IRS VITA-TCE Advanced Certification Exam 2024 Questions and Answers

IRS VITA-TCE Advanced Certification Exam 2024 Questions and Answers Maximum Foreign Income Exclusion (Changes to 2016) -Answer-Increased to $101,300 Maximum Foreign Housing Exclusion (Changes to 2016) -Answer-Increased to $44.28 per day Modified Adjusted Gross (AGI) Limit (IRAs and Other Retirement Plans) -Answer-*Max IRA Deduction remains at $5,500, ($6500 if age 50 older) ** If a taxpayer is covered by a retirement plan at work, the deduction for contributions to a traditional IRA is reduced (phased out) if the modified AGI is: **More than $98,000 but less than $118,000 for Married Filing Jointly taxpayers or Qualifying Widow(er) if both spouses are covered by a retirement plan. **More than $61,000 but less than $71,000 for a Single or Household or **Less than $10,000 for Married filing separately ***For an IRA Contributor who is not covered by a workplace retirement plan and is Married to someone who is covered, the deduction is phased out if the couple's income is between $184,000 & $194,000 Revenue Procedure 2016-47 (Changes to 2016 NEW IRA Self-Certification Procedure) - Answer-Explains a self-certification procedure designed to help recipients of retirement plan distributions who inadvertently miss the 60-day time limit for properly rolling these amounts into another retirement plan or individual retirement arrangement (IRA). Eligible taxpayers can qualify for a waiver of the 60-day time limit and avoid possible taxes and penalties on early distributions, if they meet certain circumstances. Taxpayers who missed the time limit will now ordinarily qualify for a waiver if one or more of 11 circumstances, listed in the revenue procedure, apply: **An error was committed by the financial institution making the distribution or receiving the contribution. **The distribution was in the form of a check and the check was misplaced and never cashed. **The distribution was deposited into and remained in an account that the taxpayer mistakenly thought was a retirement plan or IRA. **Taxpayer's principal residence was severely damaged. One of the taxpayer's family members died. **Taxpayer or a family member was seriously ill. **Taxpayer was incarcerated. **Restrictions were imposed by a foreign country. **A postal error occurred. **The distribution was made on account of an IRS levy and the proceeds of the levy have been returned. **The party making the distribution delayed providing information that the receiving plan or IRA required to complete the rollover despite reasonable efforts to obtain the information. Standard & Itemized Deductions (Changes to 2016) -Answer-The standard deduction for taxpayers who do not itemize deductions on Form 1040, Schedule A, has increased. The standard deduction amounts for 2016 are: **Married Filing Jointly or Qualifying Widow(er) -