VITA Expertly Crafted Practice Questions and Answers

What is the most beneficial filing status allowable for Rebecca? a. Single b. Married filing jointly c. Head of Household d. Qualifying Widow(er) Qualifying Widow(er) T or F: Rebecca has $3,100 in qualifying child care expenses for the child and dependent care credit False Pat and Terry are eligible for which of the following credits? Select the best answer a. Credit for other dependents b. Child tax credit c. Earned income credit d. Both a and b Both a and b - Credit for other dependents - Child tax credit T or F: Pat's unemployment compensation is not taxable this year because it was received as a result of the coronavirus pandemic. False Which of the following statements is true? a. Janice's Medicaid waiver payments must be included in taxable income in order to be considered earned income when calculating the earned income credit. b. Janice's Medicaid waiver payments can never be considered earned income when calculating the earned income credit. c. Janice's Medicare waiver payments are not included in taxable income and are never considered earned income when calculating the earned income credit. d. Janice's Medicaid waiver payments are not included in taxable income but can be considered earned income for calculating the earned income credit. d. Janice's Medicaid waiver payments are not included in taxable income but can be considered earned income for calculating the earned income credit. What is the amount of Andrew's HSA deduction on Form 8889, Part I, line 13? a. $1,500 b. $2,000 c. $2,500 d. $3,455 $2,500