1. Over the years, Monica contributed $15,000 to a Roth IRA opened 10 years ago. The IRA has a current value of $37,500. She is 54 years old and takes a distribution of $25,000. How much of the distribution will be taxable to Monica?

A. 10,000

B. 25,000

C. 0

D. 15,000

E. 37,500

2. Jim lives in California. What is Jim's deadline for making a contribution to traditional IRA or a Roth IRA for 2020?

A. December 31, 2020

B. April 15, 2021

C. April 15, 2020

D. October 15, 2021

3. Donald, a 40-year-old married taxpayer, has a salary of $55,000 and interest income of $6,000. He is an active participant in his employer's pension plan. What is the maximum amount Donald can contribute to a Roth IRA in 2020?

A. $1,220

B. $3,000

C. $610

D. $6,000

E. $550

4. Which of the following tax credits is not available for the 2020 tax year?

A. Child and dependent care credit

B. Foreign tax credit

C. Adoption credit

D. Earned income credit

E. All of these choices are available credits.

5. Monica contributed $15,000 to a Roth IRA when she opened the account 10 years ago. The IRA has a current value of $37,500. She is 64 years old and takes a distribution of $25,000. How much of the distribution will be taxable to Monica?

A. $25,000

B. $10,000

C. $15,000

D. $37,500

E. $0

6. In 2020, which of the following early (before age 59 1/2) withdrawals from a IRA may be made without penalty?

A. For adoptions expenses (up to $5,000)

B. To pay for the cost of higher education

C. To pay for first-time home expenses (up to $10,000)

D. To a taxpayer with COVID-19 (up to $100,000)

E. All of these withdrawals may be made without penalty.

7. In 2020, the child tax credit available to married taxpayers filing jointly is phased out, beginning at:

A. $110,000

B. $400,000

C. $200,000

D. $406,750

8. The use of the earned income credit could result in a taxpayer receiving a refund even though he or she has not paid any income taxes.

True

False

9. In 2020, Alex has income from wages of $16,000, adjusted gross income of $18,000, and tax liability of $300 before the earned income credit. What is the amount of Alex's earned income credit for 2020, assuming he is single and his 5-year-old dependent son lives with him for the full year?

A. $3,584

B. $2,000

C. $3,461

D. $0

E. None of these choices are correct.

10. Harold goes to Tri-State University and pays $40,000 in tuition. Harold works to pay for his schooling and has an AGI of $37,000. How much is his American Opportunity tax credit?

A. $2,000

B. $1,000

C. $4,000

D. He does not qualify for the American Opportunity tax credit.

E. $2,500