NOTE: All questions will be based on Tax Cuts & Jobs Act (TCJA) and tax returns prepared after 2017

33) The American Opportunity Credit is partially refundable.

A) TRUE

B) FALSE

34) For purposes of the child and dependent care credit, qualifying employment-related expenses cannot include payments to a relative.

A) TRUE

B) FALSE

35) Qualified tuition and related expenses eligible for the American Opportunity Tax Credit are limited to those incurred the first two years of postsecondary education.

A) TRUE

B) FALSE

36) Nonrefundable tax credits

A) only offset a taxpayer's tax liability in the current year.

B) may only be used if the taxpayer is receiving a refund.

C) can be carried back two years and carried forward 15 years if they exceed tax liability in the current year.

D) allow the excess over the taxpayer's tax liability to be paid to the taxpayer.

37) Refundable tax credits

A) only offset a taxpayer's tax liability.

B) may only be used if the taxpayer is receiving a refund.

C) have all expired but may be reinstated with new tax legislation.

D) allow the excess over the taxpayer's tax liability to be paid to the taxpayer.