VITA TAX EXAM QUESTIONS AND ANSWERS

VITA TAX EXAM QUESTIONS AND ANSWERS 2023/2024

100% VERIFIED SOLUTIONS

• Pete and Shirley are filing a joint return. They have two dependent children. What is the

total amount of their exemptions for tax year 2019?$0

• Bill and Martha are filing a joint return. They are both over 65 years old. Neither of them

are blind. What is their standard deduction?

$27000

• Sarah's divorce was finalized on March 4, 2019. As ordered in the divorce decree, Sarah

received $14,000 in alimony for the year. Sarah is not required to include any of the alimony income on her tax return.True

• ITINs that have not been used on a federal tax return at least once in the last

consecutive years will expire.Three

• - Which of the following statements is false regarding the deduction for qualified

business income (QBI)?

• Which of the following statements is true regarding the deduction for qualified

business income (QBI)?A sole proprietor may be able to deduct up to 20% of QBI

• Curtis, age 29, did not have health care coverage all year. His AGI is $35,000. What is

the maximum Shared Responsibility Payment (SRP) he is required to pay?$875

• Taxpayers who itemize their deductions for tax year 2019 are subject to a

AGI threshold for medical and dental expenses.Note: Please select c. 7.5% as the correct answer. Year-end legislation changed the medical expense deduction floor to 7.5%.

• Ed is single with no dependents. He has receipts for the expenses listed below that he

paid in 2019. His AGI is $60,000. What are his total itemized deductions for 2019?

$19,800

• - Which of the following statements is true?

Children with an ITIN do not qualify for the child tax credit and the additional child tax credit

• Which of the following statements is false?

• The only income Ramon needs to report on his Schedule C is his income from Form

1099-K, Payment Card and Third Party Network Transactions.False

• Ramon’s mileage expense deduction (at the standard mileage rate) for his business as a

ride share driver (rounded to the nearest dollar) is $17,516.False

• What is the amount of Ramon's student loan interest deduction shown on Form 1040,

Schedule 1?2500

• How does Ramon’s self-employment tax affect his tax return?

The self-employment tax is added to his other taxes and one half of the self- employment tax is an adjustment to income 1 / 3

• What is the amount of Ramon's qualified business income (QBI) deduction?

$0 because Ramon does not have taxable income before the QBI deduction

• What is the reason Ramon does not qualify for the earned income tax credit?

He had no qualifying children and he was under age 25

• Mark is required to make a shared responsibility payment because he did not have health

insurance in 2019.False

• Milo is Oscar’s qualifying person for which of the following?

head of household filing status

• How much of Noah's Social Security is taxable?

$0/ 2175

• What is the total amount of adjustments on Evie’s tax return?
• What is the amount of Olivia's standard deduction?

$20,000

• Prior to working at a VITA/TCE site, ALL VITA/TCE volunteers (greeters,

client facilitators, tax preparers, quality reviewers, etc.) must:

A and B

• Can a volunteer be removed and barred from the VITA/TCE Programs for violating the

Volunteer Standards of Conduct?Yes

• If a taxpayer offers you a $20 bill because they were so happy about the quality service

they received, what would be the appropriate action to take?Thank the taxpayer, and explain that you cannot accept any payment for your services

• Jake is an IRS tax law-certified volunteer preparer at a VITA/TCE site. When preparing a

return for Jill, Jake learns that Jill does not have a bank account to receive a direct deposit of her refund. Jill is distraught when Jake tells her the paper refund check will take three or four weeks longer than the refund being direct deposited. Jill asks Jake if he can deposit her refund in his bank account and then turn the money over to her when he gets it. What should Jake do?Jake should explain that a taxpayer's federal or state refund cannot be deposited into a VITA/TCE volunteer's bank account and she will have to open an account in her own name to have the refund direct deposited.

• Max prepares a tax return for Ali at a VITA/TCE site. He finds out during the interview

that Ali has no health insurance. After Ali leaves the site, Max writes her name and contact information down to take home to his wife who sells health insurance for profit.Which of the following statements is true?Max has violated the VSC because he is using confidential information to engage in a financial transaction to further his own or another's personal interest. 2 / 3

• Bob, an IRS tax law-certified volunteer preparer, told the taxpayer that cash income does

not need to be reported because the IRS does not know about it. Bob indicated NO cash income on Form 13614-C. Bob prepared a tax return excluding the cash income. Jim, 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. Who has violated the Volunteer Standards of Conduct?Bob, the tax law-certified volunteer who prepared the return

• Sue, a VITA/TCE site coordinator, was watching the local news when she saw Aaron, a

new tax law-certified volunteer, in a story about several bank employees being arrested for suspicion of embezzlement. She saw Aaron being led out of the bank in handcuffs.Three days later, Sue is shocked when she sees Aaron show up at the site ready to volunteer, apparently out on bond. She pulls Aaron aside and explains that his arrest on suspicion of embezzlement could have a negative effect on the site and therefore she must ask him to leave the site. Sue uses the external referral process to report the details to IRS-SPEC by sending an email to WI.Voltax@irs.gov. Did Sue take appropriate actions as the site coordinator?Yes

• Heidi, a VSC-certified volunteer, is working at the intake station. As part of her duties, she

is required to explain to the taxpayer what they are expected to do today as part of the return preparation process. What should Heidi tell them?All of the above

• During the intake process, the volunteer should verify the taxpayer and spouse, if

applicable, have photo identification. Additionally, taxpayers must provide verification of taxpayer identification number (SSN or ITIN) for everyone who will be on the tax return. True

• Mary, a VSC-certified greeter, reviews the taxpayer’s completed Form 13614-C, page 2,

to identify what potential volunteer certification level is needed for this tax return. Mary sees the taxpayer has checked the “yes” box indicating he has self-employment income and the certification level next to the question is (A). All other questions answered “yes” have a (B) certification. When Mary assigns the return to a tax preparer, what tax law certification level should the tax preparer have?Advanced

• All IRS-certified volunteer preparers participating in the VITA/TCE Programs must use

Form 13614-C along with an effective interview for every return prepared at the site.True

• What should the certified volunteer preparer do before starting the tax return?

All of the above

• When reviewing Form 13614-C, you see the "Interest" question is marked "Yes" and the

taxpayer gives you a Form 1099-INT. You should ask the taxpayer if they had any other interest income.True

34. VITA/TCE sites are required to conduct quality reviews:

Of every return prepared at the site

• You do not need to see proof of cash donations made by a taxpayer if you feel that the

information is not unusual or questionable.True

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