Ariana and John, who file a joint return, have two dependent children, Kai and Angel. Kai is a freshman at State University and Angel is working on her graduate degree. The couple paid qualified expenses of 4,000 for Kai (who is a half-time student) and $6,900 for Angel. Required: What are the amount and type of education tax credits that Ariana and John can take, assuming they have no modified AGI limitation? Dependent Kai Angel Total Amount of Credit $ Type of Credit

Ariana and John, who file a joint return, have two dependent children, Kai and Angel. Kai is a freshman at State University and Angel is working on her graduate degree. The couple paid qualified expenses of 4,000 for Kai (who is a half-time student) and $6,900 for Angel. Required: What are the amount and type of education tax credits that Ariana and John can take, assuming they have no modified AGI limitation? Dependent Kai Angel Total Amount of Credit $ Type of Credit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Matt and Kate have an AGI of $200,000 and they file married filing jointly and claim two dependent children whose ages are 6 and 17 and a dependent parent. What is the amount of the total child and other dependent credit for them on their 2020 tax return?
Allie and Buddy are married, file a joint return, and have one son, Zack, age 5. Buddy has earned income of $48,000, and Allie was a full-time student for nine months (with no income). They paid a qualified child care center $3,450. How much is Allie and Buddy's child and dependent care credit for the year? (tax year 2021) Use Child and Dependent Care Credit AGI schedule. Multiple Choice SO. $1,125. $1,725. $3,450.
Robert and Maisie have one child, Gillie (4). Both parents work full time, and their AGI in 2020 was $194,375. During the year, they paid $8,140 in childcare expenses for Gillie. Robert's employer has decided to offer a daycare flexible spending account (FSA) option for 2021. What would you recommend, and why? I n the end, either option is a good choice because they both reduce their tax. They can claim $5,000 on the FSA and then claim the remaining $3,140 against the Child and Dependent Care Credit. Therefore, Robert should open the FSA. Because their marginal tax rate + FICA tax is more than the Child and Dependent Care Credit percentage they would receive, the FSA is a better option. Robert should not open the FSA; since he would only be able to fund up to $5,000, it wouldn't cover all their expenses.
Paola and Isidora are married; file a joint tax return; report modified AGI of $146,675; and have one dependent child, Dante. The couple paid $13,590 of tuition and $9,930 for room and board for Dante (a freshman). Dante is a full-time student and claimed as a dependent by Paola and Isidora. Determine the amount of the American Opportunity credit for the year.
Elizabeth has three children ages 10, 17, and 19. All the children live with her, are full-time students, and claimed as dependents on her tax return. Elizabeth's AGI is $100,000 in 2023 and she files head of household. Her tax liability before the application of any credits is $8,400. What is the maximum Child Tax Credit she can claim on her 2023 tax return? $4.000 O $6,000 $2,000 $0
2A
! Required information [The following information applies to the questions displayed below.] Trey has two dependents, his daughters, ages 14 and 18, at year- end. Trey files a joint return with his spouse. What amount of child tax credit (either as a child or a qualifying dependent) will Trey be able to claim in 2022 for his daughters under each of the following alternative situations? Use Exhibit 8-8. b. His AGI is $420,000. Amount of child tax credit
Interview Notes Marsha is 23 years old and single. She cannot be claimed as a dependent by another taxpayer. Marsha earned wages of $18,500 and had $1,500 of federal income tax withholding in tax year 2020. Marsha gave birth to Shelby on November 10, 2020. Marsha paid all the cost of keeping up a home and support for Shelby. Shelby and Marsha are U.S. citizens and have valid Social Security numbers. Marsha filed Single with no dependents on her 2019 tax return and received a $1,200 Economic Impact Payment in May 2020. 4. Marsha qualifies for the recovery rebate credit of $500 for Shelby.Note: Congress may have enacted additional legislation that will affect taxpayers after this publication went to print. Please answer questions based on the information provided in Publication 4491, VITA/TCE Training Guide and Publication 4012, VITA/ TCE Resource Guide. True False
Conner and Matsuko paid $1,000 and $2,000, in qualifying expenses for their two sons, Jason and Justin, respectively, to attend Idaho State University. Jason is a sophomore and Justin is a freshman. Conner and Matsuko's AGI is $195,000. What is their allowable American opportunity tax credit? Multiple Choice $0. $3,000. $2,000. $3,700.
Suzanna earns $4000 in her summertime job; the rest of the year she attends college fulltime. Suzanna may claim an exemption from FIT withholding if: a.she also has a taxable scholarship (used for housing) = $15,000. b.her unearned income (interest) = $1698. c.her aunt claims her as a dependent and she has no unearned income. d.her unearned income (dividends) = $1800.
! Required information [The following information applies to the questions displayed below.] Trey has two dependents, his daughters, ages 14 and 18, at year-end. Trey files a joint return with his spouse. What amount of child tax credit (either as a child or a qualifying dependent) will Trey be able to claim in 2023 for his daughters under each of the following alternative situations? Use Exhibit 8-8. a. His AGI is $109,500. Amount of child tax credit