a) A taxpayer should include which of the following when figuring their federal gross income?

Disaster relief payments.

Federal income tax refunds.

Gifts and inheritances.

Ordinary dividends.

b) A child no longer qualifies a taxpayer for the Child Tax Credit in the year the child reaches:

Age 17.

Age 18.

Age 19.

Age 19, or age 24 if the child is a full-time student.

c) A paid tax preparer must demonstrate due diligence. Review the following scenario, and then choose the appropriate response. Cherylynn Johnson (58) comes in to your office to have her tax return prepared. She states that she wants to use the head of household filing status and claim the Earned Income Tax Credit (EITC). She also tells you that her dependent child is her granddaughter, Alana (12), who currently lives with her. All of the following are appropriate questions to ask or actions to take EXCEPT:

Ask Cherylynn how long Alana has lived with her and inquire into the whereabouts of Alana's parents.

Ask Cherylynn who paid most of the expenses of maintaining her home.

Inform Cherylynn that she must provide you with documentation proving Alana lived with her before you can prepare the return.

Inquire whether the IRS has ever denied or reduced Cherylynn's EITC in a prior year.