39. After two and one-half years of working with the : 2125654
39. After two and one-half years of working with the orphanage and the government, Jake and Nikki adopted a two-year-old girl from Korea. The adoption process, which became final in January 2018, incurred the following qualified adoption expenses. For how much and in which year can Jake and Nikki take the adoption credit? (Assume no limitation of the credit due to AGI.)
Year 2017 $6,000
Year 2018 $1,000
a. $6,000 in 2017.
b. $1,000 in 2018.
c. $7,000 in 2017.
d. $7,000 in 2018.
40. Abel and Loni adopted a boy (a U.S. citizen), during the current tax year and incurred a total of $14,675 in qualified adoption expenses. Abel and Loni have modified AGI of $225,000. What is the amount of adoption credit they can take?
41. Juan and Lydia both work, file a joint return, and have one qualifying child. They have AGI of $19,000. What is their EIC?
42. Thomas and Stephani are married with four qualifying children. Their AGI is $27,500. Calculate their EIC using the EIC formula.
43. Which of the following credits is never a refundable credit?
a. Earned Income Credit
b. Foreign Tax Credit
c. Child tax credit
d. American opportunity tax credit
44. Which of the following statements is incorrect?
a. Taxpayers who purchased qualified health insurance through the Marketplace may be eligible for a premium tax credit.
b. Taxpayers must apply the credit towards their health insurance premium.
c. The premium tax credit is designed to help eligible taxpayers pay some of their health insurance premium.
d. Taxpayers who receive a credit must file a federal tax return and attach Form 8962.
45. Dwayne is single with one dependent. He enrolled in a qualified plan through the Marketplace at a cost of $4,200 per year. His household income was $41,890. The SLCSP premium is $4,700. What is Dwayne’s premium tax credit?