ENROLLED AGENT PRACTICE EXAM 2025/2026 QUESTIONS
WITH SOLUTIONS RATED A+
✔✔Employer Fringe Benefits not included in taxable income: - ✔✔1. Health and
accident coverage
2. Group Term Life Insurance up to $50,000
3. Long Term Care premium employer payments
4. Educational Assistance up to $5,250
5. Dependent Care Benefits (DCB) up to $5,000
6. Parking up to $250/month
7. Commuter Hwy Vehicle up to $250
8. Transit Passes up to $250/month
9. Bicycle Commuting up to $20/month
✔✔Deductions for AGI (Adj to income) - ✔✔1. Contributions to IRAs
2. SE tax (deductible portion)
3. Alimony Paid
4. Educator Expense Deduction up to $250
5. Student Loan Interest Deduction up to $2,500
6. Tuition and Fees Deduction up to $4,000
7. Moving Expenses (related to work)
✔✔Moving Expense requirements: - ✔✔1. Relocating due to work, business or new job
(within 1 yr).
2. New job at least 50 miles farther from your old home than prior job.
3. Will work FT for at least 39 weeks first year (SE = 78 weeks for first 2 yrs).
✔✔Moving Expense Mileage - ✔✔1. Either actual expenses (less meals) or 23
cents/mile.
2. Also parking fees and tolls with either method.
Filed on Form 3903 - Moving Expenses
✔✔Tuition and Fees Deduction - ✔✔1. Deduction for tuition, fees and books
2. MAGI phase-out:
Maximum deduction of $4,000 for MAGI < $130,000 / $65,000
Mid-range deduction of $2,000 for MAGI $130,000 - $160,000 / $65,000 - $80,000
✔✔Flexible Spending Arrangement (FSA)
(Not reported on 1040) - ✔✔-Contributions by salary reduction agreement.
-Changes only if change in employment or family.
-Employer may also contribute.
-Leftover amounts forfeited at end of year.
-Able to withdraw funds for qualified medical expenses even if you have not yet placed
the funds in the account.
, ✔✔Health Reimbursement Arrangements (HRAs)
(Not reported on 1040) - ✔✔-Must be funded solely by an employer.
-Unused amounts may be carried forward.
-Self-employed not eligible.
-May be offered with other health plans, including FSAs.
✔✔Health Savings Account (HSA)
-Tax-exempt trust or custodial account.
-Interest and earnings are tax free.
-Portable if you change employers.
-Contributions remain until used.
-Can make contributions until April 15th. - ✔✔-Max deduction:
Single - $3,300 Family - $6,550
-High Deductible Health Plans
Min-Max deductible:
Single $1,300-$6,450
Family $2,600-$12,900
✔✔Archer Medical Savings Accounts (MSAs)
-Tax-exempt trust or custodial account.
-Interest and earnings are tax free.
-Portable if you change employers.
-Contributions remain until used.
-Can make contributions until April 15th. - ✔✔-For self-employed and employees of
small employers.
-Both employee and employer cannot contribute in the same year.
-Max deduction: 65% or 75% of HDHP and cannot contribute more than earned.
-6% excise tax on excess contributions.
-20% tax on distributions not used for medical.
✔✔Student Loan Interest - ✔✔Up to $2,500 of interest paid.
Phase-outs:
Single $65,000-$80,000
MFJ $130,000-$160,000
✔✔Traditional IRAs - ✔✔1. Max contribution = $5,500 ($6,500 for age 50) or lessor of
earned income.
2. Excess contributions = 6% penalty
3. Distributions are taxable
4. Distributions < age 59 1/2 = 10% penalty
5. RMD at age 70 1/2 or 50% penalty
✔✔Traditional IRAs
WITH SOLUTIONS RATED A+
✔✔Employer Fringe Benefits not included in taxable income: - ✔✔1. Health and
accident coverage
2. Group Term Life Insurance up to $50,000
3. Long Term Care premium employer payments
4. Educational Assistance up to $5,250
5. Dependent Care Benefits (DCB) up to $5,000
6. Parking up to $250/month
7. Commuter Hwy Vehicle up to $250
8. Transit Passes up to $250/month
9. Bicycle Commuting up to $20/month
✔✔Deductions for AGI (Adj to income) - ✔✔1. Contributions to IRAs
2. SE tax (deductible portion)
3. Alimony Paid
4. Educator Expense Deduction up to $250
5. Student Loan Interest Deduction up to $2,500
6. Tuition and Fees Deduction up to $4,000
7. Moving Expenses (related to work)
✔✔Moving Expense requirements: - ✔✔1. Relocating due to work, business or new job
(within 1 yr).
2. New job at least 50 miles farther from your old home than prior job.
3. Will work FT for at least 39 weeks first year (SE = 78 weeks for first 2 yrs).
✔✔Moving Expense Mileage - ✔✔1. Either actual expenses (less meals) or 23
cents/mile.
2. Also parking fees and tolls with either method.
Filed on Form 3903 - Moving Expenses
✔✔Tuition and Fees Deduction - ✔✔1. Deduction for tuition, fees and books
2. MAGI phase-out:
Maximum deduction of $4,000 for MAGI < $130,000 / $65,000
Mid-range deduction of $2,000 for MAGI $130,000 - $160,000 / $65,000 - $80,000
✔✔Flexible Spending Arrangement (FSA)
(Not reported on 1040) - ✔✔-Contributions by salary reduction agreement.
-Changes only if change in employment or family.
-Employer may also contribute.
-Leftover amounts forfeited at end of year.
-Able to withdraw funds for qualified medical expenses even if you have not yet placed
the funds in the account.
, ✔✔Health Reimbursement Arrangements (HRAs)
(Not reported on 1040) - ✔✔-Must be funded solely by an employer.
-Unused amounts may be carried forward.
-Self-employed not eligible.
-May be offered with other health plans, including FSAs.
✔✔Health Savings Account (HSA)
-Tax-exempt trust or custodial account.
-Interest and earnings are tax free.
-Portable if you change employers.
-Contributions remain until used.
-Can make contributions until April 15th. - ✔✔-Max deduction:
Single - $3,300 Family - $6,550
-High Deductible Health Plans
Min-Max deductible:
Single $1,300-$6,450
Family $2,600-$12,900
✔✔Archer Medical Savings Accounts (MSAs)
-Tax-exempt trust or custodial account.
-Interest and earnings are tax free.
-Portable if you change employers.
-Contributions remain until used.
-Can make contributions until April 15th. - ✔✔-For self-employed and employees of
small employers.
-Both employee and employer cannot contribute in the same year.
-Max deduction: 65% or 75% of HDHP and cannot contribute more than earned.
-6% excise tax on excess contributions.
-20% tax on distributions not used for medical.
✔✔Student Loan Interest - ✔✔Up to $2,500 of interest paid.
Phase-outs:
Single $65,000-$80,000
MFJ $130,000-$160,000
✔✔Traditional IRAs - ✔✔1. Max contribution = $5,500 ($6,500 for age 50) or lessor of
earned income.
2. Excess contributions = 6% penalty
3. Distributions are taxable
4. Distributions < age 59 1/2 = 10% penalty
5. RMD at age 70 1/2 or 50% penalty
✔✔Traditional IRAs
