EA Exam 1 IRS Questions and Answers
Two ftaxpayers fmarried fon fNovember f30. fThat fsame fyear, fthe fhusband fenrolled fin fan
faccredited fcollege fto ffurther fhis fcareer fand fsubsequently freceived fa fForm f1098-T,
fTuition fStatement. fThe fwife fwas femployed fwith fan fincome fof f$45,000 fand fpaid ffor
fthe fhusband's feducation fexpenses. fBased fon ftheir fcircumstances, fwhat fis fthe fcorrect
fmethod fto freport fthe feducation fcredit?
A) fTaxpayers fmust ffile fa fjoint freturn fto fclaim fan feducation fcredit
(B) fBased fon fthe fwife's fAGI, fthey fdo fnot fqualify fto fclaim fan feducation fcredit
(C) fHusband fis fineligible fto fclaim fan feducation fcredit fbecause fthe fwife fpaid fhis
feducation fexpenses
(D) fWife fshould freport fnonqualified feducation fexpenses fon fForm f8863, fEducation
fCredits f(American fOpportunity
and fLifetime fLearning fCredits) f- fCorrect fAnswers f-A
The ftaxpayer fhas fa fchild funder fthe fage fof f24 fwho fis fa ffull-time fstudent fin ftheir f2nd
fyear fof fcollege. fThe fstudent
will fbe fclaimed fas fa fdependent fon fthe ftaxpayer's freturn.
The fstudent's feducational fexpenses fincluded f$8,000 ffor ftuition fand f$4,000 ffor froom
fand fboard.
The fstudent freceived fa f$5,000 fscholarship ffor ftuition fuse fonly, fas fwell fas fan
fadditional f$2,500 fscholarship fto fpay fany fof fthe fstudent's fcollege fexpenses. fThe
ftaxpayer fpaid fthe fremaining f$4,500.
Which fof fthe ffollowing fstatements fis fcorrect, fbased fon fthe finformation fabove?
(A) fThe fstudent fcan fclaim fthe fAmerican fOpportunity fcredit fon ftheir freturn ffor ftuition
fexpenses fof f$3,000 fand fshould freport fthe fadditional f$2,500 fscholarship fas fincome
(B) fThe ftaxpayer fcan fclaim fthe fAmerican fOpportunity fcredit fon ftheir freturn ffor ftuition
fexpenses fof f$3,000, fand fthe fstudent fshould freport fthe fadditional f$2,500 fscholarship
fas fincome
, (C) fThe ftaxpayer fcan fclaim fthe fAmerican fO f- fCorrect fAnswers f-B
Which fof fthe ffollowing fstatements fis fcorrect fregarding fForm f1095-A, fHealth fInsurance
fMarketplace fStatement?
(A) fTaxpayers fdo fnot fneed fForm f1095-A fto fcomplete fForm f8962, fPremium fTax
fCredit, fto freconcile fadvance fpayments fof fthe fpremium ftax fcredit for fclaim fthe
fpremium ftax fcredit fon ftheir ftax freturn
(B) fTaxpayers fwill freceive fForm f1095-A fto fcomplete fForm f8962, fPremium fTax fCredit,
fif fthey fhave fbeen fcovered fby fan femployer finsurance fplan ffor fthe fentire fyear
(C) fTaxpayers fwill fuse fForm f1095-A fto fcomplete fForm f8962, fPremium fTax fCredit, fto
freconcile fadvance fpayments fof fthe fpremium ftax fcredit for fclaim fthe fpremium ftax
fcredit fon ftheir ftax freturn
(D) fTaxpayers fwill fattach fa fForm f1095-A fto ftheir ftax freturn fto freconcile fadvance
fpayments fof fthe fpremium ftax fcredit for fclaim fthe fpremium ftax fcredit fon ftheir freturn f-
fCorrect fAnswers f-C
Which fof fthe ffollowing fstatements fis fcorrect fregarding fForm f8995 fQualified fBusiness
fIncome f(QBI) fDeduction fSimplified fComputation?
(A) fC fcorporations fshould fcomplete fthe fForm f8995 fin forder fto fclaim fthe fQualified
fBusiness fIncome fDeduction fon ftheir fcorporate freturns
(B) fTaxpayers fwill freceive fthe fForm f8995 ffrom fthe fIRS, fif fthey fare fdetermined fto fbe
feligible ffor fthe fdeduction
(C) fA fsingle findividual fwith fQBI fwhose ftaxable fincome fbefore fthe fQBI fdeduction fis
fless fthan for fequal fto f$160,700 fshould fgenerally fuse fthe fform
(D) fA fpartnership fis frequired fto fattach fForm f8995 fto ftheir fpartnership ftax freturn fin
forder fto fclaim fthe fdeduction f- fCorrect fAnswers f-C
Which fof fthe ffollowing fsituations fwill fdisqualify fa fsingle findividual ffrom fclaiming fthe
fpremium ftax fcredit?
