Question 42 of 70.

Which of these are ordinary dividends?

Dividends paid on a credit union savings account and reported on a Form 1099-INT.

Exempt-interest dividends paid by a mutual fund.

Capital gain distributions reported in box 3a of a Form 1099-DIV.

Dividends from stock reported in box 1a of a Form 1099-DIV.

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Question 43 of 70.

Joe (55) and Gail (49) are filing jointly for 2020. Joe earned $40,000, and Gail earned $2,500. Joe may contribute up to $7,000 to his IRA for 2020. If Joe contributes $5,000 to his IRA, how much may they contribute to Gail's IRA for 2020?

$2,000

$2,500

$6,000

$7,000

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Question 44 of 70.

Which of these is NOT among the most common reasons an e-filed tax return is rejected?

Use of an incorrect TIN on a tax return.

The preparer relied on nonstandard tax documents.

Mismatches between name and TIN.

The same TIN on more than one return.

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Question 45 of 70.

Which of these is TRUE? A U.S. national _____.

Is the same as a resident of the United States.

Is a resident who owes their allegiance to American Samoa.

Is a U.S. citizen residing in Mexico or Canada.

Meets the citizenship or residence test for a dependent.

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Question 50 of 70.

Makayla Searcy, a single mother, has three children, Sydney (7), Patrick (11), and Tiana (17). Makayla's AGI is $62,000, and her tax liability is $4,816. How much is Makayla's Child Tax Credit and Other Dependent Credit?

$3,000

$4,500

$6,000

Makayla is not eligible for the Child Tax Credit.

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Question 51 of 70.

Amari is a 26-year-old single taxpayer with a MAGI of $66,500. In 2020, he paid $2,250 of interest on a qualified student loan. What is the maximum amount of student loan interest he could deduct?

$0

$2,250

$2,500

$4,000

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