Enrolled Agent - Exam Questions and
Answers Latest Update
Qualifying Child Test - Answer-1. Relationship Test
2. Age Test
3. Residence Test
4. Support Test
W-2G - Answer-Certain Gambling Winnings
Form 1099-B - - Answer-Proceeds from Broker and Barter Exchange Transactions
Form 1099-C - - Answer-Cancellation of Debt
Form 1099-DIV - - Answer-Dividends and Distributions
Form 1099-G - - Answer-Certain Government Payments
Form 1099-INT - Answer-Interest Income
Form 1099-MISC - - Answer-Miscellaneous Income
Rents, Prize awards, Crop Insurance, Fishing boat
Form 1099-NEC - - Answer-Nonemployee Compensation
Form 1099-OID - - Answer-Original Issue Discount
Form 1099-PATR - - Answer-Taxable Distributions Received From Cooperatives
Form 1099-Q - - Answer-Payments From Qualified Education Programs (Under
Sections 529 and 530)
Form 1099-R - - Answer-Distributions From Pensions, Annuities, Retirement or Profit-
Sharing Plans, IRAs, Insurance Contracts, etc.
Form 1099-S - - Answer-Proceeds From Real Estate Transactions
Form 1099-SA - - Answer-Distributions From an HSA, Archer MSA, or Medicare
Advantage MSA
Schedule K-1 (Form 1065) - - Answer-Partner's Share of Income, Deductions, Credits,
etc.
,Schedule K-1 (Form 1120-S) - - Answer-Shareholder's Share of Income, Deductions,
Credits, etc.
Nondeductible expenses include: - Answer-Rent and insurance premiums paid for the
taxpayer's own dwelling;
Life insurance premiums paid by the insured;
Upkeep of a personal automobile;
Personal interest; and
Payments for food, clothing, or domestic help.
AMT - Answer-alternative minimum tax
Report of Foreign Bank and Financial Accounts - Answer-Generally, any U.S. citizen,
resident, or person doing business in the United States who has an ownership interest
in, or signatory authority or other authority over, a financial account (or several
accounts) in a foreign country with an aggregate value in excess of $10,000 at any time
during the calendar year must file a Form FinCEN Report 114, Report of Foreign Bank
and Financial Accounts (commonly referred to as an FBAR)
Due Date for Filing for Taxes - Answer-An automatic extension of 6 months is provided
for an individual who files Form 4868 or uses a credit card to make the required tax
payment on or before the initial due date.
A U.S. citizen or resident who is on military or naval duty outside the U.S. (or Puerto
Rico) on April 15 is given an automatic 2-month extension without the necessity of filing
Form 4868. Filing of Form 4868 during the 2 months will allow another 4-month
extension.
The due date for a decedent's final return is the date on which the return would have
been due if death had not occurred.
A Form 1040-NR nonresident alien's tax return (when not subject to wage withholding)
must be filed by the 15th day of the 6th month after the close of the tax year (unless
extended). A nonresident alien must file his or her tax return on the 15th day of the 4th
month after the close of the tax year (unless extended) if his or her wages are subject to
withholding.
Employers are required to keep records on employment taxes until at least _____ years
after the due date of the return or payment of the tax. - Answer-4 years
,In determining if a taxpayer qualifies for head of household filing status, the married
taxpayer is considered unmarried if all the following requirements are met: - Answer-
The taxpayer filed a separate return.
The taxpayer paid more than half the cost of keeping up the home for the tax year.
The taxpayer's spouse did not live in the home during the last 6 months of the tax year.
The home was, for more than half the year, the main home of the taxpayer's child,
stepchild, or adopted child whom the taxpayer or the noncustodial parent can properly
claim as a dependent.
The taxpayer must be able to claim the child as a dependent.
Household Maintenance - Answer-Qualifying Expenditures - Property Taxes, Mortgage
Interest, Rent, Utilities, Upkeep, Repair, Property insurance, food consumed in-home
Additional Standard Deduction - Answer-An individual who has attained the age of 65 or
is blind is entitled to the amount.
The individual is entitled to the amount if (s)he attains age 65 before the end of the tax
year
A person who becomes blind on or before the last day of the taxable year is entitled to
the amount.
Standard Deductions - Answer-Married Filing Jointly - $25,100
Qualifying Widow(er) - 25,100
Head of Household - 18,800
Single (other than above) - 12,550
Married Filing Separately -12,550
John and Linda Smith are a childless married couple with no other dependents who
lived apart for all of the current year. On December 31 of the current year, they were
legally separated under a decree of separate maintenance. Based on the facts, which of
the following is the only filing-status choice available to them for the current year? -
Answer-Single.
The determination of whether an individual is married is made as of the close of the
taxable year, so John and Linda are both single for the current year (Publication 17).
Couples under a separate maintenance agreement are not considered married.
Joe is 37 years old. His wife died during the tax year, and he has not remarried. His
deceased wife had no income. He has two minor children living with him. Joe paid all of
, the costs for keeping up his home for the tax year, and he has paid for all of the support
of his wife and these children. The filing status with the lowest tax rate for which Joe
qualifies is - Answer-Married filing jointly.
Publication 501 states, "If your spouse died during the year, you are considered married
for the whole year for filing status purposes. If you didn't remarry before the end of the
tax year, you can file a joint return for yourself and your deceased spouse. For the next
2 years, you may be entitled to the special benefits described later under Qualifying
Widow(er)" (Publication 17).
Which dependent relative does NOT have to live in the same household as the taxpayer
claiming head of household filing status? - Answer-Mother / Father
Section 2(b) provides head of household status for an unmarried taxpayer who
maintains a household that constitutes the principal place of abode of the taxpayer's
father or mother, but only if the taxpayer is entitled to claim the parent as a dependent.
The taxpayer is considered as maintaining a household only if (s)he furnishes over half
of the cost of maintaining it. In the case of anyone other than the taxpayer's father or
mother, such person(s) must actually occupy the taxpayer's own household for the
taxpayer to be considered a head of household (Publication 17).
Mr. Todd, who is 43 years old, has lived apart from his wife since May 2021. For 2021,
his two children, whom he can claim as dependents, lived with him the entire year, and
he paid the entire cost of maintaining the household. Assuming that Mr. Todd cannot
qualify to file a joint return for 2021, he must, nevertheless, file a return if his gross
income is at least - Answer-$18,800
Generally, a taxpayer must file a tax return if the taxpayer's gross income equals or
exceeds his or her standard deduction [Sec. 6012(a)]. Standard deductions in 2021 are
$25,100 for married filing jointly, $18,800 for heads of household, and $12,550 for single
individuals (Publication 501). A taxpayer who has two children and files as head of
household must file a return if his or her gross income equals or exceeds $18,800.
Ms. Maple, a single woman age 65, retired in 2021. Prior to her retirement, she received
a $6,000 bonus plus $5,250 in wages. After her retirement, she received $9,000 in
Social Security benefits. Which of the following is true? - Answer-Ms. Maple does not
have to file a 2021 income tax return.
In general, a taxpayer does not have to file a return if his or her gross income is less
than his or her standard deduction [Publication 501 and Sec. 6012(a)]. For single
individuals who are 65 or over, the standard deduction increases by $1,700. Therefore,
the filing threshold will be $14,250 ($12,550 basic standard deduction + $1,700
additional standard deduction). Ms. Maple's income does not qualify her Social Security
benefits for gross income inclusion in determining her filing requirement.
To be a qualifying child, four tests must be met: - Answer-Relationship - The child must
be the taxpayer's son, daughter, stepson, stepdaughter, brother, sister, stepbrother,
