Question 1
In 2016 Rita is divorced with one child. She has AGI of $20,000 resulting in a federal income tax liability of $260 and an earned income credit of $3,137. She has had $550 of federal income taxes withheld from her pay. Rita will receive a federal income refund of
◦ $550.
◦ $325.
◦ $3,137.
◦ $3,427.
Question 2
In the fall of 2016, Gina went back to school to earn a master of taxation degree. She incurred $7,000 of qualified educational expenses and her modified AGI for the year was $57,000. Her Lifetime Learning Credit is
◦ $2,500.
◦ $1,400.
◦ $280.
◦ $1,120.