1. Chris can claim his own personal exemption since his mother has decided not to claim him as a dependent. True XXXFalse
2. Using Publication 4012, Who Must File tab, Chart B, Chris has a filing requirement and must file a tax return. XXXTrue False
3. Can Brittany claim Hayden as a dependent? A. No, because Hayden didn't live with Brittany for more than 6 months. XXXB. No, because Brittany qualifies as Mike's dependent. C. Yes, because Brittany had earned income. D. Yes, because Brittany is Hayden's mother.
4. How many qualifying children does Mike have for the earned income credit?
A. 0 B. 1 XXXC. 2
5. If Brittany does not qualify for a health coverage exemption, Mike must make a shared responsibility payment.
XXXTrue False
6. Are Henry and Claudia eligible to claim the earned income credit?
A. No, because Henry and Claudia’s income is too high.
XXXB. No, because Claudia has an ITIN.
C. Yes, because Alyssa is their qualifying child for EIC.
D. Yes, if they file Married Filing Separate returns.
7. Claudia qualifies for a health coverage exemption. XXXTrue False
8. Martin's filing status is Single. True XXXFalse
(INCORRECT) 9. Martin is eligible to claim the lifetime learning credit. XXXTrue False
10. Lamar received Form 1095-A from the Marketplace. How is this information used on his tax return?
A. The information is not needed to prepare his return.
B. Enter $1,440 directly on Form 1040, page 2 on the premium tax credit line.
C. The information is used on Form 8965.
XXXD. The information is used to determine the amount of premium tax credit.
(INCORRECT) 11. Lamar will receive an additional amount of premium tax credit on his tax return.
XXXTrue False
12. The total amount of qualified educational expenses used in the calculation of Lamar’s 2016 American opportunity credit is:
A. $3,300 XXXB. $3,800 C. $4,000 D. $4,240
13. Where is the cancelled debt on Form 1099-C reported on Lamar's tax return?
A. It is not reported on the return
B. On Form 1040, line 7 as wages
XXXC. On Form 1040, line 21 as other income
D. On Schedule A as a miscellaneous deduction
14. Lamar qualifies for an exception to the 10% additional tax on the early distribution from his IRA.
XXXTrue False
15. Which allowable filing status is most advantageous to Samantha?
A. Qualifying Widow with Dependent Child
B. Single
C. Married Filing Separately
XXXD. Head of Household
16. Howard is Samantha’s qualifying child for which of the following benefits?
A. Exemption for a dependent
B. Child tax credit
XXXC. Earned income credit
D. All of the above
17. The basis of Samantha's home is reduced by $45,000.
XXXTrue False
18. What is the credit for child and dependent care expenses on Form 1040, line 49?
$__836______.
19. Samantha and her children qualify for the short coverage gap exemption.
XXXTrue False
20. What is the amount of self-employment tax in the Other Taxes section of Samantha's Form 1040, page 2?
$__134______.
21. What is the total taxable interest income shown on Line 8a of Form 1040?
A. $70 XXXB. $95 C. $150 D. $245
22. Quincy's entire $4,500 Roth IRA distribution is taxable.
True XXXFalse
23. The net capital gain or loss reported on Form 1040, Line 13 is a gain of $1,239.
True XXXFalse
24. How much of the $17,500 gross distribution reported on Form 1099-R from Hickory Corporation is taxable in 2016?
A. $17,097 B. $17,016 XXXC. $16,719 D. $16,562
25. A portion of Quincy's Social Security income is taxable.
XXXTrue False
(INCORRECT) 26. What is the amount of the shared responsibility payment on the Pikes' Form 1040, page 2?
$__695______
(INCORRECT) 27. Are the Pikes entitled to claim an earned income credit for 2016?
A. No, because their investment income exceeds the amount allowed to claim the credit.
XXXB. No, Quincy is over the age of 65.
C. No, Lucas is not a qualifying child for purposes of the EIC.
D. Yes, they are eligible for the credit.
28. Austin must use Schedule C-EZ or C to report his cash income.
XXXTrue False
29. What is Austin's mileage expense deduction (at the standard mileage rate) for his business as a personal trainer?
XXXA. $1,485 B. $2,025 C. $2,133 D. $4,158
30. Which item cannot be deducted by Austin as a business expense?
A. Business license B. Business liability insurance
C. Advertising XXXD. Nutritional supplements
31. The full amount of the self-employment tax is deducted on Schedule A, in the Taxes You Paid section.
True XXXFalse
32. How do you report qualified student loan interest paid?
A. As an expense for an education credit
B. As other income on Form 1040, line 21
C. As an itemized deduction on Schedule A
XXXD. As an adjustment to income on Form 1040, page 1
33. What is Austin’s total itemized deductions on Schedule A, line 29?
$__8286____
34. What is the amount of Austin's retirement savings contributions credit?
$__120_____.
35. Austin is not able to pay the entire balance due by the due date of the return (without extensions). What are his options?
A. He can submit a Form 9465, Installment Agreement Request.
B. He can contact the IRS for a full pay 120-day agreement.
C. He can pay using his credit card.
XXXD. Any of the above.