VITA BASIC COURSE SCENARIOS EXAM
2025/2026 WITH 100% ACCURATE ANSWERS
1. If Mathew's income exceeds the threshold for the earned income credit,
what would be the impact on his ability to claim Mark and Kevin?
He could still claim them but would receive a reduced credit.
He would be eligible for a different type of tax credit.
He could claim them if he files jointly with another taxpayer.
He would not be able to claim them for the earned income credit.
2. Gambling winnings are:
Included in gross income
Included in income, but only the amount which is more than
gambling losses
Excluded from gross income unless $5,000 or more
Amounts used to offset gross income and recordable as credits
3. To meet the residency test to be considered a taxpayer's qualifying child for
earned income credit purposes, a child must have lived with the taxpayer in
the United States
for at least 3 months
for more than half the year
at the end of the calendar year
,for at least 5 months
, 4. If Jacob and Martha discover an additional $200 in refundable credits after
filing their tax return, how would this affect their total payments?
Their total payments would increase by $200.
Their total payments would decrease by $200.
Their total payments would increase by $400.
Their total payments would remain the same.
5. What percentage is the additional tax that Emily faces on her 401(k)
distribution?
15%
25%
10%
20%
6. Describe the significance of including all components such as federal
income tax withheld, prior year credits, and refundable credits in Jacob and
Martha's total payments.
Refundable credits are irrelevant to total payments.
Prior year credits do not impact the current year's tax return.
Only federal income tax withheld is necessary for calculating total
payments.
Including all components ensures an accurate calculation of total
payments, which affects the overall tax liability and potential
refund.
2025/2026 WITH 100% ACCURATE ANSWERS
1. If Mathew's income exceeds the threshold for the earned income credit,
what would be the impact on his ability to claim Mark and Kevin?
He could still claim them but would receive a reduced credit.
He would be eligible for a different type of tax credit.
He could claim them if he files jointly with another taxpayer.
He would not be able to claim them for the earned income credit.
2. Gambling winnings are:
Included in gross income
Included in income, but only the amount which is more than
gambling losses
Excluded from gross income unless $5,000 or more
Amounts used to offset gross income and recordable as credits
3. To meet the residency test to be considered a taxpayer's qualifying child for
earned income credit purposes, a child must have lived with the taxpayer in
the United States
for at least 3 months
for more than half the year
at the end of the calendar year
,for at least 5 months
, 4. If Jacob and Martha discover an additional $200 in refundable credits after
filing their tax return, how would this affect their total payments?
Their total payments would increase by $200.
Their total payments would decrease by $200.
Their total payments would increase by $400.
Their total payments would remain the same.
5. What percentage is the additional tax that Emily faces on her 401(k)
distribution?
15%
25%
10%
20%
6. Describe the significance of including all components such as federal
income tax withheld, prior year credits, and refundable credits in Jacob and
Martha's total payments.
Refundable credits are irrelevant to total payments.
Prior year credits do not impact the current year's tax return.
Only federal income tax withheld is necessary for calculating total
payments.
Including all components ensures an accurate calculation of total
payments, which affects the overall tax liability and potential
refund.
