VITA 2024 ADVANCED RETAKE Exam With 100% Correct And Verified Answers, Exams of Advanced Education

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VITA 202 4 ADVANCED RETAKE Exam With

100% Correct And Verified Answers

VOLUNTEER STANDARDS OF CONTUCT RETEST

QUESTIONS & ANSWERS

1. Which volunteers must pass the Volunteer Standards of Conduct (VSC) certification test? - Correct Answer-All VITA/TCE site volunteers must pass the VSC certification test
2. Failure of a VITA/TCE volunteer to comply with the Volunteer Standards of Conduct could result in which of the following? - Correct Answer-a. The volunteer's removal from the VITA/TCE program. b. The volunteer's inclusion in the IRS Volunteer Registry to bar future VITA/TCE activity indefinitely. c. Termination of the sponsoring organization's partnership with the IRS. d. All of the above may be considered an appropriate action depending on the type of violation and the sponsoring organization's corrective actions. <<< CORRECT
3. Is having a donation/tip jar at the quality review station within the VITA/TCE site a violation of the Volunteer Standards of Conduct? - Correct Answer-Yes
4. Maggie wants her tax refund quickly; however, she doesn't have a bank account for direct deposit. She asks Josh, the tax law-certified preparer, to deposit her refund into his checking account and turn the funds over to her when received. If Josh agrees to do this, has he

violated any of the Volunteer Standards of Conduct? - Correct Answer-Yes

5. Pat is a paid tax preparer in the community; he also gives back to the community by serving as an IRS tax law-certified volunteer tax preparer at a VITA/TCE site. While conducting the interview with the taxpayer, Pat discovers the taxpayer's small business will generate a loss, making the return out of scope for the VITA/TCE program. Pat explains to the taxpayer that the tax return cannot be prepared at the VITA/TCE site, but he will offer the taxpayer a discount at his paid tax preparation business down the road. Did Pat violate the Volunteer Standards of Conduct (VSC)? - Correct Answer- Yes, it is a violation of the VSC for Pat to solicit business from any taxpayer at the VITA/TCE site.
6. Ann, an IRS tax law-certified tax preparer, told the taxpayer that cash income does not need to be reported because the IRS will never know about it. Ann indicated NO cash income on Form 13614-C. Ann prepared the return without the cash income. The designated quality reviewer was unaware of the conversation and therefore unaware of the cash income and the return was printed, signed, and e-filed. Did the designated quality reviewer violate the Volunteer Standards of Conduct? - Correct Answer-No
7. Jan, a greeter, overheard an IRS tax law-certified volunteer, Jim, trying to sell insurance to a taxpayer he was helping. Jim is an insurance agent in the community. Jan feels like Jim was pushy, made the taxpayer uncomfortable, and violated Volunteer Standard of Conduct #3. What should Jan do? - Correct Answer-Tell the coordinator what she heard, so they can immediately remove Jim from the site and report the incident using the external referral process by sending an email to [email protected].

2. The certified volunteer preparer should verify the return is within their certification level as part of the Intake/Interview process. - Correct Answer-True
3. When reviewing Form 13614-C, you see the "Interest" question is marked "Yes" and the taxpayer gives you a Form 1099-INT. What should you do next? - Correct Answer-Ask the taxpayer if they had any other interest income.
4. VITA/TCE sites are required to conduct quality reviews of every return prepared at the site. - Correct Answer-True
5. A taxpayer tells you that they donated $50 to their church but they did not bring proof of the donation. This information along with all other information gathered during your interview does not seem unusual or questionable. As a tax preparer, you should: - Correct Answer-Prepare the return giving credit for the donation without seeing proof.
6. What information must a volunteer review to deter the possibility of identity theft? - Correct Answer-Photo identification.
7. The taxpayer signs the tax return after quality review and after being advised of their responsibility for the accuracy of the information on the return. - Correct Answer-True
8. You can quality review a tax return you just prepared instead of waiting for someone else to quality review the return. - Correct Answer-False
9. Which of the following four critical processes for quality review is not correct: - Correct Answer-Using Google as a main reference for tax law determinations.
10. Completing a thorough interview before entering taxpayer information into the software helps avoid which of the following

potential problems? - Correct Answer-a. The volunteer may not have the required certifications to prepare the return. b. The return may be Out of Scope. c. The taxpayer may not have all the information needed to prepare the return. d. All of the above. <<< CORRECT ADVANCED COURSE RETEST QUESTIONS

1. Chris's most beneficial allowable filing status is Single. - Correct Answer-False

• Head of Household.

