Reference no: EM131448977

1. Which one of the following taxpayers qualify for the earned income credit?

a. A 70-year-old doctor whose practice had a net loss and who has an AGI of $5,000 in 2016.

b. An 18 year old college students who earn 8000 at a part time job.

c. A couple who have a combined AGI of 17,000 and three children by file seperatley.

d. A single 31 year old construction worker with 22,000 of AGI and 2 children.

2. Clark, a widower, maintains a household for himself and his two dependent preschool children. For the year ended December 31, 2016, Clark earned a salary of $32,000. He paid $3,600 to a housekeeper to care for his children in his home, and also paid $1,500 to a kiddie play camp for child care. He had no other income or expenses during 2016. How much can Clark claim as a child and dependent care credit in 2016?

a. 910

b. 1300

c. 1326

d. 5100

3. Keith has a 2016 tax liability of $2,250 before taking into account his American Opportunity tax credit. He paid $2,600 in qualifying expenses, was a full-time student, was not claimed as a dependent on his parents’ return, and his American Opportunity tax credit was not subject to phase-out. What is the amount of his American Opportunity tax credit allowed?

a. 0

b. 2150

c. 2250

d. 2600