VITA Tax Basics Practice Exam

These questions are part of the practice quiz. Start practicing

• Which filing status allows for the largest standard deduction?
• What is required for an individual to claim the student loan interest deduction?
• What is the total interest income Marie and Arturo should report on Form 1040, Schedule B, Part I?
• What is the maximum income that allows a relative to be claimed as a dependent?
• Which forms can standard taxpayers use based on their specific tax situations?
• If a taxpayer supported roommate is neither a child nor a qualifying relative, what filing status can the taxpayer claim?
• What economic assistance does not need to be subtracted from education expenses when claiming student loan interest deductions?
• Which of the following individuals would be considered unmarried for filing status?
• What filing status should Claudia choose for the year of her spouse's death?
• Can Michael file Head of Household if his son does not qualify as a dependent?
• What age must a taxpayer reach to qualify for a higher standard deduction if married?
• What is the effect of not having a valid ID number by the original return’s due date?
• Is Martin required to file as Single after his divorce in December even if he supported Rita all year?
• What marital status applies to a taxpayer who was married but whose spouse died before the tax year started?
• True or False? Taxpayers filing as Married Filing Separately can claim deductions for education credits.
• Which situation may prevent claiming the American opportunity credit?
• Does Paul meet the gross income test to be a qualifying relative?
• True or False? Tom can claim the Child and Dependent Care Credit for David, Stella's son.
• What exemptions can Melvin claim given his income and support situation?
• Can Barbara wait until her second Series EE savings bond matures to report all the interest it earns?
• Can Carol and Roger use married filing statuses if they have been married but lived apart the entire tax year?
• What is Anna's situation if she claims a child who herself qualifies as a dependent?
• What must Peter do since he did not report his tip income of $18,100?
• What action is prohibited regarding the American opportunity credit if certain requirements are unmet?
• If Louis itemizes his deductions on Form 1040 and Carmella is also married filing separately, what can she do?
• What is a requirement for filing the Child and Dependent Care Expenses credit related to dependent care providers?
• If Tim is 67 years old, not blind, and filing as Single, what is his standard deduction?
• What is the maximum amount that can be deducted for student loan interest?
• Trudy qualifies for Head of Household filing status. With $10,900 in gross income, is she required to file a return?
• If a taxpayer does not have their required identification number by the return due date, what can they do?
• What does the American opportunity credit target?
• Which of the following incomes is NOT reported as other income on the tax return?
• If a taxpayer's child makes money but it is not used for their own support, do they meet the support test?
• Who of the following is eligible to claim the student loan interest deduction based on their filing status?
• Are Janet and Harry required to file a tax return?
• What method may Joan use to determine the taxable portion of her lump-sum Social Security benefits?
• Which payment type is categorized as difficulty of care payments and excludable from gross income?
• Are Martin and Regina able to take an exemption for each other if they were married until their divorce in November?
• What parts of Form 2441 must Carmen complete to receive the Child and Dependent Care Credit?
• What amount should Latricia use to calculate her student loan interest deduction after receiving educational assistance?
• To determine if a taxpayer must file a return, which of the following is NOT needed?
• What is true about the Child and Dependent Care Credit?
• Can a person who is claimed as a dependent on someone else's tax return claim a dependent on their own tax return?
• True or False? A taxpayer can take the Child and Dependent Care Expenses credit even if they don't have the care provider's correct information.
• What is the maximum student loan interest deduction allowed for a taxpayer?
• Considering Larry and Zelda's situation, who is required to file a tax return?
• When determining the taxable portion of Social Security benefits, what should be considered?
• Who is entitled to claim Diane’s grandmother as a dependent?
• David’s filing status is qualified widower. With a modified AGI of $83,000 and paid student loan interest of $2,700, how much can he deduct?
• Under what condition is a person required to report taxable income?
• Can taxpayers file an amended return to claim the American opportunity credit if they receive a valid identification after the due date of the original return?
• What does the term 'Married Filing Jointly' mean?
• Which benefit can Bob claim if he is the one to claim Katie?
