Scenario 5: Matthew Clark

THE SCENARIO FOR THIS CAN BE FOUND ON THE LINK BELOW:

https://www.scribd.com/doc/289014171/Advanced-Scenario-5-Matthew-Clark-2016

1. Matthew received Form 1095-A from the Marketplace. How is this information used on his tax return?

a. enter the information on form 8962 to determine the amount of Premium Tax Credit

a.The information is not needed to prepare his return.

b. Enter 1,440 directly on form 1040, page 2 on the Premium Tax Credit Line.

c. Enter the information on form 8965.

2. Matthew must repay a portion of the advance premium tax credit that he received? TRUE OR FALSE?

3. What is the total amount of qualified educational expenses used in the calculation of Matthews American Opportunity Credit? $ ___________

4. Where is the cancelled debt on Form 1099-C reported on Matthews tax return?

a. on form 1040, line 7 as wages?

b. It is not reported on the return

c. on Schedule A as a miscellaneous deduction

d. On form 1040, line 21 as other income

5. Matthew qualifies for an exception to the 10% additional tax on the early distribution from his IRA. TRUE OR FALSE?