2020 Basic Exam

 2020 Basic Test Question Check

2020 Basic Test Question Check-updated 11/14/2020

Total points29/30

***I will NOT be able to verify these answers until LINK & LEARN is updated--if you feel I may be wrong--please contact me--it is possible I might be***
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. Sheldon must take a required minimum distribution from his retirement plan by December 31, 2020 to avoid an additional tax due.

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a. True

b. False

 

 

2. Sheldon and Odessa’s standard deduction is $________.

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26100

 

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2. See PUB 4012 F1-F2; and PUB 4491 page ix

 

3. Which of the following statements is true?

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a. Marsha is required to file a tax return.

b. Marsha is not required to file a tax return, but should file a tax return to claim a refund of her federal income tax withholding.

 

c. Marsha does not qualify for the earned income credit because she is under the age of 25.

d. Both a and c.

 

4. Marsha qualifies for the recovery rebate credit of $500 for Shelby

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a. True

 

b. False

 

5. What is most advantageous filing status allowable that Sophia can claim on the tax return for tax year 2020?

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a. Single

b. Head of Household

c. Qualifying Widow(er)

d. Married Filing Jointly

 

 

6. What amount can Sophia deduct as a charitable contribution adjustment?

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a. $0

b. $250

c. $300

 

d. $500

 

7. Which credit(s) can the Hopkins claim on their 2020 tax return?

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a. Child tax credit for Harper

b. Credit for other dependents for Evelyn

c. Both a and b

 

d. Neither a nor b

 

8. Are the Hopkins eligible to claim the earned income credit?

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a. Yes, because Benjamin has a Social Security number

b. Yes, because everyone has a taxpayer identification number

c. No, because their income is too high.

d. No, because Amelia has an ITIN.

 

 

9. The Browns qualify for which of the following credits?

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a. Earned income credit

b. Child and dependent care credit

c. Both a and b

 

d. Neither a nor b

 

10. The refundable additional child tax credit is limited to $1,400 per child.

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a. True

 

b. False

 

11. What is the amount of Daniel and Avery’s standard deduction? $________.

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24800

 

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11. Look at the table on PUB 4012 page A-1 or F-1

 

12. What is the total amount of adjustments on the Emorys’ tax return?

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a. $250

b. $925

c. $1,175

d. $1,475

 

 

13. What is the total amount of the Emorys’ refundable American opportunity credit?$________.

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860

 

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13. Look at the 1040 that generated Line 29-a list of allowed expenses can be found on page J-6 of the PUB 4012. 

 

14. Jackson qualifies Daniel and Avery to claim the credit for other dependents

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a. True

 

b. False

 

15. What is the total amount of federal income tax withholding?

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a. $1,525

b. $1,935

c. $1,945

d. $3,880

 

 

16. How much of Daniel’s Social Security is taxable?

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a. $0

b. $3,750

c. $6,375

 

d. $7,500

 

17. Daniel and Avery cannot claim Jackson for the earned income credit because he did not live with them for more than half the year and does not meet the residency test.

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a. True. Jackson only lived with his parents during the summer, which was less than six months.

b. False. Attendance at school is considered a temporary absence and those months are counted as time that Jackson lived with his parents for the earned income credit

 

 

18. Emma’s disability pension is reported as wages and considered earned income for the purposes of the earned income credit.

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a. True

 

b. False

 

19. What is Emma’s most advantageous filing status allowable?

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a. Married Filing Separately

b. Qualifying widow(er)

c. Head of Household

 

d. Single

 

20. Which of the following statements are true?

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a. Qualified dividends are ordinary dividends.

b. Qualified dividends qualify for lower, long-term capital gains tax rates.

c. Qualified dividends are reported on Form 1099-DIV

d. All of the above.

 

 

21. Poppy and Sebastian are dependents on Emma’s tax return.

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a. True

b. False

 

 

22. What is the amount of gambling winnings Emma must report on her 2020 tax return?

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a. $0

b. $5,800

c. $6,500

 

d. $7,200

 

23. Emma can prevent having a balance due next year by using the Tax Withholding Estimator at IRS.gov and then adjust her withholding.

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a. True

 

b. False

 

24. Emma has a balance due of $________ on her 2020 tax return

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613

 

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I have not gotten the verified correct answer for this as I am waiting for 2020 software to update--24. Look at the 1040 that generated, Line 34-37 to see if she owes or gets a refund

 

25. Aioki qualifies for the retirement savings contribution credit

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a. True

 

b. False

 

26. The amount of taxable unemployment compensation is ________.

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a. Taxable income

b. Reported on Form 1099-G, Certain Government Payments

c. Subject to federal income tax withholding

d. All of the above

 

 

27. Aioki must pay an additional _______ tax on the early distribution from her IRA.

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a. 0%

b. 5%

c. 10%

 

d. 15%

 

28. Aioki qualifies for which of the following credits?

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a. Child tax credit

 

b. Child and dependent care credit

c. Earned income credit

d. All of the above

 

29. Aioki can split her refund using Form 8888, Allocation of Refund (Including Savings Bonds Purchases).

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a. True

 

b. False

 

30. Aioki must use the most current IP PIN to file her 2020 tax return.

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a. True

 

b. False