Tax Specialist Overview Part 1 PDF

Preview

Summary

Section 1 - Filing Requirements
Section 2 - Filing Statuses
Section 3 - Adjustments to Income
Section 4 - Credits...

Description

Section 1 - Filing Requirements Question 1 of 15. Which of the following dependents is required to file a tax return? Austin (17) earned $3,625 working at a local coffee shop. He also received $54 in interest on his savings account. Roxie (19) is a full-time student at State College. She earned $5,525 working at a local grocery store. Alex (15) earned $650 as a soccer referee. He is considered a contractor for all his referee income. He also earned $155 in bank interest. Nora (59) is single and a dependent of her son, with whom she lives. In 2020, Nora had $320 in dividend income and $6,800 in earned income. Mark for follow up

Question 2 of 15. All of the following nondependent taxpayers are U.S. citizens. Which taxpayer is required to file a 2020 income tax return? Bao (42), qualifying widower (QW), $20,260 gross income. Corbin (44), head of household (HH), $18,420 gross income. Casey (59), married filing separately (MFS), $3,521 gross income, and spouse does not itemize. January (73), single (S), $13,330 gross income, all from wages. Mark for follow up

Question 3 of 15. All of the following nondependent taxpayers are U.S. citizens. Who is required to file a 2020 income tax return? Martika (50), single (S), $12,050 gross income. Loki (67), head of household (HH), $19,750 gross income. Nick (43) and Mary (49), married filing jointly (MFJ), $24,450 gross income. Lloyd (68) and Melanie (66), married filing jointly (MFJ), $28,200 gross income. Mark for follow up

Question 4 of 15. All of the following are requirements to determine whether a nondependent is required to file EXCEPT: If the taxpayer has any dependents. Which filing status they will be using. Their age at the end of the year. Their gross income for the year. Mark for follow up

Section 2 - Filing Statuses Question 5 of 15. Zane (31) and Kristi (32) are married. They have two boys, Ian (8) and Zed (10). They lived together from January through April, when Kristi moved out and left the boys with Zane. Zane and Kristi did not live together at any time for

the rest of the year. They did not have a legal separation or divorce. They will not be filing a joint return. What is Kristi's most advantageous filing status? Single. Married filing separately. Married filing jointly. Head of household. Mark for follow up

Question 6 of 15. Zane (31) and Kristi (32) are married. They have two boys, Ian (8) and Zed (10). They lived together from January through April, when Kristi moved out and left the boys with Zane. Zane and Kristi did not live together at any time for the rest of the year. They did not have a legal separation or divorce. They will not be filing a joint return. What is Zane's most advantageous filing status? Single. Married filing separately. Married filing jointly. Head of household. Mark for follow up

Question 7 of 15. Rodrigo (36) is not married. He shared his home all year with his girlfriend, Yvonne (36), and Yvonne's daughter, Lourdes (8). Rodrigo is not related to Lourdes, and Rodrigo is not in the process of adopting her. Rodrigo provided more than half the cost of maintaining the home and more than 50% of Yvonne and Lourdes' support. Rodrigo's wages were $32,574; Yvonne's gross income was $5,542; Lourdes' was $0. What is Rodrigo's most advantageous filing status? Single. Head of household. Married filing jointly. Married filing separately.

Section 3 - Adjustments to Income Question 8 of 15. Morse (33) and his spouse, Fiona (31), are both teachers. In 2020, Morse purchased $322 worth of supplies for his classroom. Fiona purchased $210 in 2020. Both have all receipts. If they file jointly, what is the maximum amount of educator expenses they can claim? $532 $500 $460 $250 Mark for follow up

Question 9 of 15.

Which of the following payments may be considered alimony? Cash payment of $600 each month to cease upon the death of the recipient. Property settlement. Child support. Voluntary payments of $500 each month not specified under an agreement. Mark for follow up

Question 10 of 15. Hector paid $3,168 interest on a qualified student loan during 2020. He and his spouse, Min, are each filing married filing separately. Their combined MAGI is $136,060. The maximum amount of student loan interest that Hector can deduct on his return is __________. $3,168 $2,500 $1,250 $0 Mark for follow up

Question 11 of 15. Which of the following is NOT considered a deductible moving expense for a member of the Armed Forces? Cost of lodging while traveling to a new home. Mileage on a vehicle used to move household goods. Cost of meals purchased while traveling to a new home. Cost of storage for household goods.

Section 4 - Credits

Question 12 of 15. Which statement is TRUE regarding claiming the Residential Energy Efficient Property Credit for 2020? Taxpayers may claim a 10% credit for the costs of qualified solar electric property. The unused portion of the credit cannot be carried forward to the next tax year. Labor costs are not included for the credit. Taxpayers may claim a 26% credit for the costs of qualified solar electric property. Mark for follow up

Question 13 of 15. Which of the following statements about credits is FALSE? Credits decrease taxable income. Credits can be refundable. Credits can reduce tax liability directly. Credits may be nonrefundable. Mark for follow up

Question 14 of 15. Damon (20) is a full-time student eligible to be claimed as a dependent on his father's return. This year, Damon incurred $1,600 in education expenses for his tuition. If Damon's father chooses not to claim Damon as a dependent on his return, which of the following is TRUE regarding Damon's return? Damon may only claim the lifetime learning credit. Damon may not claim an education credit. Damon does not have enough education expenses to claim an education credit. Damon may claim an education credit. Mark for follow up

Question 15 of 15. Jude and Yukio have two dependent children, ages 4 and 5. Jude earned $44,750 in 2020. They had no other income. Yukio did not work, but was a full-time student all year. They paid a total of $4,800 in qualifying childcare expenses. What is the correct amount of their Child and Dependent Care Credit? $0 $450 $960 $4,800

