Quiz 4 -- CTC & Earned Tips
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Jose and Yolanda Alameda are Married Filing Jointly and have five dependent children under the age of 17. Jose and Yolanda both have valid SSNs. Their children have Individual Taxpayer Identification Numbers (ITINs). Are their children qualifying children for the purpose of the child tax credit? *
1 point
Now...Let's change it: Jose and Yolanda Alameda are Married Filing Jointly and have five dependent children under the age of 17. Jose and Yolanda both have Individual Taxpayer Identification Numbers (ITINs). Their children all have valid Social Security Numbers. Are their children qualifying children for the purpose of the child tax credit? *
1 point
Laura’s adopted son Jack is 12. He is a citizen of the United States and lived with Laura for seven months of the tax year, during which time Laura provided full financial support. Is Jack a qualifying child for the child tax credit? *
1 point
Sam is a qualifying surviving spouse and has two children ages 5 and 7.  He has earned income of about $5K. His tax liability is $493.   He has no daycare expense and did not contribute to his retirement account. How much child tax credit is he entitled to get refunded on his tax return? (DO NOT ENTER SYMBOLS--JUST WHOLE DOLLARS) *
1 point
Kim waits tables at a café. Her employer reports all tips that customers add to their credit card payments. Kim also receives more than $20 per month in cash tips. While she keeps a record of her cash tips, she does not report it to her employer, so they are ultimately NOT included on her Form W-2. Does Kim  need to report her tip income on her tax return since its not on her W-2? *
1 point
Nancy had a summer job at a coffee hut. She made $18 in tips in May, $755 in June, $600 in July, and $45 in August. Until a co-worker told her, Nancy didn’t realize she had to report her tips to their employer. She then reported $1,000 in tips to her boss.  How much does Nancy still need to report on the W-2 (unreported tips box)? *
ONLY ENTER NUMBER, NO SYMBOLS
1 point
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Continuing from last question, which taxes is the $18 in tip income from May subject to? *
1 point
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