The earned income credit is _________________?

A. A nonrefundable credit that reduces the tax liability

B. A refundable tax credit that reduces the tax liability, but cannot increase the tax refund*

C. A nonrefundable tax credit that can be carried forward

D. A refundable tax credit that benefits the taxpayer, even if it exceeds the tax liability

Which of the following is true about IRA contributions?

A. Contributions to a traditional IRA may be all or partly deductible*

B. Contributions to Roth IRAs are deductible in the year made

C. Contributions to traditional IRAs are always 100% deductible in the year made

D. IRA Contributions cannot be made to a spousal IRA

Which of the following is NOT true about the American Opportunity Credit?

A. The credit does not have a phase out range based on MAGI*

B. The credit is allowed for up to four years of postsecondary education

C. The maximum amount of credit is $2,500

D. 40% of the credit can be refunded

Which of the following is NOT true about the American Opportunity Credit?

A. The credit does not have a phase out range based on MAGI*

B. The credit is allowed for up to four years of postsecondary education

C. The maximum amount of credit is $2,500

D. 40% of the credit can be refunded

Which of the following are allowable business meal and entertainment expenses for line 24b of Schedule C?

A. 75% of the business meal and entertainment expenses

B. Meals at a country club

C. Membership dues to a public service organization

D. Amounts above the federal per diem rates