Nope

Emma (29) may not be claimed as a dependent on anyone else's return. Her filing status is single. During the year, she paid $2,500 in qualified student loan interest. Her modified adjusted gross income prior to subtracting any deductions is $75,000. If she has no other adjustments to income, what is the maximum amount she may claim for the student loan interest deduction?

$1,667?

The 2019 gross income filing requirement for a taxpayer who is age 65 or older, is not blind, and is filing as single is:

$13,850

Margaret and Chris began and finalized the adoption of a U.S. child with special needs in 2019. Their total adoption expenses were $2,080. Their modified adjusted gross income was $201,000. What is the maximum amount they may claim for the adoption credit?

$14,080

If a taxpayer claiming the American Opportunity Tax Credit (AOTC) has their tax liability reduced to zero, what is the maximum amount they may receive as a refundable credit?

40% of the credit, up to $1,000.

A taxpayer is NOT eligible to claim the Earned Income Tax Credit (EITC) if they had investment income in 2019 totaling more than:

$3,600?

Failure to meet the due diligence requirements when determining eligibility for the Child Tax Credit, Earned Income Tax Credit, American Opportunity Tax Credit, and head of household filing status could result in a penalty of:

$500, per return, assessed towards the tax preparer.

What amount should a taxpayer with two dependent children under age 13 use to calculate their Child and Dependent Care Credit? The taxpayer spent $14,000 for childcare expenses during the year. Their income from wages exceeded the amount spent on childcare, and they did not receive any employer dependent care benefits.

$6,000?

Vince and Grayson are married and will file a joint tax return. For 2019, their modified adjusted gross income was $110,000. Grayson has a bachelor's degree in journalism, but she wants to pursue a different line of work. She is currently attending a community college to earn her associate degree in nursing. She paid $3,000 for the fall semester. Vince is not a student. What amount can the couple claim for the lifetime learning credit?

$600

In 2018, Peggy paid $1,500 in qualified adoption expenses to adopt a U.S. child. The adoption was not finalized, and in 2019, she paid an additional $2,500 in qualified adoption expenses. The adoption failed again in 2019 and never became final. What is the maximum amount Peggy may be eligible to claim for the Adoption Credit on her 2019 return?

2,500?

Marietta will use the single filing status for 2019. She owns shares of stock, and during the year, she received dividends from this investment. She received a 2019 Form 1099-DIV from the company reporting a distribution of $1,000 in total ordinary dividends, shown in box 1, and qualified dividends of $1,000, shown in box 2. Marietta's only other income was from wages. Her taxable income for the year was $36,500. How much tax will she owe on the dividend income?

0

Will (43) and Teri (44) are married with no dependents. They will file separate returns for 2019. Will files his return first and claims total itemized deductions of $22,500. If Teri chooses to claim the standard deduction on her return, what is the maximum amount she may claim?

0

Xavier owns shares of a mutual fund. During the year, he received $2,800 in dividend distributions, $700 of which he received in cash. He elected to use the remaining $2,100 to purchase additional shares of the fund. The amount subject to tax is:

0

In 2018, Kirsten and Jeff paid $2,000 of qualified domestic adoption expenses. The adoption did not become final until 2019, and they paid an additional $3,000 in qualified expenses that year. Their modified adjusted gross income was $165,000. What is the maximum amount they may be eligible to claim for the Adoption Credit on their 2019 return?

14,080?

Ruth and Steve will file a joint return. During the year, they received dividends from a mutual fund investment, and they received a 2019 Form 1099-DIV reporting a distribution of $1,000 in total ordinary dividends, shown in box 1, and qualified dividends of $1,000, shown in box 2. Their only other income was from wages. Their taxable income for the year was $86,500. How much tax will they pay on their dividend income?

150 (or 300)

Elliana, a single taxpayer, had wage income of $58,750 in 2019. Her only other income was dividend income reported to her on Form 1099-DIV. She is required to file a Schedule B if her dividend income is greater than:

1500

McKenna (17) will be claimed as a dependent on her parents' tax return. During the year, she earned wages of $1,750 from a part-time job and $50 in interest from her savings account. The maximum amount McKenna may contribute to a traditional or Roth IRA for 2019 is:

1750

The maximum amount a taxpayer may claim for the American Opportunity Tax Credit (AOTC) is __________ per student.

2500

What is the 2019 gross income filing requirement for a married couple, filing jointly, where neither is blind, but one is age 65, and the other is age 60? They lived together all year.

25700

Emily (34) will use the head of household filing status. She has one dependent child, Harper (5). During the year, Emily spent $7,000 for Harper's childcare. Emily's income during the year totaled $58,000, all from wages. She did not receive any dependent care benefits from her employer. What amount may Emily use to calculate the Child and Dependent Care Credit?

