Chapter 9 Child Tax credit Classwork

1. The child and dependent care credit can be claimed for expenses paid for the entire year even though the child’s 13th birthday was in October of the current year.

• a) True

• b) False

2. You may qualify for the additional child tax credit (which is refundable) when the child tax credit is more than your tax.

• True

• False

3. Which form is used to report the Child Tax Credit and Additional Child Tax Credit?

• Form 1040

• Schedule A

• Schedule C

• Form 2441

4. What is the maximum amount of expenses eligible for the Child and Dependent Care Credit for two or more qualifying persons?

• $3,000

• $6,000

• $8,000

• $10,000

5. Which of the following is a requirement for claiming the Credit for Other Dependents (ODC)?

• The dependent must be under 17 years old

• The dependent must have lived with you all year

• The dependent can be any age, including adults who meet certain criteria

• The dependent must be a U.S. citizen

6. What is the age limit for a child to qualify for the Child Tax Credit (CTC)?

• Under 17 years at the end of the tax year

• Under 19 years at the end of the tax year

• Under 24 years and a full-time student

• No age limit if permanently and totally disabled

7. Which test is NOT a requirement for a qualifying child under the Child Tax Credit (CTC)?

• Relationship test

• Support test

• Gross income test

• Residency test

8. Which of the following credits is based on having dependents?

• Foreign Tax Credit

• Child Tax Credit (CTC)

• Lifetime Learning Credit

• Retirement Savings Contributions Credit

9. John and Mary's three nephews, ages 12, 14, and 17, moved in with them on March 20 of the current year. John and Mary file a joint tax return, their taxable income is $7,960, and the tax on line 16 of Form 1040 is $798; they have no other credits. John and Mary can claim a child tax credit on line 19 of:

• $798

• $800

• $2,100

• $1,100

10. What is the most John and Mary could be eligible to claim as an additional child tax credit?

• $2,000

• $3,200

• $2,402

• $3,400