VITA UCLA EXAM QUESTIONS WITH
ANSWERS.
, Form 1040 - ANSWERSummary document for entire tax return
Gross Income - ANSWERIncome in form of money, goods, property, services (not
exempt from tax)
Adjustments - ANSWERAmount that reduces gross income (AKA "above the line
deductions")
Adjusted Gross Income - ANSWERGross income minus adjustments
Deductions - ANSWERAmounts that lower AGI, which therefore reduces taxable
income. Itemized vs Standard deductions. VITA only files standard deductions
Taxable Income - ANSWERAmount taxed after AGI reduced by deductions
Tax Tables - ANSWERAnnually standardized table that determines the amount of tax
owed based on taxable income
True or False: Being in a higher tax bracket means that entire income is taxed at the
higher rate - ANSWERFalse
Only the amount of income that pushes you into the next tax bracket is taxed at the
higher rate, income below taxed at lower rates
Tax Liability - ANSWERTax that the taxpayer is responsible for paying. Calculated from
tax tables
Tax Credits - ANSWERReductions/Credits given to pay the taxpayer's tax liability under
certain eligibility criteria
Withholdings - ANSWERMoney taxpayer already paid to the IRS throughout the year by
having it deducted from paychecks
Individuals are required to file if: - ANSWER-They owe taxes
-Have self-employment income greater than $400
-Their gross income exceeds the filing requirement threshold
Recommended to file is they have withholding that can be refunded or qualify for refund
credits
What are the 5 general filing statuses - ANSWER-Single
-Married filing jointly
-Married filing separately
-Head of household
ANSWERS.
, Form 1040 - ANSWERSummary document for entire tax return
Gross Income - ANSWERIncome in form of money, goods, property, services (not
exempt from tax)
Adjustments - ANSWERAmount that reduces gross income (AKA "above the line
deductions")
Adjusted Gross Income - ANSWERGross income minus adjustments
Deductions - ANSWERAmounts that lower AGI, which therefore reduces taxable
income. Itemized vs Standard deductions. VITA only files standard deductions
Taxable Income - ANSWERAmount taxed after AGI reduced by deductions
Tax Tables - ANSWERAnnually standardized table that determines the amount of tax
owed based on taxable income
True or False: Being in a higher tax bracket means that entire income is taxed at the
higher rate - ANSWERFalse
Only the amount of income that pushes you into the next tax bracket is taxed at the
higher rate, income below taxed at lower rates
Tax Liability - ANSWERTax that the taxpayer is responsible for paying. Calculated from
tax tables
Tax Credits - ANSWERReductions/Credits given to pay the taxpayer's tax liability under
certain eligibility criteria
Withholdings - ANSWERMoney taxpayer already paid to the IRS throughout the year by
having it deducted from paychecks
Individuals are required to file if: - ANSWER-They owe taxes
-Have self-employment income greater than $400
-Their gross income exceeds the filing requirement threshold
Recommended to file is they have withholding that can be refunded or qualify for refund
credits
What are the 5 general filing statuses - ANSWER-Single
-Married filing jointly
-Married filing separately
-Head of household
