Download VITA Certification Test 2025-2026. Questions & Correct Verified Answers. Graded A and more Exams Business Taxation and Tax Management in PDF only on Docsity!
VITA Certification Test 2025-2026.
Questions & Correct Verified Answers.
Graded A
. What is Evan's total deduction for charitable contributions on Schedule A, line 19? – ANS d. 1840
- Teresa and her children did not have Minimum Essential Coverage (MEC) for two months of the tax year. How does this affect her tax return? a. She must make an Individual Shared Responsibility Payment for herself. b. She must make an Individual Shared Responsibility Payment for Zack and Mackenzie. c. She must complete Form 8965 to claim the short coverage gap exemption. d. All of the above. - ANSc. She must complete Form 8965 to claim the short coverage gap exemption. A taxpayer tells you that they had health insurance coverage for the entire year, but they did not bring proof of the coverage. This information along with all other information gathered during your interview does not seem unusual or questionable. As a tax preparer, you should: - ANSb. prepare the return using the information without seeing any proof of insurance coverage
A U.S. citizen lived outside the U.S. for 330 full days during a 12-month period. They qualify for an exemption. - ANSYes; A U.S. citizen or resident who spent at least 330 full days outside of the the U.S. during a 12-month period qualifies for an exemption. Antonio has $23,050 in earned income, and his adjusted gross income is $23,175. His filing status is single. Antonio's 20-year-old daughter, Maria, lived with him for eight months of the year. Maria is not married and is a full-time college student. Can Antonio claim the EIC? - ANSYes; Antonio can claim the EIC because he has a qualifying child who lived with him more than half the year, and his earned income and adjusted gross income are both under $39, As part of the intake process, each site must: a. Have a process to ensure a return is within the scope of the VITA/TCE Programs b. Identify the certification level needed to prepare a return c. Have a process to ensure volunteers have the certification needed for the returns they prepare d. All of the above - ANSd. All of the above Basic Scenario 1: Wendy Gordon. AGE: 20, is a U.S. citizen with valid SS. "Unsure" to question "Can anyone claim you or your spouse on their tax return?"
Joanne provides more than half of her father's support and all the cost of keeping her father's home.
- John's income is o$6,800 SS benefits
- None of John's SS income is table, and he is no required to file a tax return
- Joanne had qualified employee health insurance coverage over all of
- John had Medicare Part A & B coverage all year. Joanne and John are U.S. Citizens with valid SS. - ANSJoanne's most advantageous allowable filing status is: a. Married Filing Jointly b. Qualifying Widow c. Head of Household CORRECT d. Single Both Joanne and John have qualifying health insurance coverage (also known as minimum essential coverage) as defined under the Affordable Care Act. a. True CORRECT b. False Basic Scenario 3: Mike Hastings AGE 45, made $19,000 in wages Single and pays for home. Mike's daughter, Brittany, live with him all year. Brittany's son, Hayden, was born in Nov 2015. Hayden lived with Mike's home since birth
Brittany is 18, single and had wages of $,1700 in 2015. Mike provides more than half of the support for both Brittany and Hayden. Mike, Brittany, and Hayden are all U.S. Citizen's and has valid SS. - ANSWho can claim Hayden as a dependent? a. No one can claim Hayden because he was not a member of the household for more than six months. b. Mike cannot claim Hayden because Hayden is not Mike's child. c. Brittany can claim Hayden because she is his parent. CORRECT d. Mike can claim Hayden; Brittany cannot claim Hayden because Brittany qualifies as Mike's dependent. Who can Mike claim as a qualifying child(ren) for the earned income credit? a. Mike has no qualifying children. b. Mike can claim Brittany, but not Hayden. c. Mike can claim Hayden, but not Brittany. d. Mike can claim both Brittany and Hayden. CORRECT Basic Scenario 4: Paul and Jessica Vermillion AGE: 24 and 22, married and want to file joint CHILDREN: Naomi, 3 and lived with them all year. Paid and Jessica lived in the U.S. all year and have Individual Taxpayer Identification Numbers. They are not U.S. Citizens and are not lawfully present in the U.S. Paul earned $32,000 in wages. Both provide support for Naomi.
