Retirement Savings Contributions Credit
A credit is a tax benefit that impacts the tax or bottom line of a tax return. What are two credits a taxpayer can claim?
Nonrefundable credits
Refundable credits
What is the maximum CTC Amount?
The maximum CTC is $2,000 per qualifying child
What is the Credit for Other Dependents (ODC)?
A. Nonrefundable credit for taxpayers with dependents who are not qualifying children for the CTC.
B. Nonrefundable credit for taxpayers with qualifying children.
C. Refundable credit for tax payers who qualify for CTC but don't get the maximum CTC amount.
A. Nonrefundable credit for taxpayers with dependents who are not qualifying children for the CTC.
When the taxpayer is claiming the Saver's Credit, make sure to use which form.
A. 8880
B. 8867
C. 8332
A. 8880
What is a Child Tax Credit (CTC)?
A. A Refundable credit for taxpayers with qualifying children
B. A Nonrefundable credit for taxpayers with qualifying children
C. Refundable credit for taxpayers who qualify for the CTC but don't get the maximum CTC amount
B. A Nonrefundable credit for taxpayers with qualifying children
Can CTC/ ACTC be denied by the IRS?
Yes.
Nonrefundable credit for certain taxpayers with dependents who are not qualifying children for the Child Tax Credit/ Additional Child Tax Credit is?
A. Retirement savings Contributions Credit also know as the Saver's Credit
B. Child Tax Credit (CTC) / Additional Child Tax Credit(ACTC)
C. Credit for Other Dependents (ODC)
C. Credit for Other Dependents (ODC)
When the taxpayer is claiming the CTC/ACTC make sure to use which form?
A. 8332
B. 8880
C. 8812
C. 8812
What is the Maximum ODC amount of credit given?
$ 500 per dependent
Qualification to claim the Saver's Credit the taxpayer must:
A. Be age 17 or younger at the end of the tax year
B. Have modified adjusted gross income (MAGI) that is not greater than the threshold amount for their filing status
C. Be claimed as a dependent on someone else 's tax return
B. Have modified adjusted gross income (MAGI) that is not greater than the threshold amount for their filing status
Angela is single. Her son, Carlos(8), is not a citizen of the United States and lived in Mexico all year. Angela qualifies to claim Carlos as her dependent.
Is Carlos Angela's qualifying child for the CTC/ACTC?
No. Carlos is not Angela's qualifying child for the CTC/ACTC because he is not a united states citizen, resident, or national.
Do the dependent qualify for ODC have to have SS#?
No. They can have an ITIN
Eligible contributions for the Saver's credit include amounts contributed. Which is not and eligible contribution?
A. Donations to Red Cross
B. Traditional IRAs
C. Roth IRAs
A. Donations to Red Cross
For a dependent to qualifying for CTC/ACTC which two are correct?
A. The child must not be claimed as a dependent qualifying child on the taxpayer's return.
B. The child must have an SSN that is valid for employment and issued by SSA.
C. The child must be age 18 at the end of the year.
D. Live with the taxpayer for more than half the year.
B. The child must have an SSN that is valid for employment and issued by SSA.
D. Live with the taxpayer for more than half the year.