VITA UPDATED Exam Questions and
CORRECT Answers
1. Rebecca's most beneficial allowable filing status is Head of Household. - CORRECT
ANSWER - false
2. Rebecca has $_______ in qualifying child care expenses for the child and dependent care
credit.. - CORRECT ANSWER - 2500
3. Pat and Terri are only eligible to claim the child tax credit on their 2020 tax return. -
CORRECT ANSWER - false
4. The taxable amount of Pat's unemployment compensation is $_________? - CORRECT
ANSWER - 3300
5. Medicaid waiver payments can be considered earned income for the computation of the earned
income credit. - CORRECT ANSWER - true
6. Andrew's HSA deduction amount on Form 8889, Part I, line 13 is $3,000. - CORRECT
ANSWER - False
7. The HSA contribution made by Andrew's employer will be shown in Box 12 on his Form W-2
with the following: - CORRECT ANSWER -W
8. The over-the-counter allergy medication is a qualified medical expense for HSA purposes. -
CORRECT ANSWER - true
9. Barbara and Claire can make an agreement on who can claim Molly as a dependent. -
CORRECT ANSWER - false
, 10. Jenny is eligible for earned income credit, but can allow Claire to claim the credit. -
CORRECT ANSWER - false
11. Robert is eligible to claim the donation to his friend's GoFundMe account as a charitable
contribution. - CORRECT ANSWER - false
12. Robert qualifies for an above-the-line charitable contribution adjustment of $300 on his 2020
tax return if he chooses not to itemize. - CORRECT ANSWER - false
13. Carly can claim $3,960 as a student loan interest deduction on Form 1040, Schedule 1. -
CORRECT ANSWER - false
14. Carly is eligible to deduct $250 as an adjustment to income on Form 1040, Schedule 1 for
qualified educator expenses. - CORRECT ANSWER - false
15. The Franklins can use $ ___________ of qualified child care expenses to calculate the child
and dependent care credit. - CORRECT ANSWER - 6000 false
16. The refundable amount of the American opportunity credit located on Form 8863, Education
Credit is: - CORRECT ANSWER - 918
17. The Franklins' Form 8962, Premium Tax Credit, shows they are entitled to a net premium tax
credit on their 2020 tax return. - CORRECT ANSWER - true
18. The Franklins can claim a recovery rebate credit of $1,200 for Christina on their 2020 tax
return. - CORRECT ANSWER - false
19. What is the amount of the earned income credit on the Franklins' Form 1040? - CORRECT
ANSWER - not 538
0
464
CORRECT Answers
1. Rebecca's most beneficial allowable filing status is Head of Household. - CORRECT
ANSWER - false
2. Rebecca has $_______ in qualifying child care expenses for the child and dependent care
credit.. - CORRECT ANSWER - 2500
3. Pat and Terri are only eligible to claim the child tax credit on their 2020 tax return. -
CORRECT ANSWER - false
4. The taxable amount of Pat's unemployment compensation is $_________? - CORRECT
ANSWER - 3300
5. Medicaid waiver payments can be considered earned income for the computation of the earned
income credit. - CORRECT ANSWER - true
6. Andrew's HSA deduction amount on Form 8889, Part I, line 13 is $3,000. - CORRECT
ANSWER - False
7. The HSA contribution made by Andrew's employer will be shown in Box 12 on his Form W-2
with the following: - CORRECT ANSWER -W
8. The over-the-counter allergy medication is a qualified medical expense for HSA purposes. -
CORRECT ANSWER - true
9. Barbara and Claire can make an agreement on who can claim Molly as a dependent. -
CORRECT ANSWER - false
, 10. Jenny is eligible for earned income credit, but can allow Claire to claim the credit. -
CORRECT ANSWER - false
11. Robert is eligible to claim the donation to his friend's GoFundMe account as a charitable
contribution. - CORRECT ANSWER - false
12. Robert qualifies for an above-the-line charitable contribution adjustment of $300 on his 2020
tax return if he chooses not to itemize. - CORRECT ANSWER - false
13. Carly can claim $3,960 as a student loan interest deduction on Form 1040, Schedule 1. -
CORRECT ANSWER - false
14. Carly is eligible to deduct $250 as an adjustment to income on Form 1040, Schedule 1 for
qualified educator expenses. - CORRECT ANSWER - false
15. The Franklins can use $ ___________ of qualified child care expenses to calculate the child
and dependent care credit. - CORRECT ANSWER - 6000 false
16. The refundable amount of the American opportunity credit located on Form 8863, Education
Credit is: - CORRECT ANSWER - 918
17. The Franklins' Form 8962, Premium Tax Credit, shows they are entitled to a net premium tax
credit on their 2020 tax return. - CORRECT ANSWER - true
18. The Franklins can claim a recovery rebate credit of $1,200 for Christina on their 2020 tax
return. - CORRECT ANSWER - false
19. What is the amount of the earned income credit on the Franklins' Form 1040? - CORRECT
ANSWER - not 538
0
464
