Question 1

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

Accepted Answer

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

Question 2

Which of the following is not a qualifying child for purposes of calculating the EIC?

Accepted Answer

A) Son or daughter. 
B) Grandson or granddaughter. 
C) Eligible foster child. 
D) All of these qualify. 
A) Son or daughter. 
B) Grandson or granddaughter. 
C) Eligible foster child. 
D) All of these qualify.

Question 3

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 4

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.

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

George is a single father who has 2 qualifying children.His AGI is $22,000.How much is his EIC (use the EIC formula)? (Round your answer to the nearest dollar. )

Accepted Answer

A) $3,400. 
B) $4,633. 
C) $4,845. 
D) $5,616. 
A) $3,400. 
B) $4,633. 
C) $4,845. 
D) $5,616.

Question 7

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

Question 8

Sean and Jenny are married,file a joint return and have two dependent children,Blake,age 9 and Jake,age 5.Sean has earned income of $72,000.Jenny was a full-time student (for nine months)with no income.They paid a qualified day care center $7,000.What amount of child and dependent care credit can Sean and Jenny receive?

Accepted Answer

A) $600. 
B) $900. 
C) $1,000. 
D) $1,200. 
A) $600. 
B) $900. 
C) $1,000. 
D) $1,200.

Question 9

A taxpayer can receive both American opportunity tax and lifetime learning credits for the same education expenses in the same tax year.

Accepted Answer

A) True 
 B)False

Question 10

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

Question 11

Patricia is single and her son Quinn is age 11.If her AGI is $77,000,what amount of child tax credit can she claim?

Accepted Answer

A) $0. 
B) $400. 
C) $900. 
D) $1,000. 
A) $0. 
B) $400. 
C) $900. 
D) $1,000.

Question 12

Clarisse's filing status is head of household.She has modified adjusted gross income of $29,000 and she made a $2,000 contribution to her IRA.What is the amount of her retirement savings contributions credit?

Accepted Answer

Clarisse will receive a retire

Question 13

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 14

What are the requirements that the taxpayer must meet to receive a tax credit for child and dependent care expenses? Briefly discuss.

Accepted Answer

A taxpayer must incur child-care expense

Question 15

Kim paid the following expenses during November 2017 for her son Joshua's spring 2018 expenses,which begins in January 2018: $\begin{array}{lrr}
\text { Tuition } & \$ 14,000 \
\text { Housing } & & 8,000 \
\text { Meal plan } & & 2,500
\end{array}$ In addition,Kim's sister paid $800 for college fees on behalf of Joshua directly to the college.Joshua is claimed as Kim's dependent on her tax return.How much of the paid expenses qualify for purposes of the education credit deduction for Kim in 2017?

Accepted Answer

A) $8,000. 
B) $14,800. 
C) $24,000. 
D) $28,500. 
A) $8,000. 
B) $14,800. 
C) $24,000. 
D) $28,500.

Question 16

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 17

The American opportunity tax credit phases out beginning at $80,000 of modified AGI for single taxpayers.

Accepted Answer

A) True 
 B)False

Question 18

The child tax credit is reduced if AGI exceeds $110,000 for married filing joint taxpayers.

Accepted Answer

A) True 
 B)False

Question 19

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 20

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

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

Which of the following is not a qualifying child for purposes of calculating the EIC?

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?

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 earned income credit is available for taxpayers with children only.

George is a single father who has 2 qualifying children.His AGI is $22,000.How much is his EIC (use the EIC formula)? (Round your answer to the nearest dollar. )

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?

A taxpayer can receive both American opportunity tax and lifetime learning credits for the same education expenses in the same tax year.

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?

Patricia is single and her son Quinn is age 11.If her AGI is $77,000,what amount of child tax credit can she claim?

Clarisse's filing status is head of household.She has modified adjusted gross income of $29,000 and she made a $2,000 contribution to her IRA.What is the amount of her retirement savings contributions credit?

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

What are the requirements that the taxpayer must meet to receive a tax credit for child and dependent care expenses? Briefly discuss.

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

The American opportunity tax credit phases out beginning at $80,000 of modified AGI for single taxpayers.

The child tax credit is reduced if AGI exceeds $110,000 for married filing joint taxpayers.

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?

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:

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 48 Through 54 and Lines 66A Through 73

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

Which of the following is not a qualifying child for purposes of calculating the EIC?

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?

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 earned income credit is available for taxpayers with children only.

George is a single father who has 2 qualifying children.His AGI is $22,000.How much is his EIC (use the EIC formula)? (Round your answer to the nearest dollar. )

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?

A taxpayer can receive both American opportunity tax and lifetime learning credits for the same education expenses in the same tax year.

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?

Patricia is single and her son Quinn is age 11.If her AGI is $77,000,what amount of child tax credit can she claim?

Clarisse's filing status is head of household.She has modified adjusted gross income of $29,000 and she made a $2,000 contribution to her IRA.What is the amount of her retirement savings contributions credit?

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

What are the requirements that the taxpayer must meet to receive a tax credit for child and dependent care expenses? Briefly discuss.

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

The American opportunity tax credit phases out beginning at $80,000 of modified AGI for single taxpayers.

The child tax credit is reduced if AGI exceeds $110,000 for married filing joint taxpayers.

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?

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:

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