Tax Specialists

Resolved Question:

1. When does a child no longer qualify a taxpayer for the Child Tax Credit?

The year the child reaches age 17.

The year the child reaches majority, which is 18 in most states.

The year the child reaches age 19.

The year the child reaches age 19, or age 24 if the child is a full-time student at least five months of the year.

2. Which one of the following statements is true about alimony?

Couples may live together while one pays the other alimony and it is still considered alimony.

Alimony payments can be continued to be paid beyond the death of the recipient and still be deductible.

Child support is equivalent to alimony payments.

Alimony must be paid in cash. Checks and money orders qualify as cash.

3. Which one of the following types of income IS included in federal gross income?

Federal income tax refund.

Checking account interest.

Personal injury compensation.

Qualified disaster relief payments.

4. Which one of the following items is deductible on Schedule A?

U.S. federal income taxes withheld.

Charitable contributions.

Personal credit card interest.

Will preparation fees.

5. John is a married taxpayer who has lived apart from his wife Mary for more than three years. John has no qualifying children or qualifying relatives. He no longer knows the whereabouts of his spouse. John must file:

Married filing jointly.

Qualified widow(er).

Single.

Married filing separately.

6. The maximum Child Tax Credit is $1,000 per qualifying child. What two situations may limit taxpayers from receiving the full amount?

Tax liability and earned income above the phase-out thresholds for three or more children.

Earned income above the phase-out thresholds and taxpayer filing status.

Tax liability and modified AGI above the phase-out thresholds.

Modified AGI above the phase-out thresholds and three or more children.

7. Taxpayers without a qualifying child must meet additional requirements to claim the EIC. All of the following are...