Enrolled Agent Part 1 Exam Study for 2024 to
2026 Testing Updated to include 2023 data
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Terms in this set (351)
Qualified Charitable Distribution A nontaxable distribution made directly to a
(QCD) qualified charity by the trustee of a traditional IRA.
Age Requirement for QCD Must be at least age 70.5 at the time of distribution.
Annual Limit for QCD Total QCDs for the year cannot be more than
$100,000 ($200,000 if MFJ).
QCD Limitation The QCD is limited to the amount of the
distribution that would otherwise be income.
Individual tax identification number ITIN does not authorize work in the U.S. or provide
(ITIN): eligibility for Social Security benefits or the Earned
Income Tax Credit.
Any ITIN that is not used on a federal tax return for
three consecutive tax years will expire.
A taxpayer can't electronically file (e-file) a return
using an ITIN in the calendar year the ITIN is
assigned.
,identification number (TIN) Everybody on the tax return, including dependents,
needs a valid taxpayer identification number (TIN)
issued by the due date of the return (including
extensions). There is an exception for a child that is
born and dies in the same year.
A TIN is a Social Security number (SSN), an
individual taxpayer identification number (ITIN), or
an adoption taxpayer identification number (ATIN).
Earned Income Credit Child Tax Credit, and Additional Child Tax Credit
requires a valid SSN only.,
Under the American Rescue Plan Act of 2021, for
2021 and future years, if a qualifying child does not
have a valid SSN, the taxpayer may claim the
earned income credit for individuals with no
qualifying children.
Credit for Other Dependents and American
Opportunity Credit requires a valid SSN, ITIN, or
ATIN.
,diligence penalty For any failure relating to a return or claim for
refund filed in 2023 (generally 2022 tax returns filed
in 2023), the penalty is $560 for each failure with
no maximum penalty unless the failure is due to
reasonable cause and not willful neglect.
Failure to be diligent in determining eligibility for
certain tax benefits, including the Earned Income
Credit, American Opportunity Credit, Child Tax
Credit (including Additional Child Tax Credit and
Credit for Other Dependents), and Head of
Household filing status. Preparer must ask all
questions required on Form 8867 and also ask
additional questions when information seems
incorrect, inconsistent, or incomplete. Preparer
must also verify identity, prepare a computational
checklist (Form 8867 or equivalent), and meet a
recordkeeping requirement.
, Custodial parent The custodial parent is the parent with whom the
child lived for the greater number of nights during
the year. Only the custodial parent is entitled to
claim the child for head of household filing status,
the credit for child and dependent care expenses,
the exclusion for dependent care benefits, the
earned income credit, and the health coverage tax
credit.
The custodial parent can file Form 8332 allowing
the noncustodial parent to claim the child for the
child tax credit, additional child tax credit, and the
credit for other dependents.
Where Taxpayer Is Required to File a Return,
Net earnings from self-employment are $400 or
more.
Church wages are $108.28 or more (from a church
that is FICA exempt).
The taxpayer (or spouse, if filing jointly) received
HSA, Archer MSA, or Medicare Advantage MSA
distributions.
Advance payments of the premium tax credit were
made for the taxpayer, spouse, or a dependent
who enrolled in coverage through the Health
Insurance Marketplace.
The taxpayer owes special taxes (e.g., household
employment taxes) or must recapture certain
credits or taxes.
2026 Testing Updated to include 2023 data
Save
Terms in this set (351)
Qualified Charitable Distribution A nontaxable distribution made directly to a
(QCD) qualified charity by the trustee of a traditional IRA.
Age Requirement for QCD Must be at least age 70.5 at the time of distribution.
Annual Limit for QCD Total QCDs for the year cannot be more than
$100,000 ($200,000 if MFJ).
QCD Limitation The QCD is limited to the amount of the
distribution that would otherwise be income.
Individual tax identification number ITIN does not authorize work in the U.S. or provide
(ITIN): eligibility for Social Security benefits or the Earned
Income Tax Credit.
Any ITIN that is not used on a federal tax return for
three consecutive tax years will expire.
A taxpayer can't electronically file (e-file) a return
using an ITIN in the calendar year the ITIN is
assigned.
,identification number (TIN) Everybody on the tax return, including dependents,
needs a valid taxpayer identification number (TIN)
issued by the due date of the return (including
extensions). There is an exception for a child that is
born and dies in the same year.
A TIN is a Social Security number (SSN), an
individual taxpayer identification number (ITIN), or
an adoption taxpayer identification number (ATIN).
Earned Income Credit Child Tax Credit, and Additional Child Tax Credit
requires a valid SSN only.,
Under the American Rescue Plan Act of 2021, for
2021 and future years, if a qualifying child does not
have a valid SSN, the taxpayer may claim the
earned income credit for individuals with no
qualifying children.
Credit for Other Dependents and American
Opportunity Credit requires a valid SSN, ITIN, or
ATIN.
,diligence penalty For any failure relating to a return or claim for
refund filed in 2023 (generally 2022 tax returns filed
in 2023), the penalty is $560 for each failure with
no maximum penalty unless the failure is due to
reasonable cause and not willful neglect.
Failure to be diligent in determining eligibility for
certain tax benefits, including the Earned Income
Credit, American Opportunity Credit, Child Tax
Credit (including Additional Child Tax Credit and
Credit for Other Dependents), and Head of
Household filing status. Preparer must ask all
questions required on Form 8867 and also ask
additional questions when information seems
incorrect, inconsistent, or incomplete. Preparer
must also verify identity, prepare a computational
checklist (Form 8867 or equivalent), and meet a
recordkeeping requirement.
, Custodial parent The custodial parent is the parent with whom the
child lived for the greater number of nights during
the year. Only the custodial parent is entitled to
claim the child for head of household filing status,
the credit for child and dependent care expenses,
the exclusion for dependent care benefits, the
earned income credit, and the health coverage tax
credit.
The custodial parent can file Form 8332 allowing
the noncustodial parent to claim the child for the
child tax credit, additional child tax credit, and the
credit for other dependents.
Where Taxpayer Is Required to File a Return,
Net earnings from self-employment are $400 or
more.
Church wages are $108.28 or more (from a church
that is FICA exempt).
The taxpayer (or spouse, if filing jointly) received
HSA, Archer MSA, or Medicare Advantage MSA
distributions.
Advance payments of the premium tax credit were
made for the taxpayer, spouse, or a dependent
who enrolled in coverage through the Health
Insurance Marketplace.
The taxpayer owes special taxes (e.g., household
employment taxes) or must recapture certain
credits or taxes.
