Question 1

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

Accepted Answer

A)  $0. 
B)  $503. 
C)  $3,359. 
D) $5,548. 
A)  $0. 
B)  $503. 
C)  $3,359. 
D) $5,548. C

Question 2

Nick and Katelyn paid $1,600 and $2,100 in qualifying expenses for their two daughters, Nicole and Naomi, respectively, to attend the University of Nevada. Nicole is a sophomore and Naomi is a freshman. Nick and Katelyn's AGI is $202,000. What is their allowable American opportunity tax credit?

Accepted Answer

A)  $0. 
B)  $2,000. 
C)  $3,050. 
D) $3,700. 
A)  $0. 
B)  $2,000. 
C)  $3,050. 
D) $3,700. A

Question 3

Joseph paid $1,750 in qualifying expenses for his daughter who attended a community college. How much is Joseph's lifetime learning credit without regard to AGI limitations or other credits?

Accepted Answer

A)  $250. 
B)  $350. 
C)  $825. 
D) $1,750. 
A)  $250. 
B)  $350. 
C)  $825. 
D) $1,750. B

Question 4

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 5

Harrison is single and his son Jack is 12 years old. If his AGI is $195,000, what amount of child tax credit can Harrison claim?

Accepted Answer

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

Question 6

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 7

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

Question 8

There is no maximum amount for the adoption credit.

Accepted Answer

A) True 
 B)False

Question 9

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

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A)  $0. 
B)  $100. 
C)  $200. 
D) $1,000. 
A)  $0. 
B)  $100. 
C)  $200. 
D) $1,000.

Question 12

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

Accepted Answer

A)  Taxpayer may not have earned income. 
B)  Taxpayer may receive social security benefits. 
C)  Taxpayer must be age 65 or older. 
D) Taxpayer must be retired or on permanent and total disability. 
A)  Taxpayer may not have earned income. 
B)  Taxpayer may receive social security benefits. 
C)  Taxpayer must be age 65 or older. 
D) Taxpayer must be retired or on permanent and total disability.

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A)  The maximum amount of expenses for one dependent is 35% of all qualified expenses. 
B)  Married taxpayers may file separate returns and still qualify for the credit. 
C)  If a spouse is attending school full- time, the credit cannot be claimed. 
D) The credit phases out completely if the taxpayer's AGI exceeds certain amounts. 
A)  The maximum amount of expenses for one dependent is 35% of all qualified expenses. 
B)  Married taxpayers may file separate returns and still qualify for the credit. 
C)  If a spouse is attending school full- time, the credit cannot be claimed. 
D) The credit phases out completely if the taxpayer's AGI exceeds certain amounts.

Question 15

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

Question 16

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

Question 17

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 ret

Question 18

The maximum adoption credit is 50% of all qualified expenses.

Accepted Answer

A) True 
 B)False

Question 19

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

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

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

Nick and Katelyn paid $1,600 and $2,100 in qualifying expenses for their two daughters, Nicole and Naomi, respectively, to attend the University of Nevada. Nicole is a sophomore and Naomi is a freshman. Nick and Katelyn's AGI is $202,000. What is their allowable American opportunity tax credit?

Joseph paid $1,750 in qualifying expenses for his daughter who attended a community college. How much is Joseph's lifetime learning credit without regard to AGI limitations or other credits?

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.

Harrison is single and his son Jack is 12 years old. If his AGI is $195,000, what amount of child tax credit can Harrison claim?

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

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?

There is no maximum amount for the adoption credit.

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

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

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

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

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

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?

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?

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?

The maximum adoption credit is 50% of all qualified expenses.

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

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

Capital Gains and Other Sales of Property

Rental Property, Royalties, Income From Flow-Through Entities

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

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Exam 9: Tax Credits

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

Nick and Katelyn paid $1,600 and $2,100 in qualifying expenses for their two daughters, Nicole and Naomi, respectively, to attend the University of Nevada. Nicole is a sophomore and Naomi is a freshman. Nick and Katelyn's AGI is $202,000. What is their allowable American opportunity tax credit?

Joseph paid $1,750 in qualifying expenses for his daughter who attended a community college. How much is Joseph's lifetime learning credit without regard to AGI limitations or other credits?

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.

Harrison is single and his son Jack is 12 years old. If his AGI is $195,000, what amount of child tax credit can Harrison claim?

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

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?

There is no maximum amount for the adoption credit.

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

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

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

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

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

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?

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?

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?

The maximum adoption credit is 50% of all qualified expenses.

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

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

Capital Gains and Other Sales of Property

Rental Property, Royalties, Income From Flow-Through Entities

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