IRS Deductions and Credits 4

Question 1

Which taxpayer is eligible to claim the Earned Income Tax Credit?

Accepted Answer

A single filer earning $25,000 with two qualifying children

Answer

A single filer with $25,000 earned income and two qualifying children meets EITC eligibility requirements.

Question 2

Charitable contribution deductions for cash gifts are generally limited to what percentage of a taxpayer's AGI?

Accepted Answer

60%

Answer

Cash donations to public charities are deductible up to 60% of AGI, with a five-year carryforward for excess amounts.

Question 3

A taxpayer's casualty loss from a federally declared disaster is deductible only to the extent it exceeds which threshold?

Accepted Answer

$100 per event, then 10% of AGI

Answer

After a $100 per-casualty reduction, only the aggregate loss exceeding 10% of AGI is deductible.

Question 4

Which of the following is an above-the-line deduction (adjustment to income)?

Accepted Answer

Alimony paid under pre-2019 divorce decrees

Answer

Alimony paid under divorce or separation agreements executed before January 1, 2019 is deductible above the line.

Question 5

The Child and Dependent Care Credit covers expenses for children up to what age?

Accepted Answer

Under 13

Answer

The Child and Dependent Care Credit applies to care expenses for children under age 13.

(IRS) Internal Revenue Service Certified Practice Test