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VITA Basic exam for 2015 federal income tax return Question 23.

Updated on November 26, 2015

Question 23 Basic Exam 2015 Vita Tax Program

In the 2015 Basic Certification Course for the VITA tax program, sponsored by the Internal Revenue Service, there is the following question found in IRS booklet form 6744 VITA/TCE Volunteer Assistor’s Test/Retest for 2015 Returns.

For Question 23: What is the amount of credit for child and dependent care expenses on Form 2441, line 11?

Use Basic Scenario 8: Teresa Martin. Her son Mackenzie Martin's date of birth is June 6, 2004.
He is within the age limit, 13 years old for the child and dependent care tax credit. Use form 2441 to calculate the amount on line 11.

Enter on line three $1,575 the amount paid to Stone's child care.
Enter on line four Teresa's earned income $35,300.
Enter on line five her deceased husband's earned income. $1,700.
Enter the smallest of line 3,4,5 on line 6 $1,575.

On line 7 enter Teresa Martin's adjusted gross income from line 38 on the 1040 form. This includes $35,300 salary plus husband's salary $1,700 plus $1,300 from early withdrawal of her pension plus $3,000 unemployment income. The adjusted gross income is $41,300.

Check the percentage for the amount between $41,000 and $43,000 for line 8. This percentage is 0.21 or 21%.
On line nine multiply 0.21 times $1,575. You get $330.75 or $331.

On line 10 the tax liability limit is $3,000. Therefore the child tax credit is within the limit and the answer on line 11 is $331.





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    • Larry Rankin profile image

      Larry Rankin 18 months ago from Oklahoma

      Interesting analysis.

    • JamesCage profile image
      Author

      JamesCage 18 months ago from New Jersey

      Thanks. If you are doing the Basic Exam or the Advanced Exam it is best to run these scenarios through the Practice Lab Tax-Wise software to get the correct answers.

    • JamesCage profile image
      Author

      JamesCage 16 months ago from New Jersey

      Answers to exam questions can be found in IRS publication 4012 or online in the study guides on the VITA tax website.

    • profile image

      mark forrester 16 months ago

      In the 2015 Basic Certification Course for the VITA tax program question 16 what is the taxable amount of warrens social security ? i get $7470 not sure if correct

    • JamesCage profile image
      Author

      JamesCage 16 months ago from New Jersey

      Mark

      I have the same answer $7470. I am fairly sure this is correct. I did it on a social security worksheet.

      James

    • profile image

      mark forester 16 months ago

      thank you ! !!!

    • profile image

      mark forester 16 months ago

      hi james question my answer for #5 basic is c i am fairly sure qualifying dependents cannot claim exemption for themselves or their own child if parent can claim them as scenario #3

    • profile image

      mark forester 16 months ago

      In the 2015 Basic Certification Course for the VITA tax program questions 5 and 6 are d and d mike can claim EIC and dependency exemptions for his daughter 18 whose income is 1700 and her son born november 2015 not sure if correct

    • JamesCage profile image
      Author

      JamesCage 16 months ago from New Jersey

      Mark,

      Question 5: Mike can claim Hayden, Brittany cannot claim Hayden because Brittany Qualifies as Mike's Dependent.

      Question 6: Mike can claim both Brittany and Hayden for the Earned Income Credit. He can Claim Brittany because she is 18 (Under 19 years of age) and is his dependent. Hayden is a new born grandchild who is his dependent and can also be claimed.

      James

    • profile image

      Hector 11 months ago

      Hey James

      I just passed the basic exam and I really struggled on the last scenario. Was wondering if you could clarify. Specifically the Schedule A.

      The questions was a T/F claiming that total itemized deductions totaled $12,646. The correct answer is T

      I was a bit over halfway when my totals exceeded that amount.

      Here's what I have

      Medical Expenses total $1,700

      State tax withheld $2,400

      Mortgage interest of $6552

      Real Estate Taxes $1,954

      Student Loan Interest of $700

      Donations to charity totaling $1,740

      I am sure of the medical expenses, charity donations, the mortgage interest and student loan interest. That leaves the real estate taxes of which I am about ~90% sure they are correct and State tax withheld.

