53

Marks: 1

You(age37)contribute $1,000 to your traditional IRA.What is the maximum you arethenallowed to contribute to a Roth IRA?

Choose one answer.

a.$1,000b.None of thesec.$5,000d.$2,000e.$6,000

Question

54

Marks: 1

The Child Tax Credit is anonrefundablecredit.

Choose one answer.

a.Falseb.True

Question

55

Marks: 1

To be a qualifying individual for purposes of the Child and Dependent Care Credit, a dependent can never be older than 13 years old.

Choose one answer.

a.Trueb.False

Question

56

Marks: 1

The Additional Child Tax credit is limited by your income tax liability if you have only onechild.

Choose one answer.

a.Trueb.False

Question

57

Marks: 1

For which of the following dependent children will a parent not be allowed a child tax credit?

Choose one answer.

a.12-year-old grandchildb.15-year-old daughterc.None of thesed.16-year-old foster childe.18-year-old son

Question

58

Marks: 1

Which of the following expenses qualifies for the Child and Dependent Care Credit?

Choose one answer.

a.Cooking & cleaning performed as part of in-home care of a disabled spouse.b.Cost of transporting a child to and from daycarec.Payments to your 18-year-old to care for his little sisterd.Tuition for your first gradere.None of these

Question

59

Marks: 1

Unemployment compensation is always subject to social security tax.

Choose one answer.

a.Falseb.True

Question

60

Marks: 1

John ismarried buthas not lived with his wife since May 1stof the tax year.His mother lived with him all year and he paid all the costs of keeping up the home.He can claim an exemption for his Mom.This taxpayer may file asHead ofHousehold.

Choose one answer.

a.Falseb.True

Question

61

Marks: 1

Herman and Doris are married and file MFJ. Herman received net SS benefits of $9,800 and Doris received net SS benefits of $4,500.Theironly other income Herman's taxable pension of $18,400.Which statement is true:

Choose one answer.

a.Only a percentage of Herman's SS benefits are taxableb.A percentage of their combined SS benefits is taxablec.None of their SS benefits are taxabled.100% of their SS benefits are taxable

62

Marks: 1

Regardless of your other income and your filing status, your SS benefits will be taxed at an 85% tax rate.

Choose one answer.

a.Trueb.False

Question

63

Marks: 1

Self-employed individuals may not establish IRA'S.

Choose one answer.

a.Falseb.True

Question

64

Marks: 1

A sonqualifies forHOHfiling statusfor a father who liveson his ownin an apartment.The sonprovides over half of hisfather'ssupport. The fatherearns $4,200in grossrental income,ofwhich he put $500 in savings.

Choose one answer.

a.Trueb.False

Question

65

Marks: 1

Short term capital gains and losses are reportedto the taxpayeron:

Choose one answer.

a.Part I of Schedule Db.Schedule Bc.Part II of Schedule Dd.Form 1099Be.None of these

Question

66

Marks: 1

The gain or loss from the disposition of a capital asset is considered short term if held for:

Choose one answer.

a.More than 1 yearb.1 year and underc.None of thesed.Less than 1 yeare.1 year exactly

Question

67

Marks: 1

Which of the following are qualifying individuals for the Child and Dependent Care Credit?

Choose one answer.

a.Your spouse who is mentally incapable of self-care.b.All of thesec.None of thesed.Your dependent, age 15, who is physically incapable of self-care.e.Your dependent child under age 13

Question

68

Marks: 1

There is a penalty if a 45-year-oldtotally-permanently disabled man takes a withdrawal fromhis IRA.

Choose one answer.

a.Falseb.True

Question

69

Marks: 1

The maximum allowable expenses for Child andDependentCareCredit for one child is:

Choose one answer.

a.$6,000b.$1,200c.$2,100d.None of thesee.$3,000

Question

70

Marks: 1

Which of the following is not a test for a qualifying relative dependency?

Choose one answer.

a.Citizenshipb.Supportc.Aged.Gross incomee.None of these

71

Marks: 1

The Child & Dependent Care Tax Credit may be claimed by a taxpayer filing as MFS.

Choose one answer.

a.Falseb.True

Question

72

Marks: 1

For the purposes of the Child Tax Credit, a qualifying individual includes a disabled child over the age of 16.

Choose one answer.

a.Trueb.False

Question

73

Marks: 1

Which of the following relatives must live with you the entire year to qualify you for HOH filing status:

Choose one answer.

a.Grandchildb.Cousinc.None of thesed.Son or Daughtere.Parent

Question

74

Marks: 1

Cliff and Debra send their daughter Julia (born9/1/2006) to childcare while they both worked. Can they claim the credit for child and dependent care expenses?

Choose one answer.

a.Yes, but for only 8 monthsb.No, she is too old this yearc.Yes, for the whole yeard.None of thesee.Yes, but for only 4 months

Question

75

Marks: 1

A taxpayer is required to have withholdingsfrom social security income.

Choose one answer.

a.Trueb.False

Question

76

Marks: 1

A father can claim dependency for a son, under 19 years of age, who earns $4,500, aslong as the child did not provide over half of his own support.

Choose one answer.

a.Falseb.True

Question

77

Marks: 1

An ex-husband can continue to claim a dependency, if qualified,for a father-in-law after adivorce.

Choose one answer.

a.Falseb.True

Question

78

Marks: 1

Two siblings each pay 30% of their parents support so they can decide who will claimthe parents with a multiple support agreement.

Choose one answer.

a.Trueb.False

Question

79

Marks: 1

The "Cash" method of accounting is used when money is earned, not received.

Choose one answer.

a.Falseb.True

80

Marks: 1

Choose the refundable credit.

Choose one answer.

a.None of theseb.Child Tax Creditc.Additional Child Tax Creditd.Dependent and Care Credite.Lifetime and Learning Credit

Question

81

Marks: 1

The Other Dependent Credit is?

Choose one answer.

a.None of theseb.$3,000c.$1,400d.$500e.$2,000

Question

82

Marks: 1

You can deduct as an itemized deduction charitable contributionall themoney youcontributedto your coworkers "Go fund me" account set up for her heart surgery.

Choose one answer.

a.Trueb.False

Question

83

Marks: 1

The refundable percentage of the American Opportunity Credit is:

Choose one answer.

a.10%b.60%c.40%d.85%e.None of these

Question

84

Marks: 1

What is the maximum number of dependents that may be claimed for the Earned Income Credit?

Choose one answer.

a.0b.1c.None of thesed.2e.3

Question

85

Marks: 1

Which is the Nonrefundable credit

Choose one answer.

a.Student Loan Interestb.Earned Income Creditc.Other Dependent Creditd.None of thesee.Additional Child Tax Credit

Question

86

Marks: 1

The penalty on an early withdrawal from a retirement plan (not including exceptions) is:

Choose one answer.

a.10%b.25%c.85%d.50%

Question

87

Marks: 1

John's wife did not live with John all year. John's grandmother lived with him and he paid 100% of her support. John can file as Head of Household because he can be considered unmarried?

Choose one answer.

a.Falseb.True

Question

88

Marks: 1

Jason (18) is a freshman at the local college. His parents claim him as a dependent.His grandparents paid his tuition and fees. Who can claim the American Opportunity Credit?

Choose one answer.

a.No oneb.Jason's grandparentsc.Jasond.Jason's parentse.None of these