Registered Tax Return Preparer Test

Which of the following is subject to self-employment tax?

Companies reporting gross revenues of less than $50,000

Independent contractors declaring S 100 of self-employment income

Independent contractors declaring $400 or more in net self-employment income

those who simply disclose their dividend and interest income

Correct! Wrong!

In general, which of the following payments is taxable?

VA advantages

Unemployment benefits

Based on need, payments from a government support fund

Approved payments for disaster relief

Correct! Wrong!

The taxpayer paid $2,000 in loan interest on a recreational van with sleeping, cooking, and bathroom amenities in addition to $5,000 in mortgage interest on a principal property, $1,500 on a vacation home, and $1,500 on a vacation home. What is the maximum mortgage interest deduction for taxpayers?

$8000

$6000

$5000

$7000

Correct! Wrong!

A tax payer wins $10,000 at a casino. $500 is deducted by the casino for federal income taxes. What should the taxpayer do in terms of taxes?

The taxpayer did not report the wins, hence the taxpayer is not required to do so the casino issues you a Form 1099G

The wins do not have to be reported by the taxpayer on Form 1040. Unless the taxpayer chooses to make a claim for the withheld on the Form 1040

The taxpayer's Form 1040 must include a wins report, although the amount of federal income tax withheld cannot be claimed by the taxpayer unless the taxpayer claims certain deductions

The tax payer is required to disclose gains and may deduct any applicable Federal tax withheld on Form 1040 for income

Correct! Wrong!

A taxpayer paid $15,827 in mortgage interest on a house that belonged to someone else and in which the taxpayer had no ownership stake. What percentage of interest may the taxpayer deduct?

$1

$0

$18,833

$1000

Correct! Wrong!

In the event that a taxpayer's total itemized deductions are greater than...

Equal to the self-employment tax of the taxpayer

A higher standard deduction than that of the taxpayer

Twice the unemployment benefits paid to taxpayers

Than the taxpayer's interest income, but less

Correct! Wrong!

An unmarried taxpayer gives an aging parent all the assistance required for them to live independently in a separate residence. The parent is being listed as a dependent by the taxpayer. Which of the following filing statuses is permitted for the taxpayer to use when filing and is typically best for the taxpayer to use?

Head of the family

Eligible widow

Filing separately after marriage

Single

Correct! Wrong!

Registered Tax Return Preparer Test

Which of the following is subject to self-employment tax?

In general, which of the following payments is taxable?

The taxpayer paid $2,000 in loan interest on a recreational van with sleeping, cooking, and bathroom amenities in addition to $5,000 in mortgage interest on a principal property, $1,500 on a vacation home, and $1,500 on a vacation home. What is the maximum mortgage interest deduction for taxpayers?

A tax payer wins $10,000 at a casino. $500 is deducted by the casino for federal income taxes. What should the taxpayer do in terms of taxes?

A taxpayer paid $15,827 in mortgage interest on a house that belonged to someone else and in which the taxpayer had no ownership stake. What percentage of interest may the taxpayer deduct?

In the event that a taxpayer's total itemized deductions are greater than...

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