(A) fMarriage fto fan findividual fenrolled fin fa fqualified fhealth fplan
(B) fIncrease fin fhousehold fincome fto f390% fof fthe ffederal fpoverty fline
(C) fInheritance fof f$1,100,000 fnon-income fproducing fvacation fhome f
Two ftaxpayers fmarried fon fNovember f30. fThat fsame fyear, fthe fhusband fenrolled fin fan
faccredited fcollege fto ffurther fhis fcareer fand fsubsequently freceived fa fForm f1098-T,
fTuition fStatement. fThe fwife fwas femployed fwith fan fincome fof f$45,000 fand fpaid ffor
fthe fhusband's feducation fexpenses. fBased fon ftheir fcircumstances, fwhat fis fthe fcorrect
fmethod fto freport fthe feducation fcredit?
A) fTaxpayers fmust ffile fa fjoint freturn fto fclaim fan feducation fcredit
(B) fBased fon fthe fwife's fAGI, fthey fdo fnot fqualify fto fclaim fan feducation fcredit
(C) fHusband fis fineligible fto fclaim fan feducation fcredit fbecause fthe fwife fpaid fhis
feducation fexpenses
(D) fWife fshould freport fnonqualified feducation fexpenses fon fForm f8863, fEducation
fCredits f(American fOpportunity
and fLifetime fLearning fCredits) f- fCorrect fAnswers f-A
The ftaxpayer fhas fa fchild funder fthe fage fof f24 fwho fis fa ffull-time fstudent fin ftheir f2nd
fyear fof fcollege. fThe fstudent
will fbe fclaimed fas fa fdependent fon fthe ftaxpayer's freturn.
The fstudent's feducational fexpenses fincluded f$8,000 ffor ftuition fand f$4,000 ffor froom
fand fboard.
The fstudent freceived fa f$5,000 fscholarship ffor ftuition fuse fonly, fas fwell fas fan
fadditional f$2,500 fscholarship fto fpay fany fof fthe fstudent's fcollege fexpenses. fThe
ftaxpayer fpaid fthe fremaining f$4,500.
Which fof fthe ffollowing fstatements fis fcorrect, fbased fon fthe finformation fabove?
(A) fThe fstudent fcan fclaim fthe fAmerican fOpportunity fcredit fon ftheir freturn ffor ftuition
fexpenses fof f$3,000 fand fshould freport fthe fadditional f$2,500 fscholarship fas fincome
(B) fThe ftaxpayer fcan fclaim fthe fAmerican fOpportunity fcredit fon ftheir freturn ffor ftuition
fexpenses fof f$3,000, fand fthe fstudent fshould freport fthe fadditional f$2,500 fscholarship
fas fincome
, (C) fThe ftaxpayer fcan fclaim fthe fAmerican fO f- fCorrect fAnswers f-B
Which fof fthe ffollowing fstatements fis fcorrect fregarding fForm f1095-A, fHealth fInsurance
fMarketplace fStatement?
(A) fTaxpayers fdo fnot fneed fForm f1095-A fto fcomplete fForm f8962, fPremium fTax
fCredit, fto freconcile fadvance fpayments fof fthe fpremium ftax fcredit for fclaim fthe
fpremium ftax fcredit fon ftheir ftax freturn
(B) fTaxpayers fwill freceive fForm f1095-A fto fcomplete fForm f8962, fPremium fTax fCredit,
fif fthey fhave fbeen fcovered fby fan femployer finsurance fplan ffor fthe fentire fyear
(C) fTaxpayers fwill fuse fForm f1095-A fto fcomplete fForm f8962, fPremium fTax fCredit, fto
freconcile fadvance fpayments fof fthe fpremium ftax fcredit for fclaim fthe fpremium ftax
fcredit fon ftheir ftax freturn
(D) fTaxpayers fwill fattach fa fForm f1095-A fto ftheir ftax freturn fto freconcile fadvance
fpayments fof fthe fpremium ftax fcredit for fclaim fthe fpremium ftax fcredit fon ftheir freturn f-
fCorrect fAnswers f-C
Which fof fthe ffollowing fstatements fis fcorrect fregarding fForm f8995 fQualified fBusiness
fIncome f(QBI) fDeduction fSimplified fComputation?
(A) fC fcorporations fshould fcomplete fthe fForm f8995 fin forder fto fclaim fthe fQualified
fBusiness fIncome fDeduction fon ftheir fcorporate freturns
(B) fTaxpayers fwill freceive fthe fForm f8995 ffrom fthe fIRS, fif fthey fare fdetermined fto fbe
feligible ffor fthe fdeduction
(C) fA fsingle findividual fwith fQBI fwhose ftaxable fincome fbefore fthe fQBI fdeduction fis
fless fthan for fequal fto f$160,700 fshould fgenerally fuse fthe fform
(D) fA fpartnership fis frequired fto fattach fForm f8995 fto ftheir fpartnership ftax freturn fin
forder fto fclaim fthe fdeduction f- fCorrect fAnswers f-C
Which fof fthe ffollowing fsituations fwill fdisqualify fa fsingle findividual ffrom fclaiming fthe
fpremium ftax fcredit?
(A) fMarriage fto fan findividual fenrolled fin fa fqualified fhealth fplan
(B) fIncrease fin fhousehold fincome fto f390% fof fthe ffederal fpoverty fline
(C) fInheritance fof f$1,100,000 fnon-income fproducing fvacation fhome f
