Tax Preparer Final Exam Review Exam (ITC 2025) Test Bank
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What are some of the costs of maintaining a home?
• Rent
• Mortgage interest
• Real Estate Taxes
• Homeowners Insurance
• Property Taxes
• Repairs
• Utilities
• Food eaten in the
home (5.3)
What requirements must be met for a taxpayer to use the qualifying widow(er)
status?
• The death of the taxpayer's spouse must have occurred during one of
the two preceding tax years;
• The taxpayer must not have remarried and must have been entitled to file a
joint return for the year of death.
• The taxpayer must have paid over half the cost of maintaining the home
which, for the entire year, was the main home of their dependent son,
daughter, stepson, or
stepdaughter.
In general, which parent gets to claim the qualifying child in a divorce?
The custodial parent. (5.7)
,What is the exception to the custodial parent qualifying child rule?
• If a decree of divorce or separate maintenance or written separation
agreement that became effective after October 4, 2004, states that the
noncustodial parent is entitled to claim the child's dependency exemption, or if
the custodial parent executes a written
declaration that they will not claim the child as a dependent for that year, the
noncustodial parent may claim the qualifying child.
• For divorces granted after December 31, 2008, Form 8332 must be filed if
parents are separating tax benefits. (5.7)
What's the difference between a withholding allowance and an exemption?
• A withholding allowance is reported on Form W-4 and is used to accurately
calculate the amount of tax to be withheld from an employee's wages.
• An exemption is claimed on the tax return for the taxpayer, spouse,
and each dependent. (24.)
Under what circumstances may an employee claim exemption from withholding?
Only if the employee had no federal income tax liability for the prior year
and he expects to have no tax liability for the current year. (24.)
A single self-employed taxpayer estimates that his 2009 tax will be $7,500. His
2008 tax was $7,000. How much must he prepay for 2009 in order to avoid an
underpayment
penalty?
$6,750; the lesser of 90% of his 2009 tax [$7,500 X 90% = $6,750] or 100% of his
2008 tax ($7,000). (24.)
, What information do you need to know to determine whether a return is
required?
• Marital Status
• Age & Student Status
• Gross Income
• Over 65 and Blindness
• Dependent
Status (3.2)
For tax purposes, when is a person's marital status determined?
On the last day of the tax year. (3.2)
What two amounts combine to make up the gross income filing requirement
for most taxpayers?
The Standard Deduction and the Personal Exemption amounts. (3.7)
How much is added to the standard deduction if the taxpayer (or spouse) is
age 65 or older or blind?
$1,400 per condition for S and HH
$1,100 per condition for MFS, MFJ and QW (3.6)
If one spouse refuses to file a joint return, can the other spouse do anything
about it?
No Both will have to file using the married filing separately status unless one
or both qualifies to be considered unmarried.
Questions & Answers || Most Recent Exam Actual
Complete Real Exam Questions And Correct Answers
(Verified Answers) Already Graded A+ | Guaranteed
Success!! Newest Exam | Just Released 2026-2027
What are some of the costs of maintaining a home?
• Rent
• Mortgage interest
• Real Estate Taxes
• Homeowners Insurance
• Property Taxes
• Repairs
• Utilities
• Food eaten in the
home (5.3)
What requirements must be met for a taxpayer to use the qualifying widow(er)
status?
• The death of the taxpayer's spouse must have occurred during one of
the two preceding tax years;
• The taxpayer must not have remarried and must have been entitled to file a
joint return for the year of death.
• The taxpayer must have paid over half the cost of maintaining the home
which, for the entire year, was the main home of their dependent son,
daughter, stepson, or
stepdaughter.
In general, which parent gets to claim the qualifying child in a divorce?
The custodial parent. (5.7)
,What is the exception to the custodial parent qualifying child rule?
• If a decree of divorce or separate maintenance or written separation
agreement that became effective after October 4, 2004, states that the
noncustodial parent is entitled to claim the child's dependency exemption, or if
the custodial parent executes a written
declaration that they will not claim the child as a dependent for that year, the
noncustodial parent may claim the qualifying child.
• For divorces granted after December 31, 2008, Form 8332 must be filed if
parents are separating tax benefits. (5.7)
What's the difference between a withholding allowance and an exemption?
• A withholding allowance is reported on Form W-4 and is used to accurately
calculate the amount of tax to be withheld from an employee's wages.
• An exemption is claimed on the tax return for the taxpayer, spouse,
and each dependent. (24.)
Under what circumstances may an employee claim exemption from withholding?
Only if the employee had no federal income tax liability for the prior year
and he expects to have no tax liability for the current year. (24.)
A single self-employed taxpayer estimates that his 2009 tax will be $7,500. His
2008 tax was $7,000. How much must he prepay for 2009 in order to avoid an
underpayment
penalty?
$6,750; the lesser of 90% of his 2009 tax [$7,500 X 90% = $6,750] or 100% of his
2008 tax ($7,000). (24.)
, What information do you need to know to determine whether a return is
required?
• Marital Status
• Age & Student Status
• Gross Income
• Over 65 and Blindness
• Dependent
Status (3.2)
For tax purposes, when is a person's marital status determined?
On the last day of the tax year. (3.2)
What two amounts combine to make up the gross income filing requirement
for most taxpayers?
The Standard Deduction and the Personal Exemption amounts. (3.7)
How much is added to the standard deduction if the taxpayer (or spouse) is
age 65 or older or blind?
$1,400 per condition for S and HH
$1,100 per condition for MFS, MFJ and QW (3.6)
If one spouse refuses to file a joint return, can the other spouse do anything
about it?
No Both will have to file using the married filing separately status unless one
or both qualifies to be considered unmarried.
