1. Fred prepared his own tax return last year. This year, Fred decided to have his tax return prepared by a professional. During the interview process Fred's tax preparer realized Fred needs to repay the education credit he took for his son last year. For which of the following reasons would a taxpayer be required to repay an education credit? a) Taxpayer received a refund of personal living expenses b) Taxpayer received tax-free educational assistance for an expense used to calculate a higher education credit on their return c) Taxpayer received a refund of transportation expenses d) Taxpayer received a gift from relative to help pay the lodging expenses 2. Where should the repayment of the education credit Fred claimed in a previous year be reported? a) On Form 8863 b) Is not reported c) On line 44, Form 1040 d) On an amended return for the year the credit was claimed 3. Mr. Smith's neighbor tells him about the mortgage interest credit he took on his return. Now, Mr. Smith wonders if he is also eligible for a mortgage interest credit. He checks with his tax preparer to find out what would make him eligible. Which of the following would qualify a taxpayer for a mortgage interest credit? a) Owned a home b) Paid mortgage interest c) Received a mortgage credit certificate d) Files a Schedule A 4. Which of the following is an invalid condition in which Mr. Smith's mortgage credit certificate must be used? a) The purchase of the certificate holder's main home b) The qualified rehabilitation of the certificate holder's main home c) Qualified home improvement of the certificate holder's main home d) The qualified refinancing of the certificate holder's main home 5. Ellen and her husband separated in November. She wants to be able to claim the child and dependent care credit for her 6-year son who lives with her. Which of the following is not one of the four conditions that must be met for a separated married taxpayer to be considered unmarried and eligible to claim the dependent care credit? a) The taxpayer must file a separate return. b) The taxpayer's home is the home of a qualifying individual for more than half the year. c) The taxpayer's spouse must sign a release to allow the taxpayer to claim the dependent care credit. d) The taxpayer paid more than half the cost of keeping up his home for the year.