Question

6) April and Joey are both 74 years old and received $1,500 in nontaxable social security benefits. Their AGI for the year was $18,000. How much can April and Joey claim as a credit for the elderly or the disabled? A) $300. B) $1,125 C) S1,500. D) $2,000. 7) Tai and Song are ages 69 and 59, respectively, and file a joint return. They have AGI of $20,000 and received $2,000 in nontaxable social security benefits. How much can Tai and Song take as a credit for the elderly or the disabled? A) SO B) $1,125 C) $2,000. D) $7,500. 8) Which of the following statements is not true regarding the credit for the elderly or the disabled? A) Taxpayer may not have earned income. B) Taxpayer may receive social security benefits. C) Taxpayer must be age 65 or older D) Taxpayer must be retired or on permanent and total disability. 9) Which of the following statements is not true regarding the credit for the elderly or the disabled? A) Base amount for the credit calculation for a single individual is $5,000. B) Base amount for the credit calculation for joint returns is $5,000. C) The maximum allowable credit is based on 1 5% of the taxpayer's base amount. D) Base amount for the credit calculation for a joint individual where only one spouse qualifies is $5,000. 10) Joseph paid $1,750 in qualifying expenses for his daughter who attended a community college. How much is Joseph's lifetime learning credit without regard to AGI limitations or other credits? A) $250. B) $350. C) $825. D) $1,750. 11) Kyle and Alyssa paid $1,000 and $2,800 in qualifying expenses for their two daughters Jane and Jill, respectively, to attend the University of California. Jane is a sophomore and Jill is a freshman. Kyle and Alyssa's AGI is $135,000 and they file a joint return. What is their allowable American opportunity tax credit after the credit phase-out based on AGI is taken into account? A) $0. B) $2,000. C) $3,800. D) $3,500. Page 2 of S

Answer 1

As per the HOMEWORKLIB POLICY, the first four questions should be answered. Kindly take note of it.

6. answer is option A $300

As both April and Joey are above 65 years of age, they qualify for the credit for the elderly and disabled.

AGI limit = $10,000 for married filing jointly

Excess AGI = 50% × (AGI – AGI Limit)

Excess AGI = 50% x (18000-10000)

Excess AGI = 4000

Base Amount for a married couple filing jointly (both are eligible for the credit) = $7500

Credit = (Base Amount – Nontaxable Social Security Payments – Nontaxable Pension Payments – Excess AGI) × 15%

Credit = (7500-1500-4000)*15% = $300

7. answer is option A $0

First of all, Song does not qualify for the credit for the elderly and disabled because of age being below 65 years. If they claim a credit for the elderly and disabled on the basis of joint individual where only one spouse qualifies, then there AGI should be below $20000. But here it is $20000, so no credit will be available.

8. answer is option A Taxpayer may not have earned income.

When the limit of AGI is defined, then it is obvious that taxpayer may also have earned income.

9. answer is option B base amount for the credit calculations for joint returns is $5,000

base amount for the credit calculations for joint returns is $7,500