CFL Midterm Exam Questions with
100% Correct Answers.
If they meet the requirements, taxpayers may be able to claim both the child tax credit
and the additional child tax credit.
yes
A taxpayer tax liability can be reduced to $0 and still receive a refund with which tax
credit?
The refundable additional child tax credit
A tax deduction reduces the income subject to tax.
true
For the tax credit for child and dependent care expenses, what are the maximum qualifying
expenses for a taxpayer with four qualifying dependents?
6000.00.
Can an unemployed taxpayer who is actively seeking work claim the tax credit for child
and dependent care expenses?
yes
Are there circumstances when a taxpayer with an unemployed spouse can claim the
tax credit for child and dependent care expenses?
yes
What is the lowest percentage used to compute the tax credit for child and dependent
care expenses?
20.00.
Interest and dividends are classified as what type of income?
, Investment.
Self-employment earnings are classified as what type of income?
Earned.
What is reduced by the earned income credit?
Tax.
The highest earned income credit is for taxpayers with how many qualifying children?
3 or more
A tax refund can be received by direct deposit to a taxpayer's bank account.
true
A tax payment can be made by check
true
All taxpayers can make tax payments using a direct debit from their bank account.
false
Federal Income Tax
are applied on all forms of earnings that make up a taxpayer's taxable income, such
as employment earnings or capital gains.
Medicare Tax
A tax deducted from employees' paychecks that goes to pay for medical benefits for people
over 65 years of age. Medicare tax is paid by both employee and employer.
Social Security Tax
A tax that pays for retirement benefits
Property Tax
100% Correct Answers.
If they meet the requirements, taxpayers may be able to claim both the child tax credit
and the additional child tax credit.
yes
A taxpayer tax liability can be reduced to $0 and still receive a refund with which tax
credit?
The refundable additional child tax credit
A tax deduction reduces the income subject to tax.
true
For the tax credit for child and dependent care expenses, what are the maximum qualifying
expenses for a taxpayer with four qualifying dependents?
6000.00.
Can an unemployed taxpayer who is actively seeking work claim the tax credit for child
and dependent care expenses?
yes
Are there circumstances when a taxpayer with an unemployed spouse can claim the
tax credit for child and dependent care expenses?
yes
What is the lowest percentage used to compute the tax credit for child and dependent
care expenses?
20.00.
Interest and dividends are classified as what type of income?
, Investment.
Self-employment earnings are classified as what type of income?
Earned.
What is reduced by the earned income credit?
Tax.
The highest earned income credit is for taxpayers with how many qualifying children?
3 or more
A tax refund can be received by direct deposit to a taxpayer's bank account.
true
A tax payment can be made by check
true
All taxpayers can make tax payments using a direct debit from their bank account.
false
Federal Income Tax
are applied on all forms of earnings that make up a taxpayer's taxable income, such
as employment earnings or capital gains.
Medicare Tax
A tax deducted from employees' paychecks that goes to pay for medical benefits for people
over 65 years of age. Medicare tax is paid by both employee and employer.
Social Security Tax
A tax that pays for retirement benefits
Property Tax
