Tax

Question 1

Deductible LTC Insurance Premiums Rule

Answer 1

Must be noncancelable or guaranteed renewable

Deduction is FROM AGI with the limitation of being above 7.5% AGI

Question 2

Which tax credit is fully refundable?

Answer 2

Earned Income Credit; using this allows you to create a negative tax liability

Question 3

Which tax credits are partially refundable?

Answer 3

American Opportunity Tax Credit and the Child Tax Credit

Question 4

Repairs made to home (does/does not) increase basis:

Answer 4

DOES NOT

Question 5

American Opportunity Tax Credit Amount

Answer 5

$2,500/yr

*100% of the first $2k in expenses is covered, then 25% of the next $2,000 in expenses to get a total of $2,500

Question 6

Lifetime Learning Tax Credit Amount

Answer 6

$2k/yr