or more qualifying individuals.

Tai and Song are ages 69 and 59,respectively,and file a joint return.They have AGI of $20,000 and received $2,000 in nontaxable social security benefits.How much can Tai and Song take as a credit for the elderly or the disabled?

Max paid $2,500 in foreign income taxes to Peru.His total income was $65,000,which included $9,000 of foreign income.His U.S.tax liability is $17,750.How much can Max claim as foreign tax credit? Do not round interim calculations.)

Gina has $39,000 total taxable income,which includes $6,000 of taxable income from Argentina.She paid $1,200 in foreign income taxes and her U.S.tax liability is $3,610.Gina's foreign tax credit is: Do not round interim calculations)

The maximum amount of earned income credit for a joint taxpayer with one child in 2016 is $3,373.

Cooper is a single dad with 1 child and his TOTAL tax liability for the current tax year is $2,100.His EIC amount is $3,094 and he had no withholdings during the year.What amount of tax refund or tax owed would be on Cooper's tax return?

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?

A qualifying individual for the purposes of the child and dependent care expenses credit includes all of the following except:

Presley and Jake are married filing joint taxpayers.They have twin sons,ages 7.If their AGI is $116,950,what amount of child tax credit can they claim?

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

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

The earned income credit EIC)is a nonrefundable credit.

Edward and Ethel are ages 71 and 59,respectively,and file a joint return.They have AGI of $11,000 and received $2,000 in nontaxable social security benefits.How much can Edward and Ethel take as a credit for the elderly or the disabled?

Which of the account contributions qualify for the retirement savings contributions credit?

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