      I guess my question is: I thought state tax withheld was included on the schedule A, so what gives? I obtained the value from box 17 on the W2. Is that not state tax withheld?

      Sorry for the long question. Don't want you to have you do all of the work.

      :D

    • JamesCage profile image
      Author

      JamesCage 11 months ago from New Jersey

      Hector:

      Student loan interest does not count; that goes on form 1040 line 33.

      Schedule A: Medical and Dental Expenses for $1,700 does not count because line 38 1040 is $39,300. Ten percent is $3,900. Medical would have to be more than $3,900 to count.

      State income tax with-held: $2,400 plus

      Real Estate taxes: 1,954 plus

      Mortgage: 6,552 plus

      Gifts cash: 1,500 plus

      other Gift: 240 plus

      Total is $12,646

      The safe deposit box of $200 does not count because 2% of $39,300 is $786. Other miscellaneous expenses would have to be greater than $786 to count.

      James

    • profile image

      Hector 11 months ago

      Thank you James

      I think I'll review review the itemized deductions section of my text before attempting the advanced exam.

    • JamesCage profile image
      Author

      JamesCage 11 months ago from New Jersey

      Hector,

      The advanced exam is similar to the basic. I have a blog for the 2014 advanced exam. There are many questions answered for the 2015 advanced exam in that 2014 blog. The 2015 questions are found lower in the blog questions and answers.

      James

    • profile image

      Alex Bonilla 5 months ago

      Hey James:

      I'm studying for the VITA Exam through the online material presented on the IRS website, but can you give me the answers and the questions just to see how the online exam is like in order to get certified in working/Interning for VITA. My email is alejandro.bonillamedina.663@my.csun.edu

    • JamesCage profile image
      Author

      JamesCage 5 months ago from New Jersey

      Alex,

      I am unable to volunteer for the VITA program this year, so I did not do the test. There are a number of forums in this blog with VITA tax questions and answers. The questions on the advanced exam and the basic exam are similar every year. There is a booklet online from the IRS with all the questions for both the basic and advanced exam. Download the booklet, 6744 VITA/TCE Volunteer Assistor’s Test/Retest for 2016 Returns. This has all the questions for the basic and advanced exam. Check the answers on the VITA questions in this blog. You will come up with almost all the answers. Looks at the other test questions I wrote for the advanced exam.

      James

    • profile image

      tat 4 months ago

      33. What is Austin’s total itemized deductions on Schedule A, line 29? $______.

    • profile image

      James Cage 4 months ago

      I am unable to do the Vita Program this year. Hopefully, someone in this forum may be able to answer your question.

    • JamesCage profile image
      Author

      JamesCage 4 months ago from New Jersey

      Tat

      I am unable to do the Vita Program this year. Hopefully someone in this forum can help you answer this question.

      James

    • profile image

      nnm 4 months ago

      Linda is married but did not live with or have contact with her spouse this tax year. She does not know where he is. She indicated on her intake sheet that she is not legally separated.

      Linda does not have children or any other dependents.

      Linda worked as a clerk and earned $47,000 in wages. She had no other income.

      In 2016, she took a computer class at the community college to improve her job skills.

      She has a student account statement showing she paid $900 for tuition.

      She paid $300 for a course book that she ordered from an online bookseller. Purchase of the book was not a requirement of enrollment.

      She also paid $50 for a parking permit that was not a requirement of enrollment.

      Linda does not have enough deductions to itemize.

      Linda is a U.S. citizen with a valid Social Security number.

      13. Which education benefit is Linda eligible to claim?

    • JamesCage profile image
      Author

      JamesCage 4 months ago from New Jersey

      nnm

      Linda can claim the Lifetime Learning Credit. She can only claim tuition, $900.

      I did not do Vita this year but that is the answer.

      James

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