ENROLLED AGENT LATEST 2026 TEST PAPER QUESTIONS
AND ANSWERS GUARANTEE A+
✔✔Employers are required to keep records on employment taxes until at least _____
years after the due date of the return or payment of the tax. - ✔✔4 years
✔✔In determining if a taxpayer qualifies for head of household filing status, the married
taxpayer is considered unmarried if all the following requirements are met: - ✔✔The
taxpayer filed a separate return.
The taxpayer paid more than half the cost of keeping up the home for the tax year.
The taxpayer's spouse did not live in the home during the last 6 months of the tax year.
The home was, for more than half the year, the main home of the taxpayer's child,
stepchild, or adopted child whom the taxpayer or the noncustodial parent can properly
claim as a dependent.
The taxpayer must be able to claim the child as a dependent.
✔✔Household Maintenance - ✔✔Qualifying Expenditures - Property Taxes, Mortgage
Interest, Rent, Utilities, Upkeep, Repair, Property insurance, food consumed in-home
✔✔Additional Standard Deduction - ✔✔An individual who has attained the age of 65 or
is blind is entitled to the amount.
The individual is entitled to the amount if (s)he attains age 65 before the end of the tax
year
A person who becomes blind on or before the last day of the taxable year is entitled to
the amount.
✔✔Standard Deductions - ✔✔Married Filing Jointly - $25,100
Qualifying Widow(er) - 25,100
Head of Household - 18,800
Single (other than above) - 12,550
Married Filing Separately -12,550
✔✔John and Linda Smith are a childless married couple with no other dependents who
lived apart for all of the current year. On December 31 of the current year, they were
legally separated under a decree of separate maintenance. Based on the facts, which of
the following is the only filing-status choice available to them for the current year? -
✔✔Single.
,The determination of whether an individual is married is made as of the close of the
taxable year, so John and Linda are both single for the current year (Publication 17).
Couples under a separate maintenance agreement are not considered married.
✔✔Joe is 37 years old. His wife died during the tax year, and he has not remarried. His
deceased wife had no income. He has two minor children living with him. Joe paid all of
the costs for keeping up his home for the tax year, and he has paid for all of the support
of his wife and these children. The filing status with the lowest tax rate for which Joe
qualifies is - ✔✔Married filing jointly.
Publication 501 states, "If your spouse died during the year, you are considered married
for the whole year for filing status purposes. If you didn't remarry before the end of the
tax year, you can file a joint return for yourself and your deceased spouse. For the next
2 years, you may be entitled to the special benefits described later under Qualifying
Widow(er)" (Publication 17).
✔✔Which dependent relative does NOT have to live in the same household as the
taxpayer claiming head of household filing status? - ✔✔Mother / Father
Section 2(b) provides head of household status for an unmarried taxpayer who
maintains a household that constitutes the principal place of abode of the taxpayer's
father or mother, but only if the taxpayer is entitled to claim the parent as a dependent.
The taxpayer is considered as maintaining a household only if (s)he furnishes over half
of the cost of maintaining it. In the case of anyone other than the taxpayer's father or
mother, such person(s) must actually occupy the taxpayer's own household for the
taxpayer to be considered a head of household (Publication 17).
✔✔Mr. Todd, who is 43 years old, has lived apart from his wife since May 2021. For
2021, his two children, whom he can claim as dependents, lived with him the entire
year, and he paid the entire cost of maintaining the household. Assuming that Mr. Todd
cannot qualify to file a joint return for 2021, he must, nevertheless, file a return if his
gross income is at least - ✔✔$18,800
Generally, a taxpayer must file a tax return if the taxpayer's gross income equals or
exceeds his or her standard deduction [Sec. 6012(a)]. Standard deductions in 2021 are
$25,100 for married filing jointly, $18,800 for heads of household, and $12,550 for single
individuals (Publication 501). A taxpayer who has two children and files as head of
household must file a return if his or her gross income equals or exceeds $18,800.
✔✔Ms. Maple, a single woman age 65, retired in 2021. Prior to her retirement, she
received a $6,000 bonus plus $5,250 in wages. After her retirement, she received
$9,000 in Social Security benefits. Which of the following is true? - ✔✔Ms. Maple does
not have to file a 2021 income tax return.
