Course 3.1

Question 1

Amelia purchased series EE savings bonds for $10,000 at the age of 36. This year she redeemed the bonds for $12,000 and paid qualified higher education expenses in the amount of $9,600 for her son. How much interest must Amelia include in her gross income this year?

Answer 1

$400

Because Amelia did not use all the proceeds from the bond redemption to pay for qualified education expenses, she will be required to include part of the interest income from the bonds in her gross income. Amelia may exclude $1,600 of interest income from her gross income, that is, ($9,600 ÷ $12,000) × $2,000. Therefore, Amelia must include $400 in her gross income, or $2,000 − $1,600.

Question 2

199A Qualified business income deduction is…

Answer 2

the lesser of 20% of QBI and 20% taxable income (less net capital gains)

Question 3

NOLS can carried forward and limited to ….

Answer 3

80% of taxable income

Question 4

Dependent Care Credit-formula limits

Answer 4

Credit of 20% up to $3,000 per child. For AGI exceeding $43k
AGI $15k or less, 35% up to $3000 per child with max of $6000

Question 5

Family credit amount

Answer 5

$500 (one child over 16)

Question 6

Section 179 depreciation

Answer 6

can deduct LESSER of $1,050,000 (2021) OR net income

Question 7

max student loan deduct interest amount from AGI

Answer 7

$2500