Can Brittany claim Hayden as a dependent? - ANSNo, because Brittany qualifies as Mike's dependent. Can Evan claim Head of Household filing status? a. No, because he is married. b. No, because Noah did not live at home for the whole year. c. No, because Evan did not pay Noah's educational expenses. d. Yes, because Evan is considered unmarried, has a qualifying person and meets all the other required tests - ANSb. No, because Noah did not live at home for the whole year. Evan must file Married Filing Separately. - ANSF Every site is required to have a process for assigning taxpayers to tax law certified prepared who are certified at or above the level required to prepare their return. - ANSTrue Explaining the intake/interview and quality review process is important so the taxpayer understands they are expected to: a. Have a completed Form 13614-C prior to having the return prepared b. Answer the tax preparer's additional questions during the interview c. Participate in the quality review of their tax return d. All of the above - ANSd. All of the above
Heidi, a certified volunteer, is working at the intake station. As part of her duties, she is required to explain to the taxpayer what they are expected to do today as part of the return preparation process. What should Heidi tell them? a. Form 13614-C must be completed prior to having the return prepared b. You will be interviewed by the return preparer and asked additional questions as needed c. You need to participate in a quality review of your tax return by someone other than the return preparer d. All of the above - ANSd. All of the above If a volunteer violates the Volunteer Standards of Conduct, what are the possible consequences? a. Removal from the VITA/TCE programs b. Criminal investigation c. Elimination of VITA/TCE grant funds d. Deactivation of EFIN e. All of the above - ANSe. all of the above If the amount the individual would have paid for the lowest cost employer sponsored coverage available, or for self-only coverage through the Marketplace, is more than 8.05% of the taxpayer's household income for 2015, they qualify for an exemption. - ANSYes; Coverage is considered unaffordable if the amount the individual would have paid for the lowest cost employersponsored coverage available, or for self-only coverage through the Marketplace, is more than 8.05% of the taxpayer's household income for 2015.
earned income credit on their individual returns. a. True b. False CORRECT Jim and Sally can both file as Head of Household on their individual returns. - ANSFalse Joanne's most advantageous allowable filing status is Single. - ANSFalse Joe was covered by Medicaid until February 23rd. He started a new job and his employer-sponsored health coverage started on May 1st. Does an exemption apply? - ANSYes; Jow is eligible for the short coverage gap exemption because he was without coverage for less than three months. Short coverage gap means an individual went without coverage for less than three consecutive months during the year. Maggie asks Josh, the tax law certified preparer, to deposit her refund into Josh's checking account and turn the funds over to her when received. If Josh says yes, he is in violation of the standards. - ANSYes. Melinda is single and employed as a clerk.
- Melinda earned $47,000 in wages, and had no other income.
- In 2015, she took a computer class at the community college to improve her job skills.
- She has a student account statement showing she paid $900 for tuition.
- She paid $300 for a course book that she ordered from an online bookseller. Purchase of the book was not a requirement of enrollment.
- She also paid $50 for a parking permit that was not a requirement of enrollment.
- Melinda does not have enough deductions to itemize.
- Melinda is a U.S. citizen with a valid Social Security number. - ANSMelinda's only qualified educational expense for the lifetime learning credit is $900 for tuition. True Which education credit is Melinda eligible to take? a. American opportunity credit b. Lifetime learning credit CORRECT c. Both the American opportunity credit and lifetime learning credit d. She does not qualify for any education credit Is Melinda's course book a qualified educational expense for the lifetime learning credit? a. No, because the book costs too much. CORRECT b. No, because it is not required as a condition of enrollment and paid to the institution. c. Yes, because it will improve her job skills. d. Yes, because qualified educational expenses are the same for all education credits.
