QUESTION 21) Which of the following is true of the earned income tax credit?

1. The maximum amount of credit can only be achieved with 3 or more qualifying children.
2. You may not claim it if you have any amount of investment income.
3. You may claim it without earned income if you are not a dependent.
4. You must have at least one child to claim it.

QUESTION 23) Collectibles such as coin and stamp collections, when held for over a year and sold at a gain, are subject to a maximum tax rate of

1. 37%
2. 28%
3. 25%
4. 20%

QUESTION 31

Grant paid the following taxes in the current year:

State income taxes $3,000

City real estate taxes $6,000

State/local sales taxes $2,000

Assuming that he wants to maximize his deductions, what is Grants tax deduction on Schedule A?

1. $9,000
2. $11,000
3. $10,000
4. $8,000