ENROLLED AGENT 2022 2024
PART 1 FLASHCARDS
ANSWER ALL QUESTIONS IN THIS SECTION
QUESTION 1
What form is used to apply for an ITIN? - ANSWERS-Form W-7, Application for
Individual Taxpayer Identification Number is used to apply for an ITIN. Taxpayers
must also submit documentation that will establish foreign status and true identity.
QUESTION 2
When is a taxpayer's marital status generally determined? - ANSWERS-For tax
purposes, marital status is determined on the last day of the tax year, unless the
taxpayer dies during the year, then marital status is determined on the date of
death.
QUESTION 3
A widow(er) with one or more qualifying children may be able to use which
beneficial filing status? - ANSWERS-A widow(er) with one or more qualifying
children may be able to use the Qualifying Widow(er) filing status, which is
available for 2 years following the year of the spouse's death.
END OF
PAGE 1
, ENROLLED AGENT 2022 2024
PART 1 FLASHCARDS
QUESTION 4
When is income deemed to have been "constructively received"? - ANSWERS-
Income is "constructively received" when an amount is credited to the taxpayer's
account or made available to the taxpayer (or taxpayer's agent) without restriction.
QUESTION 5
What are combat zone wages, and how are they taxed? - ANSWERS-Combat
wages (or combat pay) is generally not taxable. However, military personnel may
choose to have the full amount of combat pay included in earned income for EITC
purposes, if it gives them a better tax result.
QUESTION 6
The foreign earned income exclusion ONLY applies to what type of income? -
ANSWERS-The foreign earned income exclusion is only available for earned
income (such as wages and self-employment income). It doesn't apply to passive or
investment income such as interest and dividends.
END OF
PAGE 2
, ENROLLED AGENT 2022 2024
PART 1 FLASHCARDS
QUESTION 7
What is a Dual Status Alien? - ANSWERS-A Dual Status Alien is an alien who is
both a nonresident and resident alien during the same tax year. The most common
dual-status tax years are the years of arrival and departure in the United States.
QUESTION 8
What is earned income? - ANSWERS-Earned income includes: wages, salaries,
tips, and other taxable employee pay. Earned income also includes net earnings
from self-employment and other income received for personal services.
QUESTION 9
On which IRS Schedule is passive rental income reported? - ANSWERS-
Individual taxpayers report passive rental income on Schedule E.
QUESTION 10
What does a taxpayer's marginal tax rate signify? - ANSWERS-The marginal tax
rate is a rate charged on taxable income for every additional dollar earned. The
current top marginal income tax rate is 37 percent.
END OF
PAGE 3
, ENROLLED AGENT 2022 2024
PART 1 FLASHCARDS
QUESTION 11
What is recourse debt, and how can it affect a taxpayer's tax liabilities? -
ANSWERS-Recourse debt holds the borrower personally liable. If a lender
forecloses on property subject to a recourse debt and cancels the debt in excess of
the fair market value (FMV) of the property, the resulting cancelation will be
treated as canceled debt income and may be taxable.
QUESTION 12
What is an Required Minimum Distribution(RMD)? - ANSWERS-An RMD, or
Required Minimum Distribution, is an amount that must be distributed each year
from a retirement plan or traditional IRA, usually when a taxpayer reaches the age
of 72.
QUESTION 13
What are some examples of retirement income? - ANSWERS-Retirement income
can include Social Security benefits as well as any benefits from annuities,
retirement or profit-sharing plans, insurance contracts, IRAs, etc. Retirement
income may be fully or partially taxable.
END OF
PAGE 4
PART 1 FLASHCARDS
ANSWER ALL QUESTIONS IN THIS SECTION
QUESTION 1
What form is used to apply for an ITIN? - ANSWERS-Form W-7, Application for
Individual Taxpayer Identification Number is used to apply for an ITIN. Taxpayers
must also submit documentation that will establish foreign status and true identity.
QUESTION 2
When is a taxpayer's marital status generally determined? - ANSWERS-For tax
purposes, marital status is determined on the last day of the tax year, unless the
taxpayer dies during the year, then marital status is determined on the date of
death.
QUESTION 3
A widow(er) with one or more qualifying children may be able to use which
beneficial filing status? - ANSWERS-A widow(er) with one or more qualifying
children may be able to use the Qualifying Widow(er) filing status, which is
available for 2 years following the year of the spouse's death.
END OF
PAGE 1
, ENROLLED AGENT 2022 2024
PART 1 FLASHCARDS
QUESTION 4
When is income deemed to have been "constructively received"? - ANSWERS-
Income is "constructively received" when an amount is credited to the taxpayer's
account or made available to the taxpayer (or taxpayer's agent) without restriction.
QUESTION 5
What are combat zone wages, and how are they taxed? - ANSWERS-Combat
wages (or combat pay) is generally not taxable. However, military personnel may
choose to have the full amount of combat pay included in earned income for EITC
purposes, if it gives them a better tax result.
QUESTION 6
The foreign earned income exclusion ONLY applies to what type of income? -
ANSWERS-The foreign earned income exclusion is only available for earned
income (such as wages and self-employment income). It doesn't apply to passive or
investment income such as interest and dividends.
END OF
PAGE 2
, ENROLLED AGENT 2022 2024
PART 1 FLASHCARDS
QUESTION 7
What is a Dual Status Alien? - ANSWERS-A Dual Status Alien is an alien who is
both a nonresident and resident alien during the same tax year. The most common
dual-status tax years are the years of arrival and departure in the United States.
QUESTION 8
What is earned income? - ANSWERS-Earned income includes: wages, salaries,
tips, and other taxable employee pay. Earned income also includes net earnings
from self-employment and other income received for personal services.
QUESTION 9
On which IRS Schedule is passive rental income reported? - ANSWERS-
Individual taxpayers report passive rental income on Schedule E.
QUESTION 10
What does a taxpayer's marginal tax rate signify? - ANSWERS-The marginal tax
rate is a rate charged on taxable income for every additional dollar earned. The
current top marginal income tax rate is 37 percent.
END OF
PAGE 3
, ENROLLED AGENT 2022 2024
PART 1 FLASHCARDS
QUESTION 11
What is recourse debt, and how can it affect a taxpayer's tax liabilities? -
ANSWERS-Recourse debt holds the borrower personally liable. If a lender
forecloses on property subject to a recourse debt and cancels the debt in excess of
the fair market value (FMV) of the property, the resulting cancelation will be
treated as canceled debt income and may be taxable.
QUESTION 12
What is an Required Minimum Distribution(RMD)? - ANSWERS-An RMD, or
Required Minimum Distribution, is an amount that must be distributed each year
from a retirement plan or traditional IRA, usually when a taxpayer reaches the age
of 72.
QUESTION 13
What are some examples of retirement income? - ANSWERS-Retirement income
can include Social Security benefits as well as any benefits from annuities,
retirement or profit-sharing plans, insurance contracts, IRAs, etc. Retirement
income may be fully or partially taxable.
END OF
PAGE 4
