Question

31.	The Lifetime Learning credit may be taken for the following expenses:

A. Tuition, fees, books, and living expenses.
B. Tuition, all fees, and books.
C. Tuition and most fees.

32.	Which one of the following statements concerning estimated federal income tax is CORRECT?

A. Estimated payments may be taken as itemized deductions on Schedule A.
B. Estimated taxes paid during the current year are taken as a credit against the taxpayer’s tax liability.
C. Estimated payments are reported on Form W-2.

33.	To use the Tax Rate Schedules, the taxpayer generally must meet which one of the following criteria?

A. Have taxable income in excess of $100,000.
B. Have adjusted gross income in excess of $125,000.
C. Not be covered with at least a minimal essential coverage health insurance plan.

34.	Which one of the following describes income that might NOT be determined by use of the Tax Rate Tables or Tax Schedules?

A. Capital gains.
B. Investment income.
C. The taxable portion of Social Security income.

35.	For assets sold in 2018, the minimum holding period for determining long-term capital gains and losses is one day more than:

A. 99 days.
B. Three months and 15 days.
C. 12 months.

Answer 1

31. Option C is the answer. As per the Lifetime learning credit provision, qualified tuition fees and related expenses can be paid for with this credit.

32. Option B is the answer. Estimated taxes paid during the year are taken as tax credit against the taxpayer's liability.

33. Option C is the answer.

34. Option A is the answer. Capital gains might be taxable under different and separate rates.

35. Option C is the answer.