Question 7 of 70.

Employer-provided dependent care assistance:

May be used for the child and dependent care credit.

Is subtracted from the total expenses for child or dependent care on Form 2441.

Is included in wages on Form W-2.

Is not reported to the IRS.

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Question 8 of 70.

Juliet's 2020 MAGI is $79,375. She files as head of household and claims her dependent daughter, Ella. Juliet paid $5,500 for Ella's college tuition. If Juliet chooses to claim the tuition and fees deduction, what is her maximum deduction?

$0

$2,000

$4,000

$5,500

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Question 9 of 70.

What is the age requirement (if any) to contribute to a Roth IRA?

The taxpayer must be at least age 18 and less than age 70.

The taxpayer must be at least age 18, but there is no maximum age.

The taxpayer must be at least 19 if not a full-time student, or age 24 if they are a full-time student, but there is no maximum age.

There is no age requirement if the taxpayer meets the compensation requirements.

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Question 10 of 70.

What determines when a dependent is considered to be 13 years old, if they are a qualifying child who had not reached their 13th birthday when the care was provided?

The day of their birthday.

The day before their birthday.

The last day of the year.

The first day of the following year.

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Question 17 of 70.

Which of the following is NOT subject to federal tax?

Interest on U.S. Treasury bills, notes, and bonds.

Interest on a federal income tax refund.

Interest on New York state bonds.

Dividends paid by a credit union.

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Question 18 of 70.

Jayden comes to you to file his tax return. He tells you that he has received all his compensation in cash for several years, but this year he received a Form W-2, so he will be filing his taxes. What do you do?

File his current-year return with a note to the IRS explaining that you believe he has not filed previous years because he received his wages in cash.

Refuse to file the current-year return until you have filed all his previous returns.

File the current-year return, but explain to Jayden the law regarding filing requirements and encourage him to file previous returns.

Refuse to file the current-year return, explaining that you don't want to be put in jeopardy because of his failure to file in the past.

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Question 19 of 70.

In 2020, Elysia (38) contributed $2,000 to a traditional IRA. She is single, and her modified adjusted gross income (MAGI) is $30,000, all from wages. Elysia has never taken a distribution from any retirement account. She is potentially eligible for a retirement savings contributions credit (Saver's Credit) of up to ____________.

$0

$200

$400

$2,000

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Question 20 of 70.

Lorenzo and Carlotta have three children (ages 5, 6, and 14). Lorenzo earned $36,000 in 2020. Carlotta worked part-time and earned $5,000. They had no other income. They paid a total of $4,600 in qualifying childcare expenses for their two youngest children ($2,300 for each child). The 14-year-old is Lorenzo's son from a prior marriage. He lives with Lorenzo's first wife, but Lorenzo will be claiming his son as a dependent this year. What is the correct amount of the federal Child and Dependent Care Expenses Credit?

$495

$945

$990

$1,012

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