Flag question: Question 231

Question 2311 pts

Charles is 67 years old. In 2021, his Adjusted Gross Income is $75,000, and he received $10,000 in Social Security benefits. How much of a Credit for the Elderly and Disabled can he claim on his 2021 Federal Income Tax Return?

Group of answer choices

$0

$500

$5,000

$10,000

Flag question: Question 232

Question 2321 pts

In 2021, Mason's Adjusted Gross Income is $150,000. In 2021, he incurred $10,000 of qualified Adoption expenses. How much of a Credit for Adoption Expenses can he claim on his 2021 Federal Income Tax Return?

Group of answer choices

$10,000

$0

$5,000

$2,500

Flag question: Question 233

Question 2331 pts

In 2019, Jill obtained a mortgage that had a mortgage guarantee from a local governmental unit to buy a house. Jill received a qualified Mortgage Credit Certificate with the mortgage. The Mortgage Credit Certificate listed a Credit Percentage of 50%. In 2021, Jill's Adjusted Gross Income is $50,000, and she paid $5,000 in interest. How much of a credit can Jill claim for Interest on Mortgage Credit Certificate on her 2021 Federal Income Tax Return?

Group of answer choices

$5,000

$2,500

$2,000

$0

Flag question: Question 234

Question 2341 pts

Which of the following DO NOT qualify as expenses eligible for the American Opportunity Credit? Assume that all of the following expenses were at a qualifying educational institution.

Group of answer choices

Tuition

Books

Room and Board

School fees

Flag question: Question 235

Question 2351 pts

In 2021, Amy incurred $5,000 of qualified education expenses for the American Opportunity Education Tax Credit. Amy is in her second year of undergraduate studies, and qualifies for the American Opportunity Tax Credit. Amy's filing status is Single. In 2021, Amy's Adjusted Gross Income was $50,000. How much of an American Opportunity Education Tax Credit can Amy claim in 2021 on her Federal Income Tax Return?

Group of answer choices

$2,500

$2,000

$5,000

$0

Flag question: Question 236

Question 2361 pts

In 2021, Amy incurred $5,000 of qualified education expenses for the Lifetime Learning Education Tax Credit. Amy qualifies for the Lifetime Learning Education Credit, but not the American Opportunity Education Tax Credit. Amy's filing status is Single. In 2021, Amy's Adjusted Gross Income was $50,000. How much of a Lifetime Learning Education Tax Credit can Amy claim in 2021 on her Federal Income Tax Return?

Group of answer choices

$2,000

$2,500

$1,000

$5,000

Flag question: Question 237

Question 2371 pts

In 2021, Cano's Adjusted Gross Income is $19,500. His filing status is Single. In 2021, he contributed $1,000 to an Individual Retirement Account, which is a qualified retirement plan. In 2021, how much of a Credit for Retirement Plan Contribution can Cano claim on his Federal Income Tax Return?

Group of answer choices

$0

$500

$1,000

$250

Flag question: Question 238

Question 2381 pts

In 2021, Sean spent the following amounts to improve his personal residence:

$500 - New energy efficient hot water heater $400 - New whole house fan $600 - New energy efficient gas furnace

In 2021, how much of a Nonbusiness Energy Property Credit can Sean claim on his Federal Income Tax Return?

Group of answer choices

$0

$500

$350

$1,500

Flag question: Question 239

Question 2391 pts

In 2021, Justin installed solar panels at his primary residence for $20,000. In 2021, how much of a Credit for Residential Energy Efficiency property can Justin claim on his Federal Income Tax Return?

Group of answer choices

$5,200

$6,000

$0

$4,400

Flag question: Question 240

Question 2401 pts

In 2020, Greg and Maria's earned income total $25,000. Their filing status is Married Filing Joint. They have three dependents that qualify for the Earned Income Tax Credit. In 2020, how much an Earned Income Tax Credit can Greg and Maria claim on their Federal Income Tax Return?

Group of answer choices

$538

$3,584

$5,920

$6,660

Flag question: Question 241

Question 2411 pts

In 2020, Greg and Maria's earned income total $25,000. Their filing status is Married Filing Joint. They have one dependent that qualify for the Earned Income Tax Credit. In 2020, how much an Earned Income Tax Credit can Greg and Maria claim on their Federal Income Tax Return?

