VITA 2025 ADVANCED TEST EXAM QUESTIONS &
ANSWERS
. The only income Ramon needs to report on his Schedule C is his income from Form
1099-K, Payment Card and Third Party Network Transactions. - answers-b. False
. Ramon's mileage expense deduction (at the standard mileage rate) for his business as
a ride share driver (rounded to the nearest dollar) is $17,516. - answers-b. False
. What is the amount of Ramon's student loan interest deduction shown on Form 1040,
Schedule 1? $________. - answers-$2,500
. How does Ramon's self-employment tax affect his tax return? - answers-d. The self-
employment tax is added to his other taxes and one half of the selfemployment tax is an
adjustment to income.
. What is the amount of Ramon's qualified business income (QBI) deduction? - answers-
c. $0 because Ramon does not have taxable income before the QBI deduction.
. Ramon did not have health insurance in 2019, how does that affect his return? -
answers-b. It has no effect on his Form 1040. The "Full-year health care coverage or
exempt" box is eliminated from Form 1040 because the shared responsibility payment is
reduced to zero for tax year 2019.
. Ramon has been assigned an Identity Protection PIN by the IRS. How does this affect
preparation of Ramon's tax return? - answers-d. All of the above.
. What is the reason Ramon does not qualify for the earned income tax credit? -
answers-d. He had no qualifying children and he was under age 25.
1. Tamara and her ex-husband's divorce was final before December 31, 2018.How does
this affect their 2019 tax returns? - answers-d. Tamara is allowed to deduct the alimony
paid as an adjustment to income.Her ex-husband is required to include the alimony
received as income.
2.What is the most beneficial filing status allowable for Tamara? - answers-c. Head of
Household
3.Who can Tamara claim as a qualifying child(ren) for the earned income credit? -
answers-d. Tamara can claim both Kimberly and Christian.
4. Who can Charlie and Samantha claim as a qualifying dependent(s) for the credit for
other dependents? - answers-a. Harry
,5. Which credit(s) are Charlie and Samantha eligible to claim? - answers-c. Child tax
credit, child and dependent care credit, and credit for other dependents.
6. Which of the following statements is true? - answers-a. Tony is not required to file a
tax return because his gross income is below the filing requirement.
7. Gail can claim Tony on her tax return as a qualifying child for the earned income
credit. - answers-a. True
8. Can Sandra claim Debbie as a qualifying relative on her 2019 return? - answers-b.
No, because Debbie had gross income of more than $4,200 during the tax year.
9. Which of the following statements is true regarding the Form 1095-A? - answers-d.
Sandra and Debbie have a shared policy.Information on the Form 1095-A must be
allocated between their two tax returns.Both of their returns are out of scope.
10.Archie can claim total deductible medical expenses that exceed 7.5% of his adjusted
gross income. - answers-b. False
11.What is the total amount of state income and real estate taxes deductible on Archie's
Form 1040, Schedule A? - answers-c. $10,000
12.Which of the following is Archie able to claim as a deduction on his Form 1040,
Schedule A? - answers-c. Gambling losses
13.Jennifer wants to have her refund directly deposited into her checking account.What
is her bank routing number? - answers-c. 111000025
14.How do Jennifer's educator expenses affect her tax return? - answers-c. $250 is
deducted as an adjustment to income on Form 1040, Schedule 1.
15.What is the amount of Jennifer's child and dependent care credit shown on Form
2441, Child and Dependent Care Expenses? - answers-b. $525
16.The total amount of qualified education expenses used in the calculation of Jennifer's
2019 American opportunity credit is: - answers-b. $3,650
17.How does the Form 1095-A, Health Insurance Marketplace Statement, affect
Jennifer's tax return? - answers-d. Jennifer must file Form 8962, Premium Tax Credit
(PTC), to reconcile the advanced premium tax credit.
18.Jennifer's income is too high to qualify for the credit on Form 8880, Credit for
Qualified Retirement Savings Contributions. - answers-b. False
19.Jennifer's canceled debt on Form 1099-C, Cancellation of Debt, does not need to be
reported on her tax return. - answers-b. False
, 20.In order to claim EIC for 2019, Jennifer must file Form 8862, Information To Claim
Certain Credits After Disallowance, with her tax return. - answers-a. True
21.Since the Matthews did not itemize for 2018, their state refund is not reported on
Form 1040. - answers-a. True
22.What is the amount of taxable interest reported on the Matthews' Form 1040? -
answers-b. $250
23 - answers-?
24 - answers-?
25. Is Mark's Social Security income taxable? - answers-a. Yes, a portion of the Social
Security income is taxable
26. The Matthews want to split their refund between savings and checking accounts.
How is this accomplished, if possible? - answers-a. Complete Form 8888, Allocation of
Refund (Including Savings Bond Purchases).
27. What is the total federal income tax withholding reported on the Matthews' Form
1040? - answers-d. $6,778
version
The maximum amount Scott and Barbara are eligible to claim for the Child Tax Credit is
$2,000. - answers-True
• Scott and Barbara are married and want to file a joint return.
• Scott is a U.S. citizen and has a valid Social Security number. Barbara is a resident
alien and has an ITIN. They resided in the United States all year with their children.
• Scott and Barbara have two children, Maria, age 8, and Luis, age 16. Maria and Luis
are U.S. citizens and have valid Social Security numbers.
• Scott earned $22,000 in wages.
• Barbara earned $20,000 in wages.
• In order to work, the Gymses paid $2,000 to their son Luis to care for Maria after
school.