Section 1 - Filing Requirements

Question 1 of 15. Which of the following is NOT a condition a taxpayer must meet to claim injured spouse? Must file married filing separately. Received and reported income on a joint return. Made and reported tax payments, such as withholding or estimated tax, or is eligible for EITC or other refundable credits on a joint return. Is not required to pay the past-due amount. Mark for follow up

Question 2 of 15. A single, nondependent taxpayer over age 65 is required to file a 2020 tax return if their gross income exceeds which amount? $12,400 $14,050 $20,300 $26,100 Mark for follow up

Question 3 of 15. Which of the following dependents is required to file a tax return? Austin (17) earned $3,625 working at a local coffee shop. He also received $54 in interest on his savings account.

Roxie (19) is a full-time student at State College. She earned $5,525 working at a local grocery store. Alex (15) earned $650 as a soccer referee. He is considered a contractor for all his referee income. He also earned $155 in bank interest. Nora (59) is single and a dependent of her son, with whom she lives. In 2020, Nora had $320 in dividend income and $6,800 in earned income. Mark for follow up

Question 4 of 15. All of the following are requirements to determine whether a nondependent is required to file EXCEPT: If the taxpayer has any dependents. Which filing status they will be using. Their age at the end of the year. Their gross income for the year.

Section 2 - Filing Statuses

Question 5 of 15. Rodrigo (36) is not married. He shared his home all year with his girlfriend, Yvonne (36), and Yvonne's daughter, Lourdes (8). Rodrigo is not related to Lourdes, and Rodrigo is not in the process of adopting her. Rodrigo provided more than half the cost of maintaining the home and more than 50% of Yvonne and Lourdes' support. Rodrigo's wages were $32,574; Yvonne's gross income was $5,542; Lourdes' was $0. What is Rodrigo's most advantageous filing status? Single. Head of household. Married filing jointly. Married filing separately. Mark for follow up

Question 6 of 15. Zane (31) and Kristi (32) are married. They have two boys, Ian (8) and Zed (10). They lived together from January through April, when Kristi moved out and left the boys with Zane. Zane and Kristi did not live together at any time for the rest of the year. They did not have a legal separation or divorce. They will not be filing a joint return. What is Kristi's most advantageous filing status? Single. Married filing separately. Married filing jointly. Head of household. Mark for follow up

Question 7 of 15.

Zane (31) and Kristi (32) are married. They have two boys, Ian (8) and Zed (10). They lived together from January through April, when Kristi moved out and left the boys with Zane. Zane and Kristi did not live together at any time for the rest of the year. They did not have a legal separation or divorce. They will not be filing a joint return. What is Zane's most advantageous filing status? Single. Married filing separately. Married filing jointly. Head of household.

Section 3 - Adjustments to Income Question 8 of 15. Terrell (67) and India (63) are married. Terrell is enrolled in medicare, and India has health coverage through Terrell's employer. Which of the following is an accurate description of their HSA options? Terrell and India are both eligible, but they must open separate accounts if they want to make the catch-up contributions. Terrell is ineligible, but India can set up an HSA with the $7,100 family maximum plus $1,000 catch-up. Terrell is ineligible, but India can set up an HSA with the $3,550 single maximum plus $1,000 catch-up. India is ineligible, but Terrell can set up an HSA with the $3,550 single maximum plus $1,000 catch-up. Mark for follow up

Question 9 of 15. Which of the following payments may be considered alimony? Cash payment of $600 each month to cease upon the death of the recipient. Property settlement. Child support. Voluntary payments of $500 each month not specified under an agreement. Mark for follow up

Question 10 of 15. Portia is a Lieutenant Colonel in the Air Force. In August of 2020, her duty station changed from Arnold Air Force Base in Tennessee to Holloman Air Force Base in New Mexico. She drove 1,352 miles and spent $2,900 to move her household items. She made the drive in three days, and had two nights in hotels at $100/night. Portia received $3,000 of reimbursement from the military. The moving expenses adjustment is ___________. $0 $330 $2,900 $3,330 Mark for follow up

Question 11 of 15. Morse (33) and his spouse, Fiona (31), are both teachers. In 2020, Morse purchased $322 worth of supplies for his classroom. Fiona purchased $210 in 2020. Both have all receipts. If they file jointly, what is the maximum amount of educator expenses they can claim? $532

$500 $460 $250

Section 4 - Credits

Question 12 of 15. To qualify for the American Opportunity Tax Credit, the student must be enrolled: For a minimum of nine credit hours (or course units) during the year. At least half-time for one academic period for the year. At a public university. At least part-time. Mark for follow up

Question 13 of 15. Which of these is NOT an eligibility requirement for the Premium Tax Credit? Household income within a certain range. Not eligible for a government health insurance program. Not eligible for an affordable employer-sponsored plan that provides minimum value. Purchase coverage outside the Marketplace. Mark for follow up

Question 14 of 15. Damon (20) is a full-time student eligible to be claimed as a dependent on his father's return. This year, Damon incurred $1,600 in education expenses for his tuition. If Damon's father chooses not to claim Damon as a dependent on his return, which of the following is TRUE regarding Damon's return? Damon may only claim the lifetime learning credit. Damon may not claim an education credit. Damon does not have enough education expenses to claim an education credit. Damon may claim an education credit. Mark for follow up

Question 15 of 15. Which of the following statements about credits is FALSE? Credits decrease taxable income. Credits can be refundable. Credits can reduce tax liability directly. Credits may be nonrefundable....