Jackson Hewitt Tax Practice Test

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• Which form reports nonemployee compensation?
• What is the member of household or relationship test for qualifying relatives?
• What is the key difference between the American Opportunity Credit (AOC) and the Lifetime Learning Credit (LLC)?
• Which form is used to amend a previously filed individual income tax return?
• What is the purpose of Form 1040-X?
• Which form is used to report energy credits for appliances?
• Under the divorced dependent tie-breaker rules, the tie-breaker does not apply in which scenario?
• In HOH eligibility, what must be true about the qualifying individual?
• How does Adjusted Gross Income (AGI) affect tax benefits?
• What are the two common methods for claiming a home office deduction for a self-employed taxpayer?
• Taxable income is calculated by subtracting which from adjusted gross income (AGI)?
• What is the exception to the December 31st age determination rule?
• In itemized deductions, what does SALT stand for?
• What is the general trend of the Child and Dependent Care Credit percentage as income changes?
• How is the basis of an asset determined for calculating gain or loss on sale?
• To claim a dependent under the special rule when the noncustodial parent qualifies, which document must be attached to the tax return?
• Which form reports mortgage interest that qualifies for the deduction?
• If a child is required to file but is too young, what must happen?
• What is the SALT cap and what tax reform introduced it?
• Which form reports depreciation on business property?
• To see if a dependent taxpayer needs to file, you need to know their...
• Which form provides information about health insurance purchased through the Marketplace?
• Which form should be used to report federal gift taxes?
• When are estimated tax payments typically due for a calendar-year taxpayer?
• How is a worker's status determined for tax purposes?
• Which form would you use to report the sale of capital assets when paired with Schedule D?
• The number of dependents on a tax return influences which aspect of the tax calculation?
• What forms of income are NOT exempt from tax?
• Which statement about net capital losses is true?
• Which statement correctly describes the relationship between AGI and tie-breaker decisions for the child-related benefits?
• What is the (qualifying child) relationship test?
• Which tests determine eligibility for the foreign earned income exclusion?
• Which form is used to report capital gains and losses?
• Which practice supports preventing identity theft when verifying client information?
• If a dependent is not eligible for a social security number (SSN), they can apply for an...
• Which form is used to determine whether a taxpayer owes penalties for underpayment?
• If the taxpayer dependent was born and died during the tax year and they did not have an identifying number, what should you do?
• Which form is used to calculate passive activity loss limitations?
• What information does Form W-2 provide?
• Which form is used to claim EITC after it has been disallowed previously?
• Which best describes a primary outcome of verifying client information before e-filing?
• What happens to remaining capital losses after offsetting gains and the annual deduction limit?
• Which form is used to request a transcript of a prior-year tax return?
• If the qualifying child lived with both parents an equal amount of time, who can claim the child?
• Which items are included in gross income?
• What is the amount of the SALT cap?
• What is Form 1099-R used to report?
• What are the home sale exclusion amounts for single and MFJ filers?
• Which factor is used to determine who can claim the child when the time lived is equal and both parents meet other criteria?
• Which form is used to report health coverage information obtained from the Marketplace?
• What is the qualifying relative gross income test?
• Which related individuals can be qualifying relatives without living with the taxpayer?
• What does AGI stand for?
• Who sets the standard mileage rate?
• Which form reports interest income to the IRS?
• What is the citizen or resident test?
• In the qualifying child criteria, which statement correctly describes the support test?
• Which HOH criterion relates specifically to a parent living with the taxpayer?
• What is the purpose of Form 1099-MISC vs 1099-NEC shift in recent years?
• Which forms are used to report estate and gift taxes?
• What is the Kiddie Tax?
• In tax practice, verifying client information before e-filing primarily aims to protect against what?
• What is considered earned income?
• Which situation determines the parent who claims the child when the child lived with one parent longer than the other during the year?
• What is the SALT deduction cap and how does it affect itemized deductions?
• Which form is used to report gift taxes?
• Which statement best describes the married filing jointly (MFJ) filing category?
• Which form reports unemployment compensation?
• Which form reports payroll taxes withheld from employees?
• What is the purpose of the standard mileage rate?
• Which forms are used to claim the Qualified Business Income deduction under Section 199A?
• Which form is used to file a corporate return for a C-corporation?
• What is the qualifying relative support test?
• Which statement correctly describes how Social Security and Medicare taxes apply to wages?
• What are the possible long-term capital gains tax rates?
• How does income affect the Child and Dependent Care Credit percentage?
• Under qualifying surviving spouse rules, what is allowed for the year the spouse died if the taxpayer is otherwise eligible?
• Noncustodial parent trying to claim dependent using special rule must attach a signed Form ____
• If a taxpayer is widowed in the current tax year, are they still considered married for federal tax purposes?
• Which form is used for the Additional Child Tax Credit?
• Which form reports the employer's payroll taxes to the government?
• Which form is used to claim the Adoption Credit?