Group of answer choices

$538

$3,584

$5,920

$6,660

Flag question: Question 242

Question 2421 pts

If the IRS determines that a taxpayer is not eligible for the Earned Income Credit due to intentional disregard of the Earned Income Credit rules, how long would the taxpayer not be eligible for the Earned Income Credit?

Group of answer choices

Does not affect future eligibility.

1 year

2 years

10 years

Flag question: Question 243

Question 2431 pts

Mark and Lisa are divorced. They have one son, Peter. Peter is a qualifying child for the Earned Income Tax Credit. Mark and Lisa are both eligible to claim Peter as a qualifying child for the Earned Income Tax Credit, and both do claim Peter as a qualifying child for the Earned Income Tax Credit in 2021. Mark and Lisa do not live together. Peter can only be claimed by one taxpayer for the Earned Income Tax Credit. If Mark and Lisa don't agree on who claims Peter in 2021, the IRS will apply tiebreaker rules to determine who can claim Peter. Which of the following would be the highest priority according the IRS tiebreaker rules?

Group of answer choices

The parent who has the highest Adjusted Gross Income can claim Peter.

The parent who has the lowest Adjusted Gross Income can claim Peter

The parents alternate every other year on who can claim Peter.

The parent with whom Peter lived with longer in the year can claim Peter.

Flag question: Question 244

Question 2441 pts

If the IRS determines that a taxpayer is not eligible for the Earned Income Credit due to fraud, how long would the taxpayer not be eligible for the Earned Income Tax Credit?

Group of answer choices

1 year

2 years

5 years

10 years

Flag question: Question 245

Question 2451 pts

If a taxpayer has been disqualified for the Earned Income Tax Credit, what Form must the taxpayer submit to the IRS to be recertified for eligibility for the Earned Income Tax Credit?

Group of answer choices

Form 8862

Form 1040

Form 3658

Form 2235

Flag question: Question 246

Question 2461 pts

Which of the following is NOT a responsibility for paid tax preparers who are preparing a tax return for a client that is claiming the Earned Income Tax Credit?

Group of answer choices

Interview the taxpayer to determine if the taxpayer is eligible for the Earned Income Tax Credit.

Retain records the taxpayer provided to determine their eligibility for the Earned Income Tax Credit.

Retain records the taxpayer provided for 10 years.

Note if the taxpayer provided information that appears to be incorrect or inconsistent.

Flag question: Question 247

Question 2471 pts

Tory is a farmer. In 2021, he purchased 1000 gallons of gasoline that was used on a farm for his farm business. How much of a gas and fuel tax credit can he claim on his Federal Income Tax Return?

Group of answer choices

$0

$183

$243

$1000

Flag question: Question 248

Question 2481 pts

Individuals that purchase health insurance from the Health Insurance Marketplace may be eligible to receive a Premium Tax Credit. In 2021, individuals with an income exceeding what percent of the Federal Poverty Level are NOT eligible to receive the Premium Tax Credit?

Group of answer choices

100%

200%

400%

1000%

Flag question: Question 249

Question 2491 pts

Gary purchased a house on 1/1/2009, and claimed the First Time Home Buyer's Credit. Gary is mandated to repay the credit over how many years on his Federal Income Tax Return?

Group of answer choices

15

10

5

20

Flag question: Question 250

Question 2501 pts

In 2021, Gary's business had a tentative minimum tax of $30,000, and a net regular tax liability of $40,000. What is the greatest amount of General Business Credit that Gary's business can claim in 2021 on his Federal Income Tax Return?

Group of answer choices

$0

$40,000

$30,000

$10,000

Flag question: Question 251

Question 2511 pts

Scott invested in stocks based in countries outside of the United States. As a result of those investments, in 2021, Scott paid $100 of income tax to foreign countries. Which of the following is true in regards to the $100 paid by Scott on his Federal Income Tax Return?

Group of answer choices

Scott does not recognize a deduction or credit for the $100.

Scott can claim a Foreign Tax Credit of $100

Scott can claim a miscellaneous itemized deduction for $100.

