EA Practice Test 3

17 Questions | Total Attempts: 246

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Practice Test Quizzes & Trivia

Practice questions for the EA exam.


Questions and Answers
  • 1. 
    Ray is a client who tells you that his wife died in September 2010. Based on this information, Ray can claim ______.
    • A. 

      Only the personal exemption for himself

    • B. 

      Only the personal exemption for his wife

    • C. 

      Personal exemptions for both himself and for his wife

    • D. 

      A personal exemption for himself and a partial exemption for his wife

  • 2. 
    Alyssa is 18 years old and a full-time student. She comes into your office with some questions about her tax return. She says that she is claimed as a dependent on her parents' tax return. Over the summer, she worked in a clothing boutique and earned $17,000. Alyssa wants to file Form 1040EZ to report her wage income and get a refund. How many exemptions may she claim on her tax return?
    • A. 

      Zero