Question 1

Which of the following is a refundable credit?

Accepted Answer

A)  Foreign tax credit (FT
C) . 
B)  Lifetime learning credit. 
C)  Earned income credit (EI
C) . 
D) Child and dependent care expenses credit. 
A)  Foreign tax credit (FT
C) . 
B)  Lifetime learning credit. 
C)  Earned income credit (EI
C) . 
D) Child and dependent care expenses credit.

Question 2

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?

Accepted Answer

A)  $510. 
B)  $1,650. 
C)  $2,000. 
D) $2,550. 
A)  $510. 
B)  $1,650. 
C)  $2,000. 
D) $2,550.

Question 3

Arturo and Deena are married with two dependents. They enrolled in a qualified plan through the Marketplace at a cost of $2,700 per year. Their household income was $31,000. Their SLCSP premium is $3,600. What is their premium tax credit?

Accepted Answer

A)  $620. 
B)  $2,700. 
C)  $2,980. 
D) $3,600. 
A)  $620. 
B)  $2,700. 
C)  $2,980. 
D) $3,600.

Question 4

Discuss the limitations of the lifetime learning credit. Briefly explain how AGI affects the amount of credit available.

Accepted Answer

The lifetime learning credit is limited

Question 5

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

Accepted Answer

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

Question 6

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

Accepted Answer

A)  All of the foreign-source income is passive income. 
B)  Total foreign taxes paid were less than $300 ($600 if married filing jointly). 
C)  Taxpayer is not subject to foreign tax limitation rules. 
D) All of these must be met. 
A)  All of the foreign-source income is passive income. 
B)  Total foreign taxes paid were less than $300 ($600 if married filing jointly). 
C)  Taxpayer is not subject to foreign tax limitation rules. 
D) All of these must be met.

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Question 9

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

Question 10

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 11

The retirement savings contributions credit is available for head of household taxpayers only.

Accepted Answer

A) True 
 B)False

Question 12

The maximum American opportunity tax credit is $2,500 per student per year.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A)  $3,359. 
B)  $4,308. 
C)  $5,002. 
D) $5,548. 
A)  $3,359. 
B)  $4,308. 
C)  $5,002. 
D) $5,548.

Question 14

Julia and Omar are married and file a joint tax return. They have two dependent daughters, ages 14 and 18. If their AGI is $98,000, what amount of child tax credit can they claim?

Accepted Answer

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

Question 15

Rolando and Silvia have modified AGI of $230,000. They adopted a boy from Guatemala, whose adoption became final in the current year. They incurred a total of $15,000 in qualified adoption expenses. What is the amount of adoption credit they can claim in the current year?

Accepted Answer

A)  $3,688. 
B)  $13,400. 
C)  $15,000. 
D) $23,000. 
A)  $3,688. 
B)  $13,400. 
C)  $15,000. 
D) $23,000.

Question 16

The retirement savings contributions credit is available regardless of the income level of the taxpayer.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A qualifying child is either (a) the tax

Question 18

Which of the following statements is not true with regard to the child and dependent care expense credit?

Accepted Answer

A)  The maximum amount of expenses for one dependent is $3,000. 
B)  Married taxpayers must file joint returns. 
C)  A non-working spouse attending school full-time is deemed to have earned income of $250 per month for one qualifying person. 
D) The maximum amount of expenses for two or more dependents is $6,000. 
A)  The maximum amount of expenses for one dependent is $3,000. 
B)  Married taxpayers must file joint returns. 
C)  A non-working spouse attending school full-time is deemed to have earned income of $250 per month for one qualifying person. 
D) The maximum amount of expenses for two or more dependents is $6,000.

Question 19

The amount of foreign tax credit is equal to the amount paid to the foreign government but cannot exceed that portion of U.S. income tax attributable to the foreign income.

Accepted Answer

A) True 
 B)False

Question 20

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)  $13,000. 
D) $13,400. 
A)  $4,000. 
B)  $9,000. 
C)  $13,000. 
D) $13,400.

Which of the following is a refundable 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?

Arturo and Deena are married with two dependents. They enrolled in a qualified plan through the Marketplace at a cost of $2,700 per year. Their household income was $31,000. Their SLCSP premium is $3,600. What is their premium tax credit?

Discuss the limitations of the lifetime learning credit. Briefly explain how AGI affects the amount of credit available.

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

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

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?

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.)

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.

The retirement savings contributions credit is available for head of household taxpayers only.

The maximum American opportunity tax credit is $2,500 per student per year.

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

Julia and Omar are married and file a joint tax return. They have two dependent daughters, ages 14 and 18. If their AGI is $98,000, what amount of child tax credit can they claim?

Rolando and Silvia have modified AGI of $230,000. They adopted a boy from Guatemala, whose adoption became final in the current year. They incurred a total of $15,000 in qualified adoption expenses. What is the amount of adoption credit they can claim in the current year?

The retirement savings contributions credit is available regardless of the income level of the taxpayer.

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

Which of the following statements is not true with regard to the child and dependent care expense credit?

The amount of foreign tax credit is equal to the amount paid to the foreign government but cannot exceed that portion of U.S. income tax attributable to the foreign income.

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

Exam 9: Tax Credits

Which of the following is a refundable 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?

Arturo and Deena are married with two dependents. They enrolled in a qualified plan through the Marketplace at a cost of $2,700 per year. Their household income was $31,000. Their SLCSP premium is $3,600. What is their premium tax credit?

Discuss the limitations of the lifetime learning credit. Briefly explain how AGI affects the amount of credit available.

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

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

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?

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.)

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.

The retirement savings contributions credit is available for head of household taxpayers only.

The maximum American opportunity tax credit is $2,500 per student per year.

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

Julia and Omar are married and file a joint tax return. They have two dependent daughters, ages 14 and 18. If their AGI is $98,000, what amount of child tax credit can they claim?

Rolando and Silvia have modified AGI of $230,000. They adopted a boy from Guatemala, whose adoption became final in the current year. They incurred a total of $15,000 in qualified adoption expenses. What is the amount of adoption credit they can claim in the current year?

The retirement savings contributions credit is available regardless of the income level of the taxpayer.

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

Which of the following statements is not true with regard to the child and dependent care expense credit?

The amount of foreign tax credit is equal to the amount paid to the foreign government but cannot exceed that portion of U.S. income tax attributable to the foreign income.

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