Ch 8 and 9 Flashcards
Which of the following is a qualified education expense for the purpose of tax free scholarships?
Textbooks
The simplified method for determining expected family contribution does not consider the…
Family’s assets in its formula
The automatically assessed formula for determining the expected family contribution requires that the student or parent’s AGI is less than $50,000.
This statement is false
Grants are money provided to students that does not require…
Repayment
Grants are money provided to students that does…
Not require repayment
3 repayments for Stanford loans
1 extended repayment
2 graduated repayment
3 income based repayment
Plus loans are based on…
Parent’s credit history
Qualified distributions from a 529 plan can be used to…
Pay for a computer
There are no income limitations (phase outs) on who can…
Contribute to a 539 savings plan
For a 529 savings plan, a federal tax deduction is…
Not permitted
Amy pays qualified education expenses of $2,800 for her son Luke. How much of an American Oportunity Tax Credit is Amy entitled to this year?
100% of first 2000 + 25% of 2nd 2000
= 2000 + .25 X 800 = 2,200
He has incurred $6,500 in qualified expenses this year. What is the maximum lifetime learning credit Johnny can take this year?
20% up to 10,000
20% X 6500= 1300
Holding period return is an annual return commonly used to evaluate investment performance”
This statement is false
Primarily useful when the holding period is…
One year
Geometric return is equal to…
The internal rate of return
