Tax preparer Exam Questions and
Answers
In the current year, the tax payer paid $5,000 in mortgage. Interest on a vacation
home and $2,000 in loan interest on a recreational vehicle with sleeping, cooking
and toilet facilities. What is the taxpayer's maximum mortgage interest deduction? -
Answer-$7,000
1040 NR - Answer-1040 Non Resident Alien tax return
only for people that come from mexico to work with a permit.
1040 PR - Answer-1040 Puerto Rico only residents from puerto rico
Student loans are tax deductible always - Answer-Yes
1040 EZ - Answer-Simple tax return form, often filled out by young people. With no
dependent
1040 A - Answer-taxable income $100,000 or less; adjustments to income are
allowed; tax credits for child care & dependent care are allowed
1040 - Answer-A tax form filled out by an individual and filed with the IRS that
determines the amount of income tax owed in a single year.
LLC companies - Answer-File taxes every year
1095-B - Answer-State health coverage (medicaid, chp+)
1095-C - Answer-Employer-Provided Health Insurance Offer and Coverage
1095-A - Answer-Private health coverage
4852 - Answer-The ____ form is a substitute for the W-2 form.
1099-INT - Answer-a statement of the interest your bank paid on your savings that
year
1099 Form - Answer-Shows how much you earned during the year in income from
interest, independent contractor...
W2 - Answer-Report sent from the employer to both the IRS and the employee,
showing gross income, total taxes paid, and total voluntary deductions.
How often do Corporations file their taxes? - Answer-Every 3 months (4 times a
year)
Answers
In the current year, the tax payer paid $5,000 in mortgage. Interest on a vacation
home and $2,000 in loan interest on a recreational vehicle with sleeping, cooking
and toilet facilities. What is the taxpayer's maximum mortgage interest deduction? -
Answer-$7,000
1040 NR - Answer-1040 Non Resident Alien tax return
only for people that come from mexico to work with a permit.
1040 PR - Answer-1040 Puerto Rico only residents from puerto rico
Student loans are tax deductible always - Answer-Yes
1040 EZ - Answer-Simple tax return form, often filled out by young people. With no
dependent
1040 A - Answer-taxable income $100,000 or less; adjustments to income are
allowed; tax credits for child care & dependent care are allowed
1040 - Answer-A tax form filled out by an individual and filed with the IRS that
determines the amount of income tax owed in a single year.
LLC companies - Answer-File taxes every year
1095-B - Answer-State health coverage (medicaid, chp+)
1095-C - Answer-Employer-Provided Health Insurance Offer and Coverage
1095-A - Answer-Private health coverage
4852 - Answer-The ____ form is a substitute for the W-2 form.
1099-INT - Answer-a statement of the interest your bank paid on your savings that
year
1099 Form - Answer-Shows how much you earned during the year in income from
interest, independent contractor...
W2 - Answer-Report sent from the employer to both the IRS and the employee,
showing gross income, total taxes paid, and total voluntary deductions.
How often do Corporations file their taxes? - Answer-Every 3 months (4 times a
year)
