Exam 9: Tax Credits Form 1040,lines 48 Through 54 and Lines 66A Through 73

Gina has $39,000 total taxable income,which includes $6,000 of taxable income from Argentina.She paid $1,200 in foreign income taxes and her U.S.tax liability is $3,610.Gina's foreign tax credit is: (Do not round interim calculations)

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.

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

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

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

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

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

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

Sandra is single and her son Julius is 12 years old.If her AGI is $79,000,what amount of child tax credit can Sandra claim?

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?

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

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?

If the modified AGI of a married filing joint taxpayer exceeds $132,000 in 2017,the lifetime learning credit phases out completely.

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

Which of the following statements is correct?

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.

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 2017,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. 2016 \ 12,500 2017 2,800

Sam and Edna are married with three dependents.They enrolled in a qualified plan through the Marketplace at a cost of $4,900 per year.Their household income was $64,500.Their SLCSP premium is $5,540.What is their premium tax credit?

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

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