Which of the following statements is not true regarding the education credits? Multiple Choice The American Opportunity tax credit is only available for the first two years of postsecondary education. The American Opportunity tax credit is limited to $2,500 per student per year. The Lifetime Learning credit is limited to $2,000 per taxpayer per year. A taxpayer cannot receive the American Opportunity tax credit if he/she has a felony drug conviction.

Which of the following statements is not true regarding the education credits? Multiple Choice The American Opportunity tax credit is only available for the first two years of postsecondary education. The American Opportunity tax credit is limited to $2,500 per student per year. The Lifetime Learning credit is limited to $2,000 per taxpayer per year. A taxpayer cannot receive the American Opportunity tax credit if he/she has a felony drug conviction.

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter2: Gross Income And Exclusions

Section: Chapter Questions

Problem 28MCQ

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Which statement about the education credit is true A- only four-year universities are elegible institutions for the lifetime credit B- An eligible individual for the lifetime learning credit cannot be enrolled part time C-An elegible individual for the American opportunity tax credit may have a felony drug conviction D-A portion of the American opportunity tax credit (AORC) is a refundable credit
To be eligible for American Opportunity Credit, the student must meet all the following, except Select one Oa Be pursuing a degree or other recognized education credential b. Be enrolled at least half time for at least one academic period beginning in the tax year OC Does not have a felony drug conviction at the end of the tax year Od Did not claim the AOTC or the former Hope credit on any previous tax return
Which of the following statement is true? A. Lifetime learning tax credit is available for each qualified student including taxpayers and dependents. B. Tax credits reduces a taxpayer’s taxable income dollar for dollar. C. The child tax credit is subject to phase-out based on the taxpayer’s AGI. D. To qualify for the earned income credit, the taxpayer must have a qualified dependent. E. The American opportunity credit is available only for those students who are in their first or second year of post-secondary education.
Which statements are accurate for reasons why students should be filing returns every year after they turn age 18 regardless of how small their income is: I. Will always receive a tax refund. II. May be eligible to receive the Goods and Services Tax (GST) credit. III. May be eligible to claim a non-refundable tax credit for tuition (even if the tuition tax credit is not used in the year to reduce taxes, Canada Revenue Agency (CRA) will be made aware of these credits to carry forward for use in future years). IV. May be eligible to claim a non-refundable tax credit for interest on qualifying student loans (even if the interest is not claimed, it can be carried forward to any of the following five years). V. May be eligible to claim a deduction for moving expenses. VI. May be eligible to build up Registered Retirement Savings Plan (RRSP) contribution room if there is earned income. A II, III, IV, V, and VI I, II, III, IV, and VI C All the responses I, III, IV, V, and VI E I, II, IV, and…
Which of the following statements is true regarding education tax credits? Group of answer choices The American Opportunity credit permits a maximum credit of 20% of qualified expenses up to $10,000 per year. The lifetime learning credit is available for qualifying tuition and related expenses incurred by students pursuing only graduate degrees. The American Opportunities Credit is only available for the first four-years of higher education. The American Opportunity Credit is calculated per return, while the lifetime learning credit is available per eligible student.
A taxpayer has a liabilty on their California return greater than $80,000. They cut a check to the State for $100,000 instead of using an E-Pay system. They regularly have large liabilities, and this is not a one-time representation of their income, like a windfall or lottery payment. What is the amount of the penalty that they will pay due to not using the mandatory E-Pay for this liability? in california ftb?
15.Which of the following are deductions from AGI? (select all that apply). One-half self-employment tax Self-employed health insurance Post-tax health insurance Donations to a school Supplies for a taxpayer's K-12 classroom Moving expenses for military members on Permanent Change of Station orders Student loan interest Mortgage interest
Requirement For each scenario, indicate the amount that must be included in the taxpayer's gross income. a. Larry was given a $1,500 tuition scholarship to attend Eastern Law School. In addition, Eastern paid Larry $4,000 per year to work part-time in the campus bookstore. (Assume the tuition scholarship is less than the cost of tuition at Eastern Law School. Enter a "0" for any amounts that should not be included in the taxpayer's gross income.) The amount of tuition scholarship that Larry must include in his gross income is The amount of wages from the campus bookstore that Larry must include in his gross income is More info a. Larry was given a $1,500 tuition scholarship to attend Eastern Law School. In addition, Eastern paid Larry $4,000 per year to work part-time in the campus bookstore. b. Marty received a $10,000 football scholarship for attending Northern University. The scholarship covered tuition, room and board, laundry, and books. Four thousand dollars of the scholarship…
In Canadian laws pl
Which one of the following statements about the premium tax credit is FALSE? Select the correct answer. O A. Consumers who are eligible for and receive advance payments of the premium tax credit don't have to file federal income taxes at the end of the coverage year. O B. Consumers may choose to purchase a qualified health plan through a Marketplace without advance payments of the premium tax credit and then wait to apply for the premium tax credit when they file their federal income tax returns. O C. Consumers should be made aware of price differences between qualified health plans and how their eligibility for advance payments of the premium tax credit will help lower their monthly premium costs. OD. If consumers who are eligible for a premium tax credit choose to take some or all of it in advance, the advance payment will be sent directly to the health insurance company that operates their chosen qualified health plan.
In 2023, Elaine paid $2,960 of tuition and $1,040 for books for her dependent son to attend State University this past fall as a freshman. Elaine files a joint return with her husband. What is the maximum American opportunity tax credit that Elaine can claim for the tuition payment and books in each of the following alternative situations? Note: Leave no answer blank. Enter zero if applicable. Problem 8-72 Part a (Algo) a. Elaine's AGI is $103,250.
Consider the following scenarios: i (Click the icon to view the scenarios.) Requirement For each scenario, indicate the amount that must be included in the taxpayer's gross income. a. Larry was given a $1,500 tuition scholarship to attend Eastern Law School. In addition, Eastern paid Larry $4,000 per year to work part-time in the campus bookstore. (Assume the tuition scholarship is less than the cost of tuition at Eastern Law School. Enter a "0" for any amounts that should not be included in the taxpayer's gross income.) The amount of tuition scholarship that Larry must include in his gross income is The amount of wages from the campus bookstore that Larry must include in his gross income is $ $ C 0 4,000 b. Marty received a $10,000 football scholarship for attending Northern University. The scholarship covered tuition, room and board, laundry, and books. Four thousand of the scholarship was designated for room and board and laundry. It was understood that Marty would participate in…