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CPA reg exam Questions with Detailed Verified
Answers
Individual income tax formula
Ans: Gross income
- adjustments
=adj gross income
- Standard or itemized deductions
- exemptions
=taxable income
*tax rate
=federal income tax (reg or amt)
- tax credits
Other taxes
- payments
= tax due or refund
Gross income
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Ans: Wages
Interest
Dividends
State tax refunds
Alimony received
Business income (schedule C)
Capital gain/loss (schedule D)
IRA income
Pension annuity
Rental income/loss
K-1 income/loss
Unemployment compensation
Social security benefits
Other income
Social security tax base is
Ans: a self-employed person's net profit from self-employment
for employees, it is based on gross wages, employers also pay the tax
Adjustments
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Ans: "deductions to arrive at adjusted gross income"
Educator expenses
IRA
Student loan interest expenses
Tuition and fee deduction
Health savings account
Moving expenses
One half self employment taxes
Self employed insurance
Self employed retirement
Interest withdrawal penalty
Alimony paid
Attorney fees in rare cases
Domestic production activities deduction
Filing Status
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Ans: Determined by end of year status
Exceptions:
Divorced must not be joint.
Death of spouse can still be filed jointly
Qualifying widower
Ans: Must have had dependent with you the whole year to qualify
Birth or death during the year
Ans: Still get the full exemption.
head of household
Ans: Must have a dependent for more than half the year.
Dependent can be:
Qualifying child
Mother or father(nursing home is fine)
Dependent relatives (must live with you)
Personal exemption
Ans: Parents use your exemption then you lose it
Phase out of personal exemptions
© Get it right 2025 Getaway - Stuvia US All rights reserved
CPA reg exam Questions with Detailed Verified
Answers
Individual income tax formula
Ans: Gross income
- adjustments
=adj gross income
- Standard or itemized deductions
- exemptions
=taxable income
*tax rate
=federal income tax (reg or amt)
- tax credits
Other taxes
- payments
= tax due or refund
Gross income
© Get it right 2025 Getaway - Stuvia US All rights reserved
,Click here for more: Scholars nexus
Ans: Wages
Interest
Dividends
State tax refunds
Alimony received
Business income (schedule C)
Capital gain/loss (schedule D)
IRA income
Pension annuity
Rental income/loss
K-1 income/loss
Unemployment compensation
Social security benefits
Other income
Social security tax base is
Ans: a self-employed person's net profit from self-employment
for employees, it is based on gross wages, employers also pay the tax
Adjustments
© Get it right 2025 Getaway - Stuvia US All rights reserved
,Click here for more: Scholars nexus
Ans: "deductions to arrive at adjusted gross income"
Educator expenses
IRA
Student loan interest expenses
Tuition and fee deduction
Health savings account
Moving expenses
One half self employment taxes
Self employed insurance
Self employed retirement
Interest withdrawal penalty
Alimony paid
Attorney fees in rare cases
Domestic production activities deduction
Filing Status
© Get it right 2025 Getaway - Stuvia US All rights reserved
, Click here for more: Scholars nexus
Ans: Determined by end of year status
Exceptions:
Divorced must not be joint.
Death of spouse can still be filed jointly
Qualifying widower
Ans: Must have had dependent with you the whole year to qualify
Birth or death during the year
Ans: Still get the full exemption.
head of household
Ans: Must have a dependent for more than half the year.
Dependent can be:
Qualifying child
Mother or father(nursing home is fine)
Dependent relatives (must live with you)
Personal exemption
Ans: Parents use your exemption then you lose it
Phase out of personal exemptions
© Get it right 2025 Getaway - Stuvia US All rights reserved
