Question 1

Victoria is single with two qualifying children and AGI of $24,000.What is her EIC?

Accepted Answer

A) $4,348. 
B) $5,054. 
C) $3,373. 
D) $5,572. 
A) $4,348. 
B) $5,054. 
C) $3,373. 
D) $5,572.

Question 2

The main goal of Congress in offering tax credits is to collect additional revenues.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following statements is false regarding the earned income credit EIC)?

Accepted Answer

A) Maximum amount of the credit depends on the earned income and number of children. 
B) A taxpayer without children cannot claim the credit. 
C) The credit is refundable. 
D) If certain requirements are met,a taxpayer may receive advance payments of EIC. 
A) Maximum amount of the credit depends on the earned income and number of children. 
B) A taxpayer without children cannot claim the credit. 
C) The credit is refundable. 
D) If certain requirements are met,a taxpayer may receive advance payments of EIC.

Question 4

Brooke is single with earned income of $20,354 and one qualifying child.Calculate Brooke's earned income credit using the EIC formula.Round your answer to the nearest dollar)

Accepted Answer

The answer of Brooke is single with earned income of...

Question 5

DJ and Nicolette paid $1,600 in qualifying expenses for their daughter Nicole to attend the University of Nevada.Nicole is a sophomore.DJ and Nicolette's AGI is $175,000.What is their maximum allowable American opportunity tax credit after the credit phase-out based on AGI is taken into account?

Accepted Answer

A) $600. 
B) $0. 
C) $1,600. 
D) $400. 
A) $600. 
B) $0. 
C) $1,600. 
D) $400.

Question 6

Assume a taxpayer is qualified to receive a premium tax credit.Explain how to calculate the amount of the credit.

Accepted Answer

The premium tax credit is equal to the l

Question 7

Ian and Jolene are ages 70 and 72,respectively,and file a joint return.They have AGI of $15,000 and received $1,000 in nontaxable social security benefits.How much can Ian and Jolene take as a credit for the elderly or the disabled?

Accepted Answer

A) $2,250. 
B) $600. 
C) $1,000. 
D) $225. 
A) $2,250. 
B) $600. 
C) $1,000. 
D) $225.

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

The Affordable Care Act requires all individuals to have health care coverage.

Accepted Answer

A) True 
 B)False

Question 10

Sam paid the following expenses during October 2016 for his son Aaron's spring 2017 college expenses: Spring 2017 semester begins in January 2017: Tuition $ 18,000
Housing 8,000
Meal plan 3,500
In addition,Aaron's uncle paid $500 for college fees on behalf of Aaron directly to the college.Aaron is claimed as Sam's dependent on his tax return.How much of the paid expenses qualify for purposes of the education credit deduction for Sam in 2016?

Accepted Answer

A) $18,500. 
B) $3,500. 
C) $18,000. 
D) $11,500. 
A) $18,500. 
B) $3,500. 
C) $18,000. 
D) $11,500.

Question 11

A student can only receive the American opportunity tax credit if he/she is enrolled in the first four years of postsecondary education.

Accepted Answer

A) True 
 B)False

Question 12

All taxpayers must file Form 1116 to receive the foreign tax credit.

Accepted Answer

A) True 
 B)False

Question 13

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

Question 14

Jillian is single and her son,Parker is 12 years old.If her AGI is $76,200,what is her child tax credit for Parker?

Accepted Answer

A) $0. 
B) $1,000. 
C) $500. 
D) $900. 
A) $0. 
B) $1,000. 
C) $500. 
D) $900.

Question 15

In order to be eligible for the credit for the elderly or the disabled,the taxpayer must be age 55 or older or have retired on permanent disability.

Accepted Answer

A) True 
 B)False

Question 16

Enrique and Anna filed a joint tax return and reported modified AGI of $112,000.They have one qualifying child.What is the amount of their child tax credit?

Accepted Answer

Child tax credit = $900.For a joint retu

Question 17

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

Accepted Answer

A) The American opportunity tax credit is limited to $2,500 per student per year. 
B) A taxpayer cannot receive the American opportunity tax credit if he/she has a felony drug conviction. 
C) The American opportunity tax credit is only available for the first two years of postsecondary education. 
D) The lifetime learning credit is limited to $2,000 per taxpayer per year. 
A) The American opportunity tax credit is limited to $2,500 per student per year. 
B) A taxpayer cannot receive the American opportunity tax credit if he/she has a felony drug conviction. 
C) The American opportunity tax credit is only available for the first two years of postsecondary education. 
D) The lifetime learning credit is limited to $2,000 per taxpayer per year.

Question 18

Casey and Lupe have AGI of $125,000.They have twin daughters,Ashley and Alley,ages 5.What amount of child tax credit can they claim?

Accepted Answer

A) $1,250. 
B) $0. 
C) $1,000. 
D) $2,000. 
A) $1,250. 
B) $0. 
C) $1,000. 
D) $2,000.

