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REG CPA Exam Questions and Correct
Answers the Latest Update 2025-2026
Qualified Higher Education Expense
✓ up to $4,000 of tuition and fees for enrollment may be deducted by taxpayers with
AGI up to $65,000
1040 Adjustments
✓ I EMBRACED Education, Health, and Farm
✓
✓ Interest on student loan
✓ Employment tax
✓ Business expense
✓ Rent/Royalty
✓ Alimony paid
✓ Contributions to retirement
✓ Early withdrawal penalty
✓ Jury duty pay
✓ Education expense
✓ Health savings account
✓ Farm income
Federal and state income tax refunds
✓ excluded from a taxpayer's taxable income to the extent that the refund did not
reduce the amount of tax for the earlier year
✓
✓ interest earned is considered taxable
Itemized Deductions
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✓ COMMITT
✓
✓ Charitable contributions
✓ Other miscellaneous
✓ Miscellaneous expenses - 2%
✓ Medical expenses - 10%
✓ Interest
✓ Taxes
✓ Theft or casualty 10% - $100
When must an individual file a tax return?
✓ if their income is greater than the sum of their personal exemption plus their
standard deduction
Kiddie tax
✓ child's unearned income ($2,100) about the thresholds is subject to tax at the
parents higher rate
Social security benefits
✓ up to 85% of benefits may be taxable
✓
✓ if less than $25,000 provisional income - the person can exclude all SS income
✓
✓ provisional income exceeding $60,000 - maximum of 85% inclusion
Net operating losses for an individual
✓ Carryback 2 years carry forward 20 years
student loan interest for higher education
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✓ $2,500 phase out applies
Self employment tax
✓ 50% of tax is deductible on return
✓ 100% of medical insurance premiums paid for self an family are deductible
Moving expenses - 1040
✓ must work at least 39 weeks (9 months)
✓ direct costs of moving you and stuff
Hobby loss
✓ if no profit 3 of 5 years - loss is not deductible and it is considered a hobby loss
✓
✓ net income= other income
✓ expenses = sch. A misc. 2%
Alimony paid
✓ CANNOT
✓
✓ Cash only
✓ Apart when payments mad
✓ Not child support
✓ Not designated as property settlement
✓ Own return for payer and payee
✓ Terminates on death of recipient
✓
✓ alimony is both taxable to the recipient and deductible by the payer
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REG CPA Exam Questions and Correct
Answers the Latest Update 2025-2026
Qualified Higher Education Expense
✓ up to $4,000 of tuition and fees for enrollment may be deducted by taxpayers with
AGI up to $65,000
1040 Adjustments
✓ I EMBRACED Education, Health, and Farm
✓
✓ Interest on student loan
✓ Employment tax
✓ Business expense
✓ Rent/Royalty
✓ Alimony paid
✓ Contributions to retirement
✓ Early withdrawal penalty
✓ Jury duty pay
✓ Education expense
✓ Health savings account
✓ Farm income
Federal and state income tax refunds
✓ excluded from a taxpayer's taxable income to the extent that the refund did not
reduce the amount of tax for the earlier year
✓
✓ interest earned is considered taxable
Itemized Deductions
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,#Examify | #OnlineExams | #TestPrep | #StudyResources | #AcademicSuccess |
#ExamPreparation | #QuizTime | #LearningTools | #Education | #StudentSupport
✓ COMMITT
✓
✓ Charitable contributions
✓ Other miscellaneous
✓ Miscellaneous expenses - 2%
✓ Medical expenses - 10%
✓ Interest
✓ Taxes
✓ Theft or casualty 10% - $100
When must an individual file a tax return?
✓ if their income is greater than the sum of their personal exemption plus their
standard deduction
Kiddie tax
✓ child's unearned income ($2,100) about the thresholds is subject to tax at the
parents higher rate
Social security benefits
✓ up to 85% of benefits may be taxable
✓
✓ if less than $25,000 provisional income - the person can exclude all SS income
✓
✓ provisional income exceeding $60,000 - maximum of 85% inclusion
Net operating losses for an individual
✓ Carryback 2 years carry forward 20 years
student loan interest for higher education
Examify | Smart Grades | Latest update
, #Examify | #OnlineExams | #TestPrep | #StudyResources | #AcademicSuccess |
#ExamPreparation | #QuizTime | #LearningTools | #Education | #StudentSupport
✓ $2,500 phase out applies
Self employment tax
✓ 50% of tax is deductible on return
✓ 100% of medical insurance premiums paid for self an family are deductible
Moving expenses - 1040
✓ must work at least 39 weeks (9 months)
✓ direct costs of moving you and stuff
Hobby loss
✓ if no profit 3 of 5 years - loss is not deductible and it is considered a hobby loss
✓
✓ net income= other income
✓ expenses = sch. A misc. 2%
Alimony paid
✓ CANNOT
✓
✓ Cash only
✓ Apart when payments mad
✓ Not child support
✓ Not designated as property settlement
✓ Own return for payer and payee
✓ Terminates on death of recipient
✓
✓ alimony is both taxable to the recipient and deductible by the payer
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