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17 .The amount of Gordon’s standard deduction is $__________ .18 .Gordon’s federal income tax withholding is $1,500 .a .Trueb .False19 .Gordon must use Form 8888 to split his refund between his checking and savings accounts .
Basic Scenarios Retest Questions65Basic Scenario 8: Retest QuestionsDirectionsRead the information for Valerie Sinclair beginning on page 39 .20 .Ethan, Patrick, and Annie are all qualifying persons allowing Valerie to file Head of Household .21 .Valerie can claim Ethan as a qualifying child for the earned income credit .22 .What is the total federal income tax withholding on Valerie’s tax return?a .$2,700b .$2,800c .$3,060d .$4,64623 .What is Valerie’s credit for child and dependent care expenses shown on her Form 1040, page 2?$________ .24 .The student loan interest deduction on Valerie’s Form 1040, page 1 is $700 .25 .Valerie must pay a 25% additional tax on the distribution from her 401(k) because she is under 59 1/2 years old and does not qualify for an exception .
Basic Scenarios Retest Questions66Basic Scenario 9: Retest QuestionsDirectionsRead the information for Justin Reedley and Jenna Washington, beginning on page 48 .26 .Which expenses can be claimed on Justin and Jenna’s Schedule A as itemized deductions? (Select all that apply) 27 .Justin and Jenna do nothave to report their state refund of $160 on their 2017 tax return .a .Trueb .False28 .The books and tuition costs are both qualifying expenses for the lifetime learning credit .29 .The amount of the earned income tax credit shown in the payments section on page 2 of Justin and Jenna’s Form 1040 is $________ .30 .The penalty for early withdrawal of savings is reported in the Adjusted Gross Income section on page 1 of Form 1040 .