Enrolled Agent Part 1: The Income Tax
Return UPDATED ACTUAL Questions and
CORRECT Answers
Gross Income - CORRECT ANSWER - All taxable money, goods, property, and services
When do you include Social Security benefits in gross income? - CORRECT ANSWER -
If you were married, living with your spouse at any time and filing a seperate return
Half your SS benefits + other gross income + tax-exempt interest > $25,000 or $32,000 if filing
jointly.
When is filing status determined? - CORRECT ANSWER - Dec 31
Who must file taxes? - CORRECT ANSWER - Citizens or residents of US
Residents of Puerto Rico
Dependents
Full-time students under 24
Children under 19
Self-employed persons
Aliens
What types of Aliens are there? - CORRECT ANSWER - Resident
nonresident
dual-status (part-time resident)
What is the maximum you can earn and still be a dependent? - CORRECT ANSWER -
$4050
, When must dependents who aren't blind, married or over 65 file? - CORRECT ANSWER -
unearned income > $1050
earned income > $6300
gross income > $1050 or earned income + $350
When must married dependents who aren't blond or over 65 file? - CORRECT ANSWER -
same rules as single dependents
gross income > $5 and spouse files seperately and itemizes deductions
When should you use Form 1040EZ? - CORRECT ANSWER - taxable income <
$100,000
don't claim any adjustments or credit
don't claim any dependents
income is only tips, wages, salaries, and unemployment.
When should you use Form 1040A? - CORRECT ANSWER - If you have all of the
following in addition to WSTU: INterest, dividends, captain gains, IRA, Pensions and annuities,
and Taxable scholarships.
What is the important characteristic of Form 1040? - CORRECT ANSWER - Allows you
to make itemized deducations.
When should you use Form 1040? - CORRECT ANSWER - When you earn $100,000 or
more.
Which areas are eligible for combat zone extension? - CORRECT ANSWER - Arabian
Penninsula, Kosovo, Afghanistan.
Define fiscal year - CORRECT ANSWER - a 12-month period ending on the last day of
any month except December.
Return UPDATED ACTUAL Questions and
CORRECT Answers
Gross Income - CORRECT ANSWER - All taxable money, goods, property, and services
When do you include Social Security benefits in gross income? - CORRECT ANSWER -
If you were married, living with your spouse at any time and filing a seperate return
Half your SS benefits + other gross income + tax-exempt interest > $25,000 or $32,000 if filing
jointly.
When is filing status determined? - CORRECT ANSWER - Dec 31
Who must file taxes? - CORRECT ANSWER - Citizens or residents of US
Residents of Puerto Rico
Dependents
Full-time students under 24
Children under 19
Self-employed persons
Aliens
What types of Aliens are there? - CORRECT ANSWER - Resident
nonresident
dual-status (part-time resident)
What is the maximum you can earn and still be a dependent? - CORRECT ANSWER -
$4050
, When must dependents who aren't blind, married or over 65 file? - CORRECT ANSWER -
unearned income > $1050
earned income > $6300
gross income > $1050 or earned income + $350
When must married dependents who aren't blond or over 65 file? - CORRECT ANSWER -
same rules as single dependents
gross income > $5 and spouse files seperately and itemizes deductions
When should you use Form 1040EZ? - CORRECT ANSWER - taxable income <
$100,000
don't claim any adjustments or credit
don't claim any dependents
income is only tips, wages, salaries, and unemployment.
When should you use Form 1040A? - CORRECT ANSWER - If you have all of the
following in addition to WSTU: INterest, dividends, captain gains, IRA, Pensions and annuities,
and Taxable scholarships.
What is the important characteristic of Form 1040? - CORRECT ANSWER - Allows you
to make itemized deducations.
When should you use Form 1040? - CORRECT ANSWER - When you earn $100,000 or
more.
Which areas are eligible for combat zone extension? - CORRECT ANSWER - Arabian
Penninsula, Kosovo, Afghanistan.
Define fiscal year - CORRECT ANSWER - a 12-month period ending on the last day of
any month except December.
