Enrolled Agent Special Enrollment Examination
(IRS SEE) Exam Questions and Correct Answers
(Verified Answers) Plus Rationales 2026 Q&A |
Instant Download Pdf
1. Which of the following is required to be included on a tax return for
a sole proprietorship?
A. Corporate bylaws
B. Schedule C
C. Form 1065
D. Schedule K-1
Schedule C is used to report income or loss from a business operated as
a sole proprietorship.
2. A taxpayer receives $1,200 in unemployment compensation during
the year. How is this income reported?
A. Schedule B
B. Form 1040, Line 7
C. Form 1099-DIV
D. Schedule SE
Unemployment compensation is taxable income and reported directly
on Form 1040.
3. Which of the following expenses is generally not deductible on
Schedule A?
A. Mortgage interest
B. Charitable contributions
,C. Personal clothing
D. State income taxes
Personal clothing is considered a personal expense and is not
deductible.
4. What is the maximum contribution limit to a traditional IRA for
taxpayers under age 50 in 2025?
A. $4,000
B. $5,000
C. $6,500
D. $7,500
The IRA contribution limit for individuals under 50 is $6,500 for 2025.
5. Which of the following is a requirement to claim the Earned Income
Tax Credit (EITC)?
A. Must have investment income exceeding $10,000
B. Must file as Married Filing Separately
C. Must have earned income
D. Must be over age 50
EITC is only available to taxpayers with earned income and below
certain income thresholds.
6. A taxpayer has $10,000 in capital gains and $2,000 in capital losses.
What is the net capital gain?
A. $12,000
B. $8,000
C. $8,000
D. $10,000
Net capital gain is calculated as gains minus losses: $10,000 - $2,000 =
$8,000.
, 7. Which form is used to report a gift tax?
A. Form 706
B. Form 709
C. Form 709
D. Form 1041
Form 709 is used to report gifts subject to the federal gift tax.
8. A taxpayer wants to amend a previously filed tax return. Which
form should be used?
A. Form 1040X
B. Form 4868
C. Form 1040X
D. Form 941
Form 1040X is used to correct or amend a previously filed individual tax
return.
9. Which of the following is taxable income?
A. Life insurance proceeds received upon the death of the insured
B. Unemployment compensation
C. Municipal bond interest
D. Child support received
Unemployment compensation is considered taxable income.
10. A taxpayer receives a $5,000 scholarship used for tuition and
required fees. How is it treated for tax purposes?
A. Fully taxable
B. Not taxable
C. Taxable only if over $2,000
D. Deductible
(IRS SEE) Exam Questions and Correct Answers
(Verified Answers) Plus Rationales 2026 Q&A |
Instant Download Pdf
1. Which of the following is required to be included on a tax return for
a sole proprietorship?
A. Corporate bylaws
B. Schedule C
C. Form 1065
D. Schedule K-1
Schedule C is used to report income or loss from a business operated as
a sole proprietorship.
2. A taxpayer receives $1,200 in unemployment compensation during
the year. How is this income reported?
A. Schedule B
B. Form 1040, Line 7
C. Form 1099-DIV
D. Schedule SE
Unemployment compensation is taxable income and reported directly
on Form 1040.
3. Which of the following expenses is generally not deductible on
Schedule A?
A. Mortgage interest
B. Charitable contributions
,C. Personal clothing
D. State income taxes
Personal clothing is considered a personal expense and is not
deductible.
4. What is the maximum contribution limit to a traditional IRA for
taxpayers under age 50 in 2025?
A. $4,000
B. $5,000
C. $6,500
D. $7,500
The IRA contribution limit for individuals under 50 is $6,500 for 2025.
5. Which of the following is a requirement to claim the Earned Income
Tax Credit (EITC)?
A. Must have investment income exceeding $10,000
B. Must file as Married Filing Separately
C. Must have earned income
D. Must be over age 50
EITC is only available to taxpayers with earned income and below
certain income thresholds.
6. A taxpayer has $10,000 in capital gains and $2,000 in capital losses.
What is the net capital gain?
A. $12,000
B. $8,000
C. $8,000
D. $10,000
Net capital gain is calculated as gains minus losses: $10,000 - $2,000 =
$8,000.
, 7. Which form is used to report a gift tax?
A. Form 706
B. Form 709
C. Form 709
D. Form 1041
Form 709 is used to report gifts subject to the federal gift tax.
8. A taxpayer wants to amend a previously filed tax return. Which
form should be used?
A. Form 1040X
B. Form 4868
C. Form 1040X
D. Form 941
Form 1040X is used to correct or amend a previously filed individual tax
return.
9. Which of the following is taxable income?
A. Life insurance proceeds received upon the death of the insured
B. Unemployment compensation
C. Municipal bond interest
D. Child support received
Unemployment compensation is considered taxable income.
10. A taxpayer receives a $5,000 scholarship used for tuition and
required fees. How is it treated for tax purposes?
A. Fully taxable
B. Not taxable
C. Taxable only if over $2,000
D. Deductible
