RTRP Exam Prep Exam questions and answers 2024

Joe is 37 years old. His wife died during the tax year and he has not remarried. His deceased wife had no income. He has two minor children living with him. Joe paid all of the costs for keeping up his home for his children. What is the filing status with the lowest tax rate for which Joe qualifies? Correct. A taxpayer whose spouse died during the year and did not remarry is eligible for the MFJ status. Joe may claim exemptions for himself, his spouse, and his two children. Lisa was married with two dependent children when her husband died in April. She has not remarried. What is Lisa's filing status for the year of her husband's death? Correct. Lisa's filing status is Married Filing Jointly for the year her husband died. If she does not remarry and still has a dependent child, her filing status will be Qualifying Widow(er) with dependent child for the next two tax years following the year of death. Correct. Camila's filing status is limited to married filing separately. If Camila does not wish to file as married filing jointly, her only remaining option is to file as married filing separately. Camila does not qualify to file as Head of Household because her husband Mark lived in the home within the last six months of the year. Because Mark left the home in August (as opposed to January through June), this requirement is not met. A married taxpayer who is not divorced (or legally separated) is not considered single for tax purposes, thus Camila is not eligible to file using the single filing status. Camila has two children who lived with her all year. Her husband, Mark, left the home in August. She hasn't been able to locate him, and they have not filed for divorce or legal separation. Mark didn't work all year, and Camila provided all the support for the home and children. Which filing status may Camila use if she doesn't wish to file a return together with her husband? Camila has two children who lived with her all year. Her husband, Mark, left the home in August. She hasn't been able to locate him, and they have not filed for divorce or legal separation. Mark didn't work all year, and Camila provided all the support for the home and children. Which filing status may Camila use if she doesn't wish to file a return together with her husband? Margaret, a single mother who has never been married, lost her job in May of 2011. Margaret and her ten-year-old daughter Samantha moved in with Margaret's sister, Joanne, that same month and lived with her the rest of the year. Joanne provided more than half of the support for the household during the year. What is Margaret's filing status? Correct. Margaret's only option is the Single filing status. Because Margaret did not provide more than half of the household support during the year, she is unable to claim the Head of Household status. This is true whether Margaret has provided more than half of Samantha's support during the year or not. Margaret is not married, thus she is not eligible to file as Married Filing Jointly or Married Filing Separately. Gene, age 85 and single, received social security benefits of $14,000 (which includes $648 Medicare premiums), dividends and interest of $21,000, pension of $30,000, and taxable IRA benefits of $16,000. What is Gene's adjusted gross income? Correct. Gene has adjusted gross income of $78,900 [$21,000 dividends and interest + $30,000 pension + $16,000 taxable IRA benefits + $11,900 taxable social security = $78,900]. Tom is an employee whose employer did not withhold social security and Medicare tax from his wages. Tom must: Correct. Tom must file Form 8919 and report the uncollected tax on Form 1040, line 57. Which of the following filing statuses is ineligible to claim the EIC? Which of the following filing statuses is ineligible to claim the EIC? Correct. A married person filing separately cannot claim the EIC. Who cannot take the health insurance tax credit (assuming all other eligibility requirements are met): Who cannot take the health insurance tax credit (assuming all other eligibility requirements are met): Correct. Even if a taxpayer is a TAA, ATAA, RTAA, or PBGC recipient, he or she is ineligible if claimed as a dependent by another person. Which of the following situations will NOT impact taxable income? Which of the following situations will NOT impact taxable income? Correct. Contributing to a Roth IRA does not impact a taxpayer's taxable income because the contribution is made with after-tax funds. Unlike a tradition IRA, contributions to a Roth IRA are nondeductible, and thus do not have an impact on taxable income. Which of the following vehicle credits does NOT apply for 2011: Correct. The credit for buying a hybrid vehicle ended in 2010 (earlier for certain hybrids). Cecilia receives vacation pay, sick pay, and employer-paid health coverage. She also receives a year-end bonus. Which of these payments is NOT taxable on Cecilia's 2011 return: Cecilia receives vacation pay, sick pay, and employer-paid health coverage. She also receives a year-end bonus. Which of these payments is NOT taxable on Cecilia's 2011 return: Correct. The amount of employer-paid health coverage is a tax-free fringe benefit. Which of the following is NOT a requirement to qualify for the EIC? Which of the following is NOT a requirement to qualify for the EIC? Correct. A taxpayer must be a U.S. citizen or resident alien all year to be eligible for the EIC. Supplemental wages are compensation paid in addition to an employee's regular wages. They do not include payments for: Supplemental wages are compensation paid in addition to an employee's regular wages. They do not include payments for: Correct. Supplemental wages (compensation paid in addition to an employee's regular wages) do not include travel reimbursements paid at the federal government per diem rate. Ellie, who is single, supports her elderly mother, who resides in a nursing home. Ellie pays all of the costs for her own household and pays more than half the costs of her mother's support. Her mother receives social security benefits and a modest pension that pays the expenses not covered by Ellie. Which filing status is the most advantageous (and allowable) for Ellie? Correct. Head of Household is the most advantageous filing status for Ellie. Because Ellie pays for more than half the cost of support for her mother, she meets the requirements to file as Head of Household. Although Ellie is also eligible to file as Single, the Head of Household filing status is more advantageous (resulting in less tax) than filing as Single. Ellie is not eligible to file as a Qualifying Widow(er) or Married Filing Separately.