Vocabulary
A credit for qualifying education expenses paid for an eligible student to an eligible educational institution. One restriction is that the expenses must be for the first four years of higher education.
What is the American Opportunity Tax Credit? (AOTC)
A taxpayer using the MFS status may still qualify for the AOTC or lifetime learning credit?
What is false?
Child Support
What is nontaxable?
The maximum allowed refundable portion of the AOTC?
What is $1000
How much is the teachers deduction for qualified individuals on the federal tax return?
What is $300?
A nonrefundable tax credit of 20–35% of employment-related child and dependent care expenses for amounts of up to $3,000. (up to $6,000 for two or more qualifying dependents)
What is Child and Dependent Care Credit?
Workers Comp is exempt from taxation.
What is true?
Retirement premiums paid by the taxpayer with after-tax dollars.
What is nontaxable?
The _____________ has no requirement that the student attend school on at least a half-time basis. This credit can be taken for one course, as long as it is at an eligible higher educational institution, as well as being a part of a degree program or to acquire or improve job skills.
What is lifetime learning credit?
The age at which a worker qualifies to receive full social security benefits.
A nonrefundable credit equal to 20% of the first $10,000 of qualified higher education tuition and fees paid during the year on behalf of the taxpayer, their spouse, or their dependents.
What is the Lifetime learning credit?
The cost of a smoking cessation program is deductible as a medical expense.
What is true?
The deduction may include the cost of treatment and prescription drugs designed to alleviate the effects of nicotine withdrawal. Costs for nicotine gum and patches not requiring prescriptions are not deductible.
Retirement premiums paid by the taxpayer with pre-tax dollars.
What is taxable?
The __________ is partially refundable.
What is AOTC?
What are the four due diligence requirements?
What is
-Complete and submit form 8867
-Complete and Keep all worksheets
-Knowledge Requirement
-Keep Records
The amount at which property would change hands between a willing buyer and a willing seller, neither being under compulsion to buy or sell, and both having reasonable knowledge of the relevant facts.
What is the fair market value?
A prior felony conviction for possessing or distributing a controlled substance disqualifies taxpayers from claiming education credits.
What is False?
It disqualifies the taxpayer from claiming the AOTC, but they still may qualify for the lifetime learning credit.
Cash Tips.
What is taxable?
Can a taxpayer claim both the AOTC & Lifetime learning credit on the same return?
What is yes, pending that they are claimed for different students.
Form from an eligible educational institution that shows the total amount of payments received by the institution for the student's qualified expenses.
What is Form 1098-T?
Certain personal expenditures allowed to be deducted from adjusted gross income by the Tax Code. Examples include certain medical expenses, qualified interest on home mortgages, and charitable contributions.
What are itemized deductions?
Membership dues to a gym, health club, or spa are deductible expenses.
What is false?
Unemployment Income.
What is taxable?
The ______________ is nonrefundable.
What is the Lifetime learning credit?
What form are social security benefits that taxpayers received during the year reported on?
What is Form SSA-1099?