Question 1

Tina has $93,000 total taxable income,which includes $18,000 of taxable income from Japan.She paid $2,200 in foreign income taxes and her U.S.tax liability is $19,610.Tina's foreign tax credit is: Do not round interim calculations.)

Accepted Answer

A) $2,200. 
B) $0. 
C) $18,000. 
D) $3,795.

Question 2

Taxpayers can claim a child tax credit for each qualifying child.How is a qualifying child defined?

Accepted Answer

The answer of Taxpayers can claim a child tax credit...

Question 3

Which of the following statements is true about education credits?

Accepted Answer

A) A taxpayer cannot claim an American opportunity tax credit or lifetime learning credit in the same year he/she takes a tax-free distribution from a Coverdell Education Savings Account. 
B) A taxpayer may be eligible to claim the education credits regardless of their AGI amount. 
C) The lifetime learning credit may be limited by AGI levels and may completely phase out when modified AGI exceeds a certain amount the amount depending on the tax year). 
D) A taxpayer can use the same qualifying expenses for both the American opportunity tax and lifetime learning credits.

Question 4

Arin and Bo have $74,000 total taxable income,which includes $13,500 of taxable income from France.They paid $1,600 in foreign income taxes,and their U.S.tax liability is $17,610.Arin and Bo's foreign tax credit is:

Accepted Answer

A) $0. 
B) $3,213. 
C) $600. 
D) $1,600.

Question 5

Shawn and Dahlia are married; both work and have one qualifying child.They had AGI of $19,000.What is their Earned Income Credit?

Accepted Answer

A) $3,036. 
B) $6,460. 
C) $0. 
D) $3,373.

Question 6

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) $2,000. 
C) $2,500. 
D) $1,000.

Question 7

Dean and Sue are married filing jointly with AGI of $28,000.They made a $1,500 contribution to a qualified retirement plan.How much is their retirement savings contributions credit?

Accepted Answer

A) $300. 
B) $150. 
C) $750. 
D) $0.

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

The maximum lifetime learning credit per taxpayer is $3,000 per year.

Accepted Answer

A) True 
 B)False

Question 10

Noah and Olivia have two boys,Jordan,age 6 and Jack,age 5.Their AGI is $176,000.What amount of child tax credit can they claim?

Accepted Answer

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

Question 11

Jesus and Mindy have modified AGI of $210,000,adopted a girl from Miami,Florida,and incurred a total of $18,000 in qualified adoption expenses.What is the amount of adoption credit they can claim in the current year? Do not round interim calculations)

Accepted Answer

A) $2,719. 
B) $10,741. 
C) $18,000. 
D) $13,460.

Question 12

The maximum child tax credit is $1,000 per child.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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) $2,000. 
B) $3,700. 
C) $3,060. 
D) $0.

Question 15

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?

Accepted Answer

A) $1,250. 
B) $0. 
C) $1,000. 
D) $2,500.

Question 16

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

Accepted Answer

A) $5,572. 
B) $3,373. 
C) $6,269. 
D) $4,423.

Question 17

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

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Briefly explain how to calculate the child and dependent care credit and how the calculation for the credit is affected if the taxpayer's spouse does not work but is a full-time student instead.

Accepted Answer

The answer of Briefly explain how to calculate the child...

Question 20

If the modified AGI of a married filing joint taxpayer exceeds $130,000 in 2016,the lifetime learning credit phases out completely.

Accepted Answer

A) True 
 B)False

Exam 9: Tax Credits Form 1040, lines 46 Through 54 and Lines 66a Through 73

Tina has $93,000 total taxable income,which includes $18,000 of taxable income from Japan.She paid $2,200 in foreign income taxes and her U.S.tax liability is $19,610.Tina's foreign tax credit is: Do not round interim calculations.)

Taxpayers can claim a child tax credit for each qualifying child.How is a qualifying child defined?

Which of the following statements is true about education credits?

Arin and Bo have $74,000 total taxable income,which includes $13,500 of taxable income from France.They paid $1,600 in foreign income taxes,and their U.S.tax liability is $17,610.Arin and Bo's foreign tax credit is:

Shawn and Dahlia are married; both work and have one qualifying child.They had AGI of $19,000.What is their Earned Income Credit?

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?

Dean and Sue are married filing jointly with AGI of $28,000.They made a $1,500 contribution to a qualified retirement plan.How much is their retirement savings contributions credit?

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

The maximum lifetime learning credit per taxpayer is $3,000 per year.

Noah and Olivia have two boys,Jordan,age 6 and Jack,age 5.Their AGI is $176,000.What amount of child tax credit can they claim?

Jesus and Mindy have modified AGI of $210,000,adopted a girl from Miami,Florida,and incurred a total of $18,000 in qualified adoption expenses.What is the amount of adoption credit they can claim in the current year? Do not round interim calculations)

The maximum child tax credit is $1,000 per child.

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

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?

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?

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

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?

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

Briefly explain how to calculate the child and dependent care credit and how the calculation for the credit is affected if the taxpayer's spouse does not work but is a full-time student instead.

If the modified AGI of a married filing joint taxpayer exceeds $130,000 in 2016,the lifetime learning credit phases out completely.