AnswersFinancial MathTax Credits and Deductions

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1
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Casey contributed $⁢1,000 to a traditional IRA. Which tax deduction might Casey be eligible for?

A
state and local taxes deduction
B
retirement contributions deduction
C
charitable contributions deduction
D
home office deduction
3
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Jensen paid $⁢4,000 in tuition for college education this year. Which tax credit might Jensen be eligible for?

A
Child Tax Credit
B
Earned Income Tax Credit
C
lifetime learning credit
D
American opportunity tax credit
4

Anaya spent $ 1,500 on textbooks and other educational supplies for college courses. Which tax credit can Anaya use to reduce tax liability?

A
lifetime learning credit
B
Child Tax Credit
C
American opportunity tax credit
D
Earned Income Tax Credit
5

Paul spent $⁢2,000 to install solar panels and paid $⁢1,500 in state income taxes and $⁢1,000 for child and dependent care. Which expenses are eligible for tax deductions?

A
solar panels and state income taxes
B
child and dependent care
C
solar panels and child and dependent care
D
state income taxes
6

Elliot contributed $⁢1,000 to a retirement savings plan. Which tax credit might Elliot be eligible for?

A
Saver’s Credit
B
Earned Income Tax Credit
C
lifetime learning credit
D
Child Tax Credit
7

Hanley paid $⁢3,000 in state income taxes and $⁢2,000 in property taxes. Which tax deduction might Hanley be eligible for?

A
medical expenses deduction
B
state and local taxes (SALT) deduction
C
mortgage interest deduction
D
charitable contributions deduction
8

Gabriela's employer offers a reimbursement program for tuition expenses. Gabriela received $⁢3,000 in reimbursement for graduate school tuition. Can Gabriela still claim the lifetime learning credit?

A
Yes, Gabriela can claim the full amount.
B
No, because it is a graduate program.
C
No, because Gabriela received a reimbursement.
D
Yes, but only on expenses not reimbursed.
10

Kiernan donated $⁢3,000 to a qualified charity, paid $⁢5,000 in higher education, and spent $⁢2,500 on medical expenses. Which expenses are eligible for tax deductions?

A
charity donation and medical expenses
B
medical expenses, charity donation, and higher education
C
charity donation and higher education
D
higher education and medical expenses

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