Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
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Question
Chapter 7, Problem 7MCQ
To determine
Concept Introduction:
American Opportunity Tax Credit: American opportunity tax credit is an educational credit to help to recover the higher education for the middle-class individual. American opportunity tax credit is a credit for the students in their 4-year education.
To calculate: The American opportunity tax credit
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A tax credit of $100 for a person in a 24 percent tax bracket would reduce a person's taxes owed by:
Group of answer choices
$10.
$28.
$76.
$100.
$24.
The tax rates are as shown below:
Taxable Income Tax Rate
$0 - 50,000
50,001 - 75,000
75,001
100,000
100,001 - 335,000
The taxable income is $80,500. How much additional tax will you owe if you increase your taxable income by $21,700?
15%
25%
34%
39%
Which of the following statements is true regarding education tax credits?
Group of answer choices
The American Opportunity credit permits a maximum credit of 20% of qualified expenses up to $10,000 per year.
The lifetime learning credit is available for qualifying tuition and related expenses incurred by students pursuing only graduate degrees.
The American Opportunities Credit is only available for the first four-years of higher education.
The American Opportunity Credit is calculated per return, while the lifetime learning credit is available per eligible student.
Chapter 7 Solutions
Income Tax Fundamentals 2020
Ch. 7 - Russ and Linda are married and file a joint tax...Ch. 7 - Jennifer is divorced and files a head of household...Ch. 7 - Prob. 3MCQCh. 7 - Prob. 4MCQCh. 7 - Which of the following is not a requirement to...Ch. 7 - For purposes of determining income eligibility for...Ch. 7 - Prob. 7MCQCh. 7 - Prob. 8MCQCh. 7 - Which of the following costs is not a qualified...Ch. 7 - Prob. 10MCQ
Ch. 7 - Prob. 11MCQCh. 7 - Prob. 12MCQCh. 7 - Joan, a single mother, has AGI of $61,500 in 2019....Ch. 7 - Prob. 14MCQCh. 7 - Prob. 15MCQCh. 7 - Prob. 16MCQCh. 7 - Prob. 17MCQCh. 7 - Prob. 18MCQCh. 7 - Prob. 19MCQCh. 7 - Prob. 20MCQCh. 7 - Virginia and Richard are married taxpayers with...Ch. 7 - Calculate the total child and other dependent...Ch. 7 - Prob. 2PCh. 7 - Prob. 3PCh. 7 - Prob. 4PCh. 7 - Prob. 5PCh. 7 - Prob. 6PCh. 7 - Prob. 8PCh. 7 - Prob. 9PCh. 7 - Clarita is a single taxpayer with two dependent...Ch. 7 - Prob. 12PCh. 7 - Prob. 13PCh. 7 - Marty and Jean are married and have 4 -year-old...Ch. 7 - Prob. 15PCh. 7 - Prob. 16PCh. 7 - Prob. 17PCh. 7 - Prob. 18PCh. 7 - Janie graduates from high school in 2019 and...Ch. 7 - Prob. 20PCh. 7 - Prob. 21PCh. 7 - Carl and Jenny adopt a Korean orphan. The adoption...Ch. 7 - Prob. 23PCh. 7 - Prob. 24PCh. 7 - Prob. 25P
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