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1
Credit for child and dependent care expenses can only be claimed if a taxpayer incurs employment related expenses to care for one or more qualifying individuals.
A)True
B)False
2
In order to be eligible for the credit for the elderly or the disabled, the taxpayer must be the age 55 or over or have retired on permanent disability.
A)True
B)False
3
The two types of education credits available, hope and lifetime learning, may be used in combination at any given year to give the taxpayer the greatest tax advantage.
A)True
B)False
4
A student can only receive the Hope credit if he/she is enrolled in the first two years of postsecondary education.
A)True
B)False
5
Replacement of existing windows does not qualify for nonbusiness energy property credit if the installation took place in 2004.
A)True
B)False
6
The foreign tax credit is available only to individuals born in a foreign country.
A)True
B)False
7
The child tax credit of $1,000 per child is available to children under the age of 16.
A)True
B)False
8
The maximum contribution amount for the retirement savings contributions credit is 20% of a taxpayer's AGI.
A)True
B)False
9
The maximum adoption credit is 50% of qualified expenses.
A)True
B)False
10
Earned income credit is NOT available for taxpayers without children.
A)True
B)False
11
Sam is a single dad with two dependent twin daughters, Amy and Amanda, ages 4. He has an 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?
A)$1,060.
B)$1,200.
C)$1,378.
D)$5,300.
12
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?
A)$450.
B)$600.
C)$800.
D)$1,200.
13
Which of the following statements is true with regard to child and dependent care expense credit?
A)The maximum amount of expenses for one dependent is 35% of all qualified expenses
B)Married taxpayers may file separate returns and may still qualify for the credit
C)If a spouse is attending school full time, the credit cannot be claimed
D)The credit phases out completely if the taxpayer's AGI exceeds certain amounts
14
Edward and Ethel are age 71 and 59, respectively, and file a joint return. They have AGI of $11,000 and received $2,000 in nontaxable Social Security benefits. How much can Edward and Ethel take as credit for the elderly or the disabled?
A)$375.
B)$1,125.
C)$2,000.
D)$2,500.
15
Juan paid $1,750 in qualifying expenses for his daughter who attended a community college. How much is Juan's lifetime learning credit without regard to AGI limitations or other credits?
A)$250.
B)$350.
C)$825.
D)$1,750.
16
Conner and Matsuko paid $1,000 and $2,000 in qualifying expenses for their two sons Jason and Justin, respectively, to attend the Arizona State University. Jason is a sophomore and Justin is a freshman. Conner and Matsuko's AGI is $152,000. What is their allowable Hope Credit after the credit phase-out based on AGI is taken into account?
A)$0.
B)$2,000.
C)$3,050.
D)$3,700.
17
Kim paid the following expenses during November 2007 for her son Joshua's spring 2008 college expenses, which begins in January 2008:
Tuition$16,000
Housing8,000
Meal plan4,500
In addition, Kim's sister paid $500 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 the purpose of the education credit deduction for Kim in 2007?
A)$8,000.
B)$16,500.
C)$24,000.
D)$28,500.
18
Molly is single with AGI of $22,500. During the year, she contributed $900 to an IRA. What amount of Retirement Savings Contributions Credit can Molly claim?
A)$0.
B)$90.
C)$180.
D)$900.
19
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 $132,000. What is their allowable Hope Credit after the credit phaseout based on AGI is taken into account?
A)$0
B)$2,000
C)$3,050
D)$3,700
20
Matt and Lilly installed solar panels for their heating at the cost of $6,550. The solar heating unit includes heating for their pool and spa. What amount of residential energy efficient property credit can they claim?
A)$0
B)$1,965
C)$2,000
D)$6,550
21
Alyssa and Parker have $74,000 total taxable income, which includes $13,500 of taxable income from France. They paid $3,600 in foreign income taxes, and their U.S. tax liability is $17,610. Alyssa and Parker's foreign tax credit is:
A)$0.
B)$3,213.
C)$3,600.
D)$13,500.
22
Brian and Clara paid $4,350 in foreign income taxes to Mexico. Their total income was $105,000, which included $12,000 of foreign income. Their U.S. tax liability is $27,750. How much can Brian and Clara claim as a foreign tax credit?
A)$0
B)$3,171.
C)$4,350.
D)$12,000.
23
Casey and Lupe have an AGI of $125,000. They have twin daughters, Ashley and Alley, ages 5. What amount of child tax credit can they claim?
A)$0.
B)$1,000.
C)$1,250.
D)$2,000.
24
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?
A)$0.
B)$1,000.
C)$2,000.
D)$2,500.
25
Jillian is single and her son, Parker is 12 years old. If her AGI is $77,000, what is her child tax credit for Parker?
A)$0
B)$500
C)$900
D)$1,000
26
Andrew and Eunice are married filing jointly with AGI of $48,000. They made $1,800 contribution to a qualified retirement plan. How much is their Retirement Savings Contributions Credit?
A)$0.
B)$180.
C)$900.
D)$1,800.
27
Vincent and Maria, who's modified AGI is $164,000, adopted a little girl from Mexico which was finalized in 2007. They incurred a total of $16,000 in qualified adoption expenses. What is the amount of adoption credit they can claim?
A)$11,390.
B)$12,000
C)$16,000.
D)$18,000.
28
Which of the following statements regarding adoption credits is true?
A)maximum credit allowed per adopted child is $16,000
B)Single taxpayers can take the credit, as long as they have been approved by an adoption agency
C)Adoption of foreign children does not qualify for the credit
D)Adoption credit is limited if AGI amounts exceed certain levels
29
Andy and Delilah both work and have one qualifying child. They had AGI of $22,000. What is their EIC?
A)$0.
B)$970.
C)$2,116.
D)$2,853.
30
Wanda and Xavier had a tax liability of $475 before EIC. Their EIC for the current year is $2,578. What is their total tax refund or tax liability for the current year?
A)$0
B)$475 tax liability
C)$2,103 tax refund
D)$2,578 tax refund





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