COMPLETE QUESTIONS AND SOLUTIONS
GRADED A+
◉ Advanced Scenario 1: Test Questions
Who qualifies to claim the Earned Income Credit (EIC) also known
as Earned Income Tax Credit (EITC) for Lea? Answer: Sharon
◉ Advanced Scenario 1: Test Questions
Sharon is required to report her lottery winnings as income on her
federal tax return. Answer: True
◉ Advanced Scenario 2: Test Questions
What is the maximum amount Jeff and Jane are eligible to claim for
the Child Tax Credit (CTC) Answer: $4,000
◉ Advanced Scenario 2: Test Questions
The Springs qualify for the Child and Dependent Care Credit Answer:
False
◉ Advanced Scenario 3: Test Questions
, Mary is eligible to contribute an additional $__________ to her HSA
because she is age 55 or older Answer: $1,000
◉ Advanced Scenario 3: Test Questions
Form 8889, Part I is used to report HSA contributions made by
_______________. Answer: d. All of the above
◉ Advanced Scenario 3: Test Questions
What is the total unreimbursed qualified medical expenses reported
on Form 8889, Part II? Answer: $3,860
◉ Advanced Scenario 4: Test Questions
For the purpose of determining dependency, Cary could be the
qualifying child of _______________. Answer: c. Either Cheryl or Cindy
◉ Advanced Scenario 4: Test Questions
Which of the following statements is true?
a. Cindy is not eligible to claim Cary for the EIC because her filing
status is married filing separate.
b. Cindy is not eligible to claim the EIC for Cary because she is under
age 25.
c. Cindy is not eligible to claim Cary for the EIC because her income
is too high.