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29. Darren paid the following expenses during November 2018 for

Question : 29. Darren paid the following expenses during November 2018 for : 2125652

29. Darren paid the following expenses during November 2018 for his son Sean’s college expenses for spring 2019 semester, which begins in January 2019:

Tuition $12,000

Housing 8,000

Books 1,500

In addition, Sean’s uncle paid $500 in fees on behalf of Sean directly to the college. Sean is claimed as Darren’s dependent on his tax return. How much of the above paid expenses qualify for the purpose of the American opportunity tax credit deduction for Darren in 2018?

a. $12,000.

b. $13,500.

c. $14,000.

d. $22,000.

30. Which of the following expenses are qualifying expenses for purposes of the education credits?

a. Books (purchased at the institution as a condition of enrollment).

b. Tuition.

c. Room and Board.

d. Both (a) and (b).

31. Which of the following conditions must be met for a taxpayer to be able to claim the foreign tax credit (FTC) without filing Form 1116?

a. All of the foreign-source income is passive income.

b. All of the foreign-source income was reported on Form 1099.

c. Total foreign taxes paid were less than $300 (or $600 if married filing jointly).

d. All of the above must be met to claim the FTC without Form 1116.

32. Joyce has $82,000 total worldwide income, which includes $11,000 of taxable income from China. She paid $2,200 in foreign income taxes to China, and her U.S. tax liability is $21,610. Joyce’s foreign tax credit is:

a. $0.

b. $2,200.

c. $2,899.

d. $11,000.

33. Michael paid $3,350 in foreign income taxes to Argentina. His total worldwide income was $75,000, which included $9,800 of income from Argentina. His U.S. tax liability is $18,750. How much can Michael claim as a foreign tax credit?

a. $2,450.

b. $2,800.

c. $3,350.

d. $15,400.

 

 

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