2. Mary is a qualifying child for the earned income credit. - Correct Answer-True

• Chris meets all EIC requirements.
• Mary passes all 4 tests for qualifying child.
• Nobody else is claiming Mary as a qualifying child.

3. All of Chris's unemployment compensation is taxable. - Correct Answer-True $1,800 unemployment income (100% in 2022).
4. The maximum amount Adam and Lisa are eligible to claim for the Child Tax Credit is $4,000. - Correct Answer-False $2,000 is the max amount in 2022.
5. Payments made to Luis can be claimed on Form 2441 as child and dependent care expenses. - Correct Answer-False

• Linda is eligible to claim Nancy for the EIC.

11. If Ellen chooses to itemize, which of the following is she eligible to claim as a deduction on Schedule A? - Correct Answer-$ Personal property taxes based on the value of her vehicle

• Entered on Schedule A, Line 5c.
• HSA contributions entered on Form 8889 and Schedule 1, not on Schedule A.
• GoFundMe and HOA fees are nondeductible in this case.

12. Ellen is eligible to claim $3,000 in gambling losses as a deduction on her Schedule A. - Correct Answer-False $3,000 gambling losses --> limited to $2,000 gambling winnings.
13. Which of the following is a requirement for John to claim the lifetime learning credit in 2022? - Correct Answer-John's modified adjusted gross income (MAGI) must be less than $90,000.
14. John is eligible to claim the earned income credit on his 2022 tax return. - Correct Answer-True

• Earned income under $59,187 in 2022.
• Investment income below $10,300 for 2022.
• Has valid SSN by tax due date.
• Was U.S. citizen or a resident alien all year.
• Didn't file Form 2555, Foreign Earned Income.

15. The taxable portion of Emily's pension from Maple Enterprises using the simplified method is $19,350. - Correct Answer-False Combined ages = 129 (60+69). 310 life annuity payments (joint and survivor annuity table). $14,500 (line 9b) / 310 = 46.77 * 12 months = $561.

$19,350 (line 1) - $561 = $18,

16. The taxable amount of Emily's social security income is: - Correct Answer-$18,

• Income (jointly) is over $44,000 in 2022.
• Therefore, 85% of SSA is taxable. $21,203 * 85% = $18,022.

17. The total amount of other income reported on the Lincoln's Form 104 0, Schedule 1 is $850. - Correct Answer-False $4,414 gambling winnings + $175 lottery winnings + $850 debt cancellation = $5,439.
18. What is the amount Robert is eligible to claim as qualified educator expenses on Form 1040, Schedule 1? - Correct Answer-$ $733 unreimbursed classroom exp. --> limited to $300.
19. The Lincoln's standard deduction on their Form 1040 for tax year 2022 is $25,900. - Correct Answer-False $25,900 (MFJ) + $1,400 (Emily 65+ age) = $27,
20. Which of the following expenses qualify for the American opportunity credit? - Correct Answer-a. Required course related books and equipment b. Tuition c. Parking pass d. Both a and b <<< CORRECT

• Commuting and personal miles are nondeductible.

27. Joanne meets the qualifications to claim the Lifetime Learning Credit. - Correct Answer-True

• She does not qualify for American Opportunity Tax Credit because she finished the first four years of higher education.
• She does meet all Lifetime Learning Credit requirements.

28. What is Joanne's additional 10% tax on the early withdrawal from her IRA? - Correct Answer-$ $2,500 * 10% penalty.
29. Joanne can make estimated tax payments to avoid owing tax next year. - Correct Answer-True
30. Thomas is eligible to claim the Qualifying Widower filing status.

• Correct Answer-False
• He was widowed in 2019.
• Only eligible for the following 2 years in 2020 & 2021.

31. What is Thomas's adjusted gross income on his Form 1040? - Correct Answer-$41, $41,000 + $130 - $

• From W-2 and 1099-INT.

32. Thomas is eligible to claim the credit for other dependents in
33. • Correct Answer-False

• Thomas can claim Christina for the Child Tax Credit.
• This prevents the Credit for other dependents.

33. Thomas qualifies to claim a retirement savings contribution credit. - Correct Answer-True

• He is age 18 or older.
• He is not claimed as a dependent.
• He is not a student.

34. What is the total amount of advanced payment of premium tax credit that Thomas received in 2022? - Correct Answer-$4,

• Form 1095-A Part III: Annual Totals.
• Column C. Monthly advance payment of premium tax credit.

35. Thomas's child and dependent care credit is refundable in 2022. - Correct Answer-False

• This credit stopped being refundable for tax years after 2021.