14. Answer is option A
The American Opportunity Tax credit is only available for the first two years of postsecondary education.
The American Opportunity Credit tax is available for individuals who are beyond the first two years of post-secondary education.
15. Answer is option D
The lifetime learning credit may be limited by AGI levels and may completely phase out when modified AGI exceeds a certain amount (the amount depending on the tax year)
The threshold limit for Lifetime Learning Credit is prescribed every year. No lifetime learning credit is available to a taxpayer if his/her AGI exceeds beyond that limit.
16. Answer is option D
Payments made using borrowed funds are not considered qualified expenses
Payments made using earned income are considered qualified expenses for deductions.
Taxation Question 14) Which of the following statements is not true regarding the education credits? A)...
Credits Question 20 of 75. Which statement about the Credit for Other Dependents is FALSE? The qualifying child may be 17 years of age or older. The qualifying dependent may have an ITIN or ATIN (Adoption tax identification number). The qualifying dependent may be the taxpayer's aging parent. The credit is $1,000 per qualifying dependent. Mark for follow up Question 21 of 75. Which statement about education credits is FALSE? A student may qualify for the lifetime learning credit if...
Taxation Question 35) Which of the following statements regarding adoption credits is not true? A) Qualified expenses do not include employer reimbursements. B) An eligible child may be up to the age of 18. C) The credit may be claimed regardless of the taxpayer's modified AGI amounts. D) Qualified expenses include adoption fees, attorney fees and court costs
In each of the following cases, certain qualifying education expenses were paid during the tax year for individuals who were the taxpayer, spouse, or dependent. The taxpayer has a tax liability and no other credits. Determine the amount of the American opportunity tax credit (AOTC) and/or the lifetime learning credit that should be taken in each instance. Allowable Credit Type of Credit A single individual with modified AGI of $32,900 and expenses of $3,400 for a child who is a...
Question 40 (1 point) Which of the following statements is not correct regarding the education credit? 1) The lifetime learning credit is 100% nonrefundable. 2 Lower AGI thresholds apply to reduce the American opportunity credit for higher income taxpayers. 3) The lifetime learning credit is available to students who attend graduate school 4 The maximum American opportunity credit is $2,500 for each eligible All of the above statements are connect O bie 0 L * c v BN 142 391
A. John has two sons. David is 3-year-old, and Tommy turned 13 on May 1st in 2018. John paid a local daycare provider $12,000 for David from January through December and $3,000 for Tommy from January through June. John’s earned income is 60,000. What is the maximum amount of qualified expenses John can use to figure the child and dependent care credit? a) $15,000 b) $ 5,000 c) $ 6,000 d) $ 3,000 B. Amy is single and works part-time...
In 2018, Laureen is currently single. She paid $2,640 of qualified tuition and related expenses for each of her twin daughters Sheri and Meri to attend State University as freshmen ($2,640 each for a total of $5,280). Sheri and Meri qualify as Laureen’s dependents. Laureen also paid $1,870 for her son Ryan’s (also Laureen’s dependent) tuition and related expenses to attend his junior year at State University. Finally, Laureen paid $1,370 for herself to attend seminars at a community college...
Required Information [The following information applies to the questions displayed below.] Part 1 of 3 In 2018, Laureen is currently single. She pald $2,460 of qualified tuition and related expenses for each of her twin daughters Sherl and Merl to attend State University as freshmen ($2,460 each for a total of $4,920). Sherl and Merl qualify as Laureen's dependents. Laureen also paid $1,780 for her son Ryan's (also Laureen's dependent) tultion and related expenses to attend his Junior year at...
In 2018, Laureen is currently single. She paid $2,720 of qualified tuition and related expenses for each of her twin daughters Sheri and Meri to attend State University as freshmen ($2,720 each for a total of $5,440). Sheri and Meri qualify as Laureen’s dependents. Laureen also paid $1,910 for her son Ryan’s (also Laureen’s dependent) tuition and related expenses to attend his junior year at State University. Finally, Laureen paid $1,410 for herself to attend seminars at a community college...
Education Tax Credits (LO 7.5) Assuming Janie's parents have AGI of $163,400, what is the American Opportunity tax credit they can claim for Janie?
Detail each of the following tax credits including its purpose, eligibility requirements, limitations, phase-outs, etc. Child and dependent care expenses Education tax credits American opportunity credit Lifetime learning credit Energy credits Retirement plan contributions