VITA Basic Test

Calvin has qualifying health insurance coverage (also known as minimum essential coverage) as defined under the Affordable Care Act. True Calvin and Betty may need to make a shared responsibility payment on their joint return if they don't qualify for an exemption. True Who can claim the American opportunity credit? Dana can claim the credit because Tom is her dependent. Dana's most advantageous allowable filing status is: Head of Household Who can Bob claim as a qualifying child(ren) for the earned income credit? Bob can claim Sara, but not Joan. Who can claim Sara as a dependent? Joan can claim Sara because she is Sara's mother. (Wrong) Will may claim R.J. as a dependent on his tax return. True Is Will able to claim R.J. as a qualifying child for the earned income credit (EIC)? No, because Will has an ITIN. Which benefit(s) can Will claim on his tax return? (Choose the best answer) All of the above What are the correct filing statuses? Both John and Marsha must file as Single Is it allowable for John and Marsha to each claim one qualifying child for the earned income credit on their individual returns? No What amount of gambling winnings should be reported as other income on Linda's return? $1,400 Based on her Married Filing Separately filing status, which education benefit is Linda eligible to claim? She does not qualify for any education benefit What is Gordon's filing status on his 2017 tax return? Single The $25 of savings account interest is not required to be reported on the return since no Form 1099-INT was issued. False How much of Gordon's Social Security is taxable? $6,646 Gordon is over 65. How does that affect his tax return? It increases his standard deduction What is the total amount of Gordon's federal income tax withholding? $3,300 What form must be used to split Gordon's refund? Form 8888 Who are Valerie's qualifying persons for Head of Household filing status? Annie and Patrick Ethan is Valerie's qualifying child for which of the following benefits? None of the above What is the total federal income tax withholding for Valerie's tax return? $________. $3,060 What is Valerie's credit for child and dependent care expenses shown on her Form 1040, page 2? $396 Valerie cannot claim the $700 of student loan interest as an adjustment on page 1 of Form 1040, because the loan was for Ethan's education. False What is the amount of additional tax on the distribution from Valerie's 401(k), shown in the Other Taxes section of Form 1040? $180