1040 Preparation and Planning 4: Tax Computations and Credits (2015 Edition) (00677802, 2015 Edition)

The fourth course in the series reviews how the tax liability is computed, then describes different credits and deductions. After examining the computation of tax, the course discusses the distinction between a tax deduction and a tax credit. The most important and most often encountered credits are covered, including the child tax credit, the credit for the elderly and the permanently and totally disabled, the earned income credit, higher education credits and a credit for child care expenses. The course also covers several credits available to individuals who own a business or have certain investments. 

final exam score: 

final exam status: 

90%

Question 5

Incorrect

Max Healy has taxable income of $65,000 that includes a long-term capital gain from a collectible of $20,000. What forms or schedules are required to figure the tax?

 Both the Schedule D Tax Worksheet and the Tax Tables

 (You Answered) The Qualified Dividends and Capital Gain Tax Worksheet

 Both the Qualified Dividends and Capital Gain Tax Worksheet and the Tax Table

 The Tax Tables 

Question 7

Incorrect

Which of the following is not true regarding income averaging for farmers and fishermen?

 It applies only to farm or fishing income.

 It applies to both farm/fishing and nonfarm/nonfishing income.

 It is figured on Schedule J.

 (You Answered) It cannot be used by anyone who is not a farmer or fisherman.