2022 REG Exam Questions & Answers 100% CORRECT
Circular 230 - ANSWERSRules to practice before the IRS
Tax Prepayments for Individuals - ANSWERS1. 100% of the prior years return for AGI of $150,000 or less (110% if AGI is greater than $150,000)
OR
2. 90% of current year's tax (90% of annua...
Individual Tax Return - ANSWERSAn individual must file a federal income tax return if gross income is
about a threshold, net earnings from self-employment is $400 or more or they are a dependent with
more gross income than the standard deduction or with unearned income of over $1,100
Kiddie Tax - ANSWERS1. $1,100
AND
2. The greater of (1) $1,100 of the standard deduction or $1,100 of itemized deductions or (2) the
amount of allowable deductions that are directly connected with the production of unearned income
Earned Income - ANSWERS1. Salaries
2. Wages
3. Tips
4. Scholarships
Unearned Income - ANSWERS1. Interest
,2. Dividends
3. Capital gains
4. Trust distributions
5. Gifts
6. Debt cancellation
7. Pension/annuities
8. Social security
9. Royalties
Individual Tax Return Date - ANSWERSApril 15th
Form 4868 - ANSWERSForm used for automatic six month extension for individual taxpayers (October
15th)
Partnership and S Corp Tax Return Date - ANSWERSMarch 15th
Form 7004 - ANSWERSForm used for automatic six month extension for partnerships and s corps
(September 15th)
Form 1040 - ANSWERS1. Form for a claim for refund of federal income tax overpaid for the current tax
year
2. Amended using a Form 1040x
Statute of Limitations - ANSWERS1. Three years from the due date (April 15th plus the extension)
2. Two years after the tax was paid
3. Six years if there is an omission of items of more than 25% of gross income stated in the return
Qualifying Costs - Household Maintenance (HOH) - ANSWERS1. Property tax
2. Mortgage interest
3. Rent
,4. Utilities
5. Upkeep
6. Repair
7. Property insurance
8. Food consumed in home
To maintain a household for federal filing status purposes, an individual must furnish more than 50% of
the qualifying costs, of mutual benefit, of maintaining the household during the tax year
Tests to be a Qualifying Child (Dependents) - ANSWERS1. Relationship: must be the taxpayer's son,
daughter, step child, foster child, brother, sister, half sibling, step sibling or a descendant of any of them,
adopted
2. Member of the Household Test: must live in house more than half of the year
3. Age: must be (a) under 19 at end of year, (b) under 24 at end of year and full time student or (c) any
age if permanently and totally disabled
4. Not Self Supporting: Child must not provide more than half of their own support
Tests to be a Qualifying Relative (Dependent) - ANSWERS1. Relationship: must be a grandparent,
ancestors, grandchildren, descendants, aunts, uncles, nephews, nieces, immediate family or meet
member of the household test
2. Gross Taxable income: less than $4,300 (includes all income received in any form but not SSB for low
income taxpayers)
, 3. Support: Provide more than half of the person's total (economic support)
4. Can't be a qualifying child
Gross Income - ANSWERS1. Compensation for services, including fees, commissions and fringe benefits
2. GI derived from business
3. Gains derived from dealings in property
4. Interest
5. Rent
6. Royalties
7. Dividends
8. Alimony and separate maintenance payments (divorces executed before 2019)
9. Annuities
10. Income from life insurance and endowment contracts
11. Pensions
12. Income from discharge of indebtedness
13. Distributive share of partnership GI
14. Income in respect of a decedent (income earned but not received before death)
15. Income from an interest in an estate or trust
W-2 - ANSWERSAn employer is not required to provide if taxpayer made less than $2,300
Form 1099-INT - ANSWERSA statement of interest income for the year
Form 1099-DIV - ANSWERSA statement of ordinary and qualified dividends amounts for the year
Interest and Ordinary Dividends (GI) - ANSWERSReported on Form 1040 with Schedule B
Form 1099-B - ANSWERS1. Bartered exchanges
2. Transaction is record on Form 1040 Schedule C
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