VITA 2020 ADVANCED EXAM

1. What is the most beneficial filing status allowable for Rebecca? D. Qualifying Widow(er) 2. Rebecca has $3,100 in qualifying child care expenses for the child and dependent care credit. FALSE 3. Pat and Terri are eligible for which of the following credits? Select the best answer. D. Both a and b Credit for other dependents & Child tax credit 4. Pat's unemployment compensation is not taxable this year because it was received as a result of the coronavirus pandemic. FALSE 5. Which of the following statements is true? D. Janice's Medicaid waiver payments are not included in taxable income but can be considered earned income for calculating the earned income credit 6. What is the amount of Andrew's HSA deduction on Form 8889, Part I, line 13? C. $2,500 7. Andrew can identify the employer's HSA contribution by the Code W in Box 12 on his Form W-2. TRUE 8. What is the total unreimbursed qualified medical expenses reported on Form 8889, Part II? D. $2,400 9. Which individuals can make an agreement on who can claim Molly as a dependent? A. Barbara and Jenny 10. Who can claim the earned income credit for Molly? C. Barbara, if Jenny allows her to claim Molly as a dependent 11. If Robert chooses to itemize, which of the following is he eligible to claim as a deduction on Schedule A? D. $260 Mortgage Insurance Premiums (PMI) 12. If Robert chooses not to itemize, what is the amount that he can deduct as an above-the-line charitable contribution adjustment in 2020? A. $250 13. What is the amount of Carly's student loan interest deduction on Form 1040, Schedule 1? $________. 2,500 14. How do educator expenses affect Carly's tax return? B. These expenses cannot be claimed on her 2020 tax return because she does not meet the requirements to claim the educator expenses. 15. What is the amount of qualified child care expenses used in the calculation of the Franklin's Form 2441, Child and Dependent Care Expenses? C. $1,500 16. The refundable portion of the American opportunity credit located on Form 8863, Education Credit is $________. 918 17. The amount of the Franklin's net premium tax credit on Form 8962, Premium Tax Credit is $________. UNSURE 18. The Franklins can claim a recovery rebate credit of $________ for Cristina on their 2020 tax return. UNSURE 19. Do the Franklins qualify for the earned income credit? A. Yes, they meet all the qualifications to receive the credit. 20. The Kennedy's standard deduction on their 2020 tax return is $________. 28700 21. What is the amount of taxable interest reported on the Kennedys' Form 1040? UNSURE