Question 53 of 70.

Jasmine, age 48, contributed $5,000 to her traditional IRA. She is an active participant in a retirement plan at work. Her IRA MAGI is $76,000. What is her IRA adjustment to income?

$0

$5,000

$6,000

$7,000

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Question 56 of 70.

Paul, James, Ryan, and Amy pay 80% of the support for their mother. Paul pays 40%, James and Ryan pay 15% each, and Amy pays 10%. Who is eligible to claim their mother as a dependent?

Since no one person pays over 50% of the support, none of the children may claim her as a dependent.

Since together they pay more than 50% of their mother's support, any one of them may claim their mother under a multiple support agreement.

Since together they pay more than 50% of their mother's support, Paul, James, or Ryan may claim their mother under a multiple support agreement.

Since together they pay more than 50% of their mother's support, they may share the dependency exemption based on the percentage each one pays.

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Question 57 of 70.

Which of these is NOT reported on Form 1099-DIV?

Nondividend distributions.

Capital gain distributions.

Credit union dividends.

Qualified dividends.

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Question 58 of 70.

A qualifying widow(er) receives the same standard deduction as which other filing status?

Single.

Married filing jointly.

Married filing separately.

Head of household

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Question 59 of 70.

Tax preparers should always document every question and answer:

Only for returns with EITC.

Any time they think the IRS might question something on the return.

Tax preparers are specifically required to document every question and answer on all EIC, CTC/ODC/ACTC, and AOTC claims and when using the head of household filing status. Also, anytime they think the IRS might question something on the return.

Only when they believe a taxpayer has lied to them.

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Question 60 of 70.

Brian, a 48-year-old single taxpayer, earned $98,000 in wages. He is not covered by an employer-sponsored retirement plan. What is his maximum allowable contribution to a traditional IRA for 2020?

$0

$6,000

$7,000

$19,000

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