VITA BASIC FEDERAL INCOME TAX EXAM 2025 |100 QUESTIONS
WITH ACCURATE SOLUTIONS
1. A qualifying child cannot include:
An adopted child who is 24 years old and a full-time student.
A brother who is 28 years of age and
disabled. A married son who files a joint
return.
A daughter who is away at college.
2. Describe the purpose of Form 8888 in the context of tax
refunds. Form 8888 is used to apply for an extension of
time to file. Form 8888 is used to claim education credits on
tax returns. Form 8888 is used to report income from self-
employment.
Form 8888 is used to direct a tax refund to multiple accounts
or to purchase U.S. savings bonds.
3. Taxpayers who are 65 or older get the benefit of:
An additional amount added to their itemized deductions.
None of these choices are correct.
An additional amount added to their standard deduction.
An additional exemption.
4. Describe the criteria that determine who can be considered a qualifying
person for Head of Household status.
A qualifying person must be a spouse who files jointly with the
,taxpayer.
A qualifying person must be a dependent relative or child who
lives with the taxpayer for more than half the year.
, A qualifying person must be anyone who provides financial
support to the taxpayer.
A qualifying person must be a friend or roommate who shares
living expenses.
5. Can John and Marsha both claim the earned income credit for the same
qualifying child on their tax returns?
No
Only if they are
married Only if they
file jointly Yes
6. Mack and Judy have valid ITINs. They have two children, both of whom
have valid SSNs. Assuming they meet the income requirements, can Mach
and Judy claim the EIC?
Their children can claim the EIC, but only they file separate
returns.
The can claim the EIC for their children, but not for themselves.
They cannot claim the EIC, regardless of whether their children
have valid SSNs.
They can claim the EIC for themselves and their children.
7. Describe the significance of filing status when preparing a federal
income tax return.
Filing status only affects the amount of tax owed without
influencing deductions.
Filing status is irrelevant to tax benefits and only serves as a
formality.
Filing status is only important for married individuals.
, Filing status determines the tax rates and eligibility for certain
deductions and credits.
8. Describe the criteria that determine whether a child qualifies for the
earned income credit based on Bob's situation.
A child qualifies if they are claimed as a dependent on any tax
return.
A child qualifies if they live with the taxpayer for more than half
the year.
A child qualifies for the earned income credit if they meet
specific age, relationship, residency, and support
requirements.
A child qualifies if they are a full-time student regardless of age.
9. Describe the criteria that must be met for a child to be considered a
qualifying child for tax benefits.
A qualifying child must be a full-time student regardless of age.
A qualifying child must meet relationship, age, residency, and
support requirements.
A qualifying child must be under 18 years old and live with the
taxpayer.
A qualifying child must be financially independent and not live
with the taxpayer.
10. If Gordon wants to split his tax refund between his savings account and
a new investment account, which form should he complete and submit
with his tax return?
Form 4868
Form 8888
Form 8862
Form 1040
WITH ACCURATE SOLUTIONS
1. A qualifying child cannot include:
An adopted child who is 24 years old and a full-time student.
A brother who is 28 years of age and
disabled. A married son who files a joint
return.
A daughter who is away at college.
2. Describe the purpose of Form 8888 in the context of tax
refunds. Form 8888 is used to apply for an extension of
time to file. Form 8888 is used to claim education credits on
tax returns. Form 8888 is used to report income from self-
employment.
Form 8888 is used to direct a tax refund to multiple accounts
or to purchase U.S. savings bonds.
3. Taxpayers who are 65 or older get the benefit of:
An additional amount added to their itemized deductions.
None of these choices are correct.
An additional amount added to their standard deduction.
An additional exemption.
4. Describe the criteria that determine who can be considered a qualifying
person for Head of Household status.
A qualifying person must be a spouse who files jointly with the
,taxpayer.
A qualifying person must be a dependent relative or child who
lives with the taxpayer for more than half the year.
, A qualifying person must be anyone who provides financial
support to the taxpayer.
A qualifying person must be a friend or roommate who shares
living expenses.
5. Can John and Marsha both claim the earned income credit for the same
qualifying child on their tax returns?
No
Only if they are
married Only if they
file jointly Yes
6. Mack and Judy have valid ITINs. They have two children, both of whom
have valid SSNs. Assuming they meet the income requirements, can Mach
and Judy claim the EIC?
Their children can claim the EIC, but only they file separate
returns.
The can claim the EIC for their children, but not for themselves.
They cannot claim the EIC, regardless of whether their children
have valid SSNs.
They can claim the EIC for themselves and their children.
7. Describe the significance of filing status when preparing a federal
income tax return.
Filing status only affects the amount of tax owed without
influencing deductions.
Filing status is irrelevant to tax benefits and only serves as a
formality.
Filing status is only important for married individuals.
, Filing status determines the tax rates and eligibility for certain
deductions and credits.
8. Describe the criteria that determine whether a child qualifies for the
earned income credit based on Bob's situation.
A child qualifies if they are claimed as a dependent on any tax
return.
A child qualifies if they live with the taxpayer for more than half
the year.
A child qualifies for the earned income credit if they meet
specific age, relationship, residency, and support
requirements.
A child qualifies if they are a full-time student regardless of age.
9. Describe the criteria that must be met for a child to be considered a
qualifying child for tax benefits.
A qualifying child must be a full-time student regardless of age.
A qualifying child must meet relationship, age, residency, and
support requirements.
A qualifying child must be under 18 years old and live with the
taxpayer.
A qualifying child must be financially independent and not live
with the taxpayer.
10. If Gordon wants to split his tax refund between his savings account and
a new investment account, which form should he complete and submit
with his tax return?
Form 4868
Form 8888
Form 8862
Form 1040
