FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 12: Tax Credits and Payments

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

True/False

Review LaterAdd Note

Review Later

Qualified rehabilitation expenditures include the cost of acquiring the building and the land.

A) True
B) False

Correct Answer

verified

Show Answer

Question 2

True/False

Review LaterAdd Note

Review Later

A taxpayer who qualifies for the low-income housing credit claims the credit over a 10-year period.

A) True
B) False

Correct Answer

verified

Show Answer

Question 3

Multiple Choice

Review LaterAdd Note

Harry and Wilma are married and file a joint income tax return.On their tax return,they report $44,000 of adjusted gross income ($20,000 salary earned by Harry and $24,000 salary earned by Wilma) and claim two exemptions for their dependent children.During the year,they pay the following amounts to care for their 4-year old son and 6-year old daughter while they work. Harry and Wilma may claim a credit for child and dependent care expenses of:

The maximum child tax credit under current law is $1,500 per qualifying child.

The education tax credits (i.e.,the American Opportunity credit and the lifetime learning credit)are available to help defray the cost of higher education regardless of the income level of the taxpayer.

Discuss the treatment of unused general business credits.

Realizing that providing for a comfortable retirement is up to them,Jim and Julie commit to making regular contributions to their IRAs,beginning this year.Consequently,they each make a $2,000 contribution to their traditional IRA.If their AGI is $37,000 on their joint return,what is the amount of their credit for certain retirement plan contributions?

Any unused general business credit must be carried back 3 years and then forward for 20 years.

Child and dependent care expenses include amounts paid for general household services.

Expenses that are reimbursed by a taxpayer's employer under a dependent care assistance program canalso qualify for the credit for child and dependent care expenses.

Which of the following statements regarding the adoption expenses credit is not true?

All taxpayers are eligible to take the basic research credit.

The American Opportunity credit is available per eligible student,while the lifetime learning credit is calculated per taxpayer.

In computing the foreign tax credit,the greater of the foreign income taxes paid or the overall limitation is allowed.

Which,if any,of the following correctly describes the research activities credit?

Qualifying tuition expenses paid from the proceeds of a tax-exempt scholarship do not give rise to an education tax credit.

The credit for child and dependent care expenses is an example of a refundable credit.

A taxpayer's earned income credit is dependent on the number of his or her qualifying children.

Unless a taxpayer is disabled,the tax credit for the elderly or disabled is available only if the taxpayer is at least 59 1/2 years old.

Molly has generated general business credits over the years that have not been utilized.The amounts generated and not utilized follow: In the current year,2011,her business generates an additional $15,000 general business credit.In 2011,based on her tax liability before credits,she can utilize a general business credit of up to $20,000.After utilizing the carryforwards and the current year credits,how much of the general business credit generated in 2011 is available for future years?