R2 - Tax Calculations and Credits

Question 1

What percentage of dependent care expenses are allowed?

Answer 1

20% of:

$3,000 (one dependent) or $6,000 (two + dependents) OR the lesser of the parents’ income

Question 2

For how many years is the Lifetime Learning Credit available?

Answer 2

Unlimited

Question 3

What are the carryback/forward rules for the foreign tax credit?

Answer 3

Back 1 year and forward 10

Question 4

What are the carryback/forward rules for the general business tax credit?

Answer 4

Back 1 year and forward 20

Question 5

T/F: Medical expenses are allowed to be included in the adoption credit

Answer 5

False; medical expenses are not allowed

Question 6

How may taxes paid to a foreign government be treated?

Answer 6

As a credit (foreign tax credit) or as a deduction on Schedule A, not subject to 2% of AGI