Carolyn Has an Agi of $38,000 (All from Earned Income)and
Carolyn has an AGI of $38,000 (all from earned income)and two qualifying children and is filing as a head of household.What amount of earned income credit is she entitled to? (Exhibit 8-10)
Which of the following statements regarding credits is correct?
A)Business expenses are generally refundable credits.
B)Business credits that are generated in one year but are not utilized in that year expire.
C)Business credits that are generated in one year but are not utilized in that year may be carried forward to future years but not back to a prior year.
D)Business credits that are generated in one year but are not utilized in that year may be carried back to the previous year and then forward to future years.
If there is not enough gross tax liability to use the foreign tax credit, ________.
A)it expires unused
B)it is carried back two years or forward 20 years
C)it is carried back three years or forward five years
D)it is carried back one year or forward 10 years
Which of the following tax credits is fully refundable?
A)American opportunity credit
B)Dependent care credit
C)Earned income credit
D)None of the choices are correct