Form 8867 Study guides, Class notes & Summaries

2022 TAX 1 Comprehensive Module 2 Final Exam With Rationale 1. Don is a single parent. His son is 19 (not a student), and his daughter is 17 (still a student). Don claimed EIC on his tax return for both children. He later received a letter from the Internal Revenue Service which disallowed EIC for his son. The letter also stated that Don’s claim was an error due to reckless or intentional disregard of the EIC rules. For how many years will Don be denied EIC? a) 10 years b) ...

HR Block Income Tax Midterm Exam (Latest 2024/ 2025 Update) Questions and Verified Answers| 100% Correct| Grade A Q: Which of the following is not one of the four requirements to claim a dependent? D Answer: a) The dependent must be a qualifying child or qualifying relative. b) The dependent must be a U.S. citizen or a resident of the United States, Canada, or Mexico. c) If the dependent is married, they cannot be claimed as a dependent if they file a joint return with their spouse. ...

HRB Chapter 9 Test Questions with Correct Answers A credit paid for qualifying education expenses paid for eligible students. One restriction is that the expenses must be for the first four years of higher education. The AOTC may be partially refundable. - Answer-American Opportunity Tax Credit (AOTC) A direct reduction of tax liability allowed for various purposes to taxpayers who meet the qualifications. Some credits are refundable; that is, the IRS will send the taxpayer a refund for any ...

HRB Chapter 9 Test Questions with Correct Answers A credit paid for qualifying education expenses paid for eligible students. One restriction is that the expenses must be for the first four years of higher education. The AOTC may be partially refundable. - Answer-American Opportunity Tax Credit (AOTC) A direct reduction of tax liability allowed for various purposes to taxpayers who meet the qualifications. Some credits are refundable; that is, the IRS will send the taxpayer a refund for any...

HRB FINAL EXAM COMPLETE QUESTIONS AND ANSWERS ASSURED A+. What is the Difference between earned income and unearned income? - Answer Earned income is received for services performed. Examples are wages commissions, tips and generally farming and other business income . Taxable income other than that received for services performed. Unearned Income includes money received ro the investment of money or other property, such as interest, dividends, and royalties. It also includes pensions ali...

Investment Income Includes INTEREST, DIVIDENDS, CAPITAL GAINS and other types of DISTRIBUTIONS. See IRS Publication 550, Investment Income and Expenses (Including Capital Gains and Losses). Nonrefundable Credit A credit which CANNOT EXCEED the taxpayer's tax liability. Refundable Credit A credit for which the IRS will send the taxpayer a REFUND for any amount in EXCESS of the taxpayer's tax liability. Credits vs. Deductions • Deductions reduce the amount of INCOME t...

A credit paid for qualifying education expenses paid for eligible students. One restriction is that the expenses must be for the first four years of higher education. The AOTC may be partially refundable. - ANSWER-American Opportunity Tax Credit (AOTC) A direct reduction of tax liability allowed for various purposes to taxpayers who meet the qualifications. Some credits are refundable; that is, the IRS will send the taxpayer a refund for any amount in excess of the tax liability. Some credits...

HRB FINAL EXAM QUESTIONS AND ANSWERS ALREADY PASSED What is the Difference between earned income and unearned income? Earned income is received for services performed. Examples are wages commissions, tips and generally farming and other business income . Taxable income other than that received for services performed. Unearned Income includes money received ro the investment of money or other property, such as interest, dividends, and royalties. It also includes pensions alimony, unemploy...

HRB Chapter 9 Test Questions with Correct Answers (1) A credit paid for qualifying education expenses paid for eligible students. One restriction is that the expenses must be for the first four years of higher education. The AOTC may be partially refundable. - Answer-American Opportunity Tax Credit (AOTC) A direct reduction of tax liability allowed for various purposes to taxpayers who meet the qualifications. Some credits are refundable; that is, the IRS will send the taxpayer a refund for ...

HRB FINAL EXAM COMPLETE QUESTIONS AND ANSWERS ASSURED A+. What is the Difference between earned income and unearned income? - Answer Earned income is received for services performed. Examples are wages commissions, tips and generally farming and other business income . Taxable income other than that received for services performed. Unearned Income includes money received ro the investment of money or other property, such as interest, dividends, and royalties. It also includes pensions ali...