Part I True and False 3 Points each ____ Unlike adjustments, exemptions and deductions which apply to income, tax credits apply to your tac liability ____ Some credits are refundable, which means you can receive payment for them even if you don't owe any income tax. ____ The Earned Income credit can be up to S6143 Per year for 1 child. ____ The American Opportunity Credit is partially a refundable credit of up to S2500 per year for enrollment fees, tuition and course material for the first 4 years of post secondary education ____ The lower the number of exemptions the more money they deduct from your check. ____ If and individual pays Child support you can claim the child as a dependent Part II Complete the Following Statement A ____ takes an amount from Income: a ____ takes an amount from the tax liability You should get a ____ by Feb 15^th if you were an employee for the previous year. It is only better to itemize deductions if the amount is ____ than the standard deduction. AGI stands for ____. Another Name for The Schedule C is the ____ tax form. If 4 Exemptions are claimed on the 1040 then you get ____ deducted from AGI. On The Schedule C the bottom line is either a ____ or a _____. If a taxpayer is married and files separately then the ____ and ____ must be included on the return If a taxpayer is divorced and receives ____ it must be included as income on my return