Florida Enrolled Agent (EA) Exam With
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1. Which of the following is a primary purpose of Form 1040?
A. To report state income tax only
B. To report federal income tax B. To report federal income tax
C. To request a business license
D. To report sales tax
The Form 1040 is used to report an individual’s federal income,
deductions, and tax liability.
2. A taxpayer sells a stock at a loss. Which form reports this transaction?
A. Form 1099-INT
B. Form 1099-DIV
C. Form 8949 C. Form 8949
D. Form W-2
Form 8949 is used to report sales and dispositions of capital assets,
including stocks.
3. The statute of limitations for the IRS to assess additional tax on a typical
return is:
A. 1 year
B. 3 years B. 3 years
C. 6 years
D. 10 years
, Generally, the IRS has 3 years from the date of filing to assess
additional tax unless substantial underreporting occurs.
4. Which of the following is considered self-employment income?
A. Wages from an employer
B. Dividends
C. Freelance consulting income C. Freelance consulting income
D. Social Security benefits
Income earned from business activities or freelance work is subject to
self-employment tax.
5. A taxpayer can deduct medical expenses only if:
A. They exceed 5% of AGI
B. They exceed 7.5% of AGI B. They exceed 7.5% of AGI
C. They exceed 10% of AGI
D. They exceed 15% of AGI
Medical expenses are deductible only to the extent they exceed 7.5% of
the taxpayer’s adjusted gross income (AGI).
6. Which form reports interest income from a bank?
A. Form W-2
B. Form 1099-DIV
C. Form 1099-INT C. Form 1099-INT
D. Form 1040-ES
Form 1099-INT reports interest income paid to taxpayers by financial
institutions.
7. For federal tax purposes, which of the following is NOT considered a
dependent?
A. Child under age 19
B. Child under age 24 who is a full-time student
C. Elderly parent claimed as a dependent
D. Cousin living with taxpayer D. Cousin living with taxpayer
To claim a dependent, the individual generally must be a qualifying
child or relative; cousins do not meet this test.
8. A taxpayer receives Form 1099-MISC reporting $2,000 in nonemployee
compensation. This income:
, A. Is exempt from tax
B. Must be reported on Schedule C B. Must be reported on Schedule C
C. Is subject to W-2 reporting
D. Can be ignored
Nonemployee compensation is taxable and reported on Schedule C for
self-employment income.
9. The maximum contribution to a traditional IRA for a 40-year-old in 2025
is:
A. $5,500
B. $6,500 B. $6,500
C. $7,000
D. $10,000
For 2025, the maximum contribution for individuals under 50 is $6,500.
10.Which of the following is an example of a tax credit?
A. State income tax deduction
B. Mortgage interest deduction
C. Child Tax Credit C. Child Tax Credit
D. Charitable contributions
A tax credit reduces tax liability dollar-for-dollar, whereas deductions
reduce taxable income.
11.Which business entity is subject to double taxation?
A. S Corporation
B. Partnership
C. C Corporation C. C Corporation
D. Sole proprietorship
C Corporations pay tax on profits at the corporate level, and
shareholders also pay tax on dividends.
12.The IRS allows taxpayers to exclude gains on the sale of a primary
residence if:
A. The property was owned for at least 1 year
B. The property was owned and used for at least 2 years B. The property
was owned and used for at least 2 years
C. The property was sold for under $100,000
Actual Questions & Verified
Answers,Plus Rationales/Expert
Verified For Guaranteed Pass Graded
A+/2026 /Latest Update/Instant
Download Pdf
1. Which of the following is a primary purpose of Form 1040?
A. To report state income tax only
B. To report federal income tax B. To report federal income tax
C. To request a business license
D. To report sales tax
The Form 1040 is used to report an individual’s federal income,
deductions, and tax liability.
2. A taxpayer sells a stock at a loss. Which form reports this transaction?
A. Form 1099-INT
B. Form 1099-DIV
C. Form 8949 C. Form 8949
D. Form W-2
Form 8949 is used to report sales and dispositions of capital assets,
including stocks.
3. The statute of limitations for the IRS to assess additional tax on a typical
return is:
A. 1 year
B. 3 years B. 3 years
C. 6 years
D. 10 years
, Generally, the IRS has 3 years from the date of filing to assess
additional tax unless substantial underreporting occurs.
4. Which of the following is considered self-employment income?
A. Wages from an employer
B. Dividends
C. Freelance consulting income C. Freelance consulting income
D. Social Security benefits
Income earned from business activities or freelance work is subject to
self-employment tax.
5. A taxpayer can deduct medical expenses only if:
A. They exceed 5% of AGI
B. They exceed 7.5% of AGI B. They exceed 7.5% of AGI
C. They exceed 10% of AGI
D. They exceed 15% of AGI
Medical expenses are deductible only to the extent they exceed 7.5% of
the taxpayer’s adjusted gross income (AGI).
6. Which form reports interest income from a bank?
A. Form W-2
B. Form 1099-DIV
C. Form 1099-INT C. Form 1099-INT
D. Form 1040-ES
Form 1099-INT reports interest income paid to taxpayers by financial
institutions.
7. For federal tax purposes, which of the following is NOT considered a
dependent?
A. Child under age 19
B. Child under age 24 who is a full-time student
C. Elderly parent claimed as a dependent
D. Cousin living with taxpayer D. Cousin living with taxpayer
To claim a dependent, the individual generally must be a qualifying
child or relative; cousins do not meet this test.
8. A taxpayer receives Form 1099-MISC reporting $2,000 in nonemployee
compensation. This income:
, A. Is exempt from tax
B. Must be reported on Schedule C B. Must be reported on Schedule C
C. Is subject to W-2 reporting
D. Can be ignored
Nonemployee compensation is taxable and reported on Schedule C for
self-employment income.
9. The maximum contribution to a traditional IRA for a 40-year-old in 2025
is:
A. $5,500
B. $6,500 B. $6,500
C. $7,000
D. $10,000
For 2025, the maximum contribution for individuals under 50 is $6,500.
10.Which of the following is an example of a tax credit?
A. State income tax deduction
B. Mortgage interest deduction
C. Child Tax Credit C. Child Tax Credit
D. Charitable contributions
A tax credit reduces tax liability dollar-for-dollar, whereas deductions
reduce taxable income.
11.Which business entity is subject to double taxation?
A. S Corporation
B. Partnership
C. C Corporation C. C Corporation
D. Sole proprietorship
C Corporations pay tax on profits at the corporate level, and
shareholders also pay tax on dividends.
12.The IRS allows taxpayers to exclude gains on the sale of a primary
residence if:
A. The property was owned for at least 1 year
B. The property was owned and used for at least 2 years B. The property
was owned and used for at least 2 years
C. The property was sold for under $100,000