Scott can reduce his foreign earned income by $100

Flag question: Question 252

Question 2521 pts

In 2021, Joel hired Elmer, an individual whose wages qualified Joel to claim the Work Opportunity Tax Credit. In 2021, Joel paid this individual $10,000, and this individual worked for Joel 1000 hours in 2021. In 2021, how much of a Work Opportunity Tax Credit can Joel claim for the wages that were paid to Elmer on Joel's Federal Income Tax Return?

Group of answer choices

$2,400

$0

$4,000

$10,000

Flag question: Question 253

Question 2531 pts

In 2021, Danielle's company spent $100,000 on qualified research expenditures. In 2021, Danielle's company's base amount for qualified research expenditures was $80,000. In 2021, Danielle's company can claim what amount of Research Activities Credit on her Federal Income Tax Return?

Group of answer choices

$20,000

$4,000

$0

$100,000

Flag question: Question 254

Question 2541 pts

In 2021, Jennie's filing status was single. In 2021, her Adjusted Gross Income was $50,000. She has no dependents. In 2021, how much of a Recovery Rebate Credit can be claimed by Jennie on her Federal Income Tax Return?

Group of answer choices

$0

$600

$1,200

$1,400

Flag question: Question 255

Question 2551 pts

In 2021, Michael spent $40,000 to buy an electric vehicle. The electric vehicle qualified for the maximum allowed amount of Plug-In Electric Vehicle Credit. Michael can claim a Plug-In Electric Vehicle Credit of what amount on his 2021 Federal Income Tax Return.

Group of answer choices

$40,000

$7,500

$0

$20,000

Flag question: Question 256

Question 2561 pts

Andrea bought a rental property on 6/1/2021. She paid the following amounts for the rental property:

$200,000 cost of house $5,000 escrow fees associated with purchase of the house $1,000 home inspection fee associated with purchase of the house $2,000 real estate agent commission fee associated with purchase of the house

What is her basis in the rental property?

Group of answer choices

$200,000

$205,000

$208,000

$206,000

Flag question: Question 257

Question 2571 pts

Emily purchased a rental house on 6/1/2015 for $150,000. She sold the rental house on 12/31/2021. Through 12/31/2021, she has taken $30,000 in depreciation expenses on the rental house. On 6/1/2018, she installed a new swimming pool in the rental house for $25,000.

What is Emily's adjusted basis in the rental house on 12/31/2021 prior to the sale?

Group of answer choices

$145,000

$150,000

$120,000

$175,000

Flag question: Question 258

Question 2581 pts

Greg purchased a vehicle used 100% for his business on 1/1/2018. He paid $40,000 for the vehicle, and an addition $5,000 to paint and outfit the vehicle before it could be used in his business. Through 12/31/2021, he has taken $25,000 in depreciation on the vehicle. What is the adjusted basis of the vehicle on 12/31/2021?

Group of answer choices

$40,000

$20,000

$45,000

$15,000

Flag question: Question 259

Question 2591 pts

Jermaine purchased a vehicle used 100% for his business on 1/1/2018. He paid $50,000 for the vehicle. On 6/1/2021, the vehicle was involved in an accident. The accident reduced the value of the vehicle and caused a casualty loss of $5,000. The vehicle was not insured, and Jermaine did not receive any other insurance money for the accident. Through 12/31/2021, Jermaine took $30,000 of depreciation on the vehicle. What is the adjusted basis of the vehicle on 12/31/2021?

Group of answer choices

$15,000

$20,000

$45,000

$0

Flag question: Question 260

Question 2601 pts

Gregory purchased a rental house on 1/1/2018. He purchased it for $250,000. In 2021, Gregory spent $2,000 to repair various items in the rental house. In 2021, he also installed a new swimming pool at the rental house, for $35,000. Through 12/31/2021, Gregory took $25,000 in depreciation on the rental house. On 12/31/2021, what is the adjusted basis of the rental house?

Group of answer choices

$250,000

$223,000

$260,000

$258,000

Flag question: Question 261

Question 2611 pts

David gave Maria, his daughter, a house on 6/1/2021. David had used the house as his personal residence since he purchased the house on 1/1/1980, for $50,000. On 6/1/2021, the fair market value of the house was $750,000. What is Maria's basis in the house?

Group of answer choices

$750,000

$50,000

$0