A military enlisted has just returned from Iraq and is moving to a base in the US. What tax benefits are available, what forms should be completed, what questions would you ask

Erik took a $5,000 distribution from his ROTH IRA to pay for a vacation to celebrate his 40th birthday. Since he opened the account 10 years ago, he has contributed $28,500. Will he have to pay any taxes on this distribution?

Jamie is filing as single and has the following expenses for 2018: $9,250 mortgage interest, $10,350 state/local income taxes and real estate taxes, $500 charitable donations, $2,000 unreimbursed employee expenses. How much will Jamie’s federal itemized deductions total?

To meet due diligence requirements for the Earned Income Credit Worksheet and Form 8867, a record must be kept of how, when, and from whom the information used to prepare the Form 8867 and the worksheets was obtained.

Under what circumstances will the IRS not charge an underpayment penalty?

A US citizen (or Resident Alien) may use the “Single” filing status when they are married to a Nonresident Alien who does not have a social security number or ITIN. (True or False)

John, 30, lived with his girlfriend Sally, 30, and Sally's daughter Jane, 5, for the entire year. John provided all of their support. John can file as Head of Household.

When a military member is deployed to a combat zone, they may be eligible for an automatic tax extension which allows them additional time to file their tax return. How many extra months does this extension typically provide?

If an employee has excess Social Security tax withheld in a given tax year, they may claim the excess as a credit on their tax return only if the excess was withheld by one employer. (True or False)

If a non-custodial parent gets a signed Form 8832 from their child’s other parent, which of the following tax breaks are they eligible to claim? Head of Household filing status Child Tax Credit/Additional Child Tax Credit Earned Income Credit All of the above

Which form related to health insurance must be reported on your tax return 1095-A 1095-B 1095-C

A taxpayer who lives in a multi-family household may claim Head of Household (HOH) status, even if another taxpayer in the same household is also claiming HOH on their tax return. (True or False)

Jack and Jill divorced in 2022. They have a 16-year-old son, Tom, of whom they split custody. The divorce decree did not say who would claim Tom. Jack is an engineer with a yearly salary of $145,000. Jill is a teacher with a yearly salary of $65,000. Tom works at McDonald’s and made $8,500 for the year. Tom stayed at Jill’s house 195 days and Jack’s house 175 days in 2023. Who can claim Tom on their 2023 taxes?

If the taxpayer (or spouse, if married), was a non-resident alien for any part of the tax year, the taxpayer cannot claim the Earned Income Credit, unless the taxpayer's filing status is Married Filing Jointly. (True or False)

Taxpayers under the age of 59 1/2 may make Qualified Charitable Distributions from their IRA, as long as payment is made directly to the charity. (True or False)

The Residential Clean Energy (RCE) Credit is a nonrefundable credit (True or False)

If a 1099 form was not issued for rental income earned, it falls below the reporting threshold and does not need to be included on the tax return. (True or False)

You may be able to avoid the 6% excise tax on excess contributions to your HSA if you withdraw them before the due date of your return. (True or False)

Milan is selling some personal items, whether she has a gain or a loss she must report the sale on her tax return. She will also will recognize a capital gain or loss on that year's tax return. (True or False)

Taxpayers, who live in Canada, on the regular due date of their return, are given an automatic 4 month extension to file their tax return by the IRS. (True or False)

Craig took out a home equity loan to help pay for his daughter's college tuition. For tax year 2023, how would he include the incurred interest on his tax return? Choose One Student Loan interest A Nonrecourse loan Home equity debt on Schedule A Home equity debt, not deductible, if not used to acquire or improve the home.

Two of the qualifying criteria to claim the Child and Dependent Care Credit include 1)earned income in the year prior to claiming the credit and 2)payments were not made to your child who is under the age 19 at the end of the year. (True or False)

Which education credit is available to people in post-graduate programs? Choose One Child and Dependent Care Credit American Opportunity Credit Lifetime Learning Credit Earned Income Credit

For medical expenses to be deductible as an itemized deduction in the current year, what percentage of adjusted gross income must the taxpayer exceed? Choose One 2% 7.5% 10% Medical expenses are no longer deductible

Chloe recently moved from Fayetteville, AR to Little Rock, AR due to her new job. She wants to claim moving expenses on her TY22 tax return and friends have told her she can claim moving expenses. How do you respond to her question? Choose One Moving expenses are not currently allowed as a deduction. Chloe can claim the deduction if her spouse is in the military. Chloe can claim moving expenses on her AR return but not her federal return. Chloe can claim federal and AR moving expenses because her move is more than 50 miles from her current residence.

