Question

MULTIPLE CHOICE PROBLEMS A sample of multiple choice Cultiple choice problems is provided below. Additional multiple choice problems mailable at money-education.com by accessing the Student Practice Portal 1. Brandy is a single mom with 2 chil single mom with 2 children, Zach and Wendy. Zach is 14 years old and Wendy is 3 years old d. Brandy has AGI of $50,000. She paid the following expenses for child care thie $300 to Zach to care for Wendy so Brandy could go out to dinner with friends. • $1,000 for an after-school program for Zach. • $3,500 to Brandy's mother for the care of Wendy during the day. year: What is Brandy's available child and dependent care credit? a. $0. b. $200. c. $600 d. $700. 2. Sara, who is single, contributed $5,500 to her Roth IRA for 2018. She had MAGI of $17,000 for 2018 and used the single filing status. She has never taken a distribution from a retirement plan. What is her maximum retirement savings credit for 2018? a. $0. b. $200. c. $1,000 d. $2,000. 5. Andy's second wife, Gina, died several years ago. Andy and Gina had two children together, Sara and Ben (twins, age 6) and they had adopted a child Andrew (age 10). Andy also had a child, Angela, age 18, with his first wife. Andy's fiancé (who also lives with Andy) gave birth to Andy's biological child, Sue Ellen, in November of the current year. All five children live with Andy and he claims all of them as dependents. Andy's AGI for the current year is $60,000 and he files head of household. What is Andy's available child tax credit? a. $2,000. b. $4,000. c. $8,000. d. $10,000.

Answer 1

And Brandy's Available child and dependent care credit (d) $700 Reason Eligibility criteria to claim creclit is if it is paid for qualifying child under are 13 claimed al dependent or spouse or dependent not able to care for himself or herself. In this case child Zach is the pecues. Old T is not an eligible child. so expenses incorred on him will not qualify as deduction. But expenses on Wendy 3 years old will be eligible to claim as creclit with Maximum of 20% if AGI is more than $43000 and you have 2 (No.) of children. Therefore Available child and dependent care credit SHOT ON M4A23500 x 20% OO MIDUAL CAMERAZ OO

Aus Maximum refinement savings Creclit for 2018 © $1000 Provision - If your silure, status is single than you can claim 50% of your contribution if MAGI il opto $ 19000 with marimum cap of { 10oo.. 3 Andy's available child tax credit Als (c) $8000 children of Age 17 or old not elegible to claim this. Therefore Angela of age ro not eligible and other four clulelrees are eligible to claim SHOT ON MRAZ OO per child MI DUAL CAMERA

Answer 2

Number 3 is C.

Answer 3

The answer to 3 is C.