Chapter 10 MC Flashcards
Which of the following statements concerning the tax credit for qualified adoption expenses is (are) correct? I. The allowable amount of the credit is phased out for taxpayers whose adjusted gross income exceeds a specified amount. II. In the case of a foreign adoption, the credit is not allowable until the year in which the adoption becomes final.
Both I and II are correct.
All the following statements concerning the tax credit for children are correct EXCEPT
The credit is available with respect to children under the age of 21.
The credit is available with respect to children under age 17.
All of the following statements concerning both the Hope scholarship and American opportunity credits for higher education expenses are correct EXCEPT
A credit of up to $5,000 per year may be claimed with respect to the expenses of each eligible student.
The maximum credit is subject to annual indexing adjustments for inflation, but is considerably less than $5,000.