Homework Help is Here – Start Your Trial Now!
Business
Accounting
American Opportunity tax credit

American Opportunity tax credit

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
The American Opportunity tax credit Oa. Is fully refundable even if the credit exceeds the tax liability. Ob. Is available for qualifying expenses paid on behalf of the taxpayer and his or her spouse, in addition to those paid for dependents. Oc. Is 50 percent of the first $1,200 of tuition and fees paid and 100 percent of the next $1,200. Od. Is available for 2 years of post-secondary education.
Transcribed Image Text:The American Opportunity tax credit Oa. Is fully refundable even if the credit exceeds the tax liability. Ob. Is available for qualifying expenses paid on behalf of the taxpayer and his or her spouse, in addition to those paid for dependents. Oc. Is 50 percent of the first $1,200 of tuition and fees paid and 100 percent of the next $1,200. Od. Is available for 2 years of post-secondary education.
Robert and Mary file a joint tax return for 2021 with adjusted gross income of $104,000. Robert and Mary earned income of $30,000 and $74,000, respectively, during 2021. In order for Mary to be gainfully employed, they pay the following child care expenses for their 4-year-old son, John: Union Day Care Center for John $6,700 Wilma (Robert's mother) for babysitting John $4,000 What is the amount of the child and dependent care credit they should report on their tax return for 2021 (assume no tax liability limitation)? Oa. $2,140 Ob. $3,000 Oc. $5,350 Od. $10,700 Oe. None of these choices are correct.
Transcribed Image Text:Robert and Mary file a joint tax return for 2021 with adjusted gross income of $104,000. Robert and Mary earned income of $30,000 and $74,000, respectively, during 2021. In order for Mary to be gainfully employed, they pay the following child care expenses for their 4-year-old son, John: Union Day Care Center for John $6,700 Wilma (Robert's mother) for babysitting John $4,000 What is the amount of the child and dependent care credit they should report on their tax return for 2021 (assume no tax liability limitation)? Oa. $2,140 Ob. $3,000 Oc. $5,350 Od. $10,700 Oe. None of these choices are correct.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Sales Tax, Restaurant Tax and Lodging Taxes
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS