2024 VITA Basic Exam Test New Latest Version with All Questions from Actual Past Exam, Exams of Finance

Download 2024 VITA Basic Exam Test New Latest Version with All Questions from Actual Past Exam and more Exams Finance in PDF only on Docsity! 2024 VITA Basic Exam Test New Latest Version with All Questions from Actual Past Exam and 100% Correct Answers What is the total amount of federal income tax withholding shown on theJones' Form(s) W-2 and 1099? --------- Correct Answer ---------- $6100 5200 2700 ???? The taxable amount of Fred's Social Security is $7,650.00 --------- Correct Answer -------- -- True Single Dependents Under 65 and not blind must file a return if: ---------- Correct Answer --------- You must file a return if any of the following apply. 1. Your unearned income was over $1,150. 2. Your earned income was over $12,950. 3. Your gross income was more than the larger of — a. $1,150, or b. Your earned income (up to $12,550 plus $400). Married Dependents Either age 65 or older or blind must file a return if: ---------- Correct Answer --------- You must file a return if any of the following apply. 1. Your unearned income was over $2,550 ($3,950 if 65 or older and blind). 2. Your earned income was over $14,350 ($15,750 if 65 or older and blind). 3. Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. 4. Your gross income was more than the larger of — a. $2,550 ($3,950 if 65 or older and blind), or b. Your earned income (up to $12,550 plus $1,800 ($3,200 if 65 or older and blind). Who can claim Sara as a dependent? --------- Correct Answer ---------- Joan can claim Sara because she is Sara's mother. (Wrong) Will may claim R.J. as a dependent on his tax return. --------- Correct Answer ---------- True Is Will able to claim R.J. as a qualifying child for the earned income credit (EIC)? --------- Correct Answer ---------- No, because Will has an ITIN. Which benefit(s) can Will claim on his tax return? (Choose the best answer) --------- Correct Answer ---------- All of the above What are the correct filing statuses? --------- Correct Answer ---------- Both John and Marsha must file as Single Is it allowable for John and Marsha to each claim one qualifying child for the earned income credit on their individual returns? --------- Correct Answer ---------- No What amount of gambling winnings should be reported as other income on Linda's return? --------- Correct Answer ---------- $1,400 Based on her Married Filing Separately filing status, which education benefit is Linda eligible to claim? --------- Correct Answer ---------- She does not qualify for any education benefit What is Gordon's filing status on his 2017 tax return? --------- Correct Answer ---------- Single The $25 of savings account interest is not required to be reported on the return since no Form 1099-INT was issued. --------- Correct Answer ---------- False How much of Gordon's Social Security is taxable? --------- Correct Answer ---------- $6,646 Gordon is over 65. How does that affect his tax return? --------- Correct Answer ---------- It increases his standard deduction What is the total amount of Gordon's federal income tax withholding? --------- Correct Answer ---------- $3,300 What form must be used to split Gordon's refund? --------- Correct Answer ---------- Form 8888 Who are Valerie's qualifying persons for Head of Household filing status? --------- Correct Answer ---------- Annie and Patrick Ethan is Valerie's qualifying child for which of the following benefits? --------- Correct Answer ---------- None of the above What is the total federal income tax withholding for Valerie's tax return? $________. ----- ---- Correct Answer ---------- $3,060 What is Valerie's credit for child and dependent care expenses shown on her Form 1040, page 2? --------- Correct Answer ---------- $396 Valerie cannot claim the $700 of student loan interest as an adjustment on page 1 of Form 1040, because the loan was for Ethan's education. --------- Correct Answer --------- - False Mary's gambling winnings do not have to be reported on her return. --------- Correct Answer ---------- False Mary's most advantageous filing status is: --------- Correct Answer ---------- Married filing separately head of household ??? Mary is subject to the additional 10% tax on early distributions. --------- Correct Answer - --------- true Mary qualifies for which of the following credits? --------- Correct Answer ---------- both a and b Mary wants to split the refund between her savings and checking accounts. How isthis accomplished, if possible? --------- Correct Answer ---------- Complete Form 8888, Allocation of Refund (Including Savings Bond Purchases). What is the most advantageous filing status allowable that Joe can claim on his taxreturn for 2021? --------- Correct Answer ---------- Head of Household Joe can claim a higher standard deduction because he is blind. --------- Correct Answer - --------- True Chris and Marcie cannot claim the Earned Income Tax Credit (EITC) because theyare too young and have no qualifying children. --------- Correct Answer ---------- false Chris and Marcie must claim the EIP3 of $2,800 as taxable income on their 2021 taxreturn. --------- Correct