Question 1

The American opportunity tax and lifetime learning credits are not available to taxpayers who are married filing separately.

Accepted Answer

Married couples who file separately are not eligible for the American opportunity tax credit or the lifetime learning credit. These credits are only available to married couples who file jointly or to individuals who file as single or head of household.

Question 2

The maximum allowable American opportunity tax credit for the current tax year is $2,500 per eligible student.

Accepted Answer

This is stated in the IRS publication 970.

Question 3

A qualifying child for the child tax credit must be a dependent and under the age of 14.

Accepted Answer

A qualifying child for the child tax credit must be under the age of 17 at the end of the tax year.

Question 4

A taxpayer can receive both American opportunity tax and lifetime learning credits for the same education expenses in the same tax year.

Accepted Answer

A taxpayer can only claim either the American opportunity tax credit or the lifetime learning credit for the same education expenses in the same tax year. They cannot claim both credits for the same expenses.

Question 5

The maximum allowable credit for the elderly or the disabled is equal to 30% of the taxpayer's base amount.

Accepted Answer

The maximum allowable credit for the elderly or the disabled is actually equal to 15% of the taxpayer's base amount, not 30%.

Question 6

Qualifying expenses for the American opportunity tax and lifetime learning credits include room and board.

Accepted Answer

Room and board expenses are not considered qualifying expenses for either the American opportunity tax credit or the lifetime learning credit. Only tuition, fees, and course- related expenses count towards these credits.

Question 7

The maximum amount per year of dependent care expenses that can be used for calculating the credit for child and dependent care expenses is $6,000 for two or more qualifying individuals.

Accepted Answer

The maximum amount per year of dependent care expenses that can be used for calculating the credit for child and dependent care expenses is indeed $6,000 for two or more qualifying individuals.

Question 8

A qualifying individual for purposes of the credit for child and dependent care expenses includes a dependent or a spouse of the taxpayer who is incapable of caring for himself or herself.

Accepted Answer

A qualifying individual for purposes of the credit for child and dependent care expenses includes a dependent or a spouse of the taxpayer who is incapable of caring for himself or herself.

Question 9

The main goal of Congress in offering tax credits is to collect additional revenues.

Accepted Answer

The main goal of Congress in offering tax credits is actually to incentivize certain behaviors, such as investing in renewable energy or providing childcare, and to reduce the tax burden on individuals and businesses that engage in those behaviors. By doing so, Congress hopes to stimulate economic growth and promote social goods. While tax credits may lead to reduced revenues in the short term, they can often generate positive long-term impacts on the economy and society.

Question 10

The retirement savings contributions credit is available regardless of the income level of the taxpayer.

Accepted Answer

The retirement savings contributions credit, also known as the saver's credit, is not available to taxpayers with higher incomes. The credit is gradually phased out as income levels increase. The exact income limits for eligibility depend on the taxpayer's filing status.

Question 11

Credit for child and dependent care expenses can only be claimed on a Form 1040.

Accepted Answer

The answer of Credit for child and dependent care expenses...

Question 12

If the modified AGI of a married filing joint taxpayer exceeds $132,000 in 2017,the lifetime learning credit phases out completely.

Accepted Answer

The phase-out range for the lifetime learning credit is between $112,000 and $132,000 for married filing joint taxpayers in 2017. If their modified AGI exceeds $132,000, they will not be eligible for the credit at all.

Question 13

The American opportunity tax credit phases out beginning at $80,000 of modified AGI for single taxpayers.

Accepted Answer

The American opportunity tax credit does indeed begin to phase out for single taxpayers with a modified AGI of $80,000 or above.

Question 14

A student can only receive the lifetime learning credit if he/she is enrolled in a degree program.

Accepted Answer

A student does not have to be enrolled in a degree program to be eligible for the lifetime learning credit. They can be enrolled in any course to acquire or improve job skills.

Question 15

The amount of foreign tax credit is equal to the amount paid to the foreign government but cannot exceed that portion of U.S.income tax attributable to the foreign income.

Accepted Answer

This is true. The amount of foreign tax credit cannot exceed the portion of U.S. income tax that is attributable to the foreign income, but it can be equal to the amount paid to the foreign government.

Question 16

The retirement savings contributions credit is available for married filing joint taxpayers only.

Accepted Answer

The retirement savings contributions credit, also known as the saver’s credit, is available for taxpayers who meet certain income and contribution requirements. It is not limited to married filing joint taxpayers only, but can also be claimed by single filers, married filing separately, or head of household filers.

Question 17

The maximum lifetime learning credit per taxpayer is $3,000 per year.

Accepted Answer

The maximum Lifetime Learning Credit per taxpayer is $2,000 per year, calculated as 20% of the first $10,000 of qualified education expenses.

Question 18

The maximum child tax credit is $1,000 per child.

Accepted Answer

This is true according to the IRS in 2021. However, it can change depending on the tax laws in different years.

Question 19

There are two types of education credits available,the American opportunity tax credit and the lifetime learning credit.

Accepted Answer

This statement is true. The American opportunity tax credit and the lifetime learning credit are the two types of education credits available for taxpayers to claim on their tax returns.

Question 20

All taxpayers must file Form 1116 to receive the foreign tax credit.

Accepted Answer

Not all taxpayers need to file Form 1116 to receive the foreign tax credit. Taxpayers who have foreign taxes paid or accrued of $300 or less ($600 or less for married filing jointly) generally do not have to file Form 1116 and can claim the foreign tax credit directly on Form 1040. However, taxpayers who have foreign taxes paid or accrued of more than $300 ($600 or more for married filing jointly) must file Form 1116 to claim the foreign tax credit.

Quiz 9: Tax Credits Form 1040,lines 48 Through 54 and Lines 66A Through 73

The American opportunity tax and lifetime learning credits are not available to taxpayers who are married filing separately.

The maximum allowable American opportunity tax credit for the current tax year is $2,500 per eligible student.

A qualifying child for the child tax credit must be a dependent and under the age of 14.

A taxpayer can receive both American opportunity tax and lifetime learning credits for the same education expenses in the same tax year.

The maximum allowable credit for the elderly or the disabled is equal to 30% of the taxpayer's base amount.

Qualifying expenses for the American opportunity tax and lifetime learning credits include room and board.

The maximum amount per year of dependent care expenses that can be used for calculating the credit for child and dependent care expenses is $6,000 for two or more qualifying individuals.

A qualifying individual for purposes of the credit for child and dependent care expenses includes a dependent or a spouse of the taxpayer who is incapable of caring for himself or herself.

The main goal of Congress in offering tax credits is to collect additional revenues.

The retirement savings contributions credit is available regardless of the income level of the taxpayer.

Credit for child and dependent care expenses can only be claimed on a Form 1040.

If the modified AGI of a married filing joint taxpayer exceeds $132,000 in 2017,the lifetime learning credit phases out completely.

The American opportunity tax credit phases out beginning at $80,000 of modified AGI for single taxpayers.

A student can only receive the lifetime learning credit if he/she is enrolled in a degree program.

The amount of foreign tax credit is equal to the amount paid to the foreign government but cannot exceed that portion of U.S.income tax attributable to the foreign income.

The retirement savings contributions credit is available for married filing joint taxpayers only.

The maximum lifetime learning credit per taxpayer is $3,000 per year.

The maximum child tax credit is $1,000 per child.

There are two types of education credits available,the American opportunity tax credit and the lifetime learning credit.

All taxpayers must file Form 1116 to receive the foreign tax credit.