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USA TAXATION

1. In which of the following scenarios does the taxpayer fail to meet the residency test for EIC purposes?

a) A taxpayer whose child lived with him for 5 months and 28 days

b) A taxpayer whose eligible foster child lived with him all year

c) A taxpayer whose child lived with him all year. He and his spouse separated on May 29.

d) A taxpayer who is 64 years old and lived in the United States for more than half of the year

2. Trudy lives with her two children (ages 16 and 12), and her filing status is Head of Household. Trudys earned income and AGI was $31,000. Is Trudy eligible for EIC?

a) Yes

b) No, the taxpayers earned income is not within the range to receive EIC.

c) No, the taxpayers children do not meet the age test to be a qualifying child.

d) No, the taxpayer is not eligible due to her filing status.

3. Jill prepares returns for many clients who can claim earned income credit. To be certain she is practicing due diligence about the earned income credit, which of the following forms must

Jill prepare for these clients?

a) Form 1040

b) Form W-5

c) Form 8862

d) Form 8867

4. Amy and Hobbes are married and file a joint return. Their three children are 7, 9, and 18 years old. Their modified AGI is $58,000, and their tax liability on Form 1040, line 11 is $3,702. They have no other tax credits for the tax year. What is the amount of their child tax credit/credit for other dependents on Form 1040, line 12a?

a) $6,000

b) $4,000

c) $3,702

d) $4,500

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