3000

Choose the response that accurately completes the following sentence. A single dependent who is not blind and is under age 65 has a filing requirement if their gross income is more than the greater of $1,100 or their earned income (up to $11,850) plus:

350

Harold (71), a retired single taxpayer, received a monthly pension of $3,000 ($36,000 annually). He did not contribute any after-tax dollars to the plan while he was working; his employer paid all the costs. Harold received a 2019 Form 1099-R reporting a gross distribution of $36,000 in box 1, but box 2 of the form is blank. How much of Harold's pension distribution is taxable?

36000

Juanita, a single mother, has three children, Luis (7), Isaac (10), and Daniela (17). Juanita's adjusted gross income is $64,000, and her 2019 tax liability is $5,204. All three children are Juanita's qualifying child dependents. What is the total of Juanita's Child Tax Credit and credit for other dependents?

4500

Allister, who is 43 years old and single, earned $10,000 in wages in 2019. The maximum amount he can contribute to a traditional IRA for 2019 is:

6000

Jesse and Erin have four dependent children, ages 17, 15, 12, and 10. What is the maximum amount Jesse and Erin may be eligible to receive for the Child Tax Credit and the credit for other dependents?

6500

Mitch, who is 58 years old and single, earned $10,000 in wages in 2019. The maximum amount he can contribute to a traditional IRA for 2019 is:

7000

Which of the following items is included in federal gross income?

Alimony received in accordance with a divorce decree signed prior to 2019. No changes have been made to the agreement?

Which of the following is taxable income?

Alimony received in accordance with a divorce decree signed prior to December 31, 2018. No changes have been made to the agreement.

Which tax benefit for education is partially refundable?

American Opportunity Tax Credit.

Which taxpayer(s) is/are required to file a 2019 federal income tax return? None of the individuals are blind.

Antonio (33) has gross income of $4,300. His filing status is married filing separately.

Brianna timely filed her 2018 tax return on March 1, 2019. She had a balance due, which she paid on April 15, 2019. She later determined that she had failed to claim an education credit for which she was eligible. The credit would have reduced her tax liability that year. The latest Brianna can file an amended return to correct the originally filed 2018 return and claim the credit is:

April 15, 2021.

Don (54) has not yet reached the minimum retirement age. However, he suffers from a debilitating illness and retired on disability in 2019. While he was working, his employer paid for his disability policy with pre-tax dollars. How are Don's disability pension benefits reported on his tax return?

As other income on line 8 of Schedule 1 (Form 1040)?

All of the following are factors that usually determine whether a nondependent taxpayer is required to file a return EXCEPT:

Citizenship.

Read the following scenario, and then choose the response that accurately completes the last sentence. Michael (32) and Jen (27) married in March 2019. Zoe (8), Jen's child from a previous marriage, came to live with them on July 5, 2019. Prior to moving in with Michael and Jen, Zoe was supported by and lived with her father. Neither Jen nor Zoe's father have ever signed Form 8332, Release/Revocation of Release of Claim to Exemption by Custodial Parent. Michael and Jen are:

Eligible to claim Zoe as a qualifying relative

All of these are tests that determine whether an individual is a qualifying child EXCEPT:

Gross income

Roy (39) is a U.S. citizen. He was married at the beginning of 2019. His wife lived in the household until August. Their divorce was finalized on September 30, and Roy has not remarried. Roy provided 100% of the support for his son, who lived with him all year and is his qualifying child. Roy's most advantageous filing status is:

HOH

Sandra's (57) husband, Ben, died in 2017, and she has not remarried. Sandra's mother, Dorothy, lives in a nursing home. Dorothy's only income for 2019 consisted of $17,650 in social security benefits. Sandra pays the entire cost of the nursing home and more than 50% of Dorothy's support. Sandra does not have any children, and no one else lives with her. What is Sandra's correct and most favorable filing status?

HOH

Grant and Haley married in 2019. Grant owes $19,000 on his student loans, but he has not been paying on them, and they are in default. The couple filed a joint return for 2019, but the IRS offset their refund because of Grant's default on the loans. Haley is not obligated to pay Grant's loans, and she would like to receive her portion of their tax refund. As the couple's tax preparer, what advice would you offer?

Haley should request relief as an injured spouse.

Deductible medical expenses include payments made for all of the following EXCEPT:

Health club dues.

A taxpayer who claims the standard deduction rather than itemizing may still be eligible to claim all of the following adjustments to income EXCEPT:

Health savings account deduction?

Which of the following is an example of unearned income?

Interest earned on a savings account.

Which of the following is a type of nontaxable income that does not need to be reported on a federal tax return?

Interest income from municipal bonds.

Choose the response that completes the following sentence. A cash distribution from a qualified retirement account in which the taxpayer ONLY made pre-tax contributions:

Is always fully taxable.

Choose the response that accurately completes the following sentence. Claiming the Child and Dependent Care Credit is NOT allowed for taxpayers who:

Lived with their spouse for the entire year, but will file a separate return?

