Enrolled Agent || QUESTIONS WITH COMPLETE
SOLUTIONS!!
FORM 4868 correct answers Application for Automatic Extension of Time To File U.S.
Individual Income Tax Return
- Interest is charged on tax not paid by the due date of the return if they get an extension
What is the minimum for reporting self-employment income? correct answers $400 or more
What is the minimum gross income required for filing? correct answers $12,550 or more
If a taxpayer suffered a qualified disaster loss, when can they claim a deduction? correct
answers On the current tax year or amended return from the previous year
Schedule H correct answers Household Employment Taxes
- employment taxes must be paid if their wages are over $2,300 in 20-21 or $1,000 or more in
any calendar quarter of 2021
No estimated payments are required if enough tax is paid through withholding to keep the
amount due with the return... correct answers under $1,000
Estimates Tax Payment Dates correct answers April 15
June 15
September 15
January 15
Form 982 correct answers discharged indebtness
Minimum penalty for a prohibited transaction is... correct answers 15% of the IRA value
In 2021, how much of foreign earned income can a person exclude from gross income?
correct answers $108,700
For the purposes of contributing to an IRA, what is compensation? correct answers - wages
- salaries
- commissions
- self-employment income
- alimony
- nontaxable combat pay
NOT
- earnings and profit from rental property
- interest/dividend income
- pension/annuity income
- deferred compensation
- income from certain partnerships
- any other amounts excluded from income
, - govt' provided unemployment
Is property (cash + other) received as a gift, bequest, or inheritance included in taxable
income? correct answers No
IRA Contribution Limits for 50 and older correct answers $7,000
IRA contribution limit for those under 50 correct answers $6,000
Can the 2% miscellaneous deduction be made for employees? correct answers No. Not until
2026. TCJA suspended this except for armed forced reservists, fee-based state/local govt
officials, qualified performing artists, or disabled employees with impairment-related work
expenses
FORM 8867 correct answers Paid Preparer's Due Diligence Checklist
What is the earned income credit limit? correct answers $10,000
Investors whose investment income is more than $10,000 may NOT claim the credit.
IRC Section 199A - What amount of deduction can be claimed by certain business owners for
qualified business income? correct answers 20%
What is the extra amount of standard deduction for someone over 65 correct answers $1,700
more
How is QBI defined? correct answers The net amount of income, gain, deductions, and loss
from the operation of a business, excluding investment income
Can you claim the child credit if you file married separately correct answers no.
correct answers if a taxpayer makes cash contributions during the year to a 50%
organization, their deduction for the cash contributions is limited to 60% of their AGI
How much can a taxpayer deduct for business-related meals? correct answers 50% for
taxpayers
100% for businesses (owners)
80% for people like truckdrivers if the period is subject to the DOT's "hours of service"
limits.
Can you claim the earned income credit if you file married filling separate? correct answers
no.
When are you required to take distributions from a traditional IRA correct answers by April 1
in the year after you turn 72
When is 0 rent included in income for rental property correct answers when it is rented less
than 15 days
SOLUTIONS!!
FORM 4868 correct answers Application for Automatic Extension of Time To File U.S.
Individual Income Tax Return
- Interest is charged on tax not paid by the due date of the return if they get an extension
What is the minimum for reporting self-employment income? correct answers $400 or more
What is the minimum gross income required for filing? correct answers $12,550 or more
If a taxpayer suffered a qualified disaster loss, when can they claim a deduction? correct
answers On the current tax year or amended return from the previous year
Schedule H correct answers Household Employment Taxes
- employment taxes must be paid if their wages are over $2,300 in 20-21 or $1,000 or more in
any calendar quarter of 2021
No estimated payments are required if enough tax is paid through withholding to keep the
amount due with the return... correct answers under $1,000
Estimates Tax Payment Dates correct answers April 15
June 15
September 15
January 15
Form 982 correct answers discharged indebtness
Minimum penalty for a prohibited transaction is... correct answers 15% of the IRA value
In 2021, how much of foreign earned income can a person exclude from gross income?
correct answers $108,700
For the purposes of contributing to an IRA, what is compensation? correct answers - wages
- salaries
- commissions
- self-employment income
- alimony
- nontaxable combat pay
NOT
- earnings and profit from rental property
- interest/dividend income
- pension/annuity income
- deferred compensation
- income from certain partnerships
- any other amounts excluded from income
, - govt' provided unemployment
Is property (cash + other) received as a gift, bequest, or inheritance included in taxable
income? correct answers No
IRA Contribution Limits for 50 and older correct answers $7,000
IRA contribution limit for those under 50 correct answers $6,000
Can the 2% miscellaneous deduction be made for employees? correct answers No. Not until
2026. TCJA suspended this except for armed forced reservists, fee-based state/local govt
officials, qualified performing artists, or disabled employees with impairment-related work
expenses
FORM 8867 correct answers Paid Preparer's Due Diligence Checklist
What is the earned income credit limit? correct answers $10,000
Investors whose investment income is more than $10,000 may NOT claim the credit.
IRC Section 199A - What amount of deduction can be claimed by certain business owners for
qualified business income? correct answers 20%
What is the extra amount of standard deduction for someone over 65 correct answers $1,700
more
How is QBI defined? correct answers The net amount of income, gain, deductions, and loss
from the operation of a business, excluding investment income
Can you claim the child credit if you file married separately correct answers no.
correct answers if a taxpayer makes cash contributions during the year to a 50%
organization, their deduction for the cash contributions is limited to 60% of their AGI
How much can a taxpayer deduct for business-related meals? correct answers 50% for
taxpayers
100% for businesses (owners)
80% for people like truckdrivers if the period is subject to the DOT's "hours of service"
limits.
Can you claim the earned income credit if you file married filling separate? correct answers
no.
When are you required to take distributions from a traditional IRA correct answers by April 1
in the year after you turn 72
When is 0 rent included in income for rental property correct answers when it is rented less
than 15 days
