Tax Preparation Cheat Sheet 2026

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

1. Form 4868 grants an automatic extension to file Form 1040 for how many months? → 6 months
2. A taxpayer may claim 'exempt' from federal income tax withholding on Form W-4 only if which condition is met? → They had zero federal income tax liability last year and expect zero liability this year
3. The kiddie tax rules tax a child's unearned income above a threshold at the: → Parent's marginal tax rate
4. Which filing status gives the highest standard deduction for a single parent with a qualifying child? → Head of Household
5. A taxpayer can avoid the underpayment penalty by paying at least what percentage of the prior year's tax? → 100% of prior year tax (or 110% if income over $150,000)
6. Which schedule reports capital gains and losses from the sale of investments? → Schedule D
7. A freelancer's Schedule C shows $15,000 net profit. What is their self-employment tax (rounded)? → $2,120
8. A taxpayer receives a state tax refund. Under what condition is the refund taxable? → If the taxpayer itemized and deducted state taxes in the prior year
9. Which of the following is NOT deductible as a mortgage interest deduction? → Interest on a mortgage for a vacation home above the $750,000 limit
10. A taxpayer supports their sibling who lives with them and earns $5,000. Which test prevents claiming the sibling as a qualifying relative in 2024? → Gross income test
11. Who is generally required to make quarterly estimated tax payments to the IRS? → Individuals who expect to owe at least $1,000 after withholding and credits
12. A self-employed taxpayer can deduct 100% of health insurance premiums paid for themselves and their family as: → An adjustment to income on Schedule 1
13. For calendar year taxpayers, when is the first quarterly estimated tax payment due? → April 15
14. Form 8867 must be completed by a paid tax preparer who claims which credits for a client? → EITC, CTC, AOTC, and Head of Household
15. How is the IRS underpayment penalty calculated? → The federal short-term interest rate plus 3 percentage points on the underpaid amount
16. Two divorced parents share custody. Who is generally entitled to claim the child as a dependent? → The custodial parent
17. The IRS statute of limitations to assess additional tax is generally how long from the due date of the return? → 3 years
18. A self-employed consultant uses the actual expense method for vehicle deductions. Which record is most important to maintain? → A mileage log showing business and personal miles
19. Which form reports wages, tips, and other compensation paid by an employer to an employee? → Form W-2
20. Self-employment tax is composed of which two components? → Social Security tax and Medicare tax
21. An Offer in Compromise (OIC) allows a taxpayer to: → Settle their tax debt for less than the full amount owed
22. The Net Investment Income Tax (NIIT) of 3.8% applies to which taxpayers? → Taxpayers with MAGI over $200,000 (single) or $250,000 (MFJ)
23. An employer must deposit federal payroll taxes by what general deadline for monthly depositors? → The 15th of the following month
24. What form does a custodial parent use to release the dependency exemption to the noncustodial parent? → Form 8332
25. Which of the following individuals qualifies as a dependent under the qualifying child rules? → A 23-year-old child who is a full-time student
26. What is the maximum Child Tax Credit per qualifying child for 2024? → $2,000
27. Which form allows retirees and pension recipients to elect federal income tax withholding from their retirement distributions? → Form W-4P
28. Foreign tax credits allow US taxpayers to: → Offset US tax on foreign income with taxes paid to a foreign government
29. A self-employed person with no employees wants to open a retirement plan with the highest possible contribution. Which plan is best? → Solo 401(k)
30. Which of the following expenses is NOT deductible on Schedule C? → Personal vacation expenses