1. For 2009 Earned Income Credit purposes, to be a qualifying child,                

A. A child must be younger than you unless the child is permanently and totally disabled.
B. It does not matter if a child files a joint return for any reason.
C. Only the parents are allowed to claim the child.
D. Any of the above. 
 

2. You don't want to wait to receive the EIC, you expect to be eligible for the EIC for tax year 2010, so to receive the EIC in advance in tax year 2009, you    

A. Call the IRS and tell them you believe you qualify
B. File your return ahead of time
C. You don't qualify so don't try
D. Give Form W-5 to your employer to get part of EIC credit during the year in advanced payments.
 

3. Which of the following conditions would NOT prevent an individual from qualifying for the Earned Income Credit for tax year 2009?                

A. Married Filing Separately filing status.
B. Being a qualifying child of another person.
C. Being age 25.
D. Investment income of more than $3,100.

4. What will happen if your spouse does not have a social security number?

A. The IRS will advise you to write "Applied For" in the social security section.
B. You CANNOT get the EIC.
C. The IRS will ask you for the correct information for sure.
D. You will get credit anyways because it only matters that your child has a correct number.

5. If you are married, in order to qualify for the EIC, your filing status cannot be

6. To qualify for the Earned Income Credit in tax year 2009, your investment income must not be over  

A. $ 3,100
B. $ 2,850
C. $ 2,900
D. $ 2,700

7. The credit is called the Earned Income Credit because to qualify you must    

A. Be at poverty level
B. Have money in your savings
C. Work and have earned income
D. Not be living in luxury

8. If you retire on disability, benefits you receive under your employer's disability retirement plan (for EIC purposes) are                     

A. Always taxable
B. Unearned income
C. Not counted because disability is not taxable.
D. Considered earned income until you reach minimum retirement age

9. Income that is not earned income includes all of the following EXCEPT       

A. Net earnings from self-employment
B. Earnings while an inmate in a penal institution.
C. Welfare benefits.
D. Interest and dividends.

10. To qualify for the earned income credit with a qualifying child, you must meet which tests?

A. Joint return test, age, and Residency tests.
B. Citizenship, Age and Qualifying relative test.
C. Relationship, Age, Residency and Joint Return tests.
D. None of the above.

11. Having a qualifying child who lives with you in your home for more than 6 months meets which test?

A. Age test
B. Relationship test
C. Residency test
D. Gross income test

12. If your Earned Income Credit was denied, send Form 8862 if it was denied because  

A. You loaned your dependents to your friend.
B. You claimed a dependent that was not yours.
C. You and your spouse each tried to claim the earned income credit.
D. Any of the above.

13. Your qualifying child is your son, daughter, adopted child, grandchild, stepchild, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them who at the end of the year                                             

A. Was any age if permanently and totally disabled regardless of age.
B. Was under age 19 and younger than you.
C. Was under 24 and a student and younger than you.
D. Any of the above.

14. Your son was a qualifying child of his father whom had a higher AGI. Your son lived with both parents the same amount of time and is a qualifying child for both of you. Then,

A. Your son's father can claim the credit because he had a higher AGI.
B. Both parents can claim the credit.
C. You and your child's father can decide which of you will take the EIC.
D. The one with the lower income can claim the credit because he or she needs it most.

15. If you are a qualifying child of another person

A. You cannot claim the EIC.
B. You can claim the EIC as long as the other conditions are met.
C. You can claim the EIC if you qualify.
D. You can claim the EIC as long as you have children.

16. If your EIC for any tax year after 1996 was denied or reduced for any reason other than for a mathematical or clerical error, you must          

A. Re-do your return with the correct information.
B. Not try to get the EIC credit for 5 years.
C. Attach a completed Form 8862 to your next tax return to claim the EIC.
D. Not try to get the EIC for 15 years.

17. You claimed the EIC on your 2008 tax return which you filed March 2009. In October 2009, the IRS denied your claim and determined that your error was due to reckless or intentional disregard for the EIC rules. As a result,                    

A. You cannot claim the earned income credit for tax year 2010.
B. You cannot claim the credit for tax years 2009 and 2010.
C. You cannot claim the credit for tax years 2010 through 2019.
D. You can't claim the credit for tax year 2020.

18. If you claimed the EIC on your 2008 tax return, which was filed in February 2009, and in December 2009, the IRS denied your claim and determined that your error was due to fraud, then              

A. You can't claim the credit for tax year 2010.
B. You can't claim the credit for tax year 2009 or 2010.
C. You can't claim the EIC for tax year 2009.
D. You can't claim the EIC for 2009 through 2018.

19. You can receive part of your EIC in your paycheck by completing form W-5 and

A. Mailing the lower part of the form to the IRS.
B. Giving the lower part of the form to only one employer.
C. Call the IRS and explain your financial situation to a taxpayer advocate.
D. Give the form W-5 to all your employers.

20. To get part of the earned income credit paid to you throughout the year in your paycheck, you must

A. Expect to have a qualifying child.
B. Expect that your earned income and modified adjusted gross income will be less than $35,535 ($40,454 if you expect to file 'Married Filing Jointly' for tax year 2010). 
C. Expect to be eligible for the EIC for tax year 2010.
D. All of the above