17. Using the seven rules \& four additional rules for taxpayers without a qualifying child, determine if the following taxpayers qualify for the EIC in 2021. - A 69-year-old taxpayer with only Social Security income. - A 16-year-old student who earns \$7,000 at a part-time job. - A single, 32-year-old mechanic with \$23,000 of AGI and two children. - A 23-year-old single college student that is claimed as a dependent by her parents. Child and Dependent Care Credit 18. What was the child and dependent care credit created to do? 19. What conditions make a taxpayer eligible for the child and dependent care credit? 20. What are the qualifying expenses for the child and dependent care credit? 21. Allowable Credit (2021 only) - What is the child/dependent care credit based on? - Applicable percentage range - Phase-out for AGI between \& - Maximum credit allowed for one dependent is \& for two or more dependents 22. Allowable Credit (Before and After 2021) - The credit of of qualified expenses is adjusted for taxpayers with AGI above - Maximum credit allowed for one dependent is & for two or more dependents 23. Allowable Credit (All Years) - How must married taxpayers file to claim the child and dependent care credit unless they are legally separated? - What form is used to report the child and dependent care credit? The Affordable Care Act 24. What type of tax credit do eligible taxpayers receive under the ACA? 25. What are the requirements to receive the ACA credit? 26. True or False. Household income includes AGI of the taxpayer and the taxpayer's dependents, any tax-exempt income, and nontaxable Social Security benefits for the purpose of the premium tax credit. Education Tax Credits 27. What is the purpose of the American Opportunity Tax Credit? 28. True or False. The ATC is available for qualifying expenses paid on behalf of the taxpayer and his or her spouse. 29. What is the Lifetime Learning Credit? 30. True or False. Taxpayers can take both, AOTC and lifetime learning credit, for the same student and tax year. Foreign Exclusion and Tax Credit 31. To qualify for the foreign income exclusion, what must a taxpayer have? 32. What are the two reasons a taxpayer could incur foreign taxes? 33. What form is typically used to claim a foreign tax credit? If not using this form, the foreign tax credit is entered directly on what schedule? Adoption Expenses 34. What are the two tax breaks allowed for adoption expenses? 35. Explain the adoption credit. What is the amount of credit per adopted child? What are the phase-out amounts? 36. Domestic Multiyear Adoptions. What tax year is the credit allowed? 37. Foreign Multiyear Adoptions. What tax year is the credit allowed? Does the adoption have to be finalized? Energy Credits 38. What energy credits are available to taxpayers? 17. Using the seven rules \& four additional rules for taxpayers without a qualifying child, determine if the following taxpayers qualify for the EIC in 2021. - A 69-year-old taxpayer with only Social Security income. - A 16-year-old student who earns \$7,000 at a part-time job. - A single, 32-year-old mechanic with \$23,000 of AGI and two children. - A 23-year-old single college student that is claimed as a dependent by her parents. Child and Dependent Care Credit 18. What was the child and dependent care credit created to do? 19. What conditions make a taxpayer eligible for the child and dependent care credit? 20. What are the qualifying expenses for the child and dependent care credit? 21. Allowable Credit (2021 only) - What is the child/dependent care credit based on? - Applicable percentage range - Phase-out for AGI between \& - Maximum credit allowed for one dependent is \& for two or more dependents 22. Allowable Credit (Before and After 2021) - The credit of of qualified expenses is adjusted for taxpayers with AGI above - Maximum credit allowed for one dependent is & for two or more dependents 23. Allowable Credit (All Years) - How must married taxpayers file to claim the child and dependent care credit unless they are legally separated? - What form is used to report the child and dependent care credit? The Affordable Care Act 24. What type of tax credit do eligible taxpayers receive under the ACA? 25. What are the requirements to receive the ACA credit? 26. True or False. Household income includes AGI of the taxpayer and the taxpayer's dependents, any tax-exempt income, and nontaxable Social Security benefits for the purpose of the premium tax credit. Education Tax Credits 27. What is the purpose of the American Opportunity Tax Credit? 28. True or False. The ATC is available for qualifying expenses paid on behalf of the taxpayer and his or her spouse. 29. What is the Lifetime Learning Credit? 30. True or False. Taxpayers can take both, AOTC and lifetime learning credit, for the same student and tax year. Foreign Exclusion and Tax Credit 31. To qualify for the foreign income exclusion, what must a taxpayer have? 32. What are the two reasons a taxpayer could incur foreign taxes? 33. What form is typically used to claim a foreign tax credit? If not using this form, the foreign tax credit is entered directly on what schedule? Adoption Expenses 34. What are the two tax breaks allowed for adoption expenses? 35. Explain the adoption credit. What is the amount of credit per adopted child? What are the phase-out amounts? 36. Domestic Multiyear Adoptions. What tax year is the credit allowed? 37. Foreign Multiyear Adoptions. What tax year is the credit allowed? Does the adoption have to be finalized? Energy Credits 38. What energy credits are available to taxpayers