Enrolled Agent - Exam 1 UPDATED
ACTUAL Questions and CORRECT
Answers
Qualifying Child Test - CORRECT ANSWER - 1. Relationship Test
2. Age Test
3. Residence Test
4. Support Test
W-2G - CORRECT ANSWER - Certain Gambling Winnings
Form 1099-B - - CORRECT ANSWER - Proceeds from Broker and Barter Exchange
Transactions
Form 1099-C - - CORRECT ANSWER - Cancellation of Debt
Form 1099-DIV - - CORRECT ANSWER - Dividends and Distributions
Form 1099-G - - CORRECT ANSWER - Certain Government Payments
Form 1099-INT - CORRECT ANSWER - Interest Income
Form 1099-MISC - - CORRECT ANSWER - Miscellaneous Income
Rents, Prize awards, Crop Insurance, Fishing boat
Form 1099-NEC - - CORRECT ANSWER - Nonemployee Compensation
,Form 1099-OID - - CORRECT ANSWER - Original Issue Discount
Form 1099-PATR - - CORRECT ANSWER - Taxable Distributions Received From
Cooperatives
Form 1099-Q - - CORRECT ANSWER - Payments From Qualified Education Programs
(Under Sections 529 and 530)
Form 1099-R - - CORRECT ANSWER - Distributions From Pensions, Annuities,
Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
Form 1099-S - - CORRECT ANSWER - Proceeds From Real Estate Transactions
Form 1099-SA - - CORRECT ANSWER - Distributions From an HSA, Archer MSA, or
Medicare Advantage MSA
Schedule K-1 (Form 1065) - - CORRECT ANSWER - Partner's Share of Income,
Deductions, Credits, etc.
Schedule K-1 (Form 1120-S) - - CORRECT ANSWER - Shareholder's Share of Income,
Deductions, Credits, etc.
Nondeductible expenses include: - CORRECT ANSWER - Rent and insurance premiums
paid for the taxpayer's own dwelling;
Life insurance premiums paid by the insured;
Upkeep of a personal automobile;
,Personal interest; and
Payments for food, clothing, or domestic help.
AMT - CORRECT ANSWER - alternative minimum tax
Report of Foreign Bank and Financial Accounts - CORRECT ANSWER - Generally, any
U.S. citizen, resident, or person doing business in the United States who has an ownership
interest in, or signatory authority or other authority over, a financial account (or several
accounts) in a foreign country with an aggregate value in excess of $10,000 at any time during
the calendar year must file a Form FinCEN Report 114, Report of Foreign Bank and Financial
Accounts (commonly referred to as an FBAR)
Due Date for Filing for Taxes - CORRECT ANSWER - An automatic extension of 6
months is provided for an individual who files Form 4868 or uses a credit card to make the
required tax payment on or before the initial due date.
A U.S. citizen or resident who is on military or naval duty outside the U.S. (or Puerto Rico) on
April 15 is given an automatic 2-month extension without the necessity of filing Form 4868.
Filing of Form 4868 during the 2 months will allow another 4-month extension.
The due date for a decedent's final return is the date on which the return would have been due if
death had not occurred.
A Form 1040-NR nonresident alien's tax return (when not subject to wage withholding) must be
filed by the 15th day of the 6th month after the close of the tax year (unless extended). A
nonresident alien must file his or her tax return on the 15th day of the 4th month after the close
of the tax year (unless extended) if his or her wages are subject to withholding.
Employers are required to keep records on employment taxes until at least _____ years after the
due date of the return or payment of the tax. - CORRECT ANSWER - 4 years
, In determining if a taxpayer qualifies for head of household filing status, the married taxpayer is
considered unmarried if all the following requirements are met: - CORRECT ANSWER -
The taxpayer filed a separate return.
The taxpayer paid more than half the cost of keeping up the home for the tax year.
The taxpayer's spouse did not live in the home during the last 6 months of the tax year.
The home was, for more than half the year, the main home of the taxpayer's child, stepchild, or
adopted child whom the taxpayer or the noncustodial parent can properly claim as a dependent.
The taxpayer must be able to claim the child as a dependent.
Household Maintenance - CORRECT ANSWER - Qualifying Expenditures - Property
Taxes, Mortgage Interest, Rent, Utilities, Upkeep, Repair, Property insurance, food consumed in-
home
Additional Standard Deduction - CORRECT ANSWER - An individual who has attained
the age of 65 or is blind is entitled to the amount.
The individual is entitled to the amount if (s)he attains age 65 before the end of the tax year
A person who becomes blind on or before the last day of the taxable year is entitled to the
amount.
