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True or False: Low-income working married couples filing jointly with or without children can qualify for the Earned Income Tax Credit?
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- Question 25 of 50. Lisa would like to claim her granddaughter, Amani, as her qualifying child so she can claim the Earned Income Credit (EIC). However, Amani's mother, Taya, is also eligible to claim Amani as her qualifying child for EIC purposes and would like to do so if she is able. As Lisa's tax preparer, what information would you share with Lisa? As long as Lisa files before Taya, she may claim EIC based on Amani, her qualifying child. O Lisa and Taya may agree to each claim one-half of the EIC based on Amani, their qualifying child. O Lisa may claim EIC based on Amani if her adjusted gross income was higher than Taya's. O Taya holds a higher right and may claim EIC based on Amani because Taya is Amani's parent. Mark for follow up Question 26 of 50Mathplease quickly thanks!
- MODIFIED TRUE OR FALSE. State “TRUE” if the statement is correct and “FALSE” if it is incorrect, then changed it by giving the right answer. Write your answer on a separate sheet of paper. 1. A taxpayer can obtain more than one tax identification number if he or she derives income from more than one source. 2. The "take-home pay" of an employee is already net of tax. 3. Taxes on regular employees’ salaries are typically withheld either on a monthly or a semi-monthly basis. 4. Aside from taxes, contributions to SSS/GSIS, PhilHealth, Pag- IBIG, and Union dues, if any, also reduce the "take-home pay" of an employee. 5. A taxpayer obtaining more than one TIN for himself/herself is punishable by law through monetary fines or imprisonment.What filing status choices are available for married taxpayersThe definition of qualified child for the Child Tax Credit is the same as the General Definition of a Qualified Child EXCEPT FOR, which of the following (more than one may apply) Select one or more: a. A full-time student over the age of 17 but less than 24 is not eligible to be claimed for the Child Tax Credit. b. A qualified child must be under 17 for the Child Tax Credit c. A qualified child cannot be claimed for the Child Tax Credit with only an ITIN (Taxpayer Identification) d. A sister or brother is not eligible for the Child Tax Credit e. A disabled person who is over age 17 is not eligible to be claimed for the Child Tax Credit
- Which of the following is a true statement with respect to the gross income test for the qualifying relative dependency exemption? a.The gross income test does not have to be met provided the relative is under age 19 at the end of the tax year. b.The gross income test does not have to be met provided the relative is a student. c.The gross income test does not have to be met provided the relative is under age 24 at the end of the tax year. d.The relative must receive less than $4,200 of gross income in order to qualify. e.All of these choices are correct. Martin, a 50-year-old single taxpayer, paid the full cost of maintaining his dependent mother in a home for the aged for the entire year. What is the amount of Martin's standard deduction for 2019? a.$24,400 b.$19,600 c.$12,200 d.$18,350 e.None of these choices are correct. Which of the following is not a capital asset? a.Stocks b.Land c.Gold d.A personal automobile e.InventoryIf an employee does not complete a Form W-4, the employer must withhold tax as if the employee were single with no exemptions? True or FalseWhich of the following correctly completes the sentence regarding the tax treatment of a housing allowance received by an ordained minister? The housing allowance is ______ income for federal income tax purposes and ___________ income for self-employment tax purposes. Included in; included in. Included in; excluded from. Excluded from; included in. Excluded from; excluded from.
- Sebastian and Sunny are married. They are currently contemplating filing as married filing separately. Under current law, spouses filing separately must A) use the standard deduction if the other spouse uses the itemized deductions or vice versa. B) both use standard deduction. C) both use itemized deductions. D) either both use itemized deductions, or both use standard deduction.Which one of the following statements describes the consequences of using the filing status 'married filing jointly'? A spouse may not be held responsible for tax if that spouse had no income. The tax rates are generally more favorable than that of two single individuals if one has high income and the other has low income. If it is elected on an original return, it may be changed on an amended return.To qualify for the additional child tax credit:
