ENROLLED AGENT EXAMS EVALUATION QUESTIONS AND
ANSWERS GUARANTEE A+
✔✔Estimated Tax Payments - ✔✔1. Owe at least $1,000
2. Due dates: 4/15, 6/15, 9/15, 1/15 (farmers/fishermen 01/15 or file and pay by 03/01)
3. Exempt if you end up withholding or paying 90% of the tax due (66 2/3% for farmers
or fishermen),
or 100% of the tax owed last year (110% if AGI >$150,000 / $75,000 MFS).
4. File and pay by 01/3, without EST for 01/15
✔✔Penalties - ✔✔Failure to file = 5% per month up to max of 25% (5 mos)
Failure to pay = 0.5% per month after Failure to file max
✔✔Figuring whether Social Security Benefits are taxable? - ✔✔Take 1/2 of SS/RR
benefits plus all other income (incl. tax exempt interest).
If > $25,000 ($32,000 MFJ, $0 MFS) then 1/2 of the excess is taxable income.
✔✔Tax Formula - ✔✔Gross Income
-Deductions for AGI (Adjustments to income)
=AGI
-Deductions from AGI (Standard or Itemized)
-Exemptions
=Taxable Income
Tax
-Non-refundable tax credits
+Other taxes
-Refundable tax credits
=Refund or Balance Due
✔✔Personal & Dependent Exemptions - ✔✔$4,000 each for yourself, spouse and
dependents (2015)
Phases out based on MAGI & filing status
✔✔Standard Deduction - ✔✔$12,600 MFJ, QW / $9,250 HH / $6,300 S, MFS (2015)
✔✔Higher Standard Deduction for Blindness - ✔✔1. You can't see better than 20/200 in
the better eye with glasses or contact lenses, or
2. your field of vision is 20 degrees or less.
✔✔Standard Deduction for Dependents
(an individual who can be claimed as a dependent on another person's tax return) -
✔✔Limited to the GREATER of $1,050, or
earned income + $350
but not more than $6,300 (2015)
, ✔✔Employer Fringe Benefits not included in taxable income: - ✔✔1. Health and
accident coverage
2. Group Term Life Insurance up to $50,000
3. Long Term Care premium employer payments
4. Educational Assistance up to $5,250
5. Dependent Care Benefits (DCB) up to $5,000
6. Parking up to $250/month
7. Commuter Hwy Vehicle up to $250
8. Transit Passes up to $250/month
9. Bicycle Commuting up to $20/month
✔✔Deductions for AGI (Adj to income) - ✔✔1. Contributions to IRAs
2. SE tax (deductible portion)
3. Alimony Paid
4. Educator Expense Deduction up to $250
5. Student Loan Interest Deduction up to $2,500
6. Tuition and Fees Deduction up to $4,000
7. Moving Expenses (related to work)
✔✔Moving Expense requirements: - ✔✔1. Relocating due to work, business or new job
(within 1 yr).
2. New job at least 50 miles farther from your old home than prior job.
3. Will work FT for at least 39 weeks first year (SE = 78 weeks for first 2 yrs).
✔✔Moving Expense Mileage - ✔✔1. Either actual expenses (less meals) or 23
cents/mile.
2. Also parking fees and tolls with either method.
Filed on Form 3903 - Moving Expenses
✔✔Tuition and Fees Deduction - ✔✔1. Deduction for tuition, fees and books
2. MAGI phase-out:
Maximum deduction of $4,000 for MAGI < $130,000 / $65,000
Mid-range deduction of $2,000 for MAGI $130,000 - $160,000 / $65,000 - $80,000
✔✔Flexible Spending Arrangement (FSA)
(Not reported on 1040) - ✔✔-Contributions by salary reduction agreement.
-Changes only if change in employment or family.
-Employer may also contribute.
-Leftover amounts forfeited at end of year.
-Able to withdraw funds for qualified medical expenses even if you have not yet placed
the funds in the account.
✔✔Health Reimbursement Arrangements (HRAs)
(Not reported on 1040) - ✔✔-Must be funded solely by an employer.
ANSWERS GUARANTEE A+
✔✔Estimated Tax Payments - ✔✔1. Owe at least $1,000
2. Due dates: 4/15, 6/15, 9/15, 1/15 (farmers/fishermen 01/15 or file and pay by 03/01)
3. Exempt if you end up withholding or paying 90% of the tax due (66 2/3% for farmers
or fishermen),
or 100% of the tax owed last year (110% if AGI >$150,000 / $75,000 MFS).
4. File and pay by 01/3, without EST for 01/15
✔✔Penalties - ✔✔Failure to file = 5% per month up to max of 25% (5 mos)
Failure to pay = 0.5% per month after Failure to file max
✔✔Figuring whether Social Security Benefits are taxable? - ✔✔Take 1/2 of SS/RR
benefits plus all other income (incl. tax exempt interest).
If > $25,000 ($32,000 MFJ, $0 MFS) then 1/2 of the excess is taxable income.
✔✔Tax Formula - ✔✔Gross Income
-Deductions for AGI (Adjustments to income)
=AGI
-Deductions from AGI (Standard or Itemized)
-Exemptions
=Taxable Income
Tax
-Non-refundable tax credits
+Other taxes
-Refundable tax credits
=Refund or Balance Due
✔✔Personal & Dependent Exemptions - ✔✔$4,000 each for yourself, spouse and
dependents (2015)
Phases out based on MAGI & filing status
✔✔Standard Deduction - ✔✔$12,600 MFJ, QW / $9,250 HH / $6,300 S, MFS (2015)
✔✔Higher Standard Deduction for Blindness - ✔✔1. You can't see better than 20/200 in
the better eye with glasses or contact lenses, or
2. your field of vision is 20 degrees or less.
✔✔Standard Deduction for Dependents
(an individual who can be claimed as a dependent on another person's tax return) -
✔✔Limited to the GREATER of $1,050, or
earned income + $350
but not more than $6,300 (2015)
, ✔✔Employer Fringe Benefits not included in taxable income: - ✔✔1. Health and
accident coverage
2. Group Term Life Insurance up to $50,000
3. Long Term Care premium employer payments
4. Educational Assistance up to $5,250
5. Dependent Care Benefits (DCB) up to $5,000
6. Parking up to $250/month
7. Commuter Hwy Vehicle up to $250
8. Transit Passes up to $250/month
9. Bicycle Commuting up to $20/month
✔✔Deductions for AGI (Adj to income) - ✔✔1. Contributions to IRAs
2. SE tax (deductible portion)
3. Alimony Paid
4. Educator Expense Deduction up to $250
5. Student Loan Interest Deduction up to $2,500
6. Tuition and Fees Deduction up to $4,000
7. Moving Expenses (related to work)
✔✔Moving Expense requirements: - ✔✔1. Relocating due to work, business or new job
(within 1 yr).
2. New job at least 50 miles farther from your old home than prior job.
3. Will work FT for at least 39 weeks first year (SE = 78 weeks for first 2 yrs).
✔✔Moving Expense Mileage - ✔✔1. Either actual expenses (less meals) or 23
cents/mile.
2. Also parking fees and tolls with either method.
Filed on Form 3903 - Moving Expenses
✔✔Tuition and Fees Deduction - ✔✔1. Deduction for tuition, fees and books
2. MAGI phase-out:
Maximum deduction of $4,000 for MAGI < $130,000 / $65,000
Mid-range deduction of $2,000 for MAGI $130,000 - $160,000 / $65,000 - $80,000
✔✔Flexible Spending Arrangement (FSA)
(Not reported on 1040) - ✔✔-Contributions by salary reduction agreement.
-Changes only if change in employment or family.
-Employer may also contribute.
-Leftover amounts forfeited at end of year.
-Able to withdraw funds for qualified medical expenses even if you have not yet placed
the funds in the account.
✔✔Health Reimbursement Arrangements (HRAs)
(Not reported on 1040) - ✔✔-Must be funded solely by an employer.