• Before e-filing, verification of client information helps ensure:
• Which form is used to claim the foreign earned income exclusion?
• Under the dependent claiming joint return test, a married dependent who files a separate return meets the test.
• What are the five filing statuses?
• Under Qualifying Surviving Spouse rules, for how many tax years after the death of a spouse can a taxpayer potentially file QSS?
• If none of the taxpayers are parents of the child, who is allowed to claim the child?
• True or false: individuals in a registered domestic partnership, civil union, or other similar relationship that is not considered a marriage under state law are considered married for federal tax purposes.
• Which statement describes HOH eligibility for a taxpayer whose spouse died during the tax year?
• The home sale exclusion is applied to gains on Schedule D with Form 8949; up to $250,000 (single) or $500,000 (MFJ) if ownership and use tests are met. Which statement is true?
• Which schedule is used to compute self-employment tax?
• Which of the following is a primary reason to verify a client's information before electronically filing a tax return?
• Which schedule is used to report itemized deductions on Form 1040?
• If a child is required to file a tax return, who is responsible?
• Under the qualifying relative gross income test, which statement is true?
• Which form reports rental income and expenses?
• Which form is used to claim Education Credits?
• What does SALT stand for in tax terminology?
• To determine if an independent taxpayer is required to file a tax return, which three items must you know?
• What is the distinction between a refundable tax credit and a nonrefundable tax credit?
• What is the difference between claiming the standard deduction and itemizing deductions?
• Which form is used to claim energy credits for home improvements?
• What is the (qualifying child) residency test?
• Which form reports Health Savings Account contributions, distributions, and carryovers?
• How does the Child Tax Credit relate to the Additional Child Tax Credit?
• Which form is used to report rental income and expenses on a Schedule E?
• What defines the Head of Household filing status?
• Verifying client information before e-filing primarily helps prevent which risk?
• What is the current self-employment tax rate and what portion is deductible?
• Which of the following is not a primary reason to verify client information before e-filing?
• Which form is used to claim the Saver's Credit?
• Tax reform introduced the SALT cap?
• Which form is used for health coverage exemptions?
• Which statement describes the qualifying child support test?
• Before submitting electronically, verification of client information most closely supports which goal?
• Form 2441 is used for which credit?
• Which statement best describes the married filing separately (MFS) filing category?
• What kind of documentation should taxpayers keep to support itemized deductions?
• What is the (qualifying child) age test?
• Which statement correctly describes the death year for QSS eligibility?
• Which items are used to determine whether a dependent qualifies as a Qualifying Child for tax purposes?
• Which statement describes the residency test for a qualifying child?
• Which form is used to report nonemployee compensation to independent contractors?
• Which form is used to file a partnership return?
• Verifying client information before e-filing contributes most to which objective?
• Dependent info is entered on Form ____
• How is unemployment compensation taxed?
• What is the difference between a tax credit and a tax deduction?
• True or false: Only one HOH status can be used for each household.
• Which of the following is a factor used to determine if a dependent must file?
• Can filers with no qualifying children qualify for the Earned Income Tax Credit (EITC)?
• Which statement describes the residency exception for the noncustodial parent under the divorce rules?
• Which form provides tuition information used to compute education-related credits?
• What is Form 1099-NEC used for?
• Which form reports dividend income to the IRS?
• A tax professional is verifying client information before e-filing to reduce the risk of what?
• Which form reports the Premium Tax Credit for Marketplace health insurance?
• Which statement best describes the purpose of Form 8606?
• What are potential tax consequences of canceled debt?
• Tie-breaker rules apply to other tax benefits available to taxpayers who claim the child, such as...
• Which of the following is an example of unearned income?
• Which statement correctly describes HOH status eligibility in a household?
• Which scenario would qualify someone for head of household status?
• In the special divorced dependent rules scenario, which benefit can the custodial parent still claim using the child?
• What is the dependent taxpayer test?
• Which form is used to report the gift taxes?
• How are alimony payments treated under current law?
• Which form is used to claim Education Credits?
• Which of the following describes the purpose of Form 1099-NEC?
• Which of the following statements is true about a dependent who is a spouse?
• Which of the following is an example of earned income?
• What is Form 8889 used for?
• Which filing status applies to a taxpayer who has lost a spouse and has a dependent child, and continues to maintain that household?
• Which statement best describes the qualifying child relationship test?
• What is Form 8880 used for?
• Which statement best describes the multiple-support agreement in the context of qualifying relatives?
• What are the single filing categories?
• What is considered unearned income?
• What is Form 8863 used for?
• If only one taxpayer is the parent of the qualifying child, who is allowed to claim the child?
• At a high level, how is the Child and Dependent Care Credit calculated?
• If taxpayers divorced between 1984 and 2009, the noncustodial parent may be able to use certain pages from the divorce decree instead of Form ____
• Which filing status generally yields the highest standard deduction for a married couple with no dependents?
• Which type of tax credit can result in a refund even if you owe no tax?
