1.
In 2020, Elaine paid $2,440 of tuition and $1,160 for books for herdependent son to attend State University this past fall as afreshman. Elaine files a joint return with her husband.
What is the maximum American opportunity tax credit that Elaine canclaim for the tuition payment and books in each of the followingalternative situations? (Leave no answer blank. Enter zeroif applicable.)
Elaine’s AGI is $88,000.
What is the American opportunity tax credit?
2. In 2020, Laureen is currently single. She paid $2,400 ofqualified tuition and related expenses for each of her twindaughters Sheri and Meri to attend State University as freshmen($2,400 each for a total of $4,800). Sheri and Meri qualify asLaureen’s dependents. Laureen also paid $1,750 for her son Ryan’s(also Laureen’s dependent) tuition and related expenses to attendhis junior year at State University. Finally, Laureen paid $1,250for herself to attend seminars at a community college to help herimprove her job skills. (Leave no answer blank. Enter zeroif applicable.)
a. What is the maximum amount of educationcredits Laureen can claim for these expenditures? Laureen's AGI is$45,000. If Laureen claims education credits for her three childrenand herself, how much credit is she allowed to claim in total? Ifshe claims education credits for her children, how much of herchildren’s tuition costs that do not generate credits may shededuct as for AGI expenses?
-American opportunity tax credit? _______
Lifetime learning credit?_______
For AGI deduction?_______
3.In 2020, Laureen is currently single. She paid $2,400 ofqualified tuition and related expenses for each of her twindaughters Sheri and Meri to attend State University as freshmen($2,400 each for a total of $4,800). Sheri and Meri qualify asLaureen’s dependents. Laureen also paid $1,750 for her son Ryan’s(also Laureen’s dependent) tuition and related expenses to attendhis junior year at State University. Finally, Laureen paid $1,250for herself to attend seminars at a community college to help herimprove her job skills.
b. Laureen’s AGI is $95,000. What is themaximum amount of education deductions Laureen can claim to theextent the costs don’t generate a credit?
For AGI deduction?_______
4.
In 2020, Laureen is currently single. She paid $2,400 of qualifiedtuition and related expenses for each of her twin daughters Sheriand Meri to attend State University as freshmen ($2,400 each for atotal of $4,800). Sheri and Meri qualify as Laureen’s dependents.Laureen also paid $1,750 for her son Ryan’s (also Laureen’sdependent) tuition and related expenses to attend his junior yearat State University. Finally, Laureen paid $1,250 for herself toattend seminars at a community college to help her improve her jobskills. (Leave no answer blank. Enter zero ifapplicable.)
c. Laureen’s AGI is $45,000 and Laureen paid$12,100 (not $1,750) for Ryan to attend graduate school (i.e., hisfifth year, not his junior year).
-American opportunity tax credit? _______
Lifetime learning credit?_______
5.This year Luke has calculated his gross tax liability at$2,240. Luke is entitled to a $3,060 nonrefundable personal taxcredit, a $1,830 business tax credit, and a $820 refundablepersonal tax credit. In addition, Luke has had $2,850 of incometaxes withheld from his salary. (Input the amount as apositive value.)
What is Luke’s net tax due or refund?
6.
In 2020, Zach is single with no dependents. He is not claimed asa dependent on another’s return. All of his income is from salaryand he does not have any for AGI deductions.
What is his earned income credit in the following alternativescenarios? Use Exhibit 8-10. (Round yourintermediate calculations to whole dollar amount. Round your finalanswer to the nearest whole dollar amount. Leaveno answer blank. Enter zero if applicable.)
d. Zach is 24 years old and his AGI is$4,100.
What is the earned income credit?_____
7.
Julie paid a day care center to watch her two-year-old son whileshe worked as a computer programmer for a local start-upcompany.
What amount of child and dependent care credit can Julie claim ineach of the following alternative scenarios? Use Exhibit 8-9
a. Julie paid $2,180 to the day care center andher AGI is $50,000
What is the child & dependent care credit?___
