IRS VITA/TCE ADVANCED CERTIFICATION EXAM | 25+
ACTUAL QUESTIONS & DETAILED CORRECT ANSWERS |
COMPLETE GUIDE | GRADED A+
1. Maximum For- Increased to $101,300
eign Income Ex-
clusion (Changes
to 2016)
2. Maximum For- Increased to $44.28 per day
eign Housing Ex-
clusion (Changes
to 2016)
3. Modified Adjust- *Max IRA Deduction remains at $5,500, ($6500 if age 50 older)
ed Gross (AGI)
Limit (IRAs and ** If a taxpayer is covered by a retirement plan at work, the deduction for contri-
Other Retirement butions to a traditional IRA is reduced (phased out) if the modified AGI is:
Plans)
**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
4. Revenue Pro- Explains a self-certification procedure designed to help recipients of retirement
cedure 2016-47 plan distributions who inadvertently miss the 60-day time limit for properly rolling
(Changes to 2016 these amounts into another retirement plan or individual retirement arrangement
NEW IRA Self-Cer- (IRA). Eligible taxpayers can qualify for a waiver of the 60-day time limit and
tification Proce- avoid possible taxes and penalties on early distributions, if they meet certain
dure) 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:
, IRS VITA/TCE ADVANCED CERTIFICATION EXAM | 25+
ACTUAL QUESTIONS & DETAILED CORRECT ANSWERS |
COMPLETE GUIDE | GRADED A+
**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 taxpay-
er 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 receiv-
ing plan or IRA required to complete the rollover despite reasonable ettorts to
obtain the information.
5. Standard & Item- The standard deduction for taxpayers who do not itemize deductions on Form
ized Deductions 1040, Schedule A, has increased. The standard deduction amounts for 2016 are:
(Changes to **Married Filing Jointly or Qualifying Widow(er) - $12,600 (no change)
2016) **Head of Household - $9,300 (increase of $50)*******
**Single or Married Filing Separately - $6,300 (no change)
Taxpayers who are 65 and Older or are Blind
For 2016, the additional standard deduction for taxpayers who are 65 and older
or blind is:
**Single or Head of Household - $1,550 (no change)
**Married taxpayers or Qualifying Widow(er) - $1,250 (no change)
ACTUAL QUESTIONS & DETAILED CORRECT ANSWERS |
COMPLETE GUIDE | GRADED A+
1. Maximum For- Increased to $101,300
eign Income Ex-
clusion (Changes
to 2016)
2. Maximum For- Increased to $44.28 per day
eign Housing Ex-
clusion (Changes
to 2016)
3. Modified Adjust- *Max IRA Deduction remains at $5,500, ($6500 if age 50 older)
ed Gross (AGI)
Limit (IRAs and ** If a taxpayer is covered by a retirement plan at work, the deduction for contri-
Other Retirement butions to a traditional IRA is reduced (phased out) if the modified AGI is:
Plans)
**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
4. Revenue Pro- Explains a self-certification procedure designed to help recipients of retirement
cedure 2016-47 plan distributions who inadvertently miss the 60-day time limit for properly rolling
(Changes to 2016 these amounts into another retirement plan or individual retirement arrangement
NEW IRA Self-Cer- (IRA). Eligible taxpayers can qualify for a waiver of the 60-day time limit and
tification Proce- avoid possible taxes and penalties on early distributions, if they meet certain
dure) 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:
, IRS VITA/TCE ADVANCED CERTIFICATION EXAM | 25+
ACTUAL QUESTIONS & DETAILED CORRECT ANSWERS |
COMPLETE GUIDE | GRADED A+
**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 taxpay-
er 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 receiv-
ing plan or IRA required to complete the rollover despite reasonable ettorts to
obtain the information.
5. Standard & Item- The standard deduction for taxpayers who do not itemize deductions on Form
ized Deductions 1040, Schedule A, has increased. The standard deduction amounts for 2016 are:
(Changes to **Married Filing Jointly or Qualifying Widow(er) - $12,600 (no change)
2016) **Head of Household - $9,300 (increase of $50)*******
**Single or Married Filing Separately - $6,300 (no change)
Taxpayers who are 65 and Older or are Blind
For 2016, the additional standard deduction for taxpayers who are 65 and older
or blind is:
**Single or Head of Household - $1,550 (no change)
**Married taxpayers or Qualifying Widow(er) - $1,250 (no change)
