Question 41 of 73.

The Child and Dependent Care Credit has been expanded for Tax Year 2021. What is the maximum amount of expenses on which the credit is based?

$3,000 for one qualifying individual and $6,000 for two or more qualifying individuals.

$4,000 for one qualifying individual and $8,000 for two or more qualifying individuals.

$6,000 for one qualifying individual and $12,000 for two or more qualifying individuals.

$8,000 for one qualifying individual and $16,000 for two or more qualifying individuals.

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Question 42 of 73.

On June 1, 2008, Matthew and his wife Julia purchased a new home. They received the First-time Homebuyer Credit in the amount of $7,000. What tax form is used to repay their tax credit?

Form 1116, Foreign Tax Credit.

Form 3800, General Business Credit.

Form 5405, Repayment of the First-Time Homebuyer Credit.

Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit.

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Question 45 of 73.

Choose the response that accurately completes the following sentence: A taxpayer claiming the Premium Tax Credit:

May be claimed as a dependent on another person's return, as long as they are under age 27.

May have employer-sponsored healthcare coverage.

Must have purchased private coverage through a plan outside the Marketplace.

Must be lawfully present in the United States.

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Question 46 of 73.

William and Wilma paid $5,000 of qualified adoption expenses in 2021. They also received $2,000 of adoption assistance benefits from Wilma's employer in 2021. Their daughter's adoption became final on July 1, 2021. What is the amount they will claim for the Adoption Credit on Form 8839, line 16?

$0

$2,000

$3,000

$5,000

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Question 47 of 73.

Which of the following statements is TRUE regarding employer-provided dependent care assistance? The amount of the employer-provided assistance is:

Included in the total expenses for the Child and Dependent Care Credit.

Included in wages on the Form W-2, Wage and Tax Statement.

Not reported to the IRS.

Subtracted from the total expenses for child or dependent care on Form 2441, Child and Dependent Care Expenses.

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