New York Enrolled Agent (EA) Exam
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1. Which of the following is not included in gross income for federal tax
purposes?
A. Wages
B. Interest from municipal bonds
C. Rental income
D. Dividends
B. Interest from municipal bonds
Municipal bond interest is generally exempt from federal income tax
and therefore not included in gross income.
2. Which filing status generally provides the lowest tax rates for a single
taxpayer with one qualifying dependent?
A. Single
B. Married Filing Jointly
C. Head of Household
D. Married Filing Separately
C. Head of Household
Head of Household status allows a higher standard deduction and
lower tax rates than Single filing, if the taxpayer maintains a household
for a qualifying dependent.
,3. Contributions to a traditional IRA are:
A. Always taxable
B. Deductible depending on income and participation in an employer
plan
C. Not deductible
D. Taxable only when withdrawn
B. Deductible depending on income and participation in an employer
plan
Deductibility of traditional IRA contributions phases out for taxpayers
covered by a retirement plan at work based on income.
4. Which of the following expenses is not deductible on Schedule A
(itemized deductions)?
A. Mortgage interest
B. Charitable contributions
C. Personal auto expenses
D. State income taxes
C. Personal auto expenses
Personal commuting or personal vehicle expenses are not deductible;
only certain business or medical vehicle expenses may qualify.
5. The standard deduction for a single taxpayer under 65 in 2025 is:
A. $12,950
B. $14,600
C. $13,850
D. $11,400
C. $13,850
The IRS adjusts the standard deduction annually for inflation; in 2025,
the single standard deduction is $13,850.
6. Self-employment tax primarily covers:
A. Federal income tax
B. Social Security and Medicare taxes
C. Unemployment insurance
D. State income tax
B. Social Security and Medicare taxes
, Self-employment tax is the combined employer and employee share of
Social Security and Medicare taxes for self-employed individuals.
7. Which of the following is a tax credit, not a deduction?
A. Charitable contribution
B. Child Tax Credit
C. Medical expenses
D. Mortgage interest
B. Child Tax Credit
Credits directly reduce tax liability dollar-for-dollar, while deductions
reduce taxable income.
8. A taxpayer must file Form 1040 if:
A. Gross income exceeds the standard deduction
B. Gross income exceeds $5,000
C. They have no income
D. They have only tax-exempt income
A. Gross income exceeds the standard deduction
IRS filing thresholds are based on gross income relative to standard
deduction amounts.
9. Alimony received under a divorce agreement executed in 2020 is:
A. Taxable to the recipient
B. Deductible by the payer
C. Not taxable or deductible
D. Taxable only if over $15,000
A. Taxable to the recipient
Divorce agreements executed after 2018 follow the TCJA rules: alimony
is not deductible by the payer nor taxable to the recipient. For
agreements before 2019, alimony is taxable.
10.Which of the following is an example of passive activity loss?
A. Wages from employment
B. Interest income from savings
C. Rental real estate loss
D. Capital gains from stock sales
C. Rental real estate loss
With Actual Questions & Verified
Answers,Plus Rationales/Expert
Verified For Guaranteed Pass Graded
A+/2026 /Latest Update/Instant
Download Pdf
1. Which of the following is not included in gross income for federal tax
purposes?
A. Wages
B. Interest from municipal bonds
C. Rental income
D. Dividends
B. Interest from municipal bonds
Municipal bond interest is generally exempt from federal income tax
and therefore not included in gross income.
2. Which filing status generally provides the lowest tax rates for a single
taxpayer with one qualifying dependent?
A. Single
B. Married Filing Jointly
C. Head of Household
D. Married Filing Separately
C. Head of Household
Head of Household status allows a higher standard deduction and
lower tax rates than Single filing, if the taxpayer maintains a household
for a qualifying dependent.
,3. Contributions to a traditional IRA are:
A. Always taxable
B. Deductible depending on income and participation in an employer
plan
C. Not deductible
D. Taxable only when withdrawn
B. Deductible depending on income and participation in an employer
plan
Deductibility of traditional IRA contributions phases out for taxpayers
covered by a retirement plan at work based on income.
4. Which of the following expenses is not deductible on Schedule A
(itemized deductions)?
A. Mortgage interest
B. Charitable contributions
C. Personal auto expenses
D. State income taxes
C. Personal auto expenses
Personal commuting or personal vehicle expenses are not deductible;
only certain business or medical vehicle expenses may qualify.
5. The standard deduction for a single taxpayer under 65 in 2025 is:
A. $12,950
B. $14,600
C. $13,850
D. $11,400
C. $13,850
The IRS adjusts the standard deduction annually for inflation; in 2025,
the single standard deduction is $13,850.
6. Self-employment tax primarily covers:
A. Federal income tax
B. Social Security and Medicare taxes
C. Unemployment insurance
D. State income tax
B. Social Security and Medicare taxes
, Self-employment tax is the combined employer and employee share of
Social Security and Medicare taxes for self-employed individuals.
7. Which of the following is a tax credit, not a deduction?
A. Charitable contribution
B. Child Tax Credit
C. Medical expenses
D. Mortgage interest
B. Child Tax Credit
Credits directly reduce tax liability dollar-for-dollar, while deductions
reduce taxable income.
8. A taxpayer must file Form 1040 if:
A. Gross income exceeds the standard deduction
B. Gross income exceeds $5,000
C. They have no income
D. They have only tax-exempt income
A. Gross income exceeds the standard deduction
IRS filing thresholds are based on gross income relative to standard
deduction amounts.
9. Alimony received under a divorce agreement executed in 2020 is:
A. Taxable to the recipient
B. Deductible by the payer
C. Not taxable or deductible
D. Taxable only if over $15,000
A. Taxable to the recipient
Divorce agreements executed after 2018 follow the TCJA rules: alimony
is not deductible by the payer nor taxable to the recipient. For
agreements before 2019, alimony is taxable.
10.Which of the following is an example of passive activity loss?
A. Wages from employment
B. Interest income from savings
C. Rental real estate loss
D. Capital gains from stock sales
C. Rental real estate loss
