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Couldn't confirm presence of Flash 8 or higher because JavaScript was disabled.Get FlashI really do have Flash installed.ul{margin-top:0px;margin-bottom:0px;list-style-type:none;padding-left:20px;}1. If you pay someone to care for your dependent in your home,

[ ] a. you may be a household employer

[ ] b. you may have to pay employment taxes

[ ] c. you can claim the credit for child and dependent care expenses

[ ] d. all of the above

2. To claim the Child and Dependent Care Expenses Credit, you must file ______ for people who file Form 1040, or ______ for people who file Form 1040A.

[ ] a. Form 2441, Schedule 2

[ ] b. Form 2106, Schedule 3

[ ] c. Form 4567, Schedule 1

[ ] d. None of the above

3. To qualify for child and dependent care expenses credit, you

[ ] a. can pay for care so that you will be able to go on vacation

[ ] b. can hire your child who is under 19 years old

[ ] c. can hire your aunt whom you can claim as a dependent

[ ] d. must have a child that must live with you for more than half the year.

4. To claim the Child and Dependent Care Credit, you (and your spouse if you're married) must have earned income, unless you

[ ] a. a. are a student or cannot care for yourself

[ ] b. b. are married filing separately

[ ] c. c. are self employed.

[ ] d. d. are in the armed forces

5. To claim the child and dependent care credit, generally, you cannot use the _______ filing status (exceptions apply).

[ ] a. single

[ ] b. married filing separate

[ ] c. head of household

[ ] d. married filing jointly

6. The child and dependent care expenses must be for the care of a qualifying person such as

[ ] a. a child who is 18 years old

[ ] b. your dependent daughter who was under the age of 13 at the time care was provided

[ ] c. your parents who are perfectly able to care for themselves

[ ] d. a person who did not live with you

7. You take your 4-year-old child to nursery school that provides lunch and a few educational activities as part of its pre-school child-care service. Which one of the following would be correct?

[ ] a. you can count the total cost because the costs were partly to provide education

[ ] b. you can count the total cost when you figure the child and dependent care credit because the child is in pre-school.

[ ] c. Expenses were for child's lunch so they do count

[ ] d. all of the above

8. You pay a nanny to care for your 2-year-old son and 4-year-old daughter so you can work. You become ill and miss 4 months of work but received sick pay. You continue to pay the nanny to care for the children while you are ill.

[ ] a. Your absence is not a short temporary absence, and your expenses are not qualifying care expenses.

[ ] b. Your absence is a short temporary absence, and your expenses are qualifying care expenses.

[ ] c. An absense of 6 months or less is a short, temporary absense.

[ ] d. An absense of more than 2 weeks may never be considered a short, temporary absense regardless of the circumstances.

9. You place your 12 year old child in a boarding school so you can work full-time. Which of the following would be correct?

[ ] a. you can only count the educational part of the boarding costs as qualifying expenses

[ ] b. you can't count the boarding cost because it was not for a pre-school child

[ ] c. you can count that part of the expense in figuring your child and dependent care credit, if it can be separated from the cost of the education

[ ] d. If you place your child in boarding school, he will be away from the home and thus you can't claim the care credit

10. The work related expenses for the 'child and dependent care expenses care credit' are expenses that

[ ] a. a. are for the cost of a babysitter while you and your spouse go out to eat.

[ ] b. b. are not really for the qualifying person's care

[ ] c. c. allow you to work or look for work

[ ] d. d. allow you to go on vacation from work

11. If your spouse is a student or is not able to care for him or herself, he or she is treated as having earned income for any month that he or she is

[ ] a. a. not your dependents even if he or she lives in your home.

[ ] b. b. a partially disabled spouse capable of caring for him or herself.

[ ] c. c. physically or mentally not able to care for him or herself or is a full time student

[ ] d. d. a student that is attending full time only at night

12. You can count child care expense payments you make to relatives who are

[ ] a. relatives who are not your dependents, even if they live in your home.

[ ] b. your children who are under 19 years old, even if he or she is not your dependent.

[ ] c. A person who was your spouse at any time during the year.