,In general, a taxpayer does not have to file a return if his or her gross income is less
than his or her standard deduction [Publication 501 and Sec. 6012(a)]. For single
individuals who are 65 or over, the standard deduction increases by $1,700. Therefore,
the filing threshold will be $14,250 ($12,550 basic standard deduction + $1,700
additional standard deduction). Ms. Maple's income does not qualify her Social Security
benefits for gross income inclusion in determining her filing requirement.
✔✔To be a qualifying child, four tests must be met: - ✔✔Relationship - The child must
be the taxpayer's son, daughter, stepson, stepdaughter, brother, sister, stepbrother,
stepsister, or any descendant of any such relative. Adopted individuals and eligible
foster children meet the relationship test.NOTE: An adopted child is always treated as
the taxpayer's own child; i.e., the term "child" includes "adopted child."
Age - The child must be (a) under the age of 19 at the end of the year, (b) a full-time
student under the age of 24 at the end of the year, or (c) any age if permanently and
totally disabled. Full-time student status requires 5 months of enrollment or registration
at a school or in an on-farm training course.
Principal Residence - The child must have the same principal place of abode as the
taxpayer for more than half of the year.
Not Self-Supporting - The child must not have provided over half of his or her own
support.
✔✔To be a qualifying relative, the following tests [1.-4.] must be met: - ✔✔1.
Relationship or residence. An individual must satisfy either a relationship or a residence
requirement to qualify as a dependent.
2. Gross income of the individual (to be claimed as a dependent) must be less than
$4,300 for 2021.
3. Support. The person who may claim an individual as a dependent must provide more
than 50% of the (economic) support of the individual for the year.
4. The individual must not be a qualifying child of the taxpayer or any other taxpayer.
✔✔John and Joanne are the sole support of the following individuals, all U.S. citizens,
none of whom lives with them. None of these individuals files a joint return or has any
gross income.
Jennie, John's mother
Julie, Joanne's stepmother
Jonathan, father of John's first wife
How many dependents may John and Joanne claim on their joint return? - ✔✔Three
, --- To qualify for dependency, the taxpayer must provide over 50% of the support of a
U.S. citizen who meets certain relationship tests stated in Sec. 152(a). Section 152
allows dependency for fathers, mothers, stepfathers, and stepmothers. Relationships
established by marriage are not ended by death or divorce (Publication 501). Thus,
each of the individuals listed qualifies under the relationship test of Sec. 152.
✔✔When can a dependent child's income be taxed at his or her parent's marginal rate?
- ✔✔When a dependent child has unearned income and is under age 19 with at least
one living parent.
Net unearned income of a child is taxed at the parent's marginal rate. A child is a person
who (1) is under the age of 18 at the end of the tax year, (2) has turned 18 before the
close of the tax year and has earned income that does not exceed more than half of his
or her own support, or (3) is under the age of 24 at the end of the tax year and a full-
time student with earned income that does not exceed more than half of his or her own
support. The dependent child must have at least one living parent. An individual
providing over half of their own support is not a dependent.
✔✔Substantial Presence Test - ✔✔A taxpayer is considered a U.S. resident if (s)he was
physically present in the United States for at least
a. 31 days during 2021 and
b. 183 days during 2021, 2020, and 2019, counting all days of physical presence in
2021 but only 1/3 the number of days of presence in 2020 and only 1/6 the number of
days in 2019.
✔✔Jean Blanc, a citizen and resident of Canada, is a professional hockey player with a
U.S. hockey club. Under Jean's contract, he received $68,500 for 165 days of play
during the current year. Of the 165 days, 132 days were spent performing services in
the United States and 33 playing hockey in Canada. What is the amount to be included
in Jean's gross income on his Form 1040-NR? - ✔✔$54,800
A nonresident alien must include in U.S. gross income that income from U.S. sources
effectively connected with the conduct of a trade or business in the United States (Sec.
871). Under Sec. 864, the performance of personal services in the U.S. constitutes a
trade or business in the United States. If income is derived therefrom, it is considered to
be from a U.S. source (Publication 17). According to the IRS and the courts, services of
a professional hockey player are allocable to U.S. and non-U.S. time periods during the
preseason training camp, the regular season, and post-season playoffs, but not the off-
season. Therefore, Jean must include the portion of his income that is attributable to the
performance of personal services in the U.S., i.e., 80% (132 ÷ 165 days). Eighty percent
of $68,500 is $54,800, which must be reported as U.S. income.
