What is Credits are valuable because they reduce tax liability dollar for dollar.
100
What is the purpose of Form 1095A?
What is Taxpayers who purchase insurance coverage through the Marketplace will be sent a Form 1095A, Health Insurance Marketplace Statement.All taxpayers who obtained coverage through the Marketplace for themselves, a spouse, or dependents AND received either the advance premium tax credit or are eligible to claim the premium tax credit on their tax return must have a Form 1095A to complete their return.
100
When is the American Opportunity Credit (AOC) available?
What is The AOC is available for certain degree candidates who are enrolled on at least a half-time basis and have not completed their first four years of post-secondary education as of the beginning of the tax year.
100
What is a qualified retirement plan?
What is A plan that meets the requirement of IRC Section 401(a) and the Employment Retirement Income Security Act of 1974 (ERISA), and is therefore eligible for favorable tax treatment.
100
What is the IRA contribution limit for 2015?
What is The lesser of 100% of the taxpayer’s compensation or $5,500. Individuals who have reached age 50 by the end of the year may contribute an additional
$1,000 for a total of $6,500.
200
What is the difference between nonrefundable and refundable credits?
What is Nonrefundable credits may not reduce a taxpayer’s tax liability below zero. Refundable credits may reduce the taxpayer’s tax liability below zero, and the difference is refunded to the taxpayer.
200
Are there some credits that must be reported on Form 1040?
What is Yes, certain credits, including the foreign tax credit and the residential energy credit, must be reported on Form 1040 and cannot be claimed on Form 1040A.
200
What effect do tax-free funds (such as grants) have on qualifying expenses for the AOC?
What is The expenses must be reduced by the amount of any tax-free funds received prior to calculating the AOC.
200
In tax terms, what is it called when a taxpayer puts money into an IRA?
What is A contribution.
200
What is the last date on which an IRA contribution may be made and qualify as a contribution for a given year?
What is The due date (not including extensions) of the return for that year.
300
An employer paid $500 of a taxpayer’s $2,000 child care expenses.
How will the employer’s assistance affect the Child Care Credit?
What is The expenses eligible for the credit must be reduced by the amount of employer-provided assistance that can be excluded from income.
300
How is the premium tax credit calculated, and how does a taxpayer reconcile the premium tax credit with any advance premium tax credit received?
What is Form 8962, Premium Tax Credit, calculates the taxpayer’s premium tax credit and reconciles it with any advance premium tax credit received. Form 8962 must be filed for any taxpayer who received the advance premium
tax credit. It may also be prepared for any taxpayer who is eligible for the premium tax credit but did not receive the advance premium tax credit. Information from Form 1095A is used to complete Form 8962.
300
What is the maximum lifetime learning credit, and which taxpayers may take advantage of this credit?
What is The maximum is $2,000 per return. The lifetime learning credit is available to certain taxpayers paying for higher education courses, including graduate level courses. Students may be degree candidates, or they may
be non-degree candidates taking college courses to maintain or improve job skills.
300
What is it called when a taxpayer takes money out of an IRA?
What is A distribution.
300
Why is it important to distinguish between taxpayers who are active participants in an employer-maintained retirement plan and those who are not?
What is Those who are not active participants and whose spouses are not active participants may deduct the full amount they contribute to a traditional IRA, assuming they stay within the contribution limits. Those who are active participants or whose spouses are active participants may still contribute within the limits but may find their allowable deduction reduced or eliminated based on the modified AGI.
400
Where does the employer report the amount of the assistance to the taxpayer?
What is In box 10 of Form W-2.
400
How is the lifetime learning credit calculated?
What is It is 20% of the first $10,000 of qualifying expenses per return, per year.
400
What is it called if a taxpayer takes money out of one IRA and puts it into another (and all requirements are met)?
What is A rollover.
400
What are the main differences between traditional IRAs and
Roth IRAs?
What is Contributions to a Roth IRA are never deductible, but qualified distributions are exempt from tax. Participation in an employer-maintained retirement plan has no effect on Roth IRA contributions, and contributions can be made after the taxpayer has reached age 70½. As long as they have compensation, contributions to Roth IRAs are not reported on the tax return.
500
What is the premium tax credit?
What is The premium tax credit (PTC) is a credit that helps pay the cost of coverage through the Marketplace. It is either advanced to the taxpayer or refunded through their income tax return.
500
What is the maximum tuition and fees deduction?
What is $4,000 for taxpayers with modified AGIs up to $65,000 ($130,000 MFJ), or $2,000 for taxpayers with modified AGIs between $65,001 and $80,000 ($130,001 and $160,000 MFJ).
500
Who is eligible to establish a traditional IRA?
What is Any taxpayer who has not reached age 70½ at the end of the year and who has received compensation during the year.
500
On what form are social security benefits reported to the recipient?