VITA Basic Course Scenarios and Test Questions With correct answers

Jeff may need to make a shared responsibility payment - CORRECT ANSWERFALSE Linda does not need to make a shared responsibility payment because she qualifies for an exemption under the short coverage gap criteria - CORRECT ANSWERTRUE Ava cannot claim her son for the earned income credit because he did not live with her for more than half the year and does not meet the residency test. - CORRECT ANSWERFALSE, attendance at school is considered temporary absence and this time is counted as time that her child lived with her. David is Ava's qualifying person for which of the following? (select all that apply) - CORRECT ANSWER-Head of Household filing status -Credit for other dependents -Education credit What is the amount of Ellen's Standard deduction? - CORRECT ANSWER$18,000 Which credits can Christopher and Amanda claim on their tax return? - CORRECT ANSWERBoth A & B (CHILD AND DEPENDENT CARE CREDIT, CHILD TAX CREDIT) Who can claim Mark and Kevin as qualifying children for earned income credit? - CORRECT ANSWERMathew What actions should George and Helen take to prevent having a balance due next year? - CORRECT ANSWERBoth A & B (THEY SHOULD USE THE WITHHOLDING CALCULATOR, THEY SHOULD ADJUST THEIR FORM W-4 TO INCREASE WITHHOLDING) What is the amount of gambling winnings claimed on Jacob's and Martha's 2018 tax return? - CORRECT ANSWER$2,000 Jacob and Martha can claim $2,000 of qualified education expenses to calculate Daniel's American credit. - CORRECT ANSWERTRUE How much of Martha and Jacob's Social Security is taxable - CORRECT ANSWER$7,169