Question 1 of 70.

Jerry (52) and Diana (50) are married and lived with their qualifying relative, Rachel (25), for all of 2020. In October 2020, Rachel married Mike (27), and both lived with Jerry and Diana for the rest of the year. Rachel earned $2,400, and Mike earned $24,500 in 2020. Which of these is correct? Jerry and Diana may:

Claim Rachel, even if she chooses to file a joint return with Mike.

Claim Rachel if Mike chooses to file married filing separately.

Not claim Rachel because she is now Mike's dependent.

Claim Rachel for the nine months she was single, but not for the time after she was married.

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Question 2 of 70.

Which of these is a risk for a taxpayer when they are not compliant with the tax laws?

The IRS will interview both them and their employer.

An examination to check their compliance with all four EITC due diligence requirements.

An examination to check their returns for the next 2-10 years.

Civil penalties with the possibility of incarceration for criminal penalties.

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Question 3 of 70.

When may a noncustodial parent claim a child on their tax return?

When the noncustodial parent has the higher AGI.

Every other year.

When the custodial parent releases the exemption on Form 8332.

When they pay over 50% of the support for the child.

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Question 4 of 70.

Which of these certificates qualifies for the mortgage interest credit?

Federal Housing Administration Certificate.

Farmers Home Administration Certificate.

Homestead Staff Exemption Certificate.

Mortgage Credit Certificate.

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Question 5 of 70.

Anastasia, a 42-year-old taxpayer, earned $80,000 in wages. What is the maximum contribution she can make to her 401(k) plan in 2020?

$6,000

$7,000

$19,500

$26,000

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