Question

Bill is 31 years old, married, and lived with his spouse Michelle from January 2018 to September 2018. Bill paid all the cost of keeping up his home. He indicated that he is not legally separated and he and Michelle agreed they will not a file a joint return.

Bill has an 8-year-old son, Daniel, who qualifies as Bill's dependent.

Bill worked as a clerk and his wages are $20,000 for 2018. His income tax before credits is $500.

In 2018, he took a computer class at the local university to improve his job skills.

Bill has a receipt showing he paid $1,200 for tuition. He paid for all his educational expenses and did not receive any assistance or reimbursement.

Bill does not have enough deductions to itemize.

Bill, Michelle, and Daniel are U.S. citizens with valid Social Security numbers.

8. Bill does NOT qualify to claim which of the following:

Head o household

Education benefit

Earned income credit

All of the above

9. What is the maximum amount of the refundable additional child tax credit Bill is able to claim on Schedule 8812?

A) $500

B) 1,400

C) 1,500

D) 2,000

Answer 1

8

He can not file as head of household as he is not legally separated from his spouse.

He can claim education benefits and earned income credit

correct answer is head of household

9

Maximum refundable credit = lesser of 1,400 and 15% of earned income

15% of earned income = wages x 15%

= 20,000 x 15%

= 3,000

maximum refundable credit = lesser of 1,400 and 3,000 = 1,400

correct answer is 1,400