c. Explaining to the taxpayer that they are responsible for the information on their tax return. d. All of the above - ANSd. All of the above The site is busy with many taxpayers waiting for assistance. All volunteers are busy preparing tax returns. Can you quality review the return you just prepared instead of waiting for someone else to quality review the return? a. Yes, if it is a returning taxpayer b. Yes, with approval of the Site Coordinator c. No, self review is never an acceptable quality review method d. No, unless you are certified at the Advanced level - ANSc. No, self review is never an acceptable quality review method To compute the American opportunity credit, which of Noah's expenses qualify? a. Tuition and fees paid by the scholarship b. Room and board c. Course-related books d. All of the above - ANSb. room and board True or False: A volunteer must review photo identification for every taxpayer to deter the possibility of identity theft. - ANSTrue True or False: All IRS-certified volunteer preparers participating in the VITA/TCE Programs must use Form 13614-C along with an effective interview for every return prepared at the site - ANSTrue
True or False: An interview of the taxpayer should only be performed if the site is not busy. - ANSFalse True or False: I am currently a volunteer Greeter. I will not be preparing tax returns. I do not need to take the Volunteer Standards of Conduct test. - ANSFalse True or False: Mary, the Greeter, identifies the taxpayer's tax return requires Advanced IRS tax law certification. Therefore, the certified tax preparer must be certified to the Advanced level but the Quality Reviewer can be certified to any level, including Basic. - ANSFalse True or False: The taxpayer should be informed of their responsibility for the information on the tax return during the quality review process. - ANSTrue True or False: VITA and TCE sites are required to conduct quality reviews of every return prepared at the site. - ANSTrue True or False: Volunteers who refuse to use the intake/interview process are violating the Standards of Conduct. - ANSTrue True or False: When reviewing Form 13614-C, you see the "Interest" question is marked "Yes" and the taxpayer gives you a Form 1099-INT. You should ask the taxpayer if they had any other interest income - ANSTrue
c. All income statements, including Forms W-2, 1099-R, etc. d. All of the above - ANSd. All of the above Warren and Shirley want to avoid having a balance due next year. Warren can submit a Form W4-P to have tax withheld on his pension. a. True b. False - ANSTrue Warren has an Identity Protection PIN. How does this affect his return preparation? a. The return must be filed as a paper return. b. This return cannot be prepared at a volunteer site. c. The Identity Protection PIN must be entered during return preparation. d. All of the above. - ANSd. All of the above Warren is over 65. How does that affect their tax return? a. There is no effect. b. It increases their standard deduction. c. It increases their personal exemptions. d. They must itemize their deductions - ANSb. It increases their standard deduction Wendy can claim one personal exemption on her 2015 tax return. - ANSfalse
What information must a volunteer review to deter the possibility of identity theft? a. Form W-2 b. Photo identification c. Last year's tax return d. Medicaid card - ANSb. photo identification What is Evan's retirement savings contributions credit? $________. - ANS What is the amount of additional tax on the distribution from Teresa's 401(k), shown in the Other Taxes section of Form 1040? - ANSb. 130 What is the amount of Evan's student loan interest deduction from Form 1040, page 1? $________. - ANS What is the correct amount of taxable interest shown on the Graves' Form 1040, line 8a? a. $ b. $ c. $ d. $89 - ANSb. 9 What is the credit for child and dependent care expenses on Form 2441, line 11? a. $ b. $ c. $ d. $362 - ANS
d. After quality review and after being advised of their responsibility for the accuracy of the information on the return - ANSd. After quality review and after being advised their responsibility for the accuracy of the information on the return. When reviewing Form 13614-C, you see the "Interest" question is marked "Yes" and the taxpayer gives you a Form 1099-INT. What should you do next? - ANSc. ask the taxpayer if they had any other interest income When should an IRS-certified volunteer preparer participating in the VITA/TCE Programs perform a complete interview of a taxpayer? a. Only when the taxpayer has questions b. Only if the taxpayer has never visited your site c. Only when the site is not busy d. For every return prepared at the site - ANSd. For every prepared tax return Which allowable filing status is most advantageous to Teresa? a. Single b. Head of Household c. Married Filing Separately d. Married Filing Jointly - ANSd. Married filing jointly Which of the following is a violation of the Volunteer Standards of Conduct? a. Knowingly preparing a false tax return b. Having a donation/tip jar in the taxpayer waiting area at the site c. Using taxpayer's personal information to ask for a date d. All of the above - ANSd. All of the above
Which of the following is true? a. Quality review can be conducted by a volunteer preparer certified at Basic when the tax return required an Advanced certification to prepare b. Quality review is conducted after the taxpayer signs the tax return c. Quality review is an effective tool for preparing an accurate tax return d. Taxpayers do not need to be involved in the quality review process - ANSc. Quality review is an effective tool for preparing an accurate tax return Which of the following statements is NOT correct? a. Volunteers should confirm the taxpayer's identity through photo ID. b. Volunteers should verify the Social Security number and/or ITIN. c. Volunteers should review all documents needed to prepare an accurate return. d. Volunteers do not need to refer to the intake sheet when preparing the tax return. - ANSd. Volunteers do not need to refer to the intake sheet when preparing the tax return. Which volunteers must take Volunteer Standards of Conduct training and test? a. Site Coordinators/Local Coordinators b. Quality Reviewers and tax return preparers c. Greeters d. All VITA/TCE volunteers - ANSd. All of the above