Question 19

The maximum contribution amount for the retirement savings contributions credit for each tax year is 20% of a taxpayer's AGI.

Accepted Answer

A) True 
 B)False

Question 20

Conner and Matsuko paid $1,000 and $2,000,in qualifying expenses for their two sons,Jason and Justin,respectively,to attend Montana State University.Jason is a sophomore and Justin is a freshman.Conner and Matsuko's AGI is $195,000.What is their allowable American opportunity tax credit?

Accepted Answer

A) $3,000. 
B) $3,700. 
C) $0. 
D) $2,000. 
A) $3,000. 
B) $3,700. 
C) $0. 
D) $2,000.

Victoria is single with two qualifying children and AGI of $24,000.What is her EIC?

The main goal of Congress in offering tax credits is to collect additional revenues.

Which of the following statements is false regarding the earned income credit EIC)?

Brooke is single with earned income of $20,354 and one qualifying child.Calculate Brooke's earned income credit using the EIC formula.Round your answer to the nearest dollar)

DJ and Nicolette paid $1,600 in qualifying expenses for their daughter Nicole to attend the University of Nevada.Nicole is a sophomore.DJ and Nicolette's AGI is $175,000.What is their maximum allowable American opportunity tax credit after the credit phase-out based on AGI is taken into account?

Assume a taxpayer is qualified to receive a premium tax credit.Explain how to calculate the amount of the credit.

Ian and Jolene are ages 70 and 72,respectively,and file a joint return.They have AGI of $15,000 and received $1,000 in nontaxable social security benefits.How much can Ian and Jolene take as a credit for the elderly or the disabled?

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

The Affordable Care Act requires all individuals to have health care coverage.

A student can only receive the American opportunity tax credit if he/she is enrolled in the first four years of postsecondary education.

All taxpayers must file Form 1116 to receive the foreign tax credit.

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?

Jillian is single and her son,Parker is 12 years old.If her AGI is $76,200,what is her child tax credit for Parker?

In order to be eligible for the credit for the elderly or the disabled,the taxpayer must be age 55 or older or have retired on permanent disability.

Enrique and Anna filed a joint tax return and reported modified AGI of $112,000.They have one qualifying child.What is the amount of their child tax credit?

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

Casey and Lupe have AGI of $125,000.They have twin daughters,Ashley and Alley,ages 5.What amount of child tax credit can they claim?

The maximum contribution amount for the retirement savings contributions credit for each tax year is 20% of a taxpayer's AGI.

Conner and Matsuko paid $1,000 and $2,000,in qualifying expenses for their two sons,Jason and Justin,respectively,to attend Montana State University.Jason is a sophomore and Justin is a freshman.Conner and Matsuko's AGI is $195,000.What is their allowable American opportunity tax 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

Victoria is single with two qualifying children and AGI of $24,000.What is her EIC?

The main goal of Congress in offering tax credits is to collect additional revenues.

Which of the following statements is false regarding the earned income credit EIC)?

Brooke is single with earned income of $20,354 and one qualifying child.Calculate Brooke's earned income credit using the EIC formula.Round your answer to the nearest dollar)

DJ and Nicolette paid $1,600 in qualifying expenses for their daughter Nicole to attend the University of Nevada.Nicole is a sophomore.DJ and Nicolette's AGI is $175,000.What is their maximum allowable American opportunity tax credit after the credit phase-out based on AGI is taken into account?

Assume a taxpayer is qualified to receive a premium tax credit.Explain how to calculate the amount of the credit.

Ian and Jolene are ages 70 and 72,respectively,and file a joint return.They have AGI of $15,000 and received $1,000 in nontaxable social security benefits.How much can Ian and Jolene take as a credit for the elderly or the disabled?

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

The Affordable Care Act requires all individuals to have health care coverage.

A student can only receive the American opportunity tax credit if he/she is enrolled in the first four years of postsecondary education.

All taxpayers must file Form 1116 to receive the foreign tax credit.

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?

Jillian is single and her son,Parker is 12 years old.If her AGI is $76,200,what is her child tax credit for Parker?

In order to be eligible for the credit for the elderly or the disabled,the taxpayer must be age 55 or older or have retired on permanent disability.

Enrique and Anna filed a joint tax return and reported modified AGI of $112,000.They have one qualifying child.What is the amount of their child tax credit?

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

Casey and Lupe have AGI of $125,000.They have twin daughters,Ashley and Alley,ages 5.What amount of child tax credit can they claim?

The maximum contribution amount for the retirement savings contributions credit for each tax year is 20% of a taxpayer's AGI.

Conner and Matsuko paid $1,000 and $2,000,in qualifying expenses for their two sons,Jason and Justin,respectively,to attend Montana State University.Jason is a sophomore and Justin is a freshman.Conner and Matsuko's AGI is $195,000.What is their allowable American opportunity tax 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