Question 1

Which of the following statements is not true regarding the credit for the elderly or the disabled?

Accepted Answer

A) Base amount for the credit calculation for a single individual is $5,000. 
B) Base amount for the credit calculation for joint returns is $5,000. 
C) The maximum allowable credit is based on 15% of the taxpayer's base amount. 
D) Base amount for the credit calculation for a joint individual where only one spouse qualifies is $5,000.

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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.

Question 4

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.

Question 5

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.

Question 6

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

Question 7

Which of the following statements regarding adoption credits is true?

Accepted Answer

A) The maximum credit allowed per adopted child is $16,000. 
B) Qualified expenses may include reimbursements from employer programs. 
C) Adoption of foreign children does not qualify for the credit. 
D) The adoption credit may be limited if AGI amounts exceed certain levels.

Question 8

Brian and Clara paid $4,350 in foreign income taxes to Mexico.Their total income was $105,000,which included $16,000 of foreign income.Their U.S.tax liability is $22,750.How much can Brian and Clara claim as foreign tax credit?

Accepted Answer

A) $0. 
B) $3,467. 
C) $4,350. 
D) $16,000.

Question 9

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 10

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) $13,570.

Question 11

The calculation for the credit for the elderly or disabled requires that the appropriate base amount be adjusted by two items.What are those two items and how is the base amount adjusted?

Accepted Answer

The answer of The calculation for the credit for the...

Question 12

Kobe is a single dad with two dependent children,Lizzie,age 7 and Leslie,age 3.He has AGI of $51,000 and paid $3,700 to a qualified day care center.What amount of credit can Kobe receive for the child and dependent care credit?

Accepted Answer

A) $0. 
B) $740. 
C) $3,700. 
D) $10,200.

Question 13

Tyson is single and cannot be claimed by anyone as a dependent.He is a full-time law student at a local university.His tuition bill was $8,000.He paid the bill by withdrawing $2,000 from his savings account and borrowing the remainder from a local bank.For purposes of the education tax credits,what is the amount of Tyson's qualifying expenses?

Accepted Answer

The answer of Tyson is single and cannot be claimed...

Question 14

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 15

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

Question 16

DJ and Nicolette paid $1,600 in qualifying expenses for their daughter Nicole to attend the University of Nevada.Nicole is a sophomore.DJ and Nicolette's AGI is $175,000.What is their maximum allowable American opportunity tax credit after the credit phase-out based on AGI is taken into account?

Accepted Answer

A) $0. 
B) $400. 
C) $600. 
D) $1,600.

Question 17

Which of the following statements is not true regarding the credit for the elderly or the disabled?

Accepted Answer

A) Taxpayer may not have earned income. 
B) Taxpayer may receive social security benefits. 
C) Taxpayer must be age 65 or older. 
D) Taxpayer must be retired or on permanent and total disability.

Question 18

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?

Accepted Answer

A) $0. 
B) $180. 
C) $900. 
D) $1,800.

Question 19

Bob and Joyce are married,file a joint return,and have one dependent child,Dane,age 9.Bob has earned income of $72,000.Joyce was a full-time student (for nine months)with no income.They paid a qualified day care center $4,000.What amount of child and dependent care credit can Bob and Joyce receive?

Accepted Answer

A) $450. 
B) $600. 
C) $800. 
D) $1,200.

Question 20

Sam is a single father with two dependent twin daughters,Amy and Amanda,ages 4.He has AGI of $31,000 and paid $5,300 to a qualified day care center.What amount of credit can Sam receive for child and dependent care credit?

Accepted Answer

A) $1,060. 
B) $1,431. 
C) $3,000. 
D) $5,300.

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 credit for the elderly or the disabled?

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

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?

Which of the following is a refundable 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?

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?

Which of the following statements regarding adoption credits is true?

Brian and Clara paid $4,350 in foreign income taxes to Mexico.Their total income was $105,000,which included $16,000 of foreign income.Their U.S.tax liability is $22,750.How much can Brian and Clara claim as foreign tax credit?

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 calculation for the credit for the elderly or disabled requires that the appropriate base amount be adjusted by two items.What are those two items and how is the base amount adjusted?

Kobe is a single dad with two dependent children,Lizzie,age 7 and Leslie,age 3.He has AGI of $51,000 and paid $3,700 to a qualified day care center.What amount of credit can Kobe receive for the child and dependent care credit?

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.

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?

DJ and Nicolette paid $1,600 in qualifying expenses for their daughter Nicole to attend the University of Nevada.Nicole is a sophomore.DJ and Nicolette's AGI is $175,000.What is their maximum allowable American opportunity tax credit after the credit phase-out based on AGI is taken into account?

Which of the following statements is not true regarding the credit for the elderly or the disabled?

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?

Bob and Joyce are married,file a joint return,and have one dependent child,Dane,age 9.Bob has earned income of $72,000.Joyce was a full-time student (for nine months) with no income.They paid a qualified day care center $4,000.What amount of child and dependent care credit can Bob and Joyce receive?

Sam is a single father with two dependent twin daughters,Amy and Amanda,ages 4.He has AGI of $31,000 and paid $5,300 to a qualified day care center.What amount of credit can Sam receive for child and dependent care credit?