Comprehensive Test No. 12

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| By Lojones
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Quizzes Created: 5 | Total Attempts: 75
| Attempts: 13
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  • 1/12 Questions

    True or False: To be able to claim the credit for child and dependent care expenses, you must have paid someone to care for your qualifying person(s) while you (and your spouse if filing a joint return) work or look for work.

    • True
    • False
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About This Quiz

COMPREHENSIVE TEST NO. 12 assesses knowledge on tax credits related to child and dependent care expenses. It covers eligibility, necessary forms, and specific conditions under U. S. Tax law, focusing on real-life scenarios to enhance understanding and application of tax benefits.

Comprehensive Test No. 12 - Quiz

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  • 2. 

    True or False: To claim the child and dependent care credit you must complete Form 2441 and attach it to your Form 1040 or Form 1040-A. Enter the credit on line 49 of Form 1040 or line 31 of Form 1040-A.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Publication 17; Page 217

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  • 3. 

    True or False: To take the credit for the elderly or the disabled you must be a qualified individual and your income cannot be more than certain limits.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Publication 17; Page 218

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  • 4. 

    SITUATION: John is single, and a U.S. citizen. He retired on permanent and total disability at age 49. He received taxable disability benefits in 2014 and had not reached mandatory retirement age. Is John a qualified individual for the Credit for the Elderly or the Disabled?

    • YES

    • NO

    Correct Answer
    A. YES
    Explanation
    Publication 17; Page 218 & Figure 33-A on page 219

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  • 5. 

    SITUATION: Tom and Jane are married and will file a joint return. They lived together all year long. Both Tom and Jane are U.S. citizens. Jane turned 65 in 2014. Tom is 58 and retired on permanent and total disability. He received taxable disability payments during 2014 and has not reached mandatory retirement age. Which of them, if any, would be a qualified individual for the Credit for the Elderly or the Disabled?

    • Jane

    • Tom

    • Both Tom and Jane

    • Neither of them

    Correct Answer
    A. Both Tom and Jane
    Explanation
    Publication 17; Page 218 & Figure 33-A on page 219

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  • 6. 

    True or False: To claim the credit for the elderly or the disabled figure the amount of the credit using  Schedule R. If you file Form 1040 enter the credit amount from Schedule R on line 54 of Form 1040, check box c and enter "Sch R" on the line next to that box.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Publication 17; Page 220

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  • 7. 

    True or False: The child tax credit is a credit that may reduce your tax by as much as $1000 for each of your qualifying children.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Publication 17' Page 221

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  • 8. 

    True or False: The additional child tax credit is a credit you may be able to take if you are not able to claim the full amount of the child tax credit.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Publication 17; Page 221

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  • 9. 

    Billy has a son enrolled in his first year of college. Billy's son, Bobby, is a qualifying child on his 2014 tax return. Billy paid $4000 for tuition and fees, $395 for course related books, $600 for a new laptop for Bobby to use for homework, and $118 for pens, pencils, notebooks and other necessary school supplies. Assuming all qualifications will be met and no limitations will be exceeded, what is the amount of qualified education expenses paid for Bobby if Billy would claim an American opportunity credit on his return for tax year 2014?

    • $4000

    • $4395

    • $4995

    • $5113

    Correct Answer
    A. $5113
    Explanation
    Publication 17; Page 223 (Table 35-1)

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  • 10. 

    True or False: The amount of the child and dependent credit you can claim is generally limited to the amount of your tax and can be as much as 35% of your expenses.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Publication 17; Pages 211 & 217

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  • 11. 

    True or False: The lifetime learning credit can be as much as $2000 per eligible student.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    Publication 17; Page 223 (Table 35-1)

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  • 12. 

    CHECK ALL THAT APPLY: For purposes of the child and dependent care credit, what is a qualifying person?

    • A child who was your dependent and was under age 13 at the end of the year.

    • Your spouse who was mentally and physically unable to care for himself or herself and lived with you for more than half the year.

    • A person who was not physically or mentally able to care for himself or herself, lived with you for more than half the year and either was your dependent, or would have been your dependent except that s/he received gross income of $3950 or more, s/he filed a joint return or you, or your spouse if filing a joint return, could be claimed as a dependent on someone else's return.

    • ALL OF THE ABOVE.

    Correct Answer(s)
    A. Your spouse who was mentally and physically unable to care for himself or herself and lived with you for more than half the year.
    A. A person who was not physically or mentally able to care for himself or herself, lived with you for more than half the year and either was your dependent, or would have been your dependent except that s/he received gross income of $3950 or more, s/he filed a joint return or you, or your spouse if filing a joint return, could be claimed as a dependent on someone else's return.
    Explanation
    Publication 17; Page 211 & 213 (Person qualifying for part of year)

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  • Current Version
  • Apr 14, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Oct 27, 2015
    Quiz Created by
    Lojones
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