estion 3 of 15. A taxpayer must file Form 8862 to claim certain credits after disallowance by the IRS. Which credit is affected by this requirement? Adoption Credit. Child and Dependent Care Credit. Earned Income Credit. Residential Energy Credit. Mark for follow up

estion 3 of 15. A taxpayer must file Form 8862 to claim certain credits after disallowance by the IRS. Which credit is affected by this requirement? Adoption Credit. Child and Dependent Care Credit. Earned Income Credit. Residential Energy Credit. Mark for follow up

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter13: Tax Credits And Payment Procedures

Section: Chapter Questions

Problem 4RP

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Question 3 of 15. A taxpayer must file Form 8862 to claim certain credits after disallowance by the IRS. Which credit is affected by this requirement? Adoption Credit. Child and Dependent Care Credit. Earned Income Credit. Residential Energy Credit. Mark for follow up

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Which of the following taxpayers is required to file a form 8862 to claim certain credits after disallowance?
12. A taxpayer is required by law to provide the payer's name, address, & tax identification number on a separate summary sheet attached to Schedule B when reporting interest from which of the following sources on their return? a. Nominee distribution. b. Seller-financed mortgage. c. Frozen deposit. d. Certificate of deposit.
24. Which of the following, if any, correctly describes the earned income credit? a. Would be available regardless of the amount of the taxpayer's adjusted gross income. b. Is not available to a surviving spouse. c. Requires a taxpayer to have a qualifying child to take advantage of the credit. d. Is a refundable credit.
Which of the following statements is false regarding the earned income credit (EIC)? Multiple Choice If certain requirements are met, a taxpayer may receive advance payments of EIC. Maximum amount of the credit depends on the earned income and number of children. A taxpayer without children cannot claim the credit. The credit is refundable.
When determining earnings subject to SE tax, the taxpayer may want to use one of the optional methods whether if they have a small net profit or loss and which of the following conditions applies A. They are eligible to receive the Additional Child Tax Credit B. They can claim a Credit for Dependent or Child Care Expenses C. Taxpayer wants to receive a Credit for Social Security Benefit Coverage D. All of the above
Which of the following is NOT a valid use of Form 990-T? Request credit for certain excise taxes paid. Apply for reinstatement after an exempt organization has their status revoked. Claim the Small Employer Health Insurance Premium Tax Credit. Determine tax liability from UBI.
Which Schedule must the taxpayer use to claim a payment made for alimony? Multiple Choice Schedule 1. Schedule 2. Schedule 3. The taxpayer does not need to use a Schedule.
In choosing between taking the standard deduction and itemizing deductions from AGI, what effect, if any, does each of the following have? The age of the taxpayer(s). The health (i.e., physical condition) of the taxpayer. Whether taxpayers rent or own their residence. Taxpayer’s filing status (e.g., single, married, filing jointly). Whether married taxpayers decide to file separate returns. The number of dependents the taxpayer can claim.
n situations where there is no requirement for the taxpayer to provide documentation to substantiate their Earned Income Credit claim, tax preparers can protect and prepare the taxpayer by advising them on the documentation that will substantiate their claim. Specifically, which form is most helpful to substantiate this type of claim? Form 886-DEP. Form 886-HOH. Form 886-EIC. Form 8887.
When applying credits against a taxpayer's gross tax liability, nonrefundable personal credits are applied first, then business credits, and finally refundable personal credits. True or False
Which of the following is an adjustment that will generally result in lower tax liability for an eligible taxpayer because it directly reduces the taxpayer's total income? An education credit. The health savings account deduction. Medical and dental expenses deduction. The retirement savings contributions credit (Saver's Credit)
Which expenses are deductible FOR AGI? Select one: a. Loss on a sale of a personal residence and the standard deduction b. Alimony paid by payor for divorce in 2018 and student loan interest c. Deductions on a sole proprietorship and deductible part of the self-employment tax d. Property taxes on personal residence and student loan interest expense