Deductions and Credits Flashcards
7 cards from real IRS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Deductions and Credits flashcards as text
Which taxpayer is eligible to claim the Earned Income Tax Credit?
Answer: A single filer earning $25,000 with two qualifying children
A single filer with $25,000 earned income and two qualifying children meets EITC eligibility requirements.
Charitable contribution deductions for cash gifts are generally limited to what percentage of a taxpayer's AGI?
Answer: 60%
Cash donations to public charities are deductible up to 60% of AGI, with a five-year carryforward for excess amounts.
A taxpayer's casualty loss from a federally declared disaster is deductible only to the extent it exceeds which threshold?
Answer: $100 per event, then 10% of AGI
After a $100 per-casualty reduction, only the aggregate loss exceeding 10% of AGI is deductible.
Which of the following is an above-the-line deduction (adjustment to income)?
Answer: Alimony paid under pre-2019 divorce decrees
Alimony paid under divorce or separation agreements executed before January 1, 2019 is deductible above the line.
The Child and Dependent Care Credit covers expenses for children up to what age?
Answer: Under 13
The Child and Dependent Care Credit applies to care expenses for children under age 13.
What is the maximum IRA contribution deduction allowed for a taxpayer under age 50 in 2023?
Answer: $6,500
The 2023 IRA contribution limit is $6,500 for taxpayers under age 50, subject to earned income limits.
Which of the following education credits can be claimed for graduate school expenses?
Answer: Lifetime Learning Credit
The Lifetime Learning Credit applies to graduate and professional degree courses, unlike the AOTC which is limited to the first four years.