AND 100% CORRECT WELL DETAILED
ANSWERS|LATEST
UPDATE!!!!2025/2026|GUARANTEED PASS|GRADED
Below the line deductions include - ANSWER Standard deduction
Eligible educators can deduct up to _______ of qualified expenses paid during the tax year. -
ANSWER $250
Which of the following is an ineligible medical expense for HSA, Archer MSA, and MA MSA? -
ANSWER Breast enhancement
The net capital gain is taxed at _______ if the married filing jointly taxpayer income is less
than $80,800. - ANSWER 0%
To claim a child as a dependent, they must meet the qualifying child test or
________________. - ANSWER qualifying relative test
Ordinary dividends are taxed at the same rate as __________ income tax rate. -
ANSWER ordinary
Distributions from HSA, Archer MSA, or MS MSA are non-taxable when
_________________________________________. - ANSWER spent for qualified
medical expenses of your dependent
1
,Which residency status is used when an individual is neither a U.S. citizen nor a resident
alien for tax purposes? - ANSWER Non-resident alien
_____________ and ____________ are what taxpayers must know to calculate their tax
amount. - ANSWER Taxable income and filing status
For mortgages entered into after December 15, 2017, the amount of interest the taxpayer
can deduct is no more than ______________ of the debt used to buy, build, or substantially
improve their principal home and a second home. - ANSWER 750,000
__________ reduce the amount of tax due. - ANSWER Tax credits
Which form is for beneficiaries who get income from trusts and estates? -
ANSWER Form 1041
___________________ consists of both earned and unearned income that is used to
calculate the tax. It is generally less than adjusted gross income due to the deductions. -
ANSWER Taxable income
To satisfy the Substantial Presence Test, how many minimum days (in the current year) must
you be physically present in the United States? - ANSWER 31
Complete the equation. ___________ = Selling Price - Purchase Price -
ANSWER Capital Loss or Capital Gain
_________________ helps sole proprietorships calculate the profit or loss from a business
while also providing the IRS with your total business income and deductions. -
ANSWER Schedule C
What type of deduction is a HSA contribution? - ANSWER Above-the-Line Deduction
Some of the common expenses on which Above-the-Line deductions are available include:
2
,Educator expenses
Early withdrawal penalties of saving accounts
Moving expenses
Business expenses
HSA contributions
Self-employment tax
Alimony payments
Tuition fees
Contributions to a traditional IRA
Student loan interest deduction
Health insurance premiums
Retirement account contribution
As it applies to compensation income, the general rule for sourcing wages and personal
services income is controlled by ________________________________. -
ANSWER where the service is performed The general rule for sourcing wages and
personal services income is controlled by where the service is performed. The residence of
the recipient of the service, the place of contracting, and the time and place of payment are
irrelevant.
Which is considered non-taxable income? - ANSWER military personnel allowances
Payments received as a member of military service are generally taxed as wages except for
retirement pay, which is taxed as a pension. Allowances generally aren't taxed.
______________ is used to offset income and payroll taxes for low-income workers and to
provide an incentive to work. - ANSWER Earned Income Tax Credit Earned Income Tax
Credit is used to offset income and payroll taxes for low-income workers and to provide an
incentive to work.
Which is a non-deductible business expense? - ANSWER family vacation Expenses
done for personal and recreational purposes are personal expenses and are non-deductible.
3
, What amount of upper cap is applicable on business gifts? - ANSWER $25 The upper
cap of $25 is applicable on business gifts.
If yearly dividend amounts exceed __________, a Schedule B must be completed and
attached to Form 1040. - ANSWER $1500 If yearly dividend amounts exceed $1500, a
Schedule B must be completed and attached.
The are _________ filing statuses. - ANSWER five There are five filing statuses.
Single
Married Filing Jointly
Married Filing Separately
Head of Household
Qualifying Widow(er)
Taxpayers can claim a Child Tax Credit of up to __________ for each child under age 17 in
2021(2022). - ANSWER $3,600.00 Taxpayers can claim a CTC of up to $3,600 for each
child under age 17 in 2021(2022). Since 2021, qualifying families may now receive up to
$3,600 per child under the age of 5 and $3,000 for those ages 6 to 17. That's up from $2,000
per child, provided families fall under certain income thresholds (less than $150,000 for
couples and $112,500 for single parents).
______________ includes supplemental income and loss. - ANSWER Schedule E
includes supplemental income and loss
Supplemental Income and Loss consists of:
Income or Loss from Rental Real Estate and Royalties
Income or Loss from Partnerships and S Corporations
Income or Loss from Estates and Trusts, and
Income or Loss from Real Estate Mortgage Investment Conduits (REMICs)
4
ANSWERS|LATEST
UPDATE!!!!2025/2026|GUARANTEED PASS|GRADED
Below the line deductions include - ANSWER Standard deduction
Eligible educators can deduct up to _______ of qualified expenses paid during the tax year. -
ANSWER $250
Which of the following is an ineligible medical expense for HSA, Archer MSA, and MA MSA? -
ANSWER Breast enhancement
The net capital gain is taxed at _______ if the married filing jointly taxpayer income is less
than $80,800. - ANSWER 0%
To claim a child as a dependent, they must meet the qualifying child test or
________________. - ANSWER qualifying relative test
Ordinary dividends are taxed at the same rate as __________ income tax rate. -
ANSWER ordinary
Distributions from HSA, Archer MSA, or MS MSA are non-taxable when
_________________________________________. - ANSWER spent for qualified
medical expenses of your dependent
1
,Which residency status is used when an individual is neither a U.S. citizen nor a resident
alien for tax purposes? - ANSWER Non-resident alien
_____________ and ____________ are what taxpayers must know to calculate their tax
amount. - ANSWER Taxable income and filing status
For mortgages entered into after December 15, 2017, the amount of interest the taxpayer
can deduct is no more than ______________ of the debt used to buy, build, or substantially
improve their principal home and a second home. - ANSWER 750,000
__________ reduce the amount of tax due. - ANSWER Tax credits
Which form is for beneficiaries who get income from trusts and estates? -
ANSWER Form 1041
___________________ consists of both earned and unearned income that is used to
calculate the tax. It is generally less than adjusted gross income due to the deductions. -
ANSWER Taxable income
To satisfy the Substantial Presence Test, how many minimum days (in the current year) must
you be physically present in the United States? - ANSWER 31
Complete the equation. ___________ = Selling Price - Purchase Price -
ANSWER Capital Loss or Capital Gain
_________________ helps sole proprietorships calculate the profit or loss from a business
while also providing the IRS with your total business income and deductions. -
ANSWER Schedule C
What type of deduction is a HSA contribution? - ANSWER Above-the-Line Deduction
Some of the common expenses on which Above-the-Line deductions are available include:
2
,Educator expenses
Early withdrawal penalties of saving accounts
Moving expenses
Business expenses
HSA contributions
Self-employment tax
Alimony payments
Tuition fees
Contributions to a traditional IRA
Student loan interest deduction
Health insurance premiums
Retirement account contribution
As it applies to compensation income, the general rule for sourcing wages and personal
services income is controlled by ________________________________. -
ANSWER where the service is performed The general rule for sourcing wages and
personal services income is controlled by where the service is performed. The residence of
the recipient of the service, the place of contracting, and the time and place of payment are
irrelevant.
Which is considered non-taxable income? - ANSWER military personnel allowances
Payments received as a member of military service are generally taxed as wages except for
retirement pay, which is taxed as a pension. Allowances generally aren't taxed.
______________ is used to offset income and payroll taxes for low-income workers and to
provide an incentive to work. - ANSWER Earned Income Tax Credit Earned Income Tax
Credit is used to offset income and payroll taxes for low-income workers and to provide an
incentive to work.
Which is a non-deductible business expense? - ANSWER family vacation Expenses
done for personal and recreational purposes are personal expenses and are non-deductible.
3
, What amount of upper cap is applicable on business gifts? - ANSWER $25 The upper
cap of $25 is applicable on business gifts.
If yearly dividend amounts exceed __________, a Schedule B must be completed and
attached to Form 1040. - ANSWER $1500 If yearly dividend amounts exceed $1500, a
Schedule B must be completed and attached.
The are _________ filing statuses. - ANSWER five There are five filing statuses.
Single
Married Filing Jointly
Married Filing Separately
Head of Household
Qualifying Widow(er)
Taxpayers can claim a Child Tax Credit of up to __________ for each child under age 17 in
2021(2022). - ANSWER $3,600.00 Taxpayers can claim a CTC of up to $3,600 for each
child under age 17 in 2021(2022). Since 2021, qualifying families may now receive up to
$3,600 per child under the age of 5 and $3,000 for those ages 6 to 17. That's up from $2,000
per child, provided families fall under certain income thresholds (less than $150,000 for
couples and $112,500 for single parents).
______________ includes supplemental income and loss. - ANSWER Schedule E
includes supplemental income and loss
Supplemental Income and Loss consists of:
Income or Loss from Rental Real Estate and Royalties
Income or Loss from Partnerships and S Corporations
Income or Loss from Estates and Trusts, and
Income or Loss from Real Estate Mortgage Investment Conduits (REMICs)
4
