Tax Preparer Questions and Correct Answers
1. What is Earned Income Tax Credit? (EITC) ANSWER credit for lower and lower-middle income
taxpayers that rewards earned income, particularly for those with children
2. Is the earned income credit refundable? ANSWER Yes
3. Examples of Taxable Earned Income ANSWER ~Employee Pay (wages/salaries
~Retirement income
~Social security
4. How long must a child stay with you to be claimed on taxes? ANSWER 6 to 12
months
5. What are the 4 types of Filing Status? ANSWER Married filing Joint
Married Filing Separate
Single
Head of Household
Widow
6. What does CTC stand for? ANSWER Child Tax Credit
7. What type of income does your client need to have in order to file a tax
return? ANSWER Earned Income
8. What is the standard form that each client will file when filing a tax return?
ANSWER -
1040
9. What 3 things determines the amount of your EIC? ANSWER -#of dependents
-income
-filing status
10. What Personal information does a client need to prepare a married following
widower return? ANSWER -Death certificate
-W-2's
-Social Security
11. What does AGI stand for? ANSWER adjusted gross income
12. Amendment ANSWER a corrected tax return. It's completed by using form 1040x
13. alimony ANSWER Payments made to an ex spouse
14. Allowances ANSWER A number on your Form W-4 used by your employer to calculate how much income ta
to
withhold from your pay. The greater the number of allowances, the less income tax will be withheld.
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1. What is Earned Income Tax Credit? (EITC) ANSWER credit for lower and lower-middle income
taxpayers that rewards earned income, particularly for those with children
2. Is the earned income credit refundable? ANSWER Yes
3. Examples of Taxable Earned Income ANSWER ~Employee Pay (wages/salaries
~Retirement income
~Social security
4. How long must a child stay with you to be claimed on taxes? ANSWER 6 to 12
months
5. What are the 4 types of Filing Status? ANSWER Married filing Joint
Married Filing Separate
Single
Head of Household
Widow
6. What does CTC stand for? ANSWER Child Tax Credit
7. What type of income does your client need to have in order to file a tax
return? ANSWER Earned Income
8. What is the standard form that each client will file when filing a tax return?
ANSWER -
1040
9. What 3 things determines the amount of your EIC? ANSWER -#of dependents
-income
-filing status
10. What Personal information does a client need to prepare a married following
widower return? ANSWER -Death certificate
-W-2's
-Social Security
11. What does AGI stand for? ANSWER adjusted gross income
12. Amendment ANSWER a corrected tax return. It's completed by using form 1040x
13. alimony ANSWER Payments made to an ex spouse
14. Allowances ANSWER A number on your Form W-4 used by your employer to calculate how much income ta
to
withhold from your pay. The greater the number of allowances, the less income tax will be withheld.
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