Standard Deductions - CORRECT ANSWER - Married Filing Jointly - $25,100
Qualifying Widow(er) - 25,100
Head of Household - 18,800
Single (other than above) - 12,550
ACTUAL Questions and CORRECT
Answers
Qualifying Child Test - CORRECT ANSWER - 1. Relationship Test
2. Age Test
3. Residence Test
4. Support Test
W-2G - CORRECT ANSWER - Certain Gambling Winnings
Form 1099-B - - CORRECT ANSWER - Proceeds from Broker and Barter Exchange
Transactions
Form 1099-C - - CORRECT ANSWER - Cancellation of Debt
Form 1099-DIV - - CORRECT ANSWER - Dividends and Distributions
Form 1099-G - - CORRECT ANSWER - Certain Government Payments
Form 1099-INT - CORRECT ANSWER - Interest Income
Form 1099-MISC - - CORRECT ANSWER - Miscellaneous Income
Rents, Prize awards, Crop Insurance, Fishing boat
Form 1099-NEC - - CORRECT ANSWER - Nonemployee Compensation
,Form 1099-OID - - CORRECT ANSWER - Original Issue Discount
Form 1099-PATR - - CORRECT ANSWER - Taxable Distributions Received From
Cooperatives
Form 1099-Q - - CORRECT ANSWER - Payments From Qualified Education Programs
(Under Sections 529 and 530)
Form 1099-R - - CORRECT ANSWER - Distributions From Pensions, Annuities,
Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
Form 1099-S - - CORRECT ANSWER - Proceeds From Real Estate Transactions
Form 1099-SA - - CORRECT ANSWER - Distributions From an HSA, Archer MSA, or
Medicare Advantage MSA
Schedule K-1 (Form 1065) - - CORRECT ANSWER - Partner's Share of Income,
Deductions, Credits, etc.
Schedule K-1 (Form 1120-S) - - CORRECT ANSWER - Shareholder's Share of Income,
Deductions, Credits, etc.
Nondeductible expenses include: - CORRECT ANSWER - Rent and insurance premiums
paid for the taxpayer's own dwelling;
Life insurance premiums paid by the insured;
Upkeep of a personal automobile;
,Personal interest; and
Payments for food, clothing, or domestic help.
AMT - CORRECT ANSWER - alternative minimum tax
Report of Foreign Bank and Financial Accounts - CORRECT ANSWER - Generally, any
U.S. citizen, resident, or person doing business in the United States who has an ownership
interest in, or signatory authority or other authority over, a financial account (or several
accounts) in a foreign country with an aggregate value in excess of $10,000 at any time during
the calendar year must file a Form FinCEN Report 114, Report of Foreign Bank and Financial
Accounts (commonly referred to as an FBAR)
Due Date for Filing for Taxes - CORRECT ANSWER - An automatic extension of 6
months is provided for an individual who files Form 4868 or uses a credit card to make the
required tax payment on or before the initial due date.
A U.S. citizen or resident who is on military or naval duty outside the U.S. (or Puerto Rico) on
April 15 is given an automatic 2-month extension without the necessity of filing Form 4868.
Filing of Form 4868 during the 2 months will allow another 4-month extension.
The due date for a decedent's final return is the date on which the return would have been due if
death had not occurred.
A Form 1040-NR nonresident alien's tax return (when not subject to wage withholding) must be
filed by the 15th day of the 6th month after the close of the tax year (unless extended). A
nonresident alien must file his or her tax return on the 15th day of the 4th month after the close
of the tax year (unless extended) if his or her wages are subject to withholding.
Employers are required to keep records on employment taxes until at least _____ years after the
due date of the return or payment of the tax. - CORRECT ANSWER - 4 years
, In determining if a taxpayer qualifies for head of household filing status, the married taxpayer is
considered unmarried if all the following requirements are met: - CORRECT ANSWER -
The taxpayer filed a separate return.
The taxpayer paid more than half the cost of keeping up the home for the tax year.
The taxpayer's spouse did not live in the home during the last 6 months of the tax year.
The home was, for more than half the year, the main home of the taxpayer's child, stepchild, or
adopted child whom the taxpayer or the noncustodial parent can properly claim as a dependent.
The taxpayer must be able to claim the child as a dependent.
Household Maintenance - CORRECT ANSWER - Qualifying Expenditures - Property
Taxes, Mortgage Interest, Rent, Utilities, Upkeep, Repair, Property insurance, food consumed in-
home
Additional Standard Deduction - CORRECT ANSWER - An individual who has attained
the age of 65 or is blind is entitled to the amount.
The individual is entitled to the amount if (s)he attains age 65 before the end of the tax year
A person who becomes blind on or before the last day of the taxable year is entitled to the
amount.
Standard Deductions - CORRECT ANSWER - Married Filing Jointly - $25,100
Qualifying Widow(er) - 25,100
Head of Household - 18,800
Single (other than above) - 12,550
