VITA Basic Test Questions with 100% Correct Answers

VITA Basic Test Questions with 100% Correct Answers What is the total amount of Gordon's federal income tax withholding? - Answer-$3,300 What form must be used to split Gordon's refund? - Answer-Form 8888 Who are Valerie's qualifying persons for Head of Household filing status? - Answer-Annie and Patrick Ethan is Valerie's qualifying child for which of the following benefits? - Answer-None of the above What is the total federal income tax withholding for Valerie's tax return? $________. - Answer-$3,060 What is Valerie's credit for child and dependent care expenses shown on her Form 1040, page 2? - Answer-$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. - Answer-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? - Answer-$180 Calvin has qualifying health insurance coverage (also known as minimum essential coverage) as defined under the Affordable Care Act. - Answer-True Calvin and Betty may need to make a shared responsibility payment on their joint return if they don't qualify for an exemption. - Answer-True Who can claim the American opportunity credit? - Answer-Dana can claim the credit because Tom is her dependent. Dana's most advantageous allowable filing status is: - Answer-Head of Household Who can Bob claim as a qualifying child(ren) for the earned income credit? - Answer-Bob can claim Sara, but not Joan. Who can claim Sara as a dependent? - Answer-Joan can claim Sara because she is Sara's mother. (Wrong) Will may claim R.J. as a dependent on his tax return. - Answer-True Is Will able to claim R.J. as a qualifying child for the earned income credit (EIC)? - Answer-No, because Will has an ITIN. Which benefit(s) can Will claim on his tax return? (Choose the best answer) - Answer-All of the above What are the correct filing statuses? - Answer-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? - Answer-No What amount of gambling winnings should be reported as other income on Linda's return? - Answer-$1,400 Based on her Married Filing Separately filing status, which education benefit is Linda eligible to claim? - Answer-She does not qualify for any education benefit What is Gordon's filing status on his 2017 tax return? - Answer-Single