Question
Question 27 of 70. Which of these statements is FALSE concerning credits and deductions? Refundable credits may reduce the taxpayer's tax liability below zero, and
Question 27 of 70.
Which of these statements is FALSE concerning credits and deductions?
Refundable credits may reduce the taxpayer's tax liability below zero, and the difference is refunded to the taxpayer.
Nonrefundable means that the combined amount of credits cannot reduce the taxpayer's tax liability below zero.
Credits may be used to reduce taxable income.
Deductions, lower the tax by reducing taxable income.
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Question 28 of 70.
Karim and Rashida Sultan are filing a joint federal return. They have the following investment income: Wells Fargo Bank CD, $720 Series HH bond interest, $521 Port of San Francisco, California, bond interest, $375 City of Bend, Oregon, bond interest, $64 Oak Farms dividends, $826 Craft Inc. dividends, $597 Frankfort Mutual Fund dividends, $283 Credit Union dividends, $232 Blake Harrison, private contract interest, $1,263 What is the amount of total taxable dividends reported on Schedule B?
$1,455
$1,655
$1,706
$4,881
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Question 30 of 70.
Which statement is incorrect concerning alimony on the federal tax return?
Alimony payments executed under orders after December 31, 2018, will no longer be taxable income for the recipient or deductible by the payer.
Taxpayers who make taxable alimony payments may be eligible to deduct these payments as an adjustment to income.
Alimony payments may not include child support.
To claim an adjustment for alimony paid, all that is necessary is the recipient's name and the amount of alimony paid.
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