2024 RETURNS VITA Advanced Course Test/Retest with Interview Notes.

2024 Advanced Course Scenarios Test/Retest Questions – Answers with Solutions;

2024 Advanced Exam Score 82.86% Proof:

Advanced Scenario 1 Sharon Smith – Interview Notes:

• Sharon's husband, Daniel, moved out of their home in February of 2022. Sharon has had no contact with Daniel since he moved out. Sharon and Daniel are not legally separated.
• Sharon has one child, Lea, age 10. She will claim Lea as a dependent on her 2024 tax return. .
• Sharon is 31 years old.
• Sharon earned $44,500 in wages and received $50 of interest. Sharon had lottery winnings of $2,000 reported on Form W-2G.
• Sharon paid all the costs of keeping up her home. She provided over half of the support for Lea.
• They all are U.S. citizens and have valid Social Security numbers. They lived in the U.S. all year.

Advanced Scenario 1 Sharon Smith – Test Questions:

1. Sharon qualifies for Head of Household filing status.
a. True ANSWER
b. False
2. Who qualifies to claim the Earned Income Credit (EIC) also known as Earned Income Tax Credit (EITC) for Lea?
a. Sharon ANSWER
b. Daniel
c. Both Sharon and Daniel
d. Neither Sharon nor Daniel
3. Sharon is required to report her lottery winnings as income on her federal tax return.
a. True ANSWER
b. False

Advanced Scenario 1 Sharon Smith – Retest Questions:

1. What is the most beneficial allowable filing status that Sharon is eligible to claim on her 2024 tax return?
a. Single
b. Married Filing Separately
c. Qualifying Surviving Spouse (QSS)
d. Head of Household ANSWER
2. Based on the information provided, Sharon qualifies for the Earned Income Credit.
a. True ANSWER
b. False
3. Sharon does not need to report her gambling winnings on her federal tax return.
a. True
b. False ANSWER

Advanced Scenario 2 Jeff and Jane Spring – Interview Notes:

Interview Notes:
• Jeff and Jane are married and want to file a joint return.
• Jeff is a U.S. citizen and has a valid Social Security number. Jane is a resident alien and has an ITIN. They resided in the United States all year with their children.
• Jeff and Jane have two children, Joan, age 7, and Jim, age 15. Joan and Jim are U.S. citizens and have valid Social Security numbers.
• Jeff earned $23,000 in wages.
• Jane earned $21,000 in wages.
• In order to work, the Springs paid $2,000 to their son, Jim, to care for Joan after school.
• Jeff and Jane provided all of the support for their two children.

Advanced Scenario 2 Jeff and Jane Spring – Test Questions:

4. What is the maximum amount Jeff and Jane are eligible to claim for the Child Tax Credit (CTC).
a. $6,000
b. $4,000 ANSWER
c. $3,000
d. $2,000
5. The Springs qualify for the Child and Dependent Care Credit
a. True ANSWER
b. False

Advanced Scenario 2 Jeff and Jane Spring – Retest Questions:

4. The maximum amount Jeff and Jane are eligible to claim for the Child Tax Credit is $2,000.
a. True
b. False ANSWER
5. Payments made to Jim can be claimed on Form 2441 as child and dependent care expenses.
a. True
b. False ANSWER
Question 4 Solution:
Child Tax Credit (partially refundable). The Child Tax Credit for 2024 is up to $2,000 per qualifying child. To qualify, a child must have a Social Security number. Be under age 17 at the end of 2024. Be claimed as a dependent on your tax return.
Question 5 Solution:
Can a family member get paid for childcare IRS?
Payments may be qualified childcare expenses if the family member babysitting isn't your spouse, the parent of the child, your dependent, or your child under age 19,
What is the child dependent care credit for 2024?
For 2024, the maximum eligible expense for this credit is $3,000 for one qualifying child and $6,000 for two or more.