How much can eligible educators deduct for qualified expenses? Choose One $300 $250 $100 $500

Harvey is a US citizen that has been living and working in Austria since 2021. He earned USD $139,000 during 2023. In addition, he paid foreign taxes of $19,000. When filing his US tax return, Ed does not need to report the income earned in France as he's already paid tax on it. (True or False)

A Taxpayer who received foreign taxed dividends from a corporation abroad can use the Foreign Earned Income Exclusion in order to avoid double taxation. (True or False)

A customer has until October 15th of the following year to correct any HSA overpayments. (True or False)

Fernando and Eliza live in Texas and paid sales tax for clothes, household items, a new boat and medical expenses. They didn't keep track of how much they paid in sales tax and will not be able to claim the itemized deduction for sales tax on their TY23 return. (True or False)

Describe a time when you faced a challenge in gathering information from a client, who is not only evasive in their responses, but has also become upset as you asked further clarifying questions. How did you handle it and what strategies did you use to ensure you received the necessary information? (Verbal)

Your customer has dependents who have Marketplace Health Insurance through their non-custodial parent. However, when they enter the 1095-A, their balance due increases drastically. Please research and refer to resources to explain this situation to your customer in your own words.

Vestal's return is ready to file, and you have just completed the final review during which you identified an issue. The necessary correction changes the client's tax situation from an expected refund of $2,000 to a balance due of $3,000. When you inform them of the error during your next call, they are very upset. How do you lead the conversation? What techniques do you use to connect with your client? What will you say to the customer to alleviate their distress?

We experience high customer demand at varying times throughout tax season. You have just finished a call with a customer, 10 minutes past your shift, and immediately receive another customer call. The customer is upset that they may need to file an extension, so they have time to locate missing W-2s. They really do not want to extend. Please walk us through how you would handle this situation.

John's son, Derek, is 23, a full-time student in his second year of college, and does not have any income. John's filing status is Married Filing Jointly, the total modified adjusted gross income on the return is $112,000, and Derek will be claimed as a dependent on John's tax return. His educational expenses included $8,000 for tuition, and $4,000 for room and board. Derek received a $5,000 scholarship for tuition use only, as well as an additional $2,500 scholarship to pay any college expenses. John paid the remaining $4,500 in cash. Please research and refer to resources to answer the following questions for your customer, in your own words: Is Derek a qualified dependent on John's tax return? If so, what are the credits that John can claim on his tax return? What are the total tuition expenses? Is any part of the scholarship received taxable?

You are speaking with a customer who is asking for tax advice. You are not familiar with the topic and do not know the answer. In your own words, what steps do you take? How do you respond? (Written)

You are speaking with a customer who is asking for tax advice. You are not familiar with the topic and do not know the answer. In your own words, what steps do you take? How do you respond?

Josie recently moved to a small apartment. She spent two months working with a consultant to dispose of her treasured collection of clothes, shoes, dishes, and Christmas decor. After a successful living estate sale, two truck loads of items were donated to a local thrift charity. Josie estimates the value of the items to be $95,000. In your own words, what questions would you have for Josie? What resources would you use and what guidance would you give Josie?

A customer called to ask about a CP2000 letter they received. You explained the letter to the customer, and how to respond to it. Reflect on a time when you have sent a written communication to a customer. Write an email to summarize your conversation in your own words.

You have spent a couple hours with a kind customer, preparing their tax return, and have a great rapport. They have discussed their children and financial struggles. Their refund is lower than they expected, since they earned more money during the tax year. At one job, they earned tips that were not reported on a W-2. Removing the tips from the return increases the EIC drastically. The customer asks you to leave the tips off the return, since there is no "real proof" they received them. You know the customer could really use the money, and they are adamant it isn’t hurting anyone. They say if you do not remove them, they will go to a competitor. How do you handle the situation, and what are your next steps?

Imagine you are assisting a customer using TurboTax Online. The customer encounters two challenges. First, they are unclear if they can claim their 19 year-old, first year college student as a dependent. Second, the customer states they are getting logged out when they try to enter any information. You have access to a comprehensive tax law reference tool, an internal software troubleshooting platform, and direct real time access to the technical team. Given these resources, please describe, in your own words, how you would proceed to simultaneously address the customer's tax question and resolve the software problem. Please include any specific steps you would take in diagnosing and troubleshooting the software problem and how you would apply the tax law knowledge to guide the customer.

Jack and Jill have lived together for the past two years. They are not married. Jill has an 8 year old son, Max, from a previous relationship. Jack and Jill have a 2 year old daughter, Sabrina, together. Jill has no income. Jack earns $80,000 as an employee. He pays all living expenses for everyone in the household. Please explain to Jack how many dependents he can claim on his current year return. What credits might he be eligible to claim?

How many years have you prepared taxes? On average, over the last three years, approximately how many 1040 returns have you prepared?

Please list the types of returns you have prepared professionally.

Please list the types of paid professional tax software (if any) you have used and any non-professional tax software (if any). In your own words, share your likes and dislikes of each program.