1. Russ and Linda are married and file a joint tax return claiming their three children, ages 4, 7, and 18, as dependents. Their adjusted gross income for 2014 is $105,300. What is Russ and Linda’s total child credit for 2014?
a. $600
b. $1,000
c. $2,000
d. $3,000
e. Some other amount
2. Jennifer is divorced and files a head of household tax return claiming her children, ages 4, 7, and 17, as dependents. Her adjusted gross income for 2014 is $81,300. What is Jennifer’s total child credit for 2014?
a. $850
b. $1,200
c. $1,650
d. $2,000
e. Some other amount
3. Assuming they all meet the income requirements, which of the following taxpayers qualify for the earned income credit in 2014?
a. A married taxpayer who files a separate tax return and has a dependent child
b. A single taxpayer who waited on tables for 3 months of the tax year and is claimed as a dependent by her mother
c. A single taxpayer who is self-employed and has a dependent child
d. a and c above
e. None of the above qualify for the earned income credit
4. Which of the following payments does not qualify as a child care expense for purposes of the child and dependent care credit?
a. Payments to a day care center
b. Payments to the taxpayer’s sister (21 years old) for daytime babysitting
c. Payments to a housekeeper who also babysits the child
d. Payments to the taxpayer’s dependent brother (16 years old) for daytime babysitting
e. All of the above qualify for the child and dependent care credit
5. Which of the following taxpayers will require a payment for the individual shared responsibility?
a. Jim’s income was only $2,000 for the year, his employer did not provide health insurance, and the premiums for the cheapest plan on the exchange were $125 per month which he could not afford and thus did not purchase insurance.
b. Peg changed jobs during the year and was without coverage for 2 months.
c. Alice filed Form 8965 due to a hardship exemption.
d. Bill, a self-employed architect, had a physical in January and was found to be in good health so he canceled his health insurance policy starting in February. His income for the year was about $110,000.
e. All but c will be required to pay an individual shared responsibility amount.
6. James did not have minimum essential coverage for any part of 2014. If James is single and has 2014 adjusted gross income of $46,000, what is his individual shared responsibility payment?
a. $0
b. $95
c. $359
d. $460
7. The American Opportunity tax credit is 100 percent of the first of tuition and fees paid and 25 percent of the next.
a. $600; $1,200
b. $1,100; $550
c. $2,000; $2,000
d. $1,100; $5,500
e. None of the above
8. Jane graduates from high school in June 2014. In the fall, she enrolls for six units at Big State University. Big State University considers students who take twelve or more units to be full-time. Jane’s father pays her tuition and fees of $2,500 for the fall semester and in December prepays $2,500 for the spring semester. In 2014, the American Opportunity tax credit for Jane’s tuition and fees before any AGI limitation is:
a. $5,000
b. $2,500
c. $2,200
d. $1,800
e. Some other amount
9. In September 2014, Sam pays $2,200 to take a course to improve his job skills to qualify for a new position at work. Assuming there is no phase-out of the credit, his lifetime learning credit for 2014 is:
a. $220
b. $240
c. $360
d. $1,100
e. Some other amount
10. In November 2014, Simon pays $6,200 to take a course to improve his job skills to qualify for a new position at work. Simon’s employer reimbursed him for the cost of the course. For 2014, Simon’s lifetime learning credit is:
a. $0
b. $1,000
c. $2,500
d. $1,500
e. Some other amount
11. John, a single father, has AGI of $51,000 in 2014. In 2014, he pays $4,000 in qualified tuition for his dependent son, who just started attending Small University. What is John’s American Opportunity tax credit for 2014?
a. $0
b. $800
c. $2,500
d. $4,000
e. Some other amount