Tax Consulting Cheat Sheet 2026

The 30 highest-yield Tax Consulting facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. What is the federal tax filing deadline for individual calendar-year returns in a typical year? → April 15
2. Which of the subsequent interest payments does a taxpayer's total income not include in their deductions? → Interest on a loan taken out to buy the taxpayer's primary home
3. Which of the following expenses does NOT qualify for the Lifetime Learning Credit? → On-campus room and board
4. Under the AICPA Code of Professional Conduct, what is the primary obligation when a CPA discovers a prior year error in a client's tax return? → Inform the client of the error and its implications, and recommend corrective action
5. A taxpayer's filing status is 'Married Filing Jointly.' What is the standard deduction concept a preparer must apply? → A fixed dollar amount that reduces taxable income
6. Under FBAR rules, US persons must report foreign financial accounts when aggregate value exceeds what threshold at any point during the year? → $10,000
7. The profit is subject to the following conditions if you sell your old Chevrolet for more than you paid: → Capital gain tax
8. Which method of accounting generally provides more tax planning flexibility for a small business by controlling the timing of income and deductions? → Cash method
9. Interest earned on which of the following is generally exempt from federal income tax? → Municipal bonds
10. The Foreign Earned Income Exclusion (FEIE) allows qualifying US citizens abroad to exclude how much foreign earned income in 2024? → $126,500
11. Which IRS form is used to report miscellaneous income paid to non-employees, such as independent contractor payments of $600 or more? → Form 1099-NEC
12. A business buys $50,000 of qualifying equipment. Which provision allows immediate expensing rather than multi-year depreciation? → Section 179 deduction
13. The Alternative Minimum Tax (AMT) is designed to ensure that high-income taxpayers do what? → Pay a minimum amount of tax
14. Which estate planning trust allows a surviving spouse to postpone estate taxes until the second spouse's death? → Qualified Terminable Interest Property (QTIP) Trust
15. What is the maximum American Opportunity Tax Credit (AOTC) available per eligible student per year? → $2,500
16. A self-employed client wants the largest retirement contribution. Which plan typically allows the highest contributions? → Solo 401(k)
17. What is the primary purpose of the Section 179 expense deduction? → To allow immediate expensing of qualifying business property rather than depreciation
18. Which strategy spreads gain recognition over multiple years when selling property? → Installment sale method
19. What is the annual gift tax exclusion per recipient for 2024? → $18,000
20. Which business structure is most tax-efficient for a highly profitable small business expecting to reinvest most earnings? → C Corporation (taking advantage of 21% flat rate)
21. At what AGI level does the Child Tax Credit begin to phase out for single filers in 2024? → $200,000
22. Which form does an employer use to report an employee's annual wages and withheld taxes? → Form W-2
23. What is the primary purpose of tax planning as distinct from tax compliance? → To proactively arrange affairs to minimize future tax liability
24. When a business converts from a C Corporation to an S Corporation, what built-in gains tax applies? → Tax on appreciation that existed at conversion date if sold within the recognition period
25. Which of the following is a fully refundable federal tax credit? → Earned Income Tax Credit (EITC)
26. For the 2025 tax year, what is the standard deduction for a single filer under age 65? → $15,000
27. Long-term capital gains apply to assets held for more than how long? → One year
28. The 'more likely than not' standard for tax positions means the position has what probability of being sustained? → More than 50% chance of being upheld
29. Which of the following policies uses taxes as a key tool? → Fiscal policy
30. Which expense category was suspended as a miscellaneous itemized deduction by the Tax Cuts and Jobs Act of 2017? → Unreimbursed employee business expenses