This two CPE hour course focuses on tax credits for individuals, and is completely updated to include the provisions of the American Taxpayer Relief Act of 2012. Description The focus of this course is on tax credits for individuals. Credits are more valuable than deductions because they reduce tax liability on a dollar-for-dollar basis. There are an increasing number of tax credits, both for individuals and businesses.
Final Exam > Results Page
final exam score:
final exam status:
90%
Question 1
Correct
The health insurance premium credit:
(You Answered) (Correct Answer) Doesn’t apply until 2014.
Is to be claimed only by employers providing health insurance.
Applies to100 percent of all health care expenses.
Was declared unconstitutional by the U.S. Supreme Court in 2012.
Question 2
Correct
One of the investment related credits is the:
(You Answered) (Correct Answer) Low-income housing credit
Adoption expenses credit
First-time homebuyer credit
Lifetime learning credit
Question 3
Correct
Which credit is not refundable?
Earned income credit
(You Answered) (Correct Answer) Dependent care credit
Credit for excess FICA
Long-term unused AMT credit
Question 4
Correct
Which type of property does not qualify for the credit for residential energy efficient property?
Solar panels
Geothermal heat pumps
Fuel cells
(You Answered) (Correct Answer) Biomass energy
Question 5
Correct
To qualify for a dependent care credit, the child must be under age (assuming no disability):
(You Answered) (Correct Answer) 13
17
19
26
Question 6
Correct
The maximum credit amount for a taxpayer with one dependent child whose AGI does not exceed $15,000 is:
(You Answered) (Correct Answer) $1,050
$1,000
$1,500
$15,000
Question 7
Incorrect
Which statement concerning the earned income credit is not correct?
(You Answered) A taxpayer must have at least one qualifying child.
The credit is refundable.
(Correct Answer) The credit applies only to tax years beginning after 2012.
A qualifying child must be under age nineteen or twenty-four if a full-time student.
Question 8
Correct
The American Opportunity credit can be used for:
The first two years of higher education only
(You Answered) (Correct Answer) The first four years of higher education only
Any higher education
High school education expenses
Question 9
Correct
ATRA permanently allows individuals to:
(You Answered) (Correct Answer) Offset AMT liability with the nonrefundable personal tax credits.
Claim unlimited credits for all energy use.
Claim the earned income tax credit if AGI is more than $100,000.
Retroactively claim the Making Work Pay Credit.
Question 10
Correct
An individual pays foreign taxes on investment income of $25,000 and foreign earned income of $50,000. Which statement is correct?
A foreign tax credit can be claimed for all of the taxes on all of this income.
(You Answered) (Correct Answer) A foreign tax credit can be claimed on the foreign tax paid on investment income but not for the taxes paid on earned income if excluded under the foreign earned income exclusion.
A foreign tax credit can be claimed in addition to a deduction for foreign taxes.
Foreign taxes are not creditable.