Answer the following statements true (T) or false (F)
1. To claim the Lifetime Learning Credit, a student must take at least one-half of a full-time course load during the year.
2. The qualified retirement savings contributions credit is based on a maximum contribution of $2,000.
3. Shafiq, age 16, works part-time at the local supermarket after school and on vacations. He plans to open a Roth IRA to save for his future. Shafiq makes less than $10,000 per year. He can take advantage of the qualified retirement savings contributions credit ("saver's credit").
4. In lieu of a foreign tax credit, a taxpayer may elect to take a deduction for foreign taxes paid or accrued.
5. The foreign tax credit is equal to the smaller of foreign taxes paid or accrued in the tax year or the portion of the U.S. income tax liability attributable to the income earned in all foreign countries.
1. FALSE
There is no minimum enrollment requirement for the Lifetime Learning Credit.
2. TRUE
A credit to encourage moderate income taxpayers to contribute to retirement plans is based on a maximum annual contribution of $2,000.
3. FALSE
Shafiq does not qualify because he is under 18, a dependent and a full-time student.
4. TRUE
The tax law allows a taxpayer to choose between a credit and a deduction for foreign taxes.
5. TRUE
The foreign tax credit is based on foreign taxes paid or accrued, but the current year application of the credit is limited to a ceiling based on U.S. income tax liability attributable to foreign source income.
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