CYCLE!!!!
Two taxpayers married on November 30. That same year, the husband enrolled in an
accredited college to further his career and subsequently received a Form 1098-T, Tuition
Statement. The wife was employed with an income of $45,000 and paid for the husband's
education expenses. Based on their circumstances, what is the correct method to report the
education credit? - ANSWER Taxpayers must file a joint return to claim an education
credit. IRC 25Ag6; Insrutctions for Form 8863; page 2
The taxpayer has a child under the age of 24 who is a full-time student in their 2nd year of
college.
-The student will be claimed as a dependent on the taxpayers return.
-The student's education expenses included $8,000 for tuition and room and board of
$4,000.
-The student received a $5,000 scholarship for tuition use only, as well as an additional
$2,500 to pay any of the student's college expenses. - ANSWER The taxpayer can claim
the American Opportunity credit on their return for tuition expenses of $2,500, and the
student should report as income $2,000 of the $2,500 scholarship. IRC 25Ai; IRC 117;
Publication 970, pp. 5, 7
Which of the following statements is correct regarding Form 1095A, Health Insurance
Marketplace Statement? - ANSWER Taxpayers will use form 1095A to complete Form
8962, Premium Ta Credit, to reconcile advance payments of the premium tax credit or claim
the premium tax credit on their tax return. Form 8962 Instructions, p.2
To avoid the penalty for not having insurance, taxpayers must be enrolled in qualifying
health coverage, also called minimum essential coverage. All of the following are examples
of minimum essential coverage Except: - ANSWER Certain Insurance coverage that
may provide limited benefits. That includes, but is not limited to, the following types of
plans: stand-alone dental and vision, accident or disability income or workers'
compensation. Publication 974, p. 8
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Two taxpayers married on November 30. That same year, the husband enrolled in an
accredited college to further his career and subsequently received a Form 1098-T, Tuition
Statement. The wife was employed with an income of $45,000 and paid for the husband's
education expenses. Based on their circumstances, what is the correct method to report the
education credit? - ANSWER Taxpayers must file a joint return to claim an education
credit. IRC 25Ag6; Insrutctions for Form 8863; page 2
The taxpayer has a child under the age of 24 who is a full-time student in their 2nd year of
college.
-The student will be claimed as a dependent on the taxpayers return.
-The student's education expenses included $8,000 for tuition and room and board of
$4,000.
-The student received a $5,000 scholarship for tuition use only, as well as an additional
$2,500 to pay any of the student's college expenses. - ANSWER The taxpayer can claim
the American Opportunity credit on their return for tuition expenses of $2,500, and the
student should report as income $2,000 of the $2,500 scholarship. IRC 25Ai; IRC 117;
Publication 970, pp. 5, 7
Which of the following statements is correct regarding Form 1095A, Health Insurance
Marketplace Statement? - ANSWER Taxpayers will use form 1095A to complete Form
8962, Premium Ta Credit, to reconcile advance payments of the premium tax credit or claim
the premium tax credit on their tax return. Form 8962 Instructions, p.2
To avoid the penalty for not having insurance, taxpayers must be enrolled in qualifying
health coverage, also called minimum essential coverage. All of the following are examples
of minimum essential coverage Except: - ANSWER Certain Insurance coverage that
may provide limited benefits. That includes, but is not limited to, the following types of
plans: stand-alone dental and vision, accident or disability income or workers'
compensation. Publication 974, p. 8
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