✔✔Jim Planter, who reached age 65 on January 1 of the current year, filed a joint return
for the year with his wife, Rita, age 50. Mary, their 21-year-old daughter, was a full-time
student at a college until her graduation on June 2 of the current year. The daughter
AND ANSWERS GUARANTEE A+
✔✔Employers are required to keep records on employment taxes until at least _____
years after the due date of the return or payment of the tax. - ✔✔4 years
✔✔In determining if a taxpayer qualifies for head of household filing status, the married
taxpayer is considered unmarried if all the following requirements are met: - ✔✔The
taxpayer filed a separate return.
The taxpayer paid more than half the cost of keeping up the home for the tax year.
The taxpayer's spouse did not live in the home during the last 6 months of the tax year.
The home was, for more than half the year, the main home of the taxpayer's child,
stepchild, or adopted child whom the taxpayer or the noncustodial parent can properly
claim as a dependent.
The taxpayer must be able to claim the child as a dependent.
✔✔Household Maintenance - ✔✔Qualifying Expenditures - Property Taxes, Mortgage
Interest, Rent, Utilities, Upkeep, Repair, Property insurance, food consumed in-home
✔✔Additional Standard Deduction - ✔✔An individual who has attained the age of 65 or
is blind is entitled to the amount.
The individual is entitled to the amount if (s)he attains age 65 before the end of the tax
year
A person who becomes blind on or before the last day of the taxable year is entitled to
the amount.
✔✔Standard Deductions - ✔✔Married Filing Jointly - $25,100
Qualifying Widow(er) - 25,100
Head of Household - 18,800
Single (other than above) - 12,550
Married Filing Separately -12,550
✔✔John and Linda Smith are a childless married couple with no other dependents who
lived apart for all of the current year. On December 31 of the current year, they were
legally separated under a decree of separate maintenance. Based on the facts, which of
the following is the only filing-status choice available to them for the current year? -
✔✔Single.
,The determination of whether an individual is married is made as of the close of the
taxable year, so John and Linda are both single for the current year (Publication 17).
Couples under a separate maintenance agreement are not considered married.
✔✔Joe is 37 years old. His wife died during the tax year, and he has not remarried. His
deceased wife had no income. He has two minor children living with him. Joe paid all of
the costs for keeping up his home for the tax year, and he has paid for all of the support
of his wife and these children. The filing status with the lowest tax rate for which Joe
qualifies is - ✔✔Married filing jointly.
Publication 501 states, "If your spouse died during the year, you are considered married
for the whole year for filing status purposes. If you didn't remarry before the end of the
tax year, you can file a joint return for yourself and your deceased spouse. For the next
2 years, you may be entitled to the special benefits described later under Qualifying
Widow(er)" (Publication 17).
✔✔Which dependent relative does NOT have to live in the same household as the
taxpayer claiming head of household filing status? - ✔✔Mother / Father
Section 2(b) provides head of household status for an unmarried taxpayer who
maintains a household that constitutes the principal place of abode of the taxpayer's
father or mother, but only if the taxpayer is entitled to claim the parent as a dependent.
The taxpayer is considered as maintaining a household only if (s)he furnishes over half
of the cost of maintaining it. In the case of anyone other than the taxpayer's father or
mother, such person(s) must actually occupy the taxpayer's own household for the
taxpayer to be considered a head of household (Publication 17).
✔✔Mr. Todd, who is 43 years old, has lived apart from his wife since May 2021. For
2021, his two children, whom he can claim as dependents, lived with him the entire
year, and he paid the entire cost of maintaining the household. Assuming that Mr. Todd
cannot qualify to file a joint return for 2021, he must, nevertheless, file a return if his
gross income is at least - ✔✔$18,800
Generally, a taxpayer must file a tax return if the taxpayer's gross income equals or
exceeds his or her standard deduction [Sec. 6012(a)]. Standard deductions in 2021 are
$25,100 for married filing jointly, $18,800 for heads of household, and $12,550 for single
individuals (Publication 501). A taxpayer who has two children and files as head of
household must file a return if his or her gross income equals or exceeds $18,800.
✔✔Ms. Maple, a single woman age 65, retired in 2021. Prior to her retirement, she
received a $6,000 bonus plus $5,250 in wages. After her retirement, she received
$9,000 in Social Security benefits. Which of the following is true? - ✔✔Ms. Maple does
not have to file a 2021 income tax return.
,In general, a taxpayer does not have to file a return if his or her gross income is less
than his or her standard deduction [Publication 501 and Sec. 6012(a)]. For single
individuals who are 65 or over, the standard deduction increases by $1,700. Therefore,
the filing threshold will be $14,250 ($12,550 basic standard deduction + $1,700
additional standard deduction). Ms. Maple's income does not qualify her Social Security
benefits for gross income inclusion in determining her filing requirement.
