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Alice, age 58, is single. She owns her home and provided all the…
Alice, age 58, is single. She owns her home and provided all the costs of keeping up her home
for the entire year. Her only income for 2022 was $46,000 in W-2 wages.
Linda, age 24, and her daughter Nancy, age 4, moved in with Linda’s mother, Alice, after she
separated from her spouse in April of 2020. Linda’s only income for 2022 was $25,000 in
wages. Linda provided over half of her own support. Nancy did not provide more than half of
her own support.
Linda will not file a joint return with her spouse.
All individuals in the household are U.S. citizens with valid Social Security numbers. No one
has a disability. They lived in the United States all year.
9. Linda is the only person that qualifies to claim Nancy as a dependent. True/false?
10. Which of the following statements is true? A. Linda is not eligible to claim Nancy for the EIC because her filing status is married filing seperate. B. Linda is not eligible to claim the EIC for Nancy because she is under age 25. C. Linda is not eligible to claim Nancy for the EIC because her income is too high. D. None of the above statements are true.
Ellen is 48 years old and files as single.
Her 2022 adjusted gross income (AGI) is $51,000, which includes gambling winnings of
$2,000.
Ellen would like to itemize her deductions this year.
Ellen brings documents for the following expenses:
$9,000 Hospital and doctor bills
$500 Contributions to Health Savings Account (HSA)
$3,600 State withholding (higher than Ellen’s calculated state sales tax deduction)
$300 Personal property taxes based on the value of the vehicle
$400 Friend’s personal GoFundMe campaign
$275 Cash contributions to the Red Cross
$200 Fair market value of clothing in good condition donated to the Salvation Army
(Ellen purchased the clothing for $900)
$7,300 Mortgage interest
$2,300 Real estate tax
$150 Homeowners association fees
$3,000 Gambling losses
11. If Ellen chooses to itemize, which of the following is she eligible to claim as a deduction on
Schedule A? A. $400 GoFundme donation. B. $500 Contributions to Health Savings Account (HSA). C. $150 Homeowner’s Association fees. D. $300 personal property taxes based on the value of her vehicle.
12. Ellen is eligible to claim $3,000 in gambling losses as a deduction on her Schedule A. True/false?
John Ward is 26 years old and single. He provides all of his own support.
John works at a grocery store and earned $15,250 in wages.
John was not a full time student, but took two management courses at a community college to
improve his job skills. He wants to know if that qualifies for any tax benefit.
John is a U.S. citizen and lived in the U.S. for the entire year. He has a valid Social Security
number.
13. Which of the following is a requirement for John to claim the lifetime learning credit in 2022? A. John must be atleast a half-time student. B. John must be a degree candidate at an eligible educational institution. C. Johns modified adjusted gross income must be less than 90,000. D. John must have no felony drug convictions.
14. John is eligible to claim the earned income credit on his 2022 tax return. True/false?
Robert is a 6th grade teacher at a public school. Robert and Emily are married and choose to file Married Filing Jointly on their 2022 tax return.
Robert worked a total of 1,340 hours in 2022. During the school year, he spent $733 on unreimbursed classroom expenses. Emily retired in 2019 and began receiving her pension on November 1st of that year. She explains that this is a joint and survivor annuity. She has already recovered $1,216 of the cost of the plan.
Robert settled with his credit card company on an outstanding bill and brought the Form 1099- C to the site. They aren’t sure how it will impact their tax return for tax year 2022. The Lincolns determined that they were solvent as of the date of the canceled debt.
Emily won $4,414 gambling at a casino and had additional lottery winnings of $175. Emily has documented casino losses of $1,260.
Their daughter, Safari, is in her second year of college pursuing a bachelor’s degree in Veterinary Medicine at a qualified educational institution. She received a scholarship and the terms require that it be used to pay tuition. Box 2 was not filled in and Box 7 was not checked on her Form 1098-T for the previous tax year. The Lincolns provided Form 1098-T and an account statement from the college that included additional expenses. The Lincolns paid $865 for books and equipment required for Safari’s courses. This information is also included on the college statement of account. The Lincolns claimed the American Opportunity Credit last year for the first time.
Safari does not have a felony drug conviction.
They are all U.S. citizens with valid Social Security numbers
15. The taxable portion of Emily’s pension from Maple Enterprises using the simplified method is
$19,350. True/false?
16. The taxable amount of Emily’s social security income is:
17. The total amount of other income reported on the Lincoln’s Form 1040, Schedule 1 is $850. True/false?
18. What is the amount Robert is eligible to claim as qualified educator expenses on Form 1040,
Schedule 1?
19. The Lincoln’s standard deduction on their Form 1040 for tax year 2022 is $25,900. True/false?
20. Which of the following expenses qualify for the American opportunity credit? A. Required course related books and equipment. B tuition. C. Parking pass. D. Both A and B.
21. The Lincolns can claim the credit for other dependents for their daughter Safari. True/false?
22. How much federal income tax withholding is reported on the Lincolns’ Form 1040?