• Scott and Barbara provided all of the support for their two children.
ANSWERS
. The only income Ramon needs to report on his Schedule C is his income from Form
1099-K, Payment Card and Third Party Network Transactions. - answers-b. False
. Ramon's mileage expense deduction (at the standard mileage rate) for his business as
a ride share driver (rounded to the nearest dollar) is $17,516. - answers-b. False
. What is the amount of Ramon's student loan interest deduction shown on Form 1040,
Schedule 1? $________. - answers-$2,500
. How does Ramon's self-employment tax affect his tax return? - answers-d. The self-
employment tax is added to his other taxes and one half of the selfemployment tax is an
adjustment to income.
. What is the amount of Ramon's qualified business income (QBI) deduction? - answers-
c. $0 because Ramon does not have taxable income before the QBI deduction.
. Ramon did not have health insurance in 2019, how does that affect his return? -
answers-b. It has no effect on his Form 1040. The "Full-year health care coverage or
exempt" box is eliminated from Form 1040 because the shared responsibility payment is
reduced to zero for tax year 2019.
. Ramon has been assigned an Identity Protection PIN by the IRS. How does this affect
preparation of Ramon's tax return? - answers-d. All of the above.
. What is the reason Ramon does not qualify for the earned income tax credit? -
answers-d. He had no qualifying children and he was under age 25.
1. Tamara and her ex-husband's divorce was final before December 31, 2018.How does
this affect their 2019 tax returns? - answers-d. Tamara is allowed to deduct the alimony
paid as an adjustment to income.Her ex-husband is required to include the alimony
received as income.
2.What is the most beneficial filing status allowable for Tamara? - answers-c. Head of
Household
3.Who can Tamara claim as a qualifying child(ren) for the earned income credit? -
answers-d. Tamara can claim both Kimberly and Christian.
4. Who can Charlie and Samantha claim as a qualifying dependent(s) for the credit for
other dependents? - answers-a. Harry
,5. Which credit(s) are Charlie and Samantha eligible to claim? - answers-c. Child tax
credit, child and dependent care credit, and credit for other dependents.
6. Which of the following statements is true? - answers-a. Tony is not required to file a
tax return because his gross income is below the filing requirement.
7. Gail can claim Tony on her tax return as a qualifying child for the earned income
credit. - answers-a. True
8. Can Sandra claim Debbie as a qualifying relative on her 2019 return? - answers-b.
No, because Debbie had gross income of more than $4,200 during the tax year.
9. Which of the following statements is true regarding the Form 1095-A? - answers-d.
Sandra and Debbie have a shared policy.Information on the Form 1095-A must be
allocated between their two tax returns.Both of their returns are out of scope.
10.Archie can claim total deductible medical expenses that exceed 7.5% of his adjusted
gross income. - answers-b. False
11.What is the total amount of state income and real estate taxes deductible on Archie's
Form 1040, Schedule A? - answers-c. $10,000
12.Which of the following is Archie able to claim as a deduction on his Form 1040,
Schedule A? - answers-c. Gambling losses
13.Jennifer wants to have her refund directly deposited into her checking account.What
is her bank routing number? - answers-c. 111000025
14.How do Jennifer's educator expenses affect her tax return? - answers-c. $250 is
deducted as an adjustment to income on Form 1040, Schedule 1.
15.What is the amount of Jennifer's child and dependent care credit shown on Form
2441, Child and Dependent Care Expenses? - answers-b. $525
16.The total amount of qualified education expenses used in the calculation of Jennifer's
2019 American opportunity credit is: - answers-b. $3,650
17.How does the Form 1095-A, Health Insurance Marketplace Statement, affect
Jennifer's tax return? - answers-d. Jennifer must file Form 8962, Premium Tax Credit
(PTC), to reconcile the advanced premium tax credit.
18.Jennifer's income is too high to qualify for the credit on Form 8880, Credit for
Qualified Retirement Savings Contributions. - answers-b. False
19.Jennifer's canceled debt on Form 1099-C, Cancellation of Debt, does not need to be
reported on her tax return. - answers-b. False
, 20.In order to claim EIC for 2019, Jennifer must file Form 8862, Information To Claim
Certain Credits After Disallowance, with her tax return. - answers-a. True
21.Since the Matthews did not itemize for 2018, their state refund is not reported on
Form 1040. - answers-a. True
22.What is the amount of taxable interest reported on the Matthews' Form 1040? -
answers-b. $250
23 - answers-?
24 - answers-?
25. Is Mark's Social Security income taxable? - answers-a. Yes, a portion of the Social
Security income is taxable
26. The Matthews want to split their refund between savings and checking accounts.
How is this accomplished, if possible? - answers-a. Complete Form 8888, Allocation of
Refund (Including Savings Bond Purchases).
27. What is the total federal income tax withholding reported on the Matthews' Form
1040? - answers-d. $6,778
version
The maximum amount Scott and Barbara are eligible to claim for the Child Tax Credit is
$2,000. - answers-True
• Scott and Barbara are married and want to file a joint return.
• Scott is a U.S. citizen and has a valid Social Security number. Barbara is a resident
alien and has an ITIN. They resided in the United States all year with their children.
• Scott and Barbara have two children, Maria, age 8, and Luis, age 16. Maria and Luis
are U.S. citizens and have valid Social Security numbers.
• Scott earned $22,000 in wages.
• Barbara earned $20,000 in wages.
• In order to work, the Gymses paid $2,000 to their son Luis to care for Maria after
school.
• Scott and Barbara provided all of the support for their two children.
