VITA Basic Course Scenarios

Jeff may need to make a shared responsibility payment - correct answer FALSE Linda does not need to make a shared responsibility payment because she qualifies for an exemption under the short coverage gap criteria - correct answer TRUE Ava cannot claim her son for the earned income credit because he did not live with her for more than half the year and does not meet the residency test. - correct answer FALSE, attendance at school is considered temporary absence and this time is counted as time that her child lived with her. David is Ava's qualifying person for which of the following? (select all that apply) - correct answer -Head of Household filing status -Credit for other dependents -Education credit What is the amount of Ellen's Standard deduction? - correct answer $18,000 Which credits can Christopher and Amanda claim on their tax return? - correct answer Both A & B (CHILD AND DEPENDENT CARE CREDIT, CHILD TAX CREDIT) Who can claim Mark and Kevin as qualifying children for earned income credit? - correct answer Mathew What actions should George and Helen take to prevent having a balance due next year? - correct answer Both A & B (THEY SHOULD USE THE WITHHOLDING CALCULATOR, THEY SHOULD ADJUST THEIR FORM W-4 TO INCREASE WITHHOLDING) What is the amount of gambling winnings claimed on Jacob's and Martha's 2018 tax return? - correct answer $2,000 Jacob and Martha can claim $2,000 of qualified education expenses to calculate Daniel's American credit. - correct answer TRUE How much of Martha and Jacob's Social Security is taxable - correct answer $7,169 Which of the following items are included in the total payments on Jacob and Martha's tax return? - correct answer ALL OF THE ABOVE (federal income tax withheld from Forms W-2 and 1099, $400 applied from 2017 return, Refundable credits) What form must be used to split Jacob and Martha's refund? - correct answer Form 8888, Allocation of Refund (Including Savings Bond Purchases) What is the total credit amount shown on Form 2441, Child and Dependent Care Expenses? - correct answer $660