• Which outcome best aligns with verifying client information prior to e-filing?
• How does the Additional Child Tax Credit work?
• Which information does Form W-2 provide?
• Which form is used to claim Education Credits?
• Which form is used to request an extension of time to file?
• Which best describes a primary outcome of verifying client information before e-filing?
• What is Schedule D used to report?
• What is the dependent joint return test?
• Which form is used to request a transcript of a prior-year tax return?
• Which of the following is a risk mitigated by verifying client information before e-filing?
• If the taxpayer has more than four dependents, what should you do on Form 1040?
• Which form provides tuition information used for education credits?
• Which form and mechanism apply to the home sale exclusion?
• Which statements describe the Qualifying Surviving Spouse (QSS) filing category?
• If parents file a joint return to claim a child, how is each parent's AGI determined for tie-breakers?
• Which statement best describes the purpose of Form 2555?
• What is Schedule E used to report?
• What is the self-employment tax rate?
• What is gross income?
• Which documentation is required if a dependent was born and died during the year and lacked an identifying number?
• Which forms are used to report health coverage information for ACA compliance?
• Under the qualifying child joint return test, when can a dependent file a joint return?
• A qualifying child must pass all the following tests:
• What criteria must a child meet to be a Qualifying Child for the Child Tax Credit?
• Which form is used to report estate taxes?
• Which form is used to file annual information about an employee benefit plan?
• What is the general purpose of the tie-breaker rules in child-related tax benefits?
• Under the qualifying child age test, which statement is true?
• There are two types of dependents.
• If an adopted dependent does not have an SSN yet, they can apply for what number?
• Which schedule is used to compute self-employment tax?
• Which form reports mortgage interest paid?
• How does depreciation affect the basis of an asset?
• Which form is used to amend an individual's return?
• For other taxpayers that are neither independent taxpayers nor dependents and are not technically required to file, they should file to get a refund if they ...
• Which form is used to report energy credits for appliances and home improvements?
• If more than one taxpayer is the parent of the child, which parent is allowed to claim the child?
• Which statement about the residence test for a Qualifying Child is correct?
• Form 1098-T is used for which purpose?
• Which portion of the Child Tax Credit can be refundable under certain conditions?
• Which purposes qualify for the standard mileage rate?
• Which form is used to claim the Foreign Tax Credit?
• What percentage of the American Opportunity Credit is refundable?
• How is the taxpayer's age determined for filing purposes?
• Which action should a taxpayer take if they had federal income tax withheld and are eligible for refundable credits?
• Which schedule reports self-employment income?
• What factors determine eligibility for the Earned Income Tax Credit (EITC)?
• Which form is used to report capital gains and losses on a tax return, in conjunction with Schedule D?
• Which form is used to claim depreciation on business property, including Section 179?
• What is Form 1040 used for?
• Taxpayers apply for an ITIN by filing which form?
• Which form reports distributions from retirement accounts?
• How is a tax refund different from a tax due amount?
• Which form reports dividend income to the IRS?
• Which form is used to claim the Saver's Credit?
• Which statement correctly describes the age determination when a taxpayer's 65th birthday falls on January 1?
• Which forms are used to claim the Qualified Business Income deduction under Section 199A?
• What is Schedule C used for?
• Which household member is never considered a taxpayer dependent?
• Is the Lifetime Learning Credit refundable or nonrefundable?
• Which statement is not a primary reason to verify client information before e-filing?
• Which test is included in the qualifying relative tests but not listed for qualifying children?
• Which form reports capital gains and losses?
• Which form calculates the Alternative Minimum Tax?
• Which form is used to claim the Child and Dependent Care Credit?
• Which form reports the sale of capital assets?
• Under the qualifying relative not a qualifying child test, which statement is true?
• If a taxpayer's spouse dies during the tax year, can they use HOH?
• What can trigger an underpayment penalty for estimated tax?
• A qualifying relative must pass all the following tests:
• What is the federal status of the health insurance mandate penalty since 2019?
• A child adopted by a U.S. citizen and who is a member of the taxpayer's household all year may meet the citizen/resident test if ...
• Which statement best describes the American Opportunity Credit in terms of refundability?
• What is the purpose of the standard deduction?
• Which is a direct benefit of verifying client information prior to e-filing?
• Which statement accurately describes the residency requirement for qualifying relatives under the noncustodial parent rule?
• Which form reports charitable contributions with noncash property over $500?
• When does mortgage interest qualify for the mortgage interest deduction?
• Which form reports interest income to the IRS?
• If you sell a capital asset and have gains, which forms are typically used to report the sale?
• A taxpayer cannot claim a dependent unless which tests are met?
• What is included in gross income for tax purposes?
• What is the one occasion when more than one individual can claim different tax benefits for the same child?
• Which education credit is nonrefundable?
• Which form is used to claim the foreign tax credit?
• Which credits can be claimed using Form 8863?
• How are short-term and long-term capital gains taxed differently?