[ ] d. all of the above

13. You, a single taxpayer, paid work related child care expenses of $5,000 in tax year 2007. You were reimbursed $2,400 by your employer. Which of the following is correct? (two qualifying dependents).

[ ] a. since you were reimbursed, you can't take the child and dependent care expenses credit

[ ] b. you can use $1,000 to figure your credit

[ ] c. you can use $3,600 to figure your credit

[ ] d. you can use $2,600 to figure your credit

14. If the care provider information you give is incorrect or incomplete, your credit will not be allowed unless you

[ ] a. provide the correct information

[ ] b. show proof that you did pay

[ ] c. show due diligence in trying to supply the correct information by keeping the care provider's completed Form W-10.

[ ] d. call the IRS and give them the telephone number of the care provider

15. There are many ways the taxpayer can show due diligence. Which of the following is correct as far as showing due diligence?

[ ] a. get and keep the care provider's completed Form W-10

[ ] b. show a copy of the care provider's driver license (in state that has social security number in driver license)

[ ] c. show a letter or invoice from the provider if it shows the necessary information.

[ ] d. all of the above

16. There is a dollar limit on the amount of your work related expenses that you can use to figure the child and dependent care expenses credit. This limit is set per qualifying person. The limit is

[ ] a. $3,000 for one qualifying person.

[ ] b. $6,000 for two or more qualifying people.

[ ] c. $3,000 for each qualifying person.

[ ] d. both A and B are correct.

17. You and your spouse (MFJ) paid $5,000 in child care, you earned $19,000 for the entire year. Your spouse did not work and was not a student or disabled. You have only one qualifying child. What is your child and dependent care expenses credit for tax year 2007?

[ ] a. $0 federal credit; $0 California credit.

[ ] b. $990 federal credit; $495 California credit.

[ ] c. $960 federal credit; $307.20 California credit.

[ ] d. $1,600 federal credit; $512 California credit.

18. I, a single taxpayer, want to file my return and have no tax liability. If I claim the child and dependent care expenses credit for California, would I get a refund?

[ ] a. tax liability can be zero, and you can still qualify because for California credit is refundable

[ ] b. the amount of credit is limited to the amount of tax liability and is non-refundable

[ ] c. If you have tax, the child and dependent care credit would not cancel it and thus there is no reason to claim it

[ ] d. No. California does not have a Child and Dependent Care Expenses Credit

19. Juan and Maria Escobedo are married and keep up a home for their two pre-school children. In tax year 2007, they claimed their children as dependents. Juan earned $15,200 and Maria earned $5,100. They paid $4,900 in work related child care expenses. What is their credit?

[ ] a. $1,568 federal, $0 California

[ ] b. $501.76 federal, $1,568 California

[ ] c. $1,568 federal, $501.76 California

[ ] d. $1,568 federal, $784 California

20. If you earned $40,000 in tax year 2007, your Child and Dependent Care Expenses Credit is zero for federal and California.

[ ] a. True

[ ] b. False

21. To claim the Child and Dependent Care Expenses Credit, you must complete and attach the following to your return:

[ ] a. Federal Form SE

[ ] b. Federal Form 2441 to Form 1040 or Schedule 2 to Form 1040A and FTB Form 3506 to FTB Form 540/540A.

[ ] c. Federal Form 3102 or Schedule 3

[ ] d. Federal Form 2106 or Schedule C

22. In tax year 2007, if your gross income is $40,100 and your federal child and dependent care expenses credit amount was $1,320, then your California Credit is

[ ] a. $660

[ ] b. $568

[ ] c. $120

[ ] d. $480

23. The California child and dependent expenses care credit is a percentage of the federal amount. The difference between federal and California law is that the credit is

[ ] a. a. not allowed for California.

[ ] b. b. amount of credit if is always greater than Federal credit

[ ] c. c. the same as federal

[ ] d. d. a refundable credit for California.

24. What is the percentage of the federal Child and Dependent Expenses Care credit that is allowed for California for taxpayers who earned less than $40,000?

