VITA final exam 2024/2025 questions and answers | verified
QR: Quality Reviewer - Mandated by the IRS, every return that is prepared at a VITA site, MUST be
double-checked by a designated reviewer
paper return - a tax return that must be physically mailed to the respective IRS office
e-file/e-file return - a tax return that is electronically transmitted to the IRS through the software
greeter - A person who ensures that each client is "in-scope," and assigns clients to volunteers
(located at the intake station)
ITIN - At times, individuals will not have a social security number; however, that does not
exempt them from paying taxes. Therefore, they need to apply for an ITIN (Individual tax
identification number)
how taxes work in the US - -fill out W-4 to tell employer how much to withhold from each
paycheck
-"pay as you go" tax system
-Jan-April
-receive a refund for an overpayment or pay for an underpayment
Tax Calculation - -all income is taxable unless excluded by federal law
-deductions and credits help lower amount of taxable income and taxes due
-some deductions and credits are geared towards students and higher education
Types of Taxes - FICA, income, self-employment, state income, state disability
Who requires a tax return - -They owe taxes (like FICA)
-Have self-employment income greater than $400 (or will owe FICA taxes)
,-Their gross income exceeds the filing requirement threshold
who should file a tax return - -They have withholdings/estimated payments that can be refunded
-Qualify for refundable credits
-File a state return
Filing Status - -All filing statuses are based on the last day of the tax year
-Important because it changes how tax calculations are made, deduction amounts, and how
each person on the return is liable for the tax payments
Married Filing Jointly (MFJ) - -most beneficial status
-Married and lived together, OR
-Married and lived apart, but not legally separated/divorced, OR
-spouse died but did not remarry in the same year
Qualifying Widow(er) - -second most beneficial
-Does not remarry after the death of a spouse, AND
-Has a dependent child who qualifies, AND
-spouse died in the prior 2 years
Head of Household (HOH) - -Are unmarried or "considered unmarried" on the last day of the tax
year, AND
-Paid more than half the cost of keeping up a home for the required period of time,
AND
-Had a qualifying person living in their home for more than half the year (except for
temporary absences, such as school)
qualifying person - -single (whether or not the child can be claimed as a
dependent), OR
, -A married child who can be claimed as a dependent, OR
-A dependent parent, OR
-A qualifying relative who lived with the taxpayer more than half the year, and is one
of the relatives listed on the chart, and can be claimed as a dependent by the
taxpayer
single - unmarried
married filing separately - -Legally married, but chooses to file separately or cannot agree to file
jointly
-California is a communal property state
-VITA does not do this
dependency general rules - -dependent taxpayer test
-joint return test
-citizen or resident test
Dependent Taxpayer Test - -A taxpayer who can be claimed as someone else's dependent cannot
claim a
dependent
-A dependent cannot be claimed by more than one person
Joint Return Test - You generally cannot claim a married person as a dependent if he or she files a
joint
return
citizen or resident test - Dependents must generally be U.S. citizen, U.S. resident alien, U.S.
national, or a resident of Canada or Mexico
Qualifying Child: SARA - support, age, relationship, abode
QR: Quality Reviewer - Mandated by the IRS, every return that is prepared at a VITA site, MUST be
double-checked by a designated reviewer
paper return - a tax return that must be physically mailed to the respective IRS office
e-file/e-file return - a tax return that is electronically transmitted to the IRS through the software
greeter - A person who ensures that each client is "in-scope," and assigns clients to volunteers
(located at the intake station)
ITIN - At times, individuals will not have a social security number; however, that does not
exempt them from paying taxes. Therefore, they need to apply for an ITIN (Individual tax
identification number)
how taxes work in the US - -fill out W-4 to tell employer how much to withhold from each
paycheck
-"pay as you go" tax system
-Jan-April
-receive a refund for an overpayment or pay for an underpayment
Tax Calculation - -all income is taxable unless excluded by federal law
-deductions and credits help lower amount of taxable income and taxes due
-some deductions and credits are geared towards students and higher education
Types of Taxes - FICA, income, self-employment, state income, state disability
Who requires a tax return - -They owe taxes (like FICA)
-Have self-employment income greater than $400 (or will owe FICA taxes)
,-Their gross income exceeds the filing requirement threshold
who should file a tax return - -They have withholdings/estimated payments that can be refunded
-Qualify for refundable credits
-File a state return
Filing Status - -All filing statuses are based on the last day of the tax year
-Important because it changes how tax calculations are made, deduction amounts, and how
each person on the return is liable for the tax payments
Married Filing Jointly (MFJ) - -most beneficial status
-Married and lived together, OR
-Married and lived apart, but not legally separated/divorced, OR
-spouse died but did not remarry in the same year
Qualifying Widow(er) - -second most beneficial
-Does not remarry after the death of a spouse, AND
-Has a dependent child who qualifies, AND
-spouse died in the prior 2 years
Head of Household (HOH) - -Are unmarried or "considered unmarried" on the last day of the tax
year, AND
-Paid more than half the cost of keeping up a home for the required period of time,
AND
-Had a qualifying person living in their home for more than half the year (except for
temporary absences, such as school)
qualifying person - -single (whether or not the child can be claimed as a
dependent), OR
, -A married child who can be claimed as a dependent, OR
-A dependent parent, OR
-A qualifying relative who lived with the taxpayer more than half the year, and is one
of the relatives listed on the chart, and can be claimed as a dependent by the
taxpayer
single - unmarried
married filing separately - -Legally married, but chooses to file separately or cannot agree to file
jointly
-California is a communal property state
-VITA does not do this
dependency general rules - -dependent taxpayer test
-joint return test
-citizen or resident test
Dependent Taxpayer Test - -A taxpayer who can be claimed as someone else's dependent cannot
claim a
dependent
-A dependent cannot be claimed by more than one person
Joint Return Test - You generally cannot claim a married person as a dependent if he or she files a
joint
return
citizen or resident test - Dependents must generally be U.S. citizen, U.S. resident alien, U.S.
national, or a resident of Canada or Mexico
Qualifying Child: SARA - support, age, relationship, abode
