Interest received on a refund from an amended return is:

Select one:

a. Tax-exempt interest reported on Form 1040, line 8b.

b. Taxable interest that must be claimed on the Form 1040-X.

c. Taxable interest that must be claimed in the year it is received.

d. Never paid by the IRS.

1Pursuant to a divorce decree finalized in March of 2020, Jessica was awarded the family home worth $275,000, alimony of $550 per month ($5,500 during the year), and child support of $650 per month ($6,500 during the year). With regard to her 2020 tax return, which of the following statements is true?

Select one:

a. Jessica must include $287,000 in gross income.

b. Jessica must include $275,000 in gross income.

c. Jessica must include $12,000 in gross income.

d. Jessica must include $5,500 in gross income.

e. None of these awarded amounts is taxable to Jessica.

2.A Recovery Rebate Credit (RRC):

Select one:

a. May reduce your potential refund if the advance payments you received are more than the RRC calculated on your 2020 tax return.

b. Is available to taxpayers with an SSN or an ITIN.

c. Is a nonrefundable credit.

d. May be disallowed if you are single, have no children and your AGI is greater than $99,000.

e. None of these.

3.For divorced or separated parents, who together provided over half of the childs support, if all other conditions are met, which parent can generally claim the child as a dependent?

Select one:

a. The parent who provided the majority of the financial support.

b. The parents can split the exemption between themselves.

c. The parent who spent the most time with the child.

d. The parent who had custody of the child for the greater part of the year.

4.A section 179 election:

Select one:

a. Must be made by attaching an election statement to Form 1040.

b. Can be made at any time during the assets MACRS recovery period.

c. Is not allowed for off-the-shelf computer software.

d. May be made for personal property used in a residential rental activity, if such personal property was placed in service after 2017.

e. None of the these.

5.A taxpayer may be eligible to claim a foreign tax credit on taxes paid to a foreign country on income that is:

Select one:

a. Taxed only on the U.S. return.

b. Taxed by a foreign country and the U.S.

c. Taxed only by a foreign country.

d. Nontaxable to the foreign country and the U.S.