• Regarding the student loan interest deduction, what is Todd's mother's status concerning the qualifications?
• True or False? Taxpayers claiming the American Opportunity Credit must have a valid ID by the tax return due date.
• How should Cassandra report her scholarship income on her tax return?
• How much unemployment compensation must Colten report as income?
• If a child earns more than $12,400, what is required?
• Where can a taxpayer find information about the Presidential Election Campaign Fund?
• Can a married taxpayer claim their spouse as a dependent?
• Can Alexandra file as Head of Household for the tax year, considering the time Sebastian lived with her?
• Which document can be used to verify a taxpayer's Social Security number?
• What status should Laura file under for the year her spouse died?
• For married taxpayers filing separately, what must one spouse do if the other itemizes deductions?
• Are distributions from Educational Savings Accounts such as a Coverdell ESA and a 529 plan taxable?
• Which type of income incurred while serving on jury duty may be deducted if turned over to an employer?
• Will Beth need to report interest from multiple savings accounts with Forms 1099-INT?
• Which filing status must married couples use to qualify for the Child and Dependent Care Credit?
• What filing status should Dick use for 2021 considering he is supporting two dependent children?
• What is the correct treatment of interest income for an account holder who receives a Form 1099-INT?
• If a taxpayer is married and files separately, what is the minimum gross income that requires them to file a return?
• What is the consequence of early withdrawal from a time deposit account?
• If a taxpayer cannot obtain a valid Social Security number, can you use their driver's license or passport instead?
• If a taxpayer qualifies as a dependent, how does that affect their income reporting?
• What are the two filing statuses that generally yield the lowest tax amounts?
• Which criterion does not need to be met for a taxpayer to claim the Child and Dependent Care Credit?
• What is Ronald’s filing status if he was widowed before the tax year started and has no children?
• What is the standard deduction amount for a single taxpayer for the tax year mentioned?
• What is the standard deduction for Kevin and Jane, who are both 60 with Jane being blind and filing as Married Filing Jointly?
• If Joe made an excess contribution and withdrew it before the due date, does he face additional tax on the income earned?
• What is required for someone to meet the citizen or resident test for tax purposes?
• When do Timothy and Judy's child not provide support?
• Is Mike required to report interest income earned in a traditional IRA on his tax return?
• A penalty for early withdrawal of funds is most likely charged when funds are withdrawn:
• What is Sherman's standard deduction if he is 73 years old and blind, filing as Single using Form 1040?
• Do Henrietta and Javier need to file a tax return based on their combined income?
• According to the tie-breaker rule, who has the priority to claim Mariah as a dependent?
• What is required for taxpayers to claim the American opportunity credit?
• For a child to be considered a qualifying child, the support test requires that the child must not provide more than what percentage of their own support?
• Which of the following is NOT considered a qualified educational expense for the student loan interest deduction?
• For what reason cannot taxpayers amend their return to claim credits for previous years?
• Who may claim Katie as a qualifying child?
• Is Lucy required to file a tax return given her gross income?
• Is Bob required to file a tax return based solely on his income?
• Can Latricia report the entire amount of student loan interest paid if her MAGI is below the limit?
• When must employees report their tips to their employer?
• What is a key requirement for Jack to file as Head of Household?
• What is necessary before claiming any education credit?
• Who is entitled to claim Amy as a dependent based on the information provided?
• For the year 2020, what is the standard deduction amount for Head of Household filers age 65 or older?
• Which term describes an adjustment made to a previously filed tax return?
• What is the standard deduction amount for a married couple filing jointly if neither spouse is blind or a dependent?
• Under what condition can Todd claim his girlfriend Eva's children as qualifying relatives?
• What is the correct filing status for Ray considering he paid all the household expenses and has two children?
• Cassandra is paying the interest on her mother's loan. Who can claim the deduction for student loan interest?
• What is the additional amount for a taxpayer who is blind when calculating the standard deduction?
• Do Audrey and her husband qualify for the Child and Dependent Care Credit based on the care expenses incurred for their son?
• If Todd's mother had been his dependent, what would be the effect on their loan interest situation?
