VITA Retest Basic Scenario Review Questions and Answers

Jeff does not have to make a shared responsibility payment because he was covered by a health insurance plan through his employer for the full tax year.TRUE Linda must make a shared responsibility payment because she did not have qualified healthcare coverage all yearFALSE David is Ava's qualifying child for the earned income credit.TRUE David is a qualifying person for Ava to claim Head of Household filing status, credit for other dependents and the education credit.TRUE Ellen's standard deduction is $24,000FALSE The maximum amount of additional child tax credit Ellen is able to claim per qualifying child is $1,400TRUE Christopher and Amanda can claim Jennifer as a qualifying child for the earned income credit (EIC)FALSE Jennifer is a qualifying child for the child tax creditTRUE Ashley's correct filing status is SingleFALSE Mathew can claim Mark and Kevin as qualifying children for the earned income creditTRUE There is nothing George and Helen can do to prevent having a balance due next yearFALSE George and Helen should not file their tax return until they can pay the entire balance dueFALSE Joshua should file a tax return to claim a refund of his withholdingTRUE Jacob and Martha must report ______ of gambling winnings on their tax return.$2,000