EA exam part1 questions and answers
tax ifiling iflow i- iCorrect iAnswers i-filing irequirement iand istatus i-income i- iincome
iexclusion i- iadjust ito iincome iAGI i(schedule1) i- ideduction i- itaxable iincome iand
itaxation i- iadditional itax i(schedule2) i- icredits i(schedule3) i- ipayment i(withholding) ior
irefund
qualifying irelative i- iCorrect iAnswers i-1. iliving itogether iall iyear iOR ia ifamily imember
i(no ifoster iparents, ino icousins)
2. icannot ibe ia iqualifying ichild
3. inot iprovide iover ihalf iof iown isupport
4. iperson's iGI iless ithan i4300
qualifying ichild i- iCorrect iAnswers i-1. iyounger ithan i19 ior i24 iif ifull-time istudent iOR iany
iage iif idisabled
2. ilive imore ithan ihalf ia iyear i
3. inot iprovide iover ihalf iof iown isupport
multiple isupport iagreement i(form i2120) i- iCorrect iAnswers i-1. iclaiming iperson imore
ithan i10%, ino ione imore ithan ihalf
2. ieach ione ipays iover i10% isign istatement
Married iFiling iSeparately i(MFS) i- iCorrect iAnswers i-1. iNO-child iand idependent icare
iexpenses icredit i(1/2 iincome iexclusion ilimit ithrough iER iasst. iprogram); iEIC; iadoption
icredit ior iexclusion; ieducation icredit ior iloan iinterest ideduction; iexclusion ion isaving
ibonds iinterest
2. i1/2-CTC iand isaver's icredit, icapital iloss ideduction i(1500), istandard ideduction
3. ione ispouse iitemize, ithe iother ione icannot istandard
Qualifying iWidow(er) i(QW) i- iCorrect iAnswers i-1. ifile ijointly iin ithe iyear iof ideath, ithen
itwo iyears iQW iafter
2. imust ihave ia ichild ias idependent i(same istandard ias iqualifying ichild)
3. iif iremarry, idescendant ifile iMFS, isurvivor ilose iQW
due idiligence i- iCorrect iAnswers i-1. icomplete iform8867 iif ifiling iHOH, iEIC, iCTC,
iACTC, iAOTC, iODC
2. ikeep irecords ifor i3 iyears i
3. ieach ifailure iworth i$545 ipenalty
,custodial ivs. inoncustodial iparent i(form i8332) i- iCorrect iAnswers i--custodial: imore
inights, iclaim iHOH, icare iexpenses icredit, icare ibenefits iexclusion, iEIC, ihealth
icoverage icredit
-noncustodial: iCTC, iACTC, icredit ifor iother idependents
Head iof iHousehold i(HOH) i- iCorrect iAnswers i-1. icustodial iparent, ilive itogether
i(expect iparents) imore ithan ihalf iyear
2. iqualifying ichild ior iqualifying ifamily imember
3. imore ithan ihalf icost iof iliving
4. iunmarried i(no ispouse ilast i6 imonths)
filing ithreshold i- iCorrect iAnswers i-single: i12550 i+ i1700 i(65+)
MFJ: i25100 i+ i1350 i(each ispouse i65+)
MFS: i5
HOH: i18800 i+ i1700
QW: i25100 i+ i1350
SE: i400+
church: i108.28+
medical idistribution
1095A ipremium itax icredit i
special itax isituation
dependent ifiling irequirements i- iCorrect iAnswers i-1. iunearned iincome i1100+
2. iearned iincome i12550+
3. igross iincome i> i1100 ior iearned iincome+350
4. iif i65+ iadd i1700, iif iblind, iadd ianother i1700
earned iincome i- iCorrect iAnswers i-1. iunion istrike ibenefits, ilong iterm idisability
ibenefits, ietc,
2. ischolarship ior ifellowship igrant
3. iIRA icontributions, ialimony ibefore i2019
cash imethod ivs iaccrual imethod i- iCorrect iAnswers i-1. icash: iwhen iyou iactually ispend
ior ireceive ithe imoney i(advance icommisions)
2. iaccrual: iwhen ithings ihappen i+ iamount ipay iin iadvance ibut ideterminable i(rent)
3. imost ipeople iuse icash imethod
TIN i- iCorrect iAnswers i-SSN ionly: iEIC, iCTC, iACTC
ITIN: icannot iefile ifirst iyear, iexpire iafter ithree iyears iof ino iuse
ATIN: icannot iuse iafter iadoption ifinal
tip iincome i- iCorrect iAnswers i-1. ireport iif i20+ ion ithe i10th iof inext imonth
2. inon icash itips ito iIRS ionly
3. iunreported ipenalty i50% iunpaid iSS iand iMed itax
4. itip itax iare inot ireported ito iER, ionly ito iIRS
, group iterm ilife iinsurance i- iCorrect iAnswers i-1. iemployer ipays i50k ibelow inot iincome
2. ipremium iabove i50k icoverage iinclude iin iincome
disability iand isick ipay i- iCorrect iAnswers i-if iemployer ipay ipremium: itaxable
foreign iemployer iworking iin iUS i- iCorrect iAnswers i-1. iexempt ifrom iSS iand iMed itax
