MARYLAND TAX PREPARER EXAM 2026–2027
| (130 UNIQUE QUESTIONS AND CORRECT
ANSWERS) | 100% VERIFIED
Introduction
This exam contains 130 unique questions covering Federal Tax (100), Maryland State Tax
(25), and Ethics (5).
1. Filing status for a taxpayer whose spouse died in the current year?
A. Married Filing Jointly
B. Single
C. Head of Household
D. Qualifying Surviving Spouse
Rationale: If a spouse dies during the year, the surviving spouse can usually file as MFJ for
that year.
2. Requirement for Head of Household status?
A. Paid more than half the cost of keeping up a home for a qualifying person
B. Option B
C. Option C
D. Option D
Rationale: HOH requires being unmarried and maintaining a home for a qualifying
individual for more than half the year.
3. Maximum age for a Qualifying Child for CTC?
A. Under age 17 at the end of the year
B. Under age 19
C. Under age 24
,D. Any age if student
Rationale: The Child Tax Credit is for children under 17.
4. Schedule for reporting sole proprietorship income?
A. Schedule C
B. Option B
C. Option C
D. Option D
Rationale: Schedule C reports profit or loss from a business.
5. Form for reporting independent contractor income?
A. 1099-NEC
B. Option B
C. Option C
D. Option D
Rationale: Nonemployee compensation is reported on Form 1099-NEC.
6. Deductible limit for educator expenses?
A. $300
B. Option B
C. Option C
D. Option D
Rationale: Educators can deduct up to $300 for unreimbursed classroom expenses.
7. Taxability of Social Security benefits?
A. Up to 85% may be taxable depending on income
,B. Option B
C. Option C
D. Option D
Rationale: Depending on provisional income, 0%, 50%, or 85% of benefits may be taxable.
8. Standard deduction for Single filers in 2026 (est)?
A. $15,400
B. Option B
C. Option C
D. Option D
Rationale: Adjusted annually for inflation.
9. Where to report gambling winnings?
A. Other Income on Schedule 1
B. Option B
C. Option C
D. Option D
Rationale: Gambling winnings are reported as other income.
10. Limit for capital loss deduction against ordinary income?
A. $3,000
B. Option B
C. Option C
D. Option D
Rationale: Individual taxpayers are limited to a $3,000 net capital loss deduction annually.
, 11. Which form reports mortgage interest paid?
A. 1098
B. Option B
C. Option C
D. Option D
Rationale: Lenders send Form 1098 to report interest paid by the borrower.
12. What is the penalty for early withdrawal from a 401k?
A. 10%
B. Option B
C. Option C
D. Option D
Rationale: Standard penalty for distributions before 59.5.
13. Schedule for Itemized Deductions?
A. Schedule A
B. Option B
C. Option C
D. Option D
Rationale: Itemized deductions like medical and taxes are on Schedule A.
14. Which tax is calculated on Schedule SE?
A. Self-Employment Tax
B. Option B
C. Option C
D. Option D
| (130 UNIQUE QUESTIONS AND CORRECT
ANSWERS) | 100% VERIFIED
Introduction
This exam contains 130 unique questions covering Federal Tax (100), Maryland State Tax
(25), and Ethics (5).
1. Filing status for a taxpayer whose spouse died in the current year?
A. Married Filing Jointly
B. Single
C. Head of Household
D. Qualifying Surviving Spouse
Rationale: If a spouse dies during the year, the surviving spouse can usually file as MFJ for
that year.
2. Requirement for Head of Household status?
A. Paid more than half the cost of keeping up a home for a qualifying person
B. Option B
C. Option C
D. Option D
Rationale: HOH requires being unmarried and maintaining a home for a qualifying
individual for more than half the year.
3. Maximum age for a Qualifying Child for CTC?
A. Under age 17 at the end of the year
B. Under age 19
C. Under age 24
,D. Any age if student
Rationale: The Child Tax Credit is for children under 17.
4. Schedule for reporting sole proprietorship income?
A. Schedule C
B. Option B
C. Option C
D. Option D
Rationale: Schedule C reports profit or loss from a business.
5. Form for reporting independent contractor income?
A. 1099-NEC
B. Option B
C. Option C
D. Option D
Rationale: Nonemployee compensation is reported on Form 1099-NEC.
6. Deductible limit for educator expenses?
A. $300
B. Option B
C. Option C
D. Option D
Rationale: Educators can deduct up to $300 for unreimbursed classroom expenses.
7. Taxability of Social Security benefits?
A. Up to 85% may be taxable depending on income
,B. Option B
C. Option C
D. Option D
Rationale: Depending on provisional income, 0%, 50%, or 85% of benefits may be taxable.
8. Standard deduction for Single filers in 2026 (est)?
A. $15,400
B. Option B
C. Option C
D. Option D
Rationale: Adjusted annually for inflation.
9. Where to report gambling winnings?
A. Other Income on Schedule 1
B. Option B
C. Option C
D. Option D
Rationale: Gambling winnings are reported as other income.
10. Limit for capital loss deduction against ordinary income?
A. $3,000
B. Option B
C. Option C
D. Option D
Rationale: Individual taxpayers are limited to a $3,000 net capital loss deduction annually.
, 11. Which form reports mortgage interest paid?
A. 1098
B. Option B
C. Option C
D. Option D
Rationale: Lenders send Form 1098 to report interest paid by the borrower.
12. What is the penalty for early withdrawal from a 401k?
A. 10%
B. Option B
C. Option C
D. Option D
Rationale: Standard penalty for distributions before 59.5.
13. Schedule for Itemized Deductions?
A. Schedule A
B. Option B
C. Option C
D. Option D
Rationale: Itemized deductions like medical and taxes are on Schedule A.
14. Which tax is calculated on Schedule SE?
A. Self-Employment Tax
B. Option B
C. Option C
D. Option D