✔✔To be a qualifying child, four tests must be met: - ✔✔Relationship - The child must
be the taxpayer's son, daughter, stepson, stepdaughter, brother, sister, stepbrother,
stepsister, or any descendant of any such relative. Adopted individuals and eligible
foster children meet the relationship test.NOTE: An adopted child is always treated as
the taxpayer's own child; i.e., the term "child" includes "adopted child."
Age - The child must be (a) under the age of 19 at the end of the year, (b) a full-time
student under the age of 24 at the end of the year, or (c) any age if permanently and
totally disabled. Full-time student status requires 5 months of enrollment or registration
at a school or in an on-farm training course.
Principal Residence - The child must have the same principal place of abode as the
taxpayer for more than half of the year.
Not Self-Supporting - The child must not have provided over half of his or her own
support.
✔✔To be a qualifying relative, the following tests [1.-4.] must be met: - ✔✔1.
Relationship or residence. An individual must satisfy either a relationship or a residence
requirement to qualify as a dependent.
2. Gross income of the individual (to be claimed as a dependent) must be less than
$4,300 for 2021.
3. Support. The person who may claim an individual as a dependent must provide more
than 50% of the (economic) support of the individual for the year.
4. The individual must not be a qualifying child of the taxpayer or any other taxpayer.
✔✔John and Joanne are the sole support of the following individuals, all U.S. citizens,
none of whom lives with them. None of these individuals files a joint return or has any
gross income.
Jennie, John's mother
Julie, Joanne's stepmother
Jonathan, father of John's first wife
How many dependents may John and Joanne claim on their joint return? - ✔✔Three
, --- To qualify for dependency, the taxpayer must provide over 50% of the support of a
U.S. citizen who meets certain relationship tests stated in Sec. 152(a). Section 152
allows dependency for fathers, mothers, stepfathers, and stepmothers. Relationships
established by marriage are not ended by death or divorce (Publication 501). Thus,
each of the individuals listed qualifies under the relationship test of Sec. 152.
✔✔When can a dependent child's income be taxed at his or her parent's marginal rate?
- ✔✔When a dependent child has unearned income and is under age 19 with at least
one living parent.
Net unearned income of a child is taxed at the parent's marginal rate. A child is a person
who (1) is under the age of 18 at the end of the tax year, (2) has turned 18 before the
close of the tax year and has earned income that does not exceed more than half of his
or her own support, or (3) is under the age of 24 at the end of the tax year and a full-
time student with earned income that does not exceed more than half of his or her own
support. The dependent child must have at least one living parent. An individual
providing over half of their own support is not a dependent.
✔✔Substantial Presence Test - ✔✔A taxpayer is considered a U.S. resident if (s)he was
physically present in the United States for at least
a. 31 days during 2021 and
b. 183 days during 2021, 2020, and 2019, counting all days of physical presence in
2021 but only 1/3 the number of days of presence in 2020 and only 1/6 the number of
days in 2019.
✔✔Jean Blanc, a citizen and resident of Canada, is a professional hockey player with a
U.S. hockey club. Under Jean's contract, he received $68,500 for 165 days of play
during the current year. Of the 165 days, 132 days were spent performing services in
the United States and 33 playing hockey in Canada. What is the amount to be included
in Jean's gross income on his Form 1040-NR? - ✔✔$54,800
A nonresident alien must include in U.S. gross income that income from U.S. sources
effectively connected with the conduct of a trade or business in the United States (Sec.
871). Under Sec. 864, the performance of personal services in the U.S. constitutes a
trade or business in the United States. If income is derived therefrom, it is considered to
be from a U.S. source (Publication 17). According to the IRS and the courts, services of
a professional hockey player are allocable to U.S. and non-U.S. time periods during the
preseason training camp, the regular season, and post-season playoffs, but not the off-
season. Therefore, Jean must include the portion of his income that is attributable to the
performance of personal services in the U.S., i.e., 80% (132 ÷ 165 days). Eighty percent
of $68,500 is $54,800, which must be reported as U.S. income.
✔✔Jim Planter, who reached age 65 on January 1 of the current year, filed a joint return
for the year with his wife, Rita, age 50. Mary, their 21-year-old daughter, was a full-time
student at a college until her graduation on June 2 of the current year. The daughter
