Final Exam
Student:
Wang, Kent SCORE:
100%PASSED
Failure to perform all four due diligence requirements on an EITC return can subject a Tax Professional to a penalty of:
$100 per occurrence.
$250 per occurrence.
XXX$500 per occurrence.
$1,000 per occurrence.
All of the following are EITC due diligence responsibilities except:
Compute and submit the eligibility checklist.
Compute the credit.
Knowledge.
XXXEmployment verification
The above-the-line deduction for educator expenses is now permanent, will be adjusted for inflation, and will also allow expenses for:
Homeschooling.
Transportation.
Insurance.
XXXProfessional development
In 2009, the earned income credit was enhanced to include a higher credit for families with three or more children, and a higher phaseout for joint filers. This enhancement is now:
Expired.
XXXPermanent.
Extended for two years.
Extended for four years
When claiming an ACA tax return exemption in Form 8965, Part III, which of the following elements is required?
Individual's name and SSN.
The ACA tax return exemption code.
The months the individual is claiming the exemption for not having minimum essential coverage.
XXX All of the above
When assisting taxpayers in claiming a Marketplace exemption, which of the following statements is correct?
VVV The Tax Professional would enter the word "pending" instead of an Exemption Certificate Number (ECN) on Form 8965, Part I, if the taxpayer was unaware they qualified for a Marketplace exemption prior to their tax appointment. The Tax Professional would then assist the taxpayer in filling out the associated Marketplace exemption applications.
Before a Marketplace exemption can be claimed on Form 8965, the taxpayer must be granted a Marketplace exemption by the Marketplace and receive the Exemption Certificate Number (ECN). Then the Tax Professional enters the taxpayer's ECN on Form 8965, Part I.
The Tax Professional assists the taxpayer in filing an online Marketplace exemption application, located on HealthCare.gov. The online Marketplace exemption application is called the HealthCare.gov ACA Exemption Tool. After the taxpayer receives their Exemption Certificate Number (ECN) via email, the Tax Professional enters the ECN on Form 8965, Part I.
XXXBecause Marketplace exemptions are only claimed directly on Form 8965, the Tax Professional would complete either Part II or III, depending on the Marketplace exemptions the taxpayer qualified for
On which part of Form 8962 would the taxpayer's contribution amount be determined?
XXXPart I: Annual and Monthly Contribution Amount
Part II: Premium Tax Credit Claim and Reconciliation of Advance Payment of Premium Tax Credit
Part III: Repayment of Excess Advance Payment of the Premium Tax Credit
Part IV: Shared Policy Allocation
When calculating a taxpayer's actual contribution for SLCSP, two components needed in the formula are:
VVV The actual household income times the actual applicable figure.
The projected cost of SLCSP minus the projected contribution for SLCSP.
XXXThe actual cost of SLCSP minus the actual contribution for SLCSP.
The projected household income times the projected applicable figure
An EITC audit that concludes with an IRS agent determining that the Tax Professional performed all appropriate and relevant due diligence requirements:
Will require further investigation.
Will require a taxpayer interview.
Will result in reduced penalties incurred by the Tax Professional.
XXXWill result in no penalties incurred by the Tax Professional
The deduction for taxpayers who itemize and elect to deduct state and local general sales taxes in lieu of state and local income taxes is now:
Extended for two years.
Extended for four years.
XXXPermanent.
Expired.
Which of the following statements is correct when completing Form 8965 in BlockWorks?
When entering an individual's Marketplace exemption granted by the Marketplace, the Tax Professional will enter the Exemption Certificate Number (ECN), provided to the individual by the Marketplace, within the BlockWorks Form 8965 input screen.
When entering an individual's Marketplace exemption in which the exemption application is still being processed by the Marketplace, the Tax Professional will enter the word "Pending" instead of an Exemption Certificate Number (ECN) within the BlockWorks Form 8965 input screen.
XXXBoth A and B are correct.
Neither A nor B is Correct
When claiming an ACA tax return exemption in Form 8965, Part III, which of the following elements is required?
Individual's name and SSN.
The ACA tax return exemption code.
The months the individual is claiming the exemption for not having minimum essential coverage.
All of the above.
BlockWorks will carry the actual cost of the SLCSP from Form 1095-A, Part III, Column B, line 33 to which area of Form 8962?
Form 8962, Part III, line 28.
Form 8962, Part III, line 27.
Form 8962, Part II, line 26.
XXXForm 8962, Part II, line 11 (b).
When calculating a taxpayer's actual contribution for SLCSP, two components needed in the formula are:
The actual household income times the actual applicable figure.
The projected cost of SLCSP minus the projected contribution for SLCSP.
The actual cost of SLCSP minus the actual contribution for SLCSP.
The projected household income times the projected applicable figure