Answer ---------- false Which of the Reynolds children qualifies for the child tax credit (CTC)? --------- Correct Answer ---------- Laura and Timothy Archie and Tina will not itemize deductions but can deduct the full amount of theircharitable contribution. --------- Correct Answer ---------- false The Brooks qualify for the Credit for Other Dependents. --------- Correct Answer ---------- True The Brooks qualify for the Earned Income Tax Credit. --------- Correct Answer ---------- false Alan cannot claim the Earned Income Tax Credit because his age is more than theage limit. --------- Correct Answer ---------- False . Alan must take a required minimum distribution in 2021. --------- Correct Answer --------- - false Bobbie can exclude his unemployment compensation on his 2021 tax return. --------- Correct Answer ---------- False Bobbie is eligible for the following credit: --------- Correct Answer ---------- American Opportunity Credit Lifetime learning credit earned income credit ??? Bobbie can claim the student loan interest deduction on his tax return. --------- Correct Answer ---------- true false Fred and Wilma Jones can claim the Credit for Other Dependents. --------- Correct Answer ---------- True What amount can Mary claim as an adjustment for the supplies she purchased outof pocket? --------- Correct Answer ---------- $250 If your filing status is single and you are under 65 at the end of 2022, file a return if your income was at least: ---------- Correct Answer --------- $12,950 If your filing status is single and you were 65 or older at the end of 2022, file a return if your income was at least: ---------- Correct Answer --------- $14,700 If your filing status is married filing jointly and you were under 65 (both spouses) at the end of 2022, file a return if your income was at least: ---------- Correct Answer --------- $25,900 If your filing status is married filing jointly and you were 65 or older (one spouse) at the end of 2022, file a return if your income was at least: ---------- Correct Answer --------- $27,300 If your filing status is married filing jointly and you were 65 or older (both spouses) at the end of 2022, file a return if your income was at least: ---------- Correct Answer --------- $28,700 If your filing status is married filing separately and you were any age at the end of 2022, file a return if your income was at least: ---------- Correct Answer --------- $5 If your filing status is head of household and you were under 65 at the end of 2022, file a return if your income was at least: ---------- Correct Answer --------- $19,400 If your filing status is head of household and you were 65 or older at the end of 2022, file a return if your income was at least: ---------- Correct Answer --------- $21,150 If your filing status is qualifying surviving spouse and you were under 65 at the end of 2022, file a return if your income was at least: ---------- Correct Answer --------- $25,900 If your filing status is qualifying surviving spouse and you were 65 or older at the end of 2022, file a return if your income was at least: ---------- Correct Answer --------- $27,300 If you were born on _________ you are considered to be age 65 at the end of 2022 ----- ----- Correct Answer --------- January 1, 1958 Gross income includes... ---------- Correct Answer --------- All income you received in the form of money, goods, property, and services that isn't exempt from tax, including any income from sources outside the United States or from the sale of your main home (even if you can exclude part or all of it). Do not include any social security benefits unless ---------- Correct Answer --------- | you are married filing a separate return and you lived with your spouse at any time in 2022 or | one-half of your social security benefits plus your other gross income and any tax- exempt interest is more than $25,000 ($32,000 if married filing jointly). Single Dependents Either 65 or over or blind must file a return if: ---------- Correct Answer --------- You must file a return if any of the following apply. 1. Your unearned income was over $2,900 ($4,650 if 65 or older and blind). 2. Your earned income was over $14,700 ($16,450 if 65 or older and blind). 3. Your gross income was more than the larger of — a. $2,900 ($4,650 if 65 or older and blind) or b. our earned income (up to $12,550 plus $2,150 ($3,900 if 65 or older and blind). If you... • Need to make an excess advance premium tax credit repayment. • Owe other taxes, such as self-employment tax, household employment taxes, additional tax on IRAs or other qualified retirement plans and tax-favored accounts or need to repay the firsttime homebuyer credit. Then use... ---------- Correct Answer --------- Schedule 2, Additional Taxes If you... • Can claim a nonrefundable credit other than the child tax credit or the credit for other dependents, such as the foreign tax credit, education credits, credit for child and dependent care expenses or retirement savings contributions credit. • Can claim a refundable credit other than the earned income credit, American opportunity credit, or additional child tax credit. Have other payments, such as an