Married filing jointly - Study guides, Class notes & Summaries

TAX Certification Questions If a taxpayer with an individual taxpayer identification number (ITIN) receives a Form W-2 with an erroneous Social Security number (SSN), is it acceptable to e-file the return as long as you enter the correct ITIN on the return and the mismatched SSN exactly as shown on the Form W-2 issued? - True Correct! Taxpayers who file tax returns using their ITINs often have Forms W-2 showing erroneous SSNs, and it's acceptable to e-file the return if you enter the ...

What is the Difference between earned income and unearned income? - Earned income is received for services performed. Examples are wages commissions, tips and generally farming and other business income . Taxable income other than that received for services performed. Unearned Income includes money received ro the investment of money or other property, such as interest, dividends, and royalties. It also includes pensions alimony, unemployment compensation and other income that is not earned I...

VITA Basic Exam (Latest Update) Questions and Verified Answers| 100% Correct| Grade A Q: You are clarifying Larry's Form 13614-C. Larry is at a VITA/TCE site to have his taxes prepared. He completes Form 13614-C and tells the tax preparer: He is 26 years old His filing status is Head of Household He wants to claim his 2-year-old nephew for EITC He has no child care expenses He earned $19,000 in wages Do you think it's safe to rely on good faith for Larry's information? Answer:...

A taxpayer should include which of the following when figuring their federal gross income? Gifts and inheritances. Life insurance payments, if paid by reason of the death of the insured. Meals and lodging provided for the convenience of the employer Prizes and awards. To avoid the risk of penalties, tax preparers must abide by rules regarding preparer tax identification numbers (PTINs). Which of the following statements is TRUE regarding PTINs? A)A PTIN is required semi-annually for ...

HR Block Test Exam Questions And Answers A tax return or claim for refund requiring a paid tax return preparer to determine eligibility for EITC, CTC/ODC/ ACTC, AOTC, and the head of household filing status may be subject to a maximum penalty, totaling what amount for failure to meet due diligence requirements if all four are claimed on a single tax return? - ANS a,$2,120 the deduction for state and local income taxes is limited to what amount? - ANS a. $10,000 ($5,000 if MFS). ...

What is the difference between earned income and unearned income? correct answer: Earned income is received for services performed. Some examples of earned income include wages, commissions, tips, farming, and other business income. Unearned income is taxable income that does not meet the definition of earned income. Examples of unearned income include interest income, dividends, rents and royalties, pensions, alimony, and unemployment income. If an employee thinks their Form W-2 is incorre...

tax filing flow - correct answer -filing requirement and status -income - income exclusion - adjust to income AGI (schedule1) - deduction - taxable income and taxation - additional tax (schedule2) - credits (schedule3) - payment (withholding) or refund qualifying relative - correct answer -1. living together all year OR a family member (no foster parents, no cousins) 2. cannot be a qualifying child 3. not provide over half of own support 4. person's GI less than 4300 qualifying child -...

What is the most beneficial filing status allowable for Rebecca? a. Single b. Married filing jointly c. Head of Household d. Qualifying Widow(er) - correct answer Qualifying Widow(er) T or F: Rebecca has $3,100 in qualifying child care expenses for the child and dependent care credit - correct answer False Pat and Terry are eligible for which of the following credits? Select the best answer a. Credit for other dependents b. Child tax credit c. Earned income credit d. Both a and...

HRB FINAL EXAM QUESTIONS AND ANSWERS (GRADED A) What is the Difference between earned income and unearned income? - ANS ️️ Earned income is received for services performed. Examples are wages commissions, tips and generally farming and other business income . Taxable income other than that received for services performed. Unearned Income includes money received ro the investment of money or other property, such as interest, dividends, and royalties. It also includes pensions alimony, u...

Comprehensive Module 1: Final Exam Questions & Answers-1. Bob uses the cash method of accounting. During the tax year (calendar year), he had the following income and expenses: • Interest on a savings account (credited to his account on January 2 of next year) $ 68 • Dividend received from Virginia Credit Union $814 • Interest received on a 5-year certificate of deposit (left in CD account to compound) • Penalty on the early withdrawal of the 5-year certificate of depo...