Money Received in the Form of Dividends or Interest Is

question 112

Multiple Choice

Money received in the form of dividends or interest is classified as ________ income.

• A)passive
• B)earned
• C)excluded
• D)capital gain
• E)investment

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Definitions:

Qualified Adoption Expenses

include necessary costs directly related to and for the principal purpose of the legal adoption of a child, which under certain circumstances, can be tax deductible.

Adoption Credit

A tax credit that offsets qualified adoption expenses, making adoption financially feasible for more families.

Credit Limitation

Restrictions on the amount of credit that can be claimed on a tax return, often imposed to prevent excessive or inappropriate tax benefits.

Adoption Credits

Tax credits provided to individuals who have incurred expenses related to the legal adoption of a child.