Question : 31. Which one of the following taxpayers qualify for the earned : 1313561

 

31. Which one of the following taxpayers qualify for the earned income credit?

a. A 70-year-old doctor whose practice had a net loss and who has an AGI of $5,000 in 2014.

b. An 18-year-old college student who earns $8,000 at a part-time job.

c. A couple who have a combined AGI of $17,000 and three children but file separately.

d. A 31-year-old construction worker with $22,000 of AGI and two children.

e. None of the above qualifies for the earned income credit.

32. For the 2014 tax year, Sally, who is divorced, reported the following items of income: 

Interest income$   600

Wages$4,000

Earnings from self-employment$3,000

She maintains a household for herself and her 1-year-old son who qualifies as her dependent. What is the earned income credit available to her for 2014, using the tables?

a. $1,029

b. $1,369

c. $2,389

d. $2,593

e. None of the above

33. Which of the following tax credits is not available for the 2014 tax year?

a. Foreign tax credits

b. Earned income credit

c. Adoption credit

d. Child and dependent care credit

e. All of the above are available credits

34. Clark, a widower, maintains a household for himself and his two dependent preschool children. For the year ended December 31, 2014, Clark earned a salary of $32,000. He paid $3,500 to a housekeeper to care for his children in his home, and also paid $1,500 to a kiddie play camp for child care. He had no other income or expenses during 2014. How much can Clark claim as a child care credit in 2014?

a. $910

b. $1,300

c. $2,000

d. $5,000

e. None of the above

35. Jessica and Robert have two young children. They have $7,000 of qualified child care expenses and an AGI of $20,000 in 2014. What is their allowable child care credit?

a. $1,920

b. $2,240

c. $2,000

d. $6,000

e. $7,000

36. The child and dependent care provisions:

a. Apply only to children under age 15.

b. Are available only to single parents.

c. Are available for spouses incapable of self-care.

d. Are allowed only for taxpayers earning less than $43,000.

37. Robert and Mary file a joint tax return for 2014, with adjusted gross income of $30,000. Robert and Mary earned income of $20,000 and $12,000 respectively, during 2014. In order for Mary to be gainfully employed, they pay the following child care expenses for their 4-year-old son, John: 

Union Day Care Center$1,700

Wilma, baby sitter (Robert’s mother)$1,000

What is the amount of the child and dependent care credit they should report on their tax return for 2014?

a. $270

b. $459

c. $650

d. $729

e. None of the above

38. Hal is enrolled for one class at a local community college; tuition cost him $190. Hal’s AGI is $20,000. Hal can take a lifetime learning credit of:

a. $0

b. $38

c. $100

d. $190

e. $250

39. Keith has a 2014 tax liability of $2,250 before taking into account his American Opportunity credit. He paid $2,600 in qualifying expenses, was a full-time student, was not claimed as a dependent on his parents’ return, and his American Opportunity credit was not subject to phase out. What is the amount of his American Opportunity credit allowed?

a. $0

b. $2,150

c. $2,250

d. $2,600

e. $4,000

40. The American Opportunity credit

a. Is 50 percent of the first $1,200 of tuition and fees paid and 100 percent of the next $1,200.

b. Is available for 2 years of post-secondary education.

c. Is fully refundable even if the credit exceeds the tax liability.

d. Is available for qualifying expenses paid on behalf of the taxpayer and his or her spouse, in addition to those paid for dependents.

 

 

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