• IRS Individual (Part I) Screening Test

    Personal Information

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    Screening Test

    Please select the correct answer or answers.


    1. A taxpayer dies on March 31, 2012. For estate tax purposes, what is the alternate valuation date for the taxpayer’s estate?


    2. Which of the following enrolled practitioners has the most limited areas of practice before the IRS?


    3. When should a tax payer calculate a taxpayer’s itemized deduction on Schedule A?


    4. Which of the following taxes is deductible on Schedule A as an itemized deduction?


    5. On a jointly filed return (MFJ) both spouses are ___________________for all the tax due even if one spouse earned all the income.


    6. Carlos is age 32 and single. His AGI for 2012 was $33,200. Of this amount, $3,000 was from gambling winnings. He had the following itemized deductions:

    • Medical expenses (gross amount) $10,400
    • Mortgage interest on main home $6,700
    • Property tax on main home $2,300
    • Miscellaneous unreimbursed work expenses $1,200
    • Charitable donation to his church $1,600
    • Gambling losses $4,600

    After applying AGI limitations, what is the amount of his allowable itemized deductions on Schedule A?


    7. Kristin and Santiago file a joint return. Their adjusted gross income is $48,000. During the year, they paid the following medical expenses:

    • Copayments for prescription drugs $500
    • Dentist fees $1,200
    • Medical insurance premiums $300
    • Life insurance premiums $500
    • Long-term care insurance premiums $100
    • Vitamins $90
    • Hospital bill $3,000
    • Prescription eyeglasses $350
    Total costs $6,040

    After the application after the application of the 7.5% of AGI limit what is Kristin and Santiago’s total qualified medical expense.


    8. Which of the following requirements must be met in order for a single individual to qualify for the additional standard deduction? (Note: You must answer both parts to get credit for the question)

    • Must support dependent child or aged parent
    • Must be age 65 or older or blind

    9.During the year, Sophia paid $15,000 in mortgage interest on her primary residence. She also paid $3,900 in mortgage interest on her second home and $6,700 in loan interest on a recreational vehicle (RV) with sleeping, cooking, and toilet facilities. What is Sophia’s maximum mortgage interest deduction on Schedule A?


    10. In 2011, Jeffrey gives $25,000 to his girlfriend, Rachel. Which of the following statement is true?


    11. Which form is used to report estate tax for the tax year 2012?


    12. Erik sold his home for $275,000. His selling expenses were $10,000. What is the amount realized on this sale?


    13. In general, who is responsible for paying the gift tax?


    14. Which of the following is NOT a valid filing status?


    15. Which form would be used to file when the following information is provided:

    i. Taxable income exceeds $100k
    ii. Deductions will be itemized
    iii. Has a valid Social Security Number


    16. Melanie is a full time, foreign student from St. Lucia that is studying at a four year college in Miami. She works as a Professors Assistant and receives compensation for her service. Which form will she have to use to file her return?


    17. What is the main difference between Form 1099 and Form 1098?


    18. Nina pays for daycare for each of the following individuals so she can work. All of the following are qualifying individuals for the purposes of the Child and Dependent Care Credit, EXCEPT:


    19. Edwin is a professional bookkeeper. He decides to take an accounting course at the local community college in order to improve his work-related skills. Edwin is not a degree candidate. Which educational credit does he qualify for?


    20. Patrice’s antique Persian rug was damaged by a new kitten before it was housebroken. Patrice estimates the loss at $4,500. Her AGI for the year is $50,000. How much of the casualty loss may she deduct?


    21. Deductions to the following organizations are subject to the 50% limitation on deductible contributions:


    22. During a fundraising auction at his social church, Lyle pays $600 for a week’s stay at a beachfront hotel, where he stays during a vacation in August. He intends to make the payment as a contribution, and all the proceeds go to help the church. The FMV of the stay is $590. What is Lyle’s charitable contribution?


    23. Which of the following taxes can taxpayers deduct on Schedule A?


    24. What is the penalty for a preparer who negotiates a taxpayer’s refund check?


    25. Eric incurred the following expenditures in connection with his rental property. Which of them should be capitalized and depreciated?