Rachel and Jeff were married 18 years ago. They had one child, Madeline (12). Jeff passed away in 2018, and Rachel has not remarried. Rachel and Madeline lived together all year long; no one else lived with them. Rachel paid all the expenses of maintaining their home. What is Rachel's most beneficial filing status for 2019?

MFJ

In June 2019, Kim filed for divorce from her husband, Eric. Although they lived apart for the last six months of the year, their divorce is not yet finalized; they are still legally married. Kim does not wish to file a joint 2019 return, and she has no qualifying child or qualifying relative. What filing status should Kim use?

MFS

All of these scenarios describe a person who may be the qualifying child of a taxpayer claiming the Earned Income Tax Credit (EITC) EXCEPT:

Maeve (24), a full-time student. The taxpayer is her 22-year-old sister

Review the following choices, then choose the only response that does NOT describe a due diligence requirement for an individual who is paid to prepare returns for taxpayers claiming the head of household filing status and/or one or more of the following credits: The Earned Income Tax Credit, the American Opportunity Credit, the Child Tax Credit/Additional Child Tax Credit, and the Other Dependent Credit.

Make additional inquiries to determine if the taxpayer is eligible for the credit whenever information provided appears to be incorrect, inconsistent, or incomplete. Then, document both the questions asked and the responses provided.

Which of the following tax benefits may reduce a taxpayer's tax liability below zero?

Nonrefundable credit?

Interest from a municipal bond investment is:

Not federally taxable, but must be reported on Form 1040.

All of these are requirements for a taxpayer to file as head of household EXCEPT:

Pay the medical, clothing, and educational expenses for themselves and any qualifying children or relatives.

Which of the following expense items should be included when determining whether a taxpayer who wishes to file as head of household paid more than half the cost of keeping up their home?

Real estate taxes

Taxpayers who receive more than $1,500 in interest income during the year must file:

Schedule B.

Isabella (21) is a full-time undergraduate student pursuing an accounting degree at her state university. During the year, she received a $7,000, unrestricted scholarship, reported to her on Form 1098-T rather than Form W-2. She spent $5,500 of the scholarship funds on her current-year tuition, and she applied the rest to room and board. Isabella also had income from a part-time job, and she is required to file a 2019 tax return. How does she report the scholarship on her Form 1040?

She should enter "SCH" and $7,000 on the dotted line next to line 8 of Schedule 1 (Form 1040).

Diego received a state income tax refund in 2019 for state taxes he overpaid in 2018. He was able to reduce his 2018 federal tax liability by itemizing and claiming a deduction for state and local income taxes paid that year. When Diego files his 2019 return, he may need to report all or part of the state tax refund he received in 2019 as:

Taxable additional income.

Lisa would like to claim her granddaughter, Denisha, as her qualifying child so she can claim the Earned Income Tax Credit (EITC). However, Denisha's mother, Taya, is also eligible to claim Denisha as her qualifying child for EITC purposes. As Lisa's tax preparer, what information would you share with Lisa?

Taya holds a higher right and may claim EITC based on Denisha, because Taya is Denisha's parent?

Pamelia is a single mother with two qualifying dependent children. The amount of her Child Tax Credit was limited by her tax liability. Pamelia may qualify for:

The Additional Child Tax Credit?

A taxpayer whose only capital gain income consists of dividend distributions from a mutual fund investment should compute their tax liability using:

The Qualified Dividends and Capital Gain Tax Worksheet.

In which of the following situations might it be appropriate for a married taxpayer filing a joint return to file an injured spouse claim?

The joint overpayment was applied to their spouse's past-due child support.

Which of these is a requirement for a taxpayer without a qualifying child to claim the Earned Income Tax Credit (EITC)?

They must have a valid social security number or ITIN to claim EITC the tax payer must have a valid SSN (or They must be at least 25 years old, but younger than age 65, on December 31, 2019)

Which of the following is included in an individual taxpayer's federal gross income?

Unemployment compensation.

Interest income from U.S. Treasury obligations, such as Treasury bills, notes, and bonds, is:

exempt form state and local income taxes subject to federal income tax taxed as interest income to investors and not as a capital gain .(or Federally taxable and must be reported on Form 1040)

Which of the following is NOT a requirement for a taxpayer to be eligible to claim the Earned Income Tax Credit (EITC)? The taxpayer must:

be a US citizen

Choose the response that best defines gross income.

idgaf

Marcus and Petrice were divorced on October 16, 2019. Neither has any dependents. Neither has remarried. The correct filing status they should each use is:

single

In 2019, Ana's (28) brother, Todd (19), her fiance, Jay (30), and her daughter, Alaina (4), lived with her for the entire year. Ana's adjusted gross income is $32,700, Todd's gross income is $5,000, Jay's gross income is $4,500, and Alaina has no income. None of the individuals in the household were students during the year. Neither Todd, nor Jay, nor Alaina provided over 50% of their own support. Ana qualifies for and files as head of household in 2019. How many qualifying dependents can Ana claim on her return?

three (or one)