VITA Basic Test 2025 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) |
ASSURED SUCCESS
1. Calvin has qualifying health insurance coverage (also known as minimum essential coverage) as
defined under the Affordable Care Act.
a. True
b. False
Answer: a. True
Rationale: Calvin has qualifying health insurance coverage under the Affordable Care Act.
2. Calvin and Betty may need to make a shared responsibility payment on their joint return if they
don't qualify for an exemption.
a. True
b. False
Answer: a. True
Rationale: If they lack minimum essential coverage and do not qualify for an exemption, they may owe a
shared responsibility payment.
3. Who can claim the American opportunity credit?
a. Dana can claim the credit because Tom is her dependent.
b. Tom can claim the credit for himself.
c. Neither Dana nor Tom can claim the credit.
d. Both Dana and Tom can claim the credit.
Answer: a. Dana can claim the credit because Tom is her dependent.
Rationale: Dana can claim the credit for Tom, her dependent.
4. Dana's most advantageous allowable filing status is:
a. Single
b. Head of Household
, c. Married Filing Separately
d. Married Filing Jointly
Answer: b. Head of Household
Rationale: Dana qualifies for Head of Household status because she has a dependent and meets the
requirements.
5. Who can Bob claim as a qualifying child(ren) for the earned income credit?
a. Sara only
b. Joan only
c. Both Sara and Joan
d. Neither Sara nor Joan
Answer: a. Sara only
Rationale: Bob can claim Sara as a qualifying child for the earned income credit, but not Joan.
6. Who can claim Sara as a dependent?
a. Joan can claim Sara because she is Sara's mother.
b. Bob can claim Sara because he provides more than half of her support.
c. Neither Joan nor Bob can claim Sara.
d. Both Joan and Bob can claim Sara.
Answer: b. Bob can claim Sara because he provides more than half of her support.
Rationale: Bob meets the requirements to claim Sara as a dependent.
7. Will may claim R.J. as a dependent on his tax return.
a. True
b. False
Answer: a. True
Rationale: Will meets the requirements to claim R.J. as a dependent.
8. Is Will able to claim R.J. as a qualifying child for the earned income credit (EIC)?
a. Yes
b. No, because Will has an ITIN.
DETAILED ANSWERS (VERIFIED ANSWERS) |
ASSURED SUCCESS
1. Calvin has qualifying health insurance coverage (also known as minimum essential coverage) as
defined under the Affordable Care Act.
a. True
b. False
Answer: a. True
Rationale: Calvin has qualifying health insurance coverage under the Affordable Care Act.
2. Calvin and Betty may need to make a shared responsibility payment on their joint return if they
don't qualify for an exemption.
a. True
b. False
Answer: a. True
Rationale: If they lack minimum essential coverage and do not qualify for an exemption, they may owe a
shared responsibility payment.
3. Who can claim the American opportunity credit?
a. Dana can claim the credit because Tom is her dependent.
b. Tom can claim the credit for himself.
c. Neither Dana nor Tom can claim the credit.
d. Both Dana and Tom can claim the credit.
Answer: a. Dana can claim the credit because Tom is her dependent.
Rationale: Dana can claim the credit for Tom, her dependent.
4. Dana's most advantageous allowable filing status is:
a. Single
b. Head of Household
, c. Married Filing Separately
d. Married Filing Jointly
Answer: b. Head of Household
Rationale: Dana qualifies for Head of Household status because she has a dependent and meets the
requirements.
5. Who can Bob claim as a qualifying child(ren) for the earned income credit?
a. Sara only
b. Joan only
c. Both Sara and Joan
d. Neither Sara nor Joan
Answer: a. Sara only
Rationale: Bob can claim Sara as a qualifying child for the earned income credit, but not Joan.
6. Who can claim Sara as a dependent?
a. Joan can claim Sara because she is Sara's mother.
b. Bob can claim Sara because he provides more than half of her support.
c. Neither Joan nor Bob can claim Sara.
d. Both Joan and Bob can claim Sara.
Answer: b. Bob can claim Sara because he provides more than half of her support.
Rationale: Bob meets the requirements to claim Sara as a dependent.
7. Will may claim R.J. as a dependent on his tax return.
a. True
b. False
Answer: a. True
Rationale: Will meets the requirements to claim R.J. as a dependent.
8. Is Will able to claim R.J. as a qualifying child for the earned income credit (EIC)?
a. Yes
b. No, because Will has an ITIN.
