Exam 9: Tax Credits

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?

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?

Credit for child and dependent care expenses can only be claimed on a Form 1040.

After years of working with the orphanage and the government, Walt and Kim adopted a little girl from China. The adoption process, which became final in January 2015, incurred the following qualified adoption expenses. What amount of adoption credit can Walt and Kim claim and in what year? Assume there is no credit limitation due to their AGI amount.

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

Andrew and Marina are married filing joint and have modified AGI of $77,500. Andrew made a contribution to a qualified retirement plan of $2,000 during the year. How much is their retirement savings contributions credit?

In the case of the adoption credit, what special rules apply when adopting a child who is a citizen of another country?

Thomas and Emma are married, file a joint return, and have three qualifying children. Their AGI was $21,000. What is their EIC?

Kyle and Alyssa paid $1,000 and $2,000 in qualifying expenses for their two daughters Jane and Jill, respectively, to attend the University of California. Jane is a sophomore and Jill is a freshman. Kyle and Alyssa's AGI is $135,000 and they file a joint return. What is their allowable American opportunity tax credit after the credit phase-out based on AGI is taken into account?

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

Guillermo and Felicia are married, file a joint return, and have one dependent child; Hannah, age 6. Guillermo has earned income of $38,000. Felicia was a full-time student (for 8 months) with no income. They paid a qualified day care center $4,800. What is the amount of their child and dependent care credit for the year?

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.

Vincent and Maria, whose modified AGI is $164,000, adopted a little girl from Mexico which was finalized in 2015. They incurred a total of $16,000 in qualified adoption expenses. What is the amount of adoption credit they can claim in 2015?

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?

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:

The retirement savings contributions credit is available for married filing joint taxpayers only.

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?

The maximum allowable lifetime learning credit per year is $2,000 per student.

Which of the following statements is true about education credits?

Sam paid the following expenses during October 2015 for his son Aaron's spring 2016 college expenses: Spring 2016 semester begins in January 2016: 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 2015?