2. iSE itax ion iservice iperformed iin ithe iUS
church i(clergy) i- iCorrect iAnswers i-1. ithey iare istill itraditional iemployee ieven ithough
ithey ipay iSE itax
2. ifederal iincome iincludes: isalary i- iactual iutility icost i(if iany) ihousing iallowance
3. iSE iincome: isalary i(include iutility) i+ iFMV ihousing
original iissue idiscount i(OID) i- iCorrect iAnswers i-1. iOID=price iat imaturity i- iissue iprice
i(portion iis itaxable)
2. ido inot iapply ito itax iexempt, isaving ibonds ior i1 iyear iand iless imaturity idate
3. ino ineed ito ireport iif idiscount i< i0.25% i* isale iprice i* iyears iholding
ordinary ivs iqualified idividends i- iCorrect iAnswers i-1. iordinary idividends, iordinary
iincome
2. iqualified idividends: i20% ifor i>37%; i15% ifor i15-37%; i0% ifor i<15%
when idoes idistribution iin istocks iare itaxable? i- iCorrect iAnswers i-1. ichoose ito ireceive
istock ior icash
2. isome ipeople iget icash iother ithan istock
3. ipreferred istock ileading ito ichange iof iownership
non-dividend idistribution i- iCorrect iAnswers i-if ithe idistribution iis inot iearnings, ithen iit
ireduces ithe ibasis ito izero, ithen istart itaxable
reinvested idividends i- iCorrect iAnswers i-they iare iincome ieven ithough inot icash
retirement idistributions i- iCorrect iAnswers i-1. isurviving ispouse icould irollover ito iown
iaccount iand ibeneficiary imust iwithdraw iin icertain itime
2. iemployer istock: itax iat icapital igain irate iuntil inet iunrealized iappreciation; itax
idepending ion iholding iperiod iafter iNUA
annuity i- iCorrect iAnswers i-1. icontribution inot ideductible ibut itax ifree iuntil iwithdrawn
2. iwithdraw ibefore iannuitization itax iearnings ifirst, ithen ireturn iof icapital
3. iallocate ieach ipayment ito iincome iand ibasis iafter iannuitization iratio
rollover i- iCorrect iAnswers i-qualified iplan ito itraditional iIRA iwithin i60 idays
can iNOT irollover ito iRoth iIRA i(no ibasis)
SS iprovisional iincome i- iCorrect iAnswers i-1. i1/2 isocial isecurity i+ iall iother iincome
i(including itax iexempt iinterest)
tax ifiling iflow i- iCorrect iAnswers i-filing irequirement iand istatus i-income i- iincome
iexclusion i- iadjust ito iincome iAGI i(schedule1) i- ideduction i- itaxable iincome iand
itaxation i- iadditional itax i(schedule2) i- icredits i(schedule3) i- ipayment i(withholding) ior
irefund
qualifying irelative i- iCorrect iAnswers i-1. iliving itogether iall iyear iOR ia ifamily imember
i(no ifoster iparents, ino icousins)
2. icannot ibe ia iqualifying ichild
3. inot iprovide iover ihalf iof iown isupport
4. iperson's iGI iless ithan i4300
qualifying ichild i- iCorrect iAnswers i-1. iyounger ithan i19 ior i24 iif ifull-time istudent iOR iany
iage iif idisabled
2. ilive imore ithan ihalf ia iyear i
3. inot iprovide iover ihalf iof iown isupport
multiple isupport iagreement i(form i2120) i- iCorrect iAnswers i-1. iclaiming iperson imore
ithan i10%, ino ione imore ithan ihalf
2. ieach ione ipays iover i10% isign istatement
Married iFiling iSeparately i(MFS) i- iCorrect iAnswers i-1. iNO-child iand idependent icare
iexpenses icredit i(1/2 iincome iexclusion ilimit ithrough iER iasst. iprogram); iEIC; iadoption
icredit ior iexclusion; ieducation icredit ior iloan iinterest ideduction; iexclusion ion isaving
ibonds iinterest
2. i1/2-CTC iand isaver's icredit, icapital iloss ideduction i(1500), istandard ideduction
3. ione ispouse iitemize, ithe iother ione icannot istandard
Qualifying iWidow(er) i(QW) i- iCorrect iAnswers i-1. ifile ijointly iin ithe iyear iof ideath, ithen
itwo iyears iQW iafter
2. imust ihave ia ichild ias idependent i(same istandard ias iqualifying ichild)
3. iif iremarry, idescendant ifile iMFS, isurvivor ilose iQW
due idiligence i- iCorrect iAnswers i-1. icomplete iform8867 iif ifiling iHOH, iEIC, iCTC,
iACTC, iAOTC, iODC
2. ikeep irecords ifor i3 iyears i
3. ieach ifailure iworth i$545 ipenalty
,custodial ivs. inoncustodial iparent i(form i8332) i- iCorrect iAnswers i--custodial: imore
inights, iclaim iHOH, icare iexpenses icredit, icare ibenefits iexclusion, iEIC, ihealth
icoverage icredit
-noncustodial: iCTC, iACTC, icredit ifor iother idependents
Head iof iHousehold i(HOH) i- iCorrect iAnswers i-1. icustodial iparent, ilive itogether
i(expect iparents) imore ithan ihalf iyear
2. iqualifying ichild ior iqualifying ifamily imember
3. imore ithan ihalf icost iof iliving
4. iunmarried i(no ispouse ilast i6 imonths)
filing ithreshold i- iCorrect iAnswers i-single: i12550 i+ i1700 i(65+)
MFJ: i25100 i+ i1350 i(each ispouse i65+)
MFS: i5
HOH: i18800 i+ i1700
QW: i25100 i+ i1350
SE: i400+
church: i108.28+
medical idistribution
1095A ipremium itax icredit i
special itax isituation
dependent ifiling irequirements i- iCorrect iAnswers i-1. iunearned iincome i1100+
2. iearned iincome i12550+
3. igross iincome i> i1100 ior iearned iincome+350
4. iif i65+ iadd i1700, iif iblind, iadd ianother i1700
earned iincome i- iCorrect iAnswers i-1. iunion istrike ibenefits, ilong iterm idisability
ibenefits, ietc,
2. ischolarship ior ifellowship igrant
3. iIRA icontributions, ialimony ibefore i2019
cash imethod ivs iaccrual imethod i- iCorrect iAnswers i-1. icash: iwhen iyou iactually ispend
ior ireceive ithe imoney i(advance icommisions)
2. iaccrual: iwhen ithings ihappen i+ iamount ipay iin iadvance ibut ideterminable i(rent)
3. imost ipeople iuse icash imethod
TIN i- iCorrect iAnswers i-SSN ionly: iEIC, iCTC, iACTC
ITIN: icannot iefile ifirst iyear, iexpire iafter ithree iyears iof ino iuse
ATIN: icannot iuse iafter iadoption ifinal
tip iincome i- iCorrect iAnswers i-1. ireport iif i20+ ion ithe i10th iof inext imonth
2. inon icash itips ito iIRS ionly
3. iunreported ipenalty i50% iunpaid iSS iand iMed itax
4. itip itax iare inot ireported ito iER, ionly ito iIRS
, group iterm ilife iinsurance i- iCorrect iAnswers i-1. iemployer ipays i50k ibelow inot iincome
2. ipremium iabove i50k icoverage iinclude iin iincome
disability iand isick ipay i- iCorrect iAnswers i-if iemployer ipay ipremium: itaxable
foreign iemployer iworking iin iUS i- iCorrect iAnswers i-1. iexempt ifrom iSS iand iMed itax
2. iSE itax ion iservice iperformed iin ithe iUS
church i(clergy) i- iCorrect iAnswers i-1. ithey iare istill itraditional iemployee ieven ithough
ithey ipay iSE itax
2. ifederal iincome iincludes: isalary i- iactual iutility icost i(if iany) ihousing iallowance
3. iSE iincome: isalary i(include iutility) i+ iFMV ihousing
original iissue idiscount i(OID) i- iCorrect iAnswers i-1. iOID=price iat imaturity i- iissue iprice
i(portion iis itaxable)
2. ido inot iapply ito itax iexempt, isaving ibonds ior i1 iyear iand iless imaturity idate
3. ino ineed ito ireport iif idiscount i< i0.25% i* isale iprice i* iyears iholding
ordinary ivs iqualified idividends i- iCorrect iAnswers i-1. iordinary idividends, iordinary
iincome
2. iqualified idividends: i20% ifor i>37%; i15% ifor i15-37%; i0% ifor i<15%
when idoes idistribution iin istocks iare itaxable? i- iCorrect iAnswers i-1. ichoose ito ireceive
istock ior icash
2. isome ipeople iget icash iother ithan istock
3. ipreferred istock ileading ito ichange iof iownership
non-dividend idistribution i- iCorrect iAnswers i-if ithe idistribution iis inot iearnings, ithen iit
ireduces ithe ibasis ito izero, ithen istart itaxable
reinvested idividends i- iCorrect iAnswers i-they iare iincome ieven ithough inot icash
retirement idistributions i- iCorrect iAnswers i-1. isurviving ispouse icould irollover ito iown
iaccount iand ibeneficiary imust iwithdraw iin icertain itime
2. iemployer istock: itax iat icapital igain irate iuntil inet iunrealized iappreciation; itax
idepending ion iholding iperiod iafter iNUA
annuity i- iCorrect iAnswers i-1. icontribution inot ideductible ibut itax ifree iuntil iwithdrawn
2. iwithdraw ibefore iannuitization itax iearnings ifirst, ithen ireturn iof icapital
3. iallocate ieach ipayment ito iincome iand ibasis iafter iannuitization iratio
rollover i- iCorrect iAnswers i-qualified iplan ito itraditional iIRA iwithin i60 idays
can iNOT irollover ito iRoth iIRA i(no ibasis)
SS iprovisional iincome i- iCorrect iAnswers i-1. i1/2 isocial isecurity i+ iall iother iincome
i(including itax iexempt iinterest)
