Accounts Taxation related Multiple problems

1. In December 2013, Jeremy and Celeste paid the following amounts for their daughter, Alyssa, to attend the University of Colorado during 2013–2014. Alyssa was in her first year of college and attended full-time.

Tuition and fees (for fall semester 2013) $ 1,950

Tuition and fees (for spring semester 2014) 1,000

 Books 600

 Room and board 1,200

The spring semester at the University of Colorado begins in January. In addition to the above, Alyssa’s Uncle Devin sent $ 800 for her tuition directly to the university. Jeremy and Celeste have modified AGI of $ 165,000. What is the amount of qualifying expenses for the purposes of the American opportunity tax credit (AOTC) in 2013? What is the amount of the AOTC that Jeremy and Celeste can claim based on their AGI?

2. Determine the amount of the child tax credit in each of the following cases:

a. A single parent with modified AGI of $ 43,400 and two children.

b. A single parent with modified AGI of $ 76,058 and three children.

c. A married couple with modified AGI of $ 107,933 and one child.

52. Determine the retirement savings contributions credit in each of the following cases:

a. A married couple fi ling jointly with modified AGI of $ 37,000 and an IRA contribution of $ 1,500.

b. A married couple fi ling jointly with modified AGI of $ 58,000 and an IRA contribution of $ 1,500.

c. A head of household taxpayer with modified AGI of $ 33,000 and Roth IRA contribution of $ 2,000.

d. A single taxpayer with modified AGI of $ 12,000 and an IRA contribution of $ 2,300.

3. Niles and Marsha adopted a little boy (a U. S. citizen). They paid $ 14,500 in 2012 for adoption- related expenses. The adoption was finalized in early 2013. Marsha received $ 3,000 of employer- provided adoption benefits. For question (a) assume that any adoption credit is not limited by modified AGI or by the amount of tax liability.

a. What amount of adoption credit, if any, can Niles and Marsha take in 2013?

 b. Use the above information but assume that their modified AGI was $ 205,000 in 2013. What amount of adoption credit is allowed in 2013?

4. Determine the amount of the Earned Income Credit in each of the following cases. Assume that the person or persons are eligible to take the credit. Calculate the credit using the formulas.

a. A single person with earned income of $ 7,354 and no qualifying children.

b. A single person with earned income of $ 21,000 and two qualifying children.

c. A married couple filing jointly with earned income of $ 27,190 and one qualifying child.