2020 Advanced Exam

 2020 Advanced Test Questions Review


2020 Advanced Test Questions Review
Total points32/35
**Updated 12/11/2020 question 17-Taxslayer software was just recently updated and is now calculating this amount correctly--let's just hope the IRS testing site has changed their answer to reflect this correction--as it was originally scoring the older calculated amount correct.
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I am not reviewing entries or tracking entries-totally anonymous
This is a tool to check your answers before you submit online in Link and Learn certification Site. There will be hints if you get the answer incorrect.
If you find an error or disagree, please email me as I am human and could have made a mistake. maryvitataxes@gmail.com
Please note: PUB 4012 and PUB 4491 are available online https://www.irs.gov/pub/irs-pdf/p4012.pdf and https://www.irs.gov/pub/irs-pdf/p4491.pdf are referenced here. The Table of Contents is great--click on page number and it will take you to the section wanted--also use <find> to find keywords to help.
1.What is the most beneficial filing status allowable for Rebecca? 
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2. Rebecca has $3,100 in qualifying child care expenses for the child and dependent care credit.
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3. Pat and Terry are eligible for which of the following credits? Select the best answer
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4. Pat’s unemployment compensation is not taxable this year because it was received as a result of the coronavirus pandemic.
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5. Which of the following statements is true? 
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6. What is the amount of Andrew’s HSA deduction on Form 8889, Part I, line 13?
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7. Andrew can identify the employer’s HSA contribution by the Code W in Box 12 on his Form W-2.
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8. What is the total unreimbursed qualified medical expenses reported on Form 8889,Part II? 
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9. Which individuals can make an agreement on who can claim Molly as a dependent?
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10. Who can claim the earned income credit for Molly?
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11. If Robert chooses to itemize, which of the following is he eligible to claim as a deduction on Schedule A? 
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12. If Robert chooses not to itemize, what is the amount that he can deduct as an above-the-line charitable contribution adjustment in 2020?
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13. What is the amount of Carly’s student loan interest deduction on Form 1040,Schedule 1? $________. 
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2500
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13. See PUB 4012 page E-11 for limits
14. How do educator expenses affect Carly’s tax return? 
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15. What is the amount of qualified child care expenses used in the calculation of the Franklin’s Form 2441, Child and Dependent Care Expenses? 
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16. The refundable portion of the American opportunity credit located on Form 8863,Education Credit is $________.
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1395
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16. Look at the 1040 you created line #18c. Review what expenses are qualified to be claimed PUB 4012 page J-6
17. The amount of the Franklin’s net premium tax credit on Form 8962, Premium Tax Credit is $________. Advanced Question 17-Practice has last years federal poverty guidelines-the answer is $1646 Note: In the initial release of the Practice Lab, last year’s Federal Poverty Line amount is used to calculate Form 8962, Premium Tax Credit. Enter 1646 as the correct answer. (In Taxslayer you probably got $1787 the true correct answer but please enter 1646 for the test)
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1787
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See your 1040 Schedule 3 Line 8; The true correct answer should be 1787, however, the IRS is using last year's tables for the calculations for this test so make sure to enter 1646 on the test
18. The Franklins can claim a recovery rebate credit of $________ for Cristina on their2020 tax return.
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500
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18. Look at PUB 4012 page H-8 and PUB 4491 page vi
19. Do the Franklins qualify for the earned income credit? 
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20. The Kennedy’s standard deduction on their 2020 tax return is $________. 
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28700
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20. Refer to table in PUB 4012 page F2
21. What is the amount of taxable interest reported on the Kennedys’ Form 1040? 
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22. What is the total net amount of capital gain or (loss) reported on Form 1040? 
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23. What is the taxable portion of Travis’ pension from Pinto Corporation using the Simplified Method? $________.
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18863
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23. See 1040 Line 4d (can also look in at Taxslayer software—the 1099-R summary page where it lists the 1099Rs entered)
24. Sylvia is eligible to make a contribution to her traditional IRA by the due date of her tax return?
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25. What are the Kennedys’ total gambling winnings reported on their Form 1040,Schedule 1? 
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26. The taxable portion of the Social Security benefits on the Kennedys’ Form 1040 is $17,850.
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27. What are the total payments reported on the Kennedys’ Form 1040? $________.
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4385
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27. Look at the scenario notes carefully and the return that printed Line 33
28. When must Sylvia take a required minimum distribution (RMD) from her traditional IRA? 
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29. Richard’s most beneficial filing status allowable is Head of Household.
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30. Which item(s) can be deducted by Richard as a business expense?
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31. What is the qualified business income (QBI) deduction on the Richard’s tax return?
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32. Richard must report $________ of his canceled debt on his 2020 tax return.
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775
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32. See PUB 4012 pages D60-62
33. Richard is required to pay a 10% additional tax on the early distribution from his IRA account in 2020.
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34. Richard has been assigned an Identity Protection PIN by the IRS. How does this affect preparation of Richard’s tax return?
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35. Which of the following statements is true?
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