• What type of income is typically taxable?
• Which type of tip income is subject to federal income tax?
• If Nancy pays for her mother's living expenses and provides more than half of her support, what can she claim?
• If two unmarried parents agree to claim children on separate returns, what must they ensure regarding household expenses?
• True or False: Qualified Medicaid waiver payments may be excluded from gross income.
• What is the correct tax filing status for a taxpayer who provides over half of their dependent's support?
• Which age qualifies for an additional amount in the standard deduction for a taxpayer?
• What is the implication for a taxpayer who does not have a qualifying relative dependent?
• What determines the filing status of married individuals who have been separated for some time?
• If a taxpayer receives a Form W-2 with an incorrect Social Security number, what must they do before submitting their tax return?
• Can Sally claim Bobby as a dependent if Ann, Bobby's mother, is not required to file taxes?
• If a household employee earns less than the required threshold, what form does the employer need to provide?
• If Bob received interest on a loan but did not receive a Form 1099-INT, how should he report the income?
• Who is eligible to choose between filing Married Filing Jointly or Married Filing Separately?
• Which type of income is exempt from federal taxes?
• What is the penalty for failing to report tip income above the required limit?
• What type of dividends are reported on Forms 1099-DIV for common and preferred stock?
• If a married couple decides to file separately, what is a potential consequence?
• Who among the following may claim the student loan interest deduction?
• Which type of income is considered in the support test?
• In the absence of a legal separation agreement, how is child support treated for tax purposes?
• Who among the following can use Chart A to determine if they must file a tax return?
• True or False: Taxpayers are exempt from paying Social Security and Medicare taxes on unreported tips.
• What is the filing status for someone who was divorced before the end of the tax year and has no qualifying person?
• If Ann files a return to only have her withholding refunded, can Sally claim Bobby as a dependent?
• If Tom and Judith Ballard decide to file Married Filing Separately, what must Judith do if Tom itemizes deductions?
• In what scenario does a taxpayer's standard deduction get reduced?
• Which type of income is exempt from federal taxes?
• If Yolanda wants to itemize deductions while filing separately, what must Sean do?
• Which of the following statements is true regarding care expenses for dependents?
• Which of the following factors does NOT determine the amount of a taxpayer's standard deduction?
• What is the gross income threshold for a single taxpayer under 65 to file a return?
• Should taxpayers keep records of nondividend distributions shown on Form 1099-DIV?
• What should taxpayers who itemized deductions do if they receive a state or local tax refund?
• Which credit cannot be claimed if the identification number was not available by the due date of the original return?
• What is required for a taxpayer to claim educator expenses on their tax return?
• What form is typically used to report pension distributions?
• In the case of dividend tax reporting, what is the objective for the taxpayer?
• Why can't Joe's son and daughter-in-law claim him as a dependent?
• What is the appropriate filing status for Jack, who files apart from his spouse while supporting their children?
• True or False: The dollar amount of the child and dependent care credit equals the taxpayer's qualifying expenses.
• Melvin, a full-time student with $6,400 in wages, is living with his parents. Is he required to file a tax return?
• Can Todd file as Head of Household despite providing support to Jane and Amanda?
• Who is eligible to claim the Child and Dependent Care Credit in the situation of Celina and Dave?
• True or False: The child and dependent care tax credit applies only to taxpayers with dependents under the age of 13.
• Is it true that as a tax preparer, you are responsible for accurately entering each Social Security number on the tax return?
• What is required for a taxpayer's dependent to meet the joint return test?
• Which statement is true for claiming one’s grandmother as a dependent?
• Can Tom Brown claim his wife's uncle Jim as a dependent?
• Mrs. Calvin cannot claim her son Drew as a dependent because he earned $5,000. What filing status must she use?
• What would allow John Smith to claim his foster child as a dependent?
• Can a child under 18 be claimed as a dependent if their income is solely from investments?
• Are the camp expenses paid by Ellen for her daughter considered qualified expenses for the Child and Dependent Care Credit?
• Which of the following is true for individuals who are legally separated at year-end?
