Enrolled Agent EA Exam 1 IRS
Questions and Detailed Answers |
Graded A+
Two taxpayers married on November 30. That same year, the husband enrolled
in an accredited college to further his career and subsequently received a Form
1098-T, Tuition Statement. The wife was employed with an income of $45,000
and paid for the husband's education expenses. Based on their circumstances,
what is the correct method to report the education credit?
A) Taxpayers must file a joint return to claim an education credit
(B) Based on the wife's AGI, they do not qualify to claim an education credit
(C) Husband is ineligible to claim an education credit because the wife paid his
education expenses
(D) Wife should report nonqualified education expenses on Form 8863,
Education Credits (American Opportunity
Page 1 of 12
©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
, and Lifetime Learning Credits) - ✔✔A
The taxpayer has a child under the age of 24 who is a full-time student in their
2nd year of college. The student
will be claimed as a dependent on the taxpayer's return.
The student's educational expenses included $8,000 for tuition and $4,000 for
room and board.
The student received a $5,000 scholarship for tuition use only, as well as an
additional $2,500 scholarship to pay any of the student's college expenses. The
taxpayer paid the remaining $4,500.
Which of the following statements is correct, based on the information above?
(A) The student can claim the American Opportunity credit on their return for
tuition expenses of $3,000 and should report the additional $2,500 scholarship
as income
(B) The taxpayer can claim the American Opportunity credit on their return for
tuition expenses of $3,000, and the student should report the additional $2,500
scholarship as income
Page 2 of 12
©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
Questions and Detailed Answers |
Graded A+
Two taxpayers married on November 30. That same year, the husband enrolled
in an accredited college to further his career and subsequently received a Form
1098-T, Tuition Statement. The wife was employed with an income of $45,000
and paid for the husband's education expenses. Based on their circumstances,
what is the correct method to report the education credit?
A) Taxpayers must file a joint return to claim an education credit
(B) Based on the wife's AGI, they do not qualify to claim an education credit
(C) Husband is ineligible to claim an education credit because the wife paid his
education expenses
(D) Wife should report nonqualified education expenses on Form 8863,
Education Credits (American Opportunity
Page 1 of 12
©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
, and Lifetime Learning Credits) - ✔✔A
The taxpayer has a child under the age of 24 who is a full-time student in their
2nd year of college. The student
will be claimed as a dependent on the taxpayer's return.
The student's educational expenses included $8,000 for tuition and $4,000 for
room and board.
The student received a $5,000 scholarship for tuition use only, as well as an
additional $2,500 scholarship to pay any of the student's college expenses. The
taxpayer paid the remaining $4,500.
Which of the following statements is correct, based on the information above?
(A) The student can claim the American Opportunity credit on their return for
tuition expenses of $3,000 and should report the additional $2,500 scholarship
as income
(B) The taxpayer can claim the American Opportunity credit on their return for
tuition expenses of $3,000, and the student should report the additional $2,500
scholarship as income
Page 2 of 12
©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
