P1-U13 · PART 1 · SOURCE CYCLE 2026-2027
Individual Tax Credits
How to complete this unit
This unit uses 10 source-gated recall cards and 11 admissible practice questions. Complete the sequence in order; the unreleased wiki prose remains outside the learner path.
- 1 · LearnBuild the rule
Answer each recall prompt before opening it. Then learn the exact rule, test the controlling facts through four quick challenges, explore common questions, and finish with one own-words teach-back.
- 2 · ApplyUse it in context
Complete at least 11 mapped questions over two sessions. Review the explanation even when the answer is correct.
- 3 · ProveTest readiness
Use the Part 1 mock under time pressure. Return here for every flagged or missed concept before the next attempt.
Verified recall questions
Only cards whose complete question and answer were checked against exact primary-authority evidence appear here. Stable unit ownership gathers this lesson across 1 textbook collection.
Q1.What is the maximum American Opportunity Tax Credit per eligible student?
Up to $2,500, with 40% potentially refundable.
Q2.May a taxpayer elect to include nontaxable combat pay as earned income for EITC purposes?
Yes. The election can increase or decrease the credit, so the credit should be figured both ways.
Q3.Recall the rule for this EA objective in Deductions And Credits: Child and dependent care credit
The care expenses must enable the taxpayer and spouse, if applicable, to work or look for work
Q4.Recall the rule for this EA objective in Deductions And Credits: Foreign tax credit
As either a foreign tax credit or an itemized deduction, subject to the rules
Q5.What is the Child Tax Credit in general terms?
a credit for each qualifying child who meets age, relationship, support, residency, and TIN requirements part of the credit may be refundable as the additional child tax credit when earned-income conditions are met phaseouts reduce the credit at higher modified AGI levels
Q6.What income generally counts as earned income for the Earned Income Tax Credit?
wages, salaries, tips, and other employee pay net earnings from self-employment combat pay if elected nontaxable employee compensation such as certain dependent-care benefits does not count as earned income for EITC
Q7.How do the American Opportunity Credit and Lifetime Learning Credit differ?
AOTC is generally limited to the first four years of postsecondary education and has a partially refundable component Lifetime Learning Credit is available for a broader set of courses with no four-year limit and is nonrefundable a student generally cannot claim both credits for the same student in the same year
Q8.What is the child and dependent care credit?
a nonrefundable credit for employment-related care expenses for a qualifying person the taxpayer must have earned income and generally file a joint return if married expenses are limited by the care provider and earned-income rules, and the credit percentage phases down as AGI rises
Q9.Alejandro works full time for a hospital as a laboratory technician. Because of an accounting error, the hospital over-withheld too much Social Security tax from Alejandro's wages. Alejandro only worked for the hospital and had no other employer. What should he do, in order to get the over-withheld amounts?
Alejandro should request that the employer adjust the excess.
Q10.Which of the following expenses is not a qualified expense for purposes of the Adoption Credit?
Attorney fees for a surrogate arrangement.
Ready to move on?
- ▸ Explain at least 80% of these 10 rules without opening the answer, twice on different days.
- ▸ Score 80% across 11 or more mapped questions over two sessions, not one memorized round.
- ▸ Complete a timed Part 1 mock and return to this unit if its concepts remain flagged or missed.
Use these checks to choose your next study action. They do not predict a PSI scaled score.