1.

If used to pay tuition at an eligible educational institution, which of the following would reduce the amount of qualified education expenses a taxpayer could use to claim education credit on his tax return?

Select one:

a. A family inheritance

b. A student loan

c. A gift from a friend

d. A Pell grant

2. Judi and May adopted a child in 2018. Their adoption expenses include $3,500 of court fees, $6,880 of traveling fees, and $3,250 of attorney fees. The child is not a special needs child. They also received a $2,250 reimbursement from their employer for adopting the child. Their modified AGI is $200,500. What is the amount of their adoption credit in 2018?

Select one:

a. $11,560

b. $13,630

c. $11,380

d. $13,810

3.

Junie Jones, a tax preparer, explains to Scott that the foreign income taxes he paid may be claimed in which of following ways on his 2018 tax return?

Select one:

a. Only reported on Schedule 3 (Form 1040), line 48

b. Either on Schedule 3 (Form 1040), line 48 or on Schedule A as Other taxes if he itemizes deductions

c. Only reported on Schedule A as Other taxes if he can itemize deductions

d. Both on Schedule 3 (Form 1040), line 48 and on Schedule A as Other taxes if he itemizes deductions

4.

Tom is a retired railroad worker and receives both Tier I and Tier II Railroad Retirement benefits. His Tier I Railroad Retirement benefits are reported on Form RRB-1099. Where should Tom report his Tier I benefit?

Select one:

a. Form 1040, line 5a and 5b

b. They are not taxable.

c. Schedule 1 (Form 1040), line 21

d. Form 1040, line 4a and b.

5.

Toms Tier II Railroad Retirement benefits are reported on Form RRB-1099-R. Toms tax preparer must know all the following to calculate the taxable amount of Tier II Railroad Retirement benefits using the Simplified Method, except:

Select one:

a. How much has been recovered tax-free since 1986

b. The age at which the taxpayer started drawing retirement

c. The current age of the taxpayer

d. The number of payments received in the year