REG CPA Exam Questions with 100%
Correct Answers | Latest Update
Qualified Higher Education Expense - ✔✔up to $4,000 of tuition and fees
for enrollment may be deducted by taxpayers with AGI up to $65,000
1040 Adjustments - ✔✔I EMBRACED Education, Health, and Farm
Interest on student loan
Employment tax
Business expense
Rent/Royalty
Alimony paid
Contributions to retirement
Early withdrawal penalty
Jury duty pay
Education expense
Health savings account
Farm income
,Federal and state income tax refunds - ✔✔excluded from a taxpayer's
taxable income to the extent that the refund did not reduce the amount of
tax for the earlier year
interest earned is considered taxable
Itemized Deductions - ✔✔COMMITT
Charitable contributions
Other miscellaneous
Miscellaneous expenses - 2%
Medical expenses - 10%
Interest
Taxes
Theft or casualty 10% - $100
When must an individual file a tax return? - ✔✔if their income is greater
than the sum of their personal exemption plus their standard deduction
Kiddie tax - ✔✔child's unearned income ($2,100) about the thresholds is
subject to tax at the parents higher rate
Social security benefits - ✔✔up to 85% of benefits may be taxable
, if less than $25,000 provisional income - the person can exclude all SS
income
provisional income exceeding $60,000 - maximum of 85% inclusion
Net operating losses for an individual - ✔✔Carryback 2 years carry forward
20 years
student loan interest for higher education - ✔✔$2,500 phase out applies
Self employment tax - ✔✔50% of tax is deductible on return
100% of medical insurance premiums paid for self an family are deductible
Moving expenses - 1040 - ✔✔must work at least 39 weeks (9 months)
direct costs of moving you and stuff
Hobby loss - ✔✔if no profit 3 of 5 years - loss is not deductible and it is
considered a hobby loss
net income= other income
expenses = sch. A misc. 2%
Alimony paid - ✔✔CANNOT
Correct Answers | Latest Update
Qualified Higher Education Expense - ✔✔up to $4,000 of tuition and fees
for enrollment may be deducted by taxpayers with AGI up to $65,000
1040 Adjustments - ✔✔I EMBRACED Education, Health, and Farm
Interest on student loan
Employment tax
Business expense
Rent/Royalty
Alimony paid
Contributions to retirement
Early withdrawal penalty
Jury duty pay
Education expense
Health savings account
Farm income
,Federal and state income tax refunds - ✔✔excluded from a taxpayer's
taxable income to the extent that the refund did not reduce the amount of
tax for the earlier year
interest earned is considered taxable
Itemized Deductions - ✔✔COMMITT
Charitable contributions
Other miscellaneous
Miscellaneous expenses - 2%
Medical expenses - 10%
Interest
Taxes
Theft or casualty 10% - $100
When must an individual file a tax return? - ✔✔if their income is greater
than the sum of their personal exemption plus their standard deduction
Kiddie tax - ✔✔child's unearned income ($2,100) about the thresholds is
subject to tax at the parents higher rate
Social security benefits - ✔✔up to 85% of benefits may be taxable
, if less than $25,000 provisional income - the person can exclude all SS
income
provisional income exceeding $60,000 - maximum of 85% inclusion
Net operating losses for an individual - ✔✔Carryback 2 years carry forward
20 years
student loan interest for higher education - ✔✔$2,500 phase out applies
Self employment tax - ✔✔50% of tax is deductible on return
100% of medical insurance premiums paid for self an family are deductible
Moving expenses - 1040 - ✔✔must work at least 39 weeks (9 months)
direct costs of moving you and stuff
Hobby loss - ✔✔if no profit 3 of 5 years - loss is not deductible and it is
considered a hobby loss
net income= other income
expenses = sch. A misc. 2%
Alimony paid - ✔✔CANNOT
