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Question

Which of the following tax credits would be refundable if the amount of the credit exceeds tax

liability?

Question 1 options:


a) 

Dependent Care Credit


b) 

Earned Income Credit


c) 

Adoption Credit


d) 

Savers Credit

Question 2 (5 points)

 

When would you use the Tax Computation worksheet instead of a tax table to determine tax liability?

Question 2 options:


a) 

When taxable income is $100,000 or more


b) 

When the taxpayer uses Form 1040A


c) 

When a taxpayer itemizes deductions


d) 

When a taxpayer files electronically

Question 3 (5 points)

 

What is the maximum EIC credit a taxpayer with two qualifying children can take in 2018 assuming the taxpayer meets all the qualifying tests?

Question 3 options:


a) 

$3,461


b) 

$5,716


c) 

$6,431


d) 

$510

Question 4 (5 points)

 

Which of the following types of payments do not qualify for the child and dependent care credit?

Question 4 options:


a) 

Payments to a registered child care center


b) 

Payments to a taxpayer's 17-year-old daughter


c) 

Payments to a taxpayer's 21-year-old daughter who is not a dependent


d) 

None of the above

Question 5 (5 points)

 

What is the maximum adoption credit for married taxpayers filing jointly with modified adjusted income of $75,650?

Question 5 options:


a) 

$12,760 annually


b) 

$9,020 per child


c) 

$ 4,550 per child


d) 

$ 13,570 per child

Question 6 (5 points)

 

What is the penalty for a taxpayer who fraudulently claims the EIC?

Question 6 options:


a) 

Fine of 2 times the EIC claimed


b) 

EIC claims disallowed for 2 years


c) 

EIC claims disallowed for 10 years


d) 

Repayment of the EIC amount claimed plus interest and penalties

Question 7 (5 points)

 

How has the tax code discouraged income splitting between parents and minor children?

Question 7 options:


a) 

Imposing a kiddie tax that taxes a child's investment income if it exceeds $ 2,100


b) 

Barring a dependent child from claiming a personal exemption on his or her tax return


c) 

Limiting the standard deduction for a dependent child who has only investment income to $ 1,050


d) 

All of the above

Question 8 (5 points)

 

Which of the following is required for parents to elect to include a child's gross income on their tax return?

Question 8 options:


a) 

The child's gross income is from interest, dividends, and wages.


b) 

An estimated tax has already been paid in the name of the child.


c) 

The interest and dividends is more than $ 1,050 but less than $ 10,500.


d) 

The child is subject to backup withholding.

Question 9 (5 points)

 

For 2018, the alternative minimum tax exemption allowance for a married couple filing jointly is

Question 9 options:


a) 

$42,250.


b) 

$54,700.


c) 

$70,300.


d) 

$109,400.

Question 10 (5 points)

 

Which of the following statements concerning the unearned income of minor children is false?

Question 10 options:


a) 

The net unearned income of minor children may not be taxed at parental rates.


b) 

The IRS has made provisions to limit parents' ability to shift their income to minor children.


c) 

The "kiddie tax" rate may apply when a child's tax rate is lower than the parent's.


d) 

The "kiddie tax" computation does not apply if both parents are deceased at the end of the tax year.

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