DETAILED ANSWERS|LATEST UPDATE!!!!!!2026|GUARANTEED
CORRECT = 100
100
INCORRECT=0
STUDY MATERIALS.......DESIGNED TO HELP YOU SUCCEED
SPOTLIGHT 1
1
, DETAILED ANSWERS|LATEST
UPDATE!!!!!!2026|GUARANTEED PASS|GRADED
A tax returner or claim for refund requiring a paid tax return preparer to determine eligibility
for EITC, CTC/ODC/ ACTC, AOTC, and the head of household filling status may be subject to a
maximum penalty, totaling what amount for failure to meet due diligence requirements if all
four are claimed on a single tax return? - ANSWER a,$2,120
the deduction for state and local income taxes is limited to what amount? -
ANSWER a. $10,000 ($5,000 if MFS).
A married couple who materially participate in the operation of a jointly owned business
may elect for each spouse to file their own Schedule C, with each reporting their respective
amounts of income, loss, and deductions. This known as what? - ANSWER C. A
qualified joint venture
Stock owned by an individual would be classified as what type of property? -
ANSWER a. Intangible personal, investment -use property
Which of the following is not deductible on Schedule A? - ANSWER C. Federal taxes
withheld.
Which of the following types of property may be depreciated? - ANSWER d. a copier
purchased by a tax preparation office.
2
, a taxpayer who actively participates in a rental real estate activity may, in many cases,
deduct up to what amount of rental losses against any other kind of income? -
ANSWER a. 25,000
A sole proprietor who computes self-employment tax should be filling what form? -
ANSWER b. Schedule SE.
An employee tells their employer how much income tax to withold from their taxable wages
by completing what form? - ANSWER C. Form W-4.
The IRS may assess penalties on taxpayers for which of the folllowing? - ANSWER d.
All of the Above
Which of the following best describes gross income? - ANSWER a. all income from
whatever source derived, unless excluded from taxation by law
Which of the following best describes earned income? - ANSWER c. Income received
for services, performed, including wages, commissions, tips, and generally, farming and
other business income.
Which of the following taxpayers is not required to file a federal tax return for 2019? -
ANSWER d. Ron (66) and sue (64) have gross income of $ 25,250. they wish to file a
joint return
In 2019, Jennfier's (27) brother, jim (18), her fiancee Steve(29) and her daughter, Kim (5)
lived with her for the entire year. Jennfier's AGI is $27,800, Jim's AGI is $5,050, Steve AGI is
$4,0050, and Kim had no icome. Jim and Kim did not provide over 50% of steve's support.
Jennifer quailties and files as head of household in 2019. How many qualifying dependents
can jennfier claim on her return? - ANSWER c. Three
3
CORRECT = 100
100
INCORRECT=0
STUDY MATERIALS.......DESIGNED TO HELP YOU SUCCEED
SPOTLIGHT 1
1
, DETAILED ANSWERS|LATEST
UPDATE!!!!!!2026|GUARANTEED PASS|GRADED
A tax returner or claim for refund requiring a paid tax return preparer to determine eligibility
for EITC, CTC/ODC/ ACTC, AOTC, and the head of household filling status may be subject to a
maximum penalty, totaling what amount for failure to meet due diligence requirements if all
four are claimed on a single tax return? - ANSWER a,$2,120
the deduction for state and local income taxes is limited to what amount? -
ANSWER a. $10,000 ($5,000 if MFS).
A married couple who materially participate in the operation of a jointly owned business
may elect for each spouse to file their own Schedule C, with each reporting their respective
amounts of income, loss, and deductions. This known as what? - ANSWER C. A
qualified joint venture
Stock owned by an individual would be classified as what type of property? -
ANSWER a. Intangible personal, investment -use property
Which of the following is not deductible on Schedule A? - ANSWER C. Federal taxes
withheld.
Which of the following types of property may be depreciated? - ANSWER d. a copier
purchased by a tax preparation office.
2
, a taxpayer who actively participates in a rental real estate activity may, in many cases,
deduct up to what amount of rental losses against any other kind of income? -
ANSWER a. 25,000
A sole proprietor who computes self-employment tax should be filling what form? -
ANSWER b. Schedule SE.
An employee tells their employer how much income tax to withold from their taxable wages
by completing what form? - ANSWER C. Form W-4.
The IRS may assess penalties on taxpayers for which of the folllowing? - ANSWER d.
All of the Above
Which of the following best describes gross income? - ANSWER a. all income from
whatever source derived, unless excluded from taxation by law
Which of the following best describes earned income? - ANSWER c. Income received
for services, performed, including wages, commissions, tips, and generally, farming and
other business income.
Which of the following taxpayers is not required to file a federal tax return for 2019? -
ANSWER d. Ron (66) and sue (64) have gross income of $ 25,250. they wish to file a
joint return
In 2019, Jennfier's (27) brother, jim (18), her fiancee Steve(29) and her daughter, Kim (5)
lived with her for the entire year. Jennfier's AGI is $27,800, Jim's AGI is $5,050, Steve AGI is
$4,0050, and Kim had no icome. Jim and Kim did not provide over 50% of steve's support.
Jennifer quailties and files as head of household in 2019. How many qualifying dependents
can jennfier claim on her return? - ANSWER c. Three
3
