Enrolled Agent- Individuals Exam Questions with Correct Answers
5 views 0 purchase
Course
EA - Enrolled Agent
Institution
EA - Enrolled Agent
T or F. Kathy, a U. S citizen, is 22 and correctly files as single. In 2004, she had net self-employment income of $550 after expenses. She had no other income or any tax payments. She does not have to file a federal income tax return for the year 2004. - Answer-False
T or F. If your spouse died...
Enrolled Agent- Individuals Exam
Questions with Correct Answers
T or F. Kathy, a U. S citizen, is 22 and correctly files as single. In 2004, she had net
self-employment income of $550 after expenses. She had no other income or any tax
payments. She does not have to file a federal income tax return for the year 2004. -
Answer-False
T or F. If your spouse died during the year, you are considered married for the whole
year for filing status purposes. - Answer-True
T or F. Tyler is single and is 18 years old. He works part time and is going to school. His
total income for 2004 was $8,000. Tyler lives with his parents. He qualifies as their
dependent and they are claiming him as an exemption on their 2004 tax return. Since
Tyler will file his own return, he may also take an exemption for himself. - Answer-False
T or F. Ted and Sharon (husband and wife) are the sole support of their 27-year-old son
Tom who lives with them. Tom was unable to work in 2004 because of a medical
condition but received $3,500 from a charitable foundation for a speaking engagement.
Ted and Sharon may claim Tom as a dependent on their 2004 federal income tax
return. - Answer-False
T or F. Charles Moore had a $2,000 tax liability in 2004. In 2005, Charles expects to
owe at least $1,500 in federal taxes. For 2005 he has no withheld income taxes.
Charles does not need to file estimated taxes because his tax in 2005 is less than his
2004 tax. - Answer-False
T or F. Dianne deposited $10,000 in a bank to purchase a 6 month money market
certificate which matures in 2004. The bank gave her a Form 1099-INT for 2004
showing the $575 interest earned. Dianne is required to include this interest as income
for tax year 2004. - Answer-True
T or F. John frequently pays for repairs in his apartment and gives the receipts to his
landlord in lieu of part of his rental payment. The landlord is entitled to deduct the repair
expenses (non-capital improvements) on his tax return but must also report these
amounts as rental income. - Answer-True
T or F. Denise worked for 3 months in Russia and earned foreign income. Denise is a
United States citizen and, except for the 3 months spent in Russia, resides in Mobile,
Alabama. Denise did not receive either a Form W-2 or a Form 1099 for her earnings
while in Russia. Because Denise resides in the U.S., is a U.S. Citizen, and did not
receive any tax reporting forms, she does not have to report any of the income she
earned in Russia. - Answer-False
, T or F. Mary, a single woman, bought her home in June 2001 for $350,000. She lived in
the house until she sold it in July 2004 for $600,000. Mary is able to exclude the
maximum amount of gain from the sale of her home. - Answer-True
T or F. You may be able to exclude your gain from the sale of a home that you have
used for the use of a business if you meet the ownership and use tests. You may be
entitled to take depreciation deductions because you used your home for business
purposes. However, you can not exclude the part of your gain equal to any depreciation
allowed as a deduction for periods after May 6, 1997. - Answer-True
T or F. In 1995, John and Kim Jones (husband and wife), bought their primary
residence for $250,000. In 2004 they sold it for $550,000, taking the maximum
allowable exclusion. They are not required to report the sale of their home on their tax
return. - Answer-True
T or F. Sonja is a calendar-year taxpayer. A flood damaged her home on June 2004.
The flood damaged or destroyed a considerable amount of property in her town. The
President declared the area that includes Sonja's town a federal disaster area as a
result of the flood. Sonja can choose to deduct the flood loss on her home on last year's
tax return. - Answer-True
T or F. The eligibility rules for Earned Income Tax Credit only apply to single parent
households. - Answer-False
T or F. The rules of a university state that an individual can become a faculty member
only if he or she achieves an advanced or graduate degree. University rules also state
that an individual, hired as a temporary instructor without an advanced or graduate
degree, can keep his or her instructing job only as long as he or she shows satisfactory
progress toward achievement of this advanced or graduate degree. Mike has a
bachelor's degree and was previously hired as a temporary instructor at this university.
Mike is taking graduate courses toward his advanced degree, but has not met the
minimum educational requirements to qualify as a faculty member. Mike's graduate
courses are not considered to be qualifying work-related education. - Answer-True
T or F. Ron sold property for $10,000. The agreement calls for $1,000 as a down
payment and $1,500 in each of the next 6 years to be made from an irrevocable escrow
account. The escrow account contains funds provided by the purchaser for the balance
of the purchase price plus interest. Ron can use the installment method to report the
sale. - Answer-False
T or F. You may be able to take a credit against your regular tax in the current year for
alternative minimum tax liability paid in a prior year. - Answer-True
T or F. You cannot take a credit (or deduction) for foreign income taxes paid on income
that you exclude from U.S. tax under the foreign earned income exclusion. - Answer-
True
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller lectknancy. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $15.49. You're not tied to anything after your purchase.
