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EA Exam 1 Questions and Correct Answers- IRS
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EA Exam 1 Questions and Correct Answers- IRS
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EA Exam 1 IRSTwo taxpayers married on November 30. That same year, the husband enrolled in an accredited college
to further his career and subsequently received a Form 1098-T, Tuition Statement. The wife was
employed with an income of $45,000 and paid for the husband's education expenses. Based on their
circumstances, what is the correct method to report the education credit?
A) Taxpayers must file a joint return to claim an education credit
(B) Based on the wife's AGI, they do not qualify to claim an education credit
(C) Husband is ineligible to claim an education credit because the wife paid his education expenses
(D) Wife should report nonqualified education expenses on Form 8863, Education Credits (American
Opportunity
and Lifetime Learning Credits) - Answer -A
The taxpayer has a child under the age of 24 who is a full-time student in their 2nd year of college. The
student
will be claimed as a dependent on the taxpayer's return.
The student's educational expenses included $8,000 for tuition and $4,000 for room and board.
The student received a $5,000 scholarship for tuition use only, as well as an additional $2,500
scholarship to pay any of the student's college expenses. The taxpayer paid the remaining $4,500.
Which of the following statements is correct, based on the information above?
, (A) The student can claim the American Opportunity credit on their return for tuition expenses of $3,000
and should report the additional $2,500 scholarship as income
(B) The taxpayer can claim the American Opportunity credit on their return for tuition expenses of
$3,000, and the student should report the additional $2,500 scholarship as income
(C) The taxpayer can claim the American O - Answer -B
Which of the following statements is correct regarding Form 1095-A, Health Insurance Marketplace
Statement?
(A) Taxpayers do not need Form 1095-A to complete Form 8962, Premium Tax Credit, to reconcile
advance payments of the premium tax credit or claim the premium tax credit on their tax return
(B) Taxpayers will receive Form 1095-A to complete Form 8962, Premium Tax Credit, if they have been
covered by an employer insurance plan for the entire year
(C) Taxpayers will use Form 1095-A to complete Form 8962, Premium Tax Credit, to reconcile advance
payments of the premium tax credit or claim the premium tax credit on their tax return
(D) Taxpayers will attach a Form 1095-A to their tax return to reconcile advance payments of the
premium tax credit or claim the premium tax credit on their return - Answer -C
Which of the following statements is correct regarding Form 8995 Qualified Business Income (QBI)
Deduction Simplified Computation?
(A) C corporations should complete the Form 8995 in order to claim the Qualified Business Income
Deduction on their corporate returns
(B) Taxpayers will receive the Form 8995 from the IRS, if they are determined to be eligible for the
deduction
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