• Victoria can deduct how much as an adjustment to income for her divorce settlement and medical expenses?
• Does a taxpayer who does not receive a Form W-2 for taxable scholarship income need to report that income?
• What should a taxpayer do if they received their valid identification after filing their return?
• What is the primary limitation for the American opportunity credit?
• Which of the following types of income is considered taxable for alimony received under older divorce decrees?
• If a taxpayer does not report tips that total below a specified amount, are those tips tax-exempt?
• When can Medicaid waiver payments be excluded from an individual’s gross income?
• What happens to an ITIN that hasn't been used on a federal tax return in the last three years?
• Is Juanita required to file a tax return?
• Is a portion of Monica's Social Security income taxable if they file jointly with David?
• Cassandra has agreed to pay her mother’s loan interest. Which statement is true regarding the interest deduction?
• What determines whether the Child and Dependent Care Credit can be claimed by a married couple?
• Hazel earned $3,000 in interest from four savings accounts. How should she report this income?
• True or False: Both spouses must have earned income to claim the child and dependent care credit.
• If Mrs. Harlan can be claimed as a dependent, which chart should she use?
• What filing status can Fred use for the year 2022 after his spouse's passing?
• Is Jim qualifying for any taxpayer as a qualifying child?
• When is it impossible for taxpayers to file an amended return for the American opportunity credit?
• Are the only acceptable means of verifying a taxpayer's identity a U.S. driver's license, passport, or military ID?
• What happens to the taxable status of interest earned on a Roth IRA?
• Kathy, who is divorced and supported her roommate, is eligible for which filing status?
• For how long must a relative live with a taxpayer for the taxpayer to qualify for Head of Household status?
• What form should Faith complete to increase the withholding from her pension?
• If an individual does not file taxes, what is the consequence regarding student loan interest?
• What is the rule regarding the gross income test for a claiming dependent?
• Is a state tax refund taxable for taxpayers who claimed the standard deduction?
• What filing status applies to Juanita as a widow with income?
• What is the significance of Form 8332 in claiming a child as a dependent?
• Debbie, an art teacher, spent $185 on qualified expenses but can deduct:
• How often must taxpayers report interest income from Series I savings bonds?
• What happens if a qualifying child is also claimed by another taxpayer?
• Which piece of information is NOT necessary to determine if a widowed taxpayer can use Qualifying Surviving Spouse status?
• If Lily supports her children and will not file jointly with her spouse, what is her filing status?
• What is a requirement for a taxpayer to file as Head of Household?
• Can a taxpayer with an individual taxpayer identification number (ITIN) e-file their return using a W-2 that has an incorrect SSN?
• What must taxpayers have to file for the American opportunity credit on their tax return?
• Do Ted's parents meet the relationship test for claiming them as dependents?
• If an individual does not bring their Social Security card, which documents can you accept?
• Capital gain distributions are also known as?
• Which of the following is true regarding tax-exempt income?
• Are alimony payments considered taxable income if the divorce decree was executed in 2017?
• Can Steve claim his mother as a dependent if he provides $4,000 for her support?
• True or False? Barb can take the Child and Dependent Care Credit despite the daycare's tax-exempt status.
• For which months can Martha be treated as having earned income if she was a full-time student from January 1 to June 30?
• Can Todd claim his girlfriend's children as dependents if he meets all the qualifying relative tests?
• Bob, a full-time student, lives with his parents and provides less than half of his own support. Does he qualify as a qualifying child?
• In order to qualify as a testing child, what is one factor that excludes a relative from being claimed as a dependent?
• What does it mean when "IRA/SEP/SIMPLE" is checked in box 7 of Form 1099-R?
• Can Allen claim a personal exemption if he is eligible to be claimed as a dependent on his mother's tax return?
• What is the significance of a valid Social Security number for tax returns?
• Which of the following is considered taxable income?
• What determines if a child is a qualifying child for tax purposes?
• If someone claims a dependent, how does it affect the filing status?
• For Diane and her brother to claim their grandmother, what is true?
• If a taxpayer is not required to file a tax return, what should you do if uncertain about their benefits from filing?