Tax Preparer Questions and Verified Solutions
1. Taxable income are ANSWER Jury duty pay, wages, unemployment compensation
2. If you file married filling jointly you can claim you spouse as your dependent?-
ANSWER No, your spouse is not a dependent you are filling together
3. What is adjusted gross income? ANSWER Your taxable income before deduction
4. For purpose of the earned income credit, a qualifying child is a child who...
ANSWER -
Meets the relationship test.
5. A tax-payer should itemize deductions if the tax-payer's total itemized deduc-
tions are... ANSWER More than the tax payer's standard deduction.
6. Which of the following payments are generally taxable? ANSWER Unemployment
compensation
7. The distribution made to a tax-payer from a traditional IRA are less than the
required minimum distribution for the year ANSWER 50%
8. self-employment tax applies to ANSWER Independent contractor reporting net earning from
self-employ- ment of $400 or more
9. A tax-payer can make an adjustment to income on form 1040 for ANSWER
Deductible part of self-employment tax form schedule SE
10. Which of the following statements regarding tip income is true? ANSWER
Any tips you reported to your employer are to be included in the wages in box 1
11. An unmarried tax-payer clamming parent ANSWER Head of the house
12. A tax payer goes to a casino and wins $10,000. The casino withholds $500 for
federal income Taxes ANSWER The tax payer must report the winning and can claim the amount of
Federal income tax withheld on form 1040
13. The IRS rejected a tax-payer return when the tax payer attempted to e-fill the
return when can he file again? ANSWER By the due date for filling the return or 10 calendar days after
the return was rejected
14. When the IRS rejects a return that an electronic return originator (ERO) has
to provide... ANSWER The rejected code, accompanied by an explanation
15. A form 8453 must be submitted to the IRS after acceptance of an e-filed
return when... ANSWER An agent possessing a Form 2848 electronically signs the return
16. The declaration of representative accompanying a power of attorney must
be signed under penalties of perjury with a representative declaring...
1/6
, Tax Preparer Questions and Verified Solutions
ANSWER The representative has never been under suspension or disbarment from practice before the
IRS
2/6
1. Taxable income are ANSWER Jury duty pay, wages, unemployment compensation
2. If you file married filling jointly you can claim you spouse as your dependent?-
ANSWER No, your spouse is not a dependent you are filling together
3. What is adjusted gross income? ANSWER Your taxable income before deduction
4. For purpose of the earned income credit, a qualifying child is a child who...
ANSWER -
Meets the relationship test.
5. A tax-payer should itemize deductions if the tax-payer's total itemized deduc-
tions are... ANSWER More than the tax payer's standard deduction.
6. Which of the following payments are generally taxable? ANSWER Unemployment
compensation
7. The distribution made to a tax-payer from a traditional IRA are less than the
required minimum distribution for the year ANSWER 50%
8. self-employment tax applies to ANSWER Independent contractor reporting net earning from
self-employ- ment of $400 or more
9. A tax-payer can make an adjustment to income on form 1040 for ANSWER
Deductible part of self-employment tax form schedule SE
10. Which of the following statements regarding tip income is true? ANSWER
Any tips you reported to your employer are to be included in the wages in box 1
11. An unmarried tax-payer clamming parent ANSWER Head of the house
12. A tax payer goes to a casino and wins $10,000. The casino withholds $500 for
federal income Taxes ANSWER The tax payer must report the winning and can claim the amount of
Federal income tax withheld on form 1040
13. The IRS rejected a tax-payer return when the tax payer attempted to e-fill the
return when can he file again? ANSWER By the due date for filling the return or 10 calendar days after
the return was rejected
14. When the IRS rejects a return that an electronic return originator (ERO) has
to provide... ANSWER The rejected code, accompanied by an explanation
15. A form 8453 must be submitted to the IRS after acceptance of an e-filed
return when... ANSWER An agent possessing a Form 2848 electronically signs the return
16. The declaration of representative accompanying a power of attorney must
be signed under penalties of perjury with a representative declaring...
1/6
, Tax Preparer Questions and Verified Solutions
ANSWER The representative has never been under suspension or disbarment from practice before the
IRS
2/6