[ ] a. 43%

[ ] b. 34%

[ ] c. 63%

[ ] d. 50%

25. In tax year 2007, to qualify for the California child and dependent care credit, your adjusted gross income must be less than

[ ] a. $70,000

[ ] b. $43,000

[ ] c. $100,000

[ ] d. $6,000

26. In tax year 2007, if you are head of household and you would like to qualify for renter's credit, you would not qualify if your income is over what amount?

[ ] a. $33,272

[ ] b. $64,544

[ ] c. $59,910

[ ] d. $66,544

27. If for more than half of the year, you lived in the home of a parent, foster parent, or legal guardian who can claim you as a dependent in 2007,

[ ] a. you do not qualify for the renter's credit

[ ] b. you prepare a renter's qualification record and divide the credit accordingly

[ ] c. you qualify to claim the credit because everyone in the household qualifies as long as you pay at least $1.00 of rent

[ ] d. Since you are a dependent, you still qualify for $60

28. The non-refundable renter's credit qualification record must be kept with your records; therefore, you should not mail it.

[ ] a. True

[ ] b. False

29. To qualify for Renter's credit, you must have paid rent for at least 6 months of the tax year and your principal residence must have been in California.

[ ] a. True

[ ] b. False

30. If your filing status was married filing separate, you cannot claim the California renter's credit (unless you can be considered unmarried for tax purposes).

[ ] a. True

[ ] b. False

31. If a single employer withheld California State Disability Insurance (SDI) from your wages at more than .6% of your gross wages,

[ ] a. contact the employer for refund

[ ] b. claim excess SDI on your Form 540/540A

[ ] c. contact the state of California for a refund

[ ] d. you cannot get a refund because once W2 is filed it is too late.

32. You may be entitled to claim a credit for excess SDI on Form 540/540A if

[ ] a. you had two or more California employers during 2007

[ ] b. you received more than $83,389 in wages

[ ] c. the amounts of SDI withheld appear on your forms W2.

[ ] d. all of the above

33. If you file your taxes and use Federal Form 1040, you claim the child and dependent care expenses credit on what forms?

[ ] a. Federal Form 2441, California FTB 3506

[ ] b. Federal Form 2106, California FTB 3808

[ ] c. Federal Form 8602, California FTB 3801

[ ] d. Federal Schedule 1, California FTB 2

34. For purposes of claiming the Child and Dependent Care Expenses Credit, if your child turns age 13 during the year

[ ] a. the child is not a qualifying person because he has to have been under age 13 at the end of the year

[ ] b. the child's age does not matter as long as he is your dependent

[ ] c. the child is a qualifying person only for the qualifying expenses paid when he or she was under age 13 for federal and California.

[ ] d. the child is not a qualifying child because the child has to be in pre-school

35. In tax year 2007, Ramon's wife did not work all year because she was not able to care for herself. Ramon worked and earned $21,100. They have one qualifying child for the Child and Dependent care credit. They paid $2,000 for care of the child. How much credit can they qualify for?

[ ] a. Federal= $0, California = $0

[ ] b. Federal= $744, California = $372.00

[ ] c. Federal= $640, California = $320.00

[ ] d. Federal= $620, California = $310.00

36. Kevin's girlfriend claimed his son on her tax return. His son lived with her all year. Kevin paid for his child care expenses a total of $2,200. Can Kevin claim the Child and Dependent care Expenses Credit?

[ ] a. No, because he is not his dependent. Besides he did not live in his home at all.

[ ] b. Yes, because he passes the relationship test

[ ] c. Yes, because he paid for the child care expenses

[ ] d. Yes, because they (Kevin and his girlfriend) signed Form 8332

37. If you are the non-custodial parent, for purposes of claiming the child and and dependent care credit, the child can be your qualifying child.

[ ] a. True

[ ] b. False

38. If you and your qualifying person did not live in the same home for more than half of the year, other than for reasons because of birth, death or temporary absences, you are able to claim the child and dependent care expenses credit

[ ] a. True

[ ] b. False

39. For purposes of the child and dependent care expenses credit, if you are permanently and totally disabled and have two qualifying children you are considered to have earned $500 per month for the time that your are disabled.

[ ] a. True

[ ] b. False

40. You are single and only paid rent for one month in 2007. You qualify to claim the renter's credit.

[ ] a. True

[ ] b. False