Tax Flashcards
1
Q
Deductible LTC Insurance Premiums Rule
A
Must be noncancelable or guaranteed renewable
Deduction is FROM AGI with the limitation of being above 7.5% AGI
2
Q
Which tax credit is fully refundable?
A
Earned Income Credit; using this allows you to create a negative tax liability
3
Q
Which tax credits are partially refundable?
A
American Opportunity Tax Credit and the Child Tax Credit
4
Q
Repairs made to home (does/does not) increase basis:
A
DOES NOT
5
Q
American Opportunity Tax Credit Amount
A
$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
6
Q
Lifetime Learning Tax Credit Amount
A
$2k/yr
7
Q
A
