Comprehensive Test No. 12

Question 1 / 12

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1. 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

Publication 17; Page 211

Explanation

Publication 17; Page 211

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... see morelaw, focusing on real-life scenarios to enhance understanding and application of tax benefits. see less

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

Publication 17; Page 217

Explanation

Publication 17; Page 217

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

Publication 17; Page 218

Explanation

Publication 17; Page 218

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

Publication 17; Page 218 & Figure 33-A on page 219

Explanation

Publication 17; Page 218 & Figure 33-A on page 219

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

Publication 17; Page 218 & Figure 33-A on page 219

Explanation

Publication 17; Page 218 & Figure 33-A on page 219

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

Publication 17; Page 220

Explanation

Publication 17; Page 220

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

Publication 17' Page 221

Explanation

Publication 17' Page 221

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

Publication 17; Page 221

Explanation

Publication 17; Page 221

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

Publication 17; Page 223 (Table 35-1)

Explanation

Publication 17; Page 223 (Table 35-1)

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

Publication 17; Pages 211 & 217

Explanation

Publication 17; Pages 211 & 217