Tax Exam Questions And Answers With
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Updated 2024
Angela had several expenses in relation to pursuit of her bachelor's degree. Of the
following expenses, which is considered a qualified expense for purposes of taking
one of the education tax credits? - ANSWER✔✔ Fees paid to purchase books for
required courses *
How much is the penalty for a preparer who endorses or otherwise negotiates
(directly or through an agent) any refund check issued to a client? - ANSWER✔✔
$530 *
4. Anyone who is paid to prepare or assist in preparing federal tax returns or claims
for refund must have - ANSWER✔✔ A preparer tax identification number *
Which of the following business meals is 100% deductible? - ANSWER✔✔
Catering for the company holiday party*
James, age 37, has the following unreimbursed medical expenses in 2019:
· $2,000 diagnostic imaging
· $10,000 emergency room treatment
· $1,000 bandages
His AGI in 2019 is $100,000. What is the amount he may claim as an itemized
deduction? - ANSWER✔✔ $3,000*
Under which circumstance would the taxpayer not be entitled to a deduction for the
business use of the taxpayer's home? - ANSWER✔✔ The taxpayer uses a portion
of the home to conduct business and occasional personal activities
, Bob and Bill are preparers for the same tax preparation firm. Bob anticipates
preparing 15 returns during the tax filing season and ends up preparing only 9. Bill
anticipates preparing 10 returns but ends up preparing 12. Under these
circumstances - ANSWER✔✔ All of the returns prepared by both Bob and Bill
must be e-filed
Wally and Wanda are both CPAs and the only partners in an accounting firm.
Wally prepares income tax returns. Wanda does not do any returns, but represents
taxpayers in audits before the IRS - ANSWER✔✔ Wally needs a PTIN but Wanda
does not**
Jim and Jane file jointly and have AMTI of $1,000,000 before considering their
AMT exemption. What is their AMT exemption amount in 2019? - ANSWER✔✔
$111,700 *
For purposes of the child and dependent care credit, the amount of employment-
related expenses is capped at_______? - ANSWER✔✔ A. $3,000 for one
qualifying individual or $6,000 for two or more qualifying individuals
Taxpayer X receives $50,000 in salary payments, $5,000 in tips, and $10,000 in
gifts from family members. Taxpayer X's taxable income from these amounts
would be - ANSWER✔✔ $55,000
14. Melanie pays qualified educational expenses to a qualified educational
institution in the amount of $5,000. Assuming she is fully eligible for the American
Opportunity Tax Credit, what is the amount of the credit she will receive? -
ANSWER✔✔ $2,500 *
Verified Solutions Rated A+ Newly
Updated 2024
Angela had several expenses in relation to pursuit of her bachelor's degree. Of the
following expenses, which is considered a qualified expense for purposes of taking
one of the education tax credits? - ANSWER✔✔ Fees paid to purchase books for
required courses *
How much is the penalty for a preparer who endorses or otherwise negotiates
(directly or through an agent) any refund check issued to a client? - ANSWER✔✔
$530 *
4. Anyone who is paid to prepare or assist in preparing federal tax returns or claims
for refund must have - ANSWER✔✔ A preparer tax identification number *
Which of the following business meals is 100% deductible? - ANSWER✔✔
Catering for the company holiday party*
James, age 37, has the following unreimbursed medical expenses in 2019:
· $2,000 diagnostic imaging
· $10,000 emergency room treatment
· $1,000 bandages
His AGI in 2019 is $100,000. What is the amount he may claim as an itemized
deduction? - ANSWER✔✔ $3,000*
Under which circumstance would the taxpayer not be entitled to a deduction for the
business use of the taxpayer's home? - ANSWER✔✔ The taxpayer uses a portion
of the home to conduct business and occasional personal activities
, Bob and Bill are preparers for the same tax preparation firm. Bob anticipates
preparing 15 returns during the tax filing season and ends up preparing only 9. Bill
anticipates preparing 10 returns but ends up preparing 12. Under these
circumstances - ANSWER✔✔ All of the returns prepared by both Bob and Bill
must be e-filed
Wally and Wanda are both CPAs and the only partners in an accounting firm.
Wally prepares income tax returns. Wanda does not do any returns, but represents
taxpayers in audits before the IRS - ANSWER✔✔ Wally needs a PTIN but Wanda
does not**
Jim and Jane file jointly and have AMTI of $1,000,000 before considering their
AMT exemption. What is their AMT exemption amount in 2019? - ANSWER✔✔
$111,700 *
For purposes of the child and dependent care credit, the amount of employment-
related expenses is capped at_______? - ANSWER✔✔ A. $3,000 for one
qualifying individual or $6,000 for two or more qualifying individuals
Taxpayer X receives $50,000 in salary payments, $5,000 in tips, and $10,000 in
gifts from family members. Taxpayer X's taxable income from these amounts
would be - ANSWER✔✔ $55,000
14. Melanie pays qualified educational expenses to a qualified educational
institution in the amount of $5,000. Assuming she is fully eligible for the American
Opportunity Tax Credit, what is the amount of the credit she will receive? -
ANSWER✔✔ $2,500 *
