Federal Tax Preparer Comprehensive Final Exam With A+ Graded Solutions(2026/2027)

Federal Tax Preparer Comprehensive Final Exam With A+
Graded Solutions(2026/2027)
1. Which filing status has the highest standard deduction amount?

 A) Single

 B) Head of Household

 C) Married Filing Jointly

 D) Married Filing Separately
CORRECT ANSWER: C) Married Filing Jointly

2. A taxpayer’s spouse died in 2023. The taxpayer has not remarried and maintains a home for a
dependent child. For the 2024 tax year, which status should they use?

 A) Single

 B) Head of Household

 C) Qualifying Surviving Spouse

 D) Married Filing Jointly
CORRECT ANSWER: C) Qualifying Surviving Spouse

3. To qualify as a "Dependent," a person must be either a "Qualifying Child" or a:

 A) Qualifying Friend

 B) Qualifying Resident

 C) Qualifying Relative

 D) Qualifying Associate
CORRECT ANSWER: C) Qualifying Relative

4. Which of the following is considered "Earned Income"?

 A) Interest from a savings account

 B) Dividends from stocks

 C) Wages and tips

 D) Unemployment compensation
CORRECT ANSWER: C) Wages and tips

5. At what age is a taxpayer generally no longer eligible to be claimed as a "Qualifying Child"
(unless they are a full-time student or disabled)?

 A) 17

 B) 19

 C) 21

,  D) 24
CORRECT ANSWER: B) 19

6. Which form is used by an employee to provide their employer with withholding information?

 A) W-2

 B) W-4

 C) 1099-NEC

 D) 1040-ES
CORRECT ANSWER: B) W-4

7. If a taxpayer receives a $500 prize in a local lottery, how is this reported?

 A) It is tax-exempt.

 B) As Other Income on Schedule 1.

 C) As a reduction to the basis of their home.

 D) As a capital gain.
CORRECT ANSWER: B) As Other Income on Schedule 1.

8. Which of the following is an "Above-the-Line" deduction (Adjustment to Income)?

 A) Real estate taxes

 B) Educator expenses

 C) Charitable contributions

 D) Home mortgage interest
CORRECT ANSWER: B) Educator expenses

9. The "Self-Employment Tax" is comprised of which two components?

 A) Income tax and Excise tax

 B) Social Security and Medicare

 C) FUTA and SUTA

 D) Sales tax and Property tax
CORRECT ANSWER: B) Social Security and Medicare

10. What is the maximum amount of "Educator Expenses" a single teacher can deduct as an
adjustment to income?

 A) $100

 B) $250

 C) $300

 D) $500
CORRECT ANSWER: C) $300

, 11. Which Schedule is used to report "Itemized Deductions"?

 A) Schedule A

 B) Schedule B

 C) Schedule C

 D) Schedule SE
CORRECT ANSWER: A) Schedule A

12. A taxpayer can deduct medical expenses only to the extent they exceed what percentage of
their AGI?

 A) 5%

 B) 7.5%

 C) 10%

 D) 12%
CORRECT ANSWER: B) 7.5%

13. The "SALT" deduction (State and Local Taxes) is currently capped at what amount for itemized
deductions?

 A) $5,000

 B) $10,000

 C) $15,000

 D) No cap
CORRECT ANSWER: B) $10,000

14. Which of the following is NOT a requirement for a charitable contribution to be deductible?

 A) It must be made to a qualified organization.

 B) It must be a cash or property gift.

 C) It must be made to a specific needy individual.

 D) The taxpayer must have a receipt or bank record.
CORRECT ANSWER: C) It must be made to a specific needy individual.

15. If a taxpayer's Standard Deduction is $14,600 and their total Itemized Deductions are $12,000,
which should they choose?

 A) Itemized

 B) Standard

 C) Both

 D) Neither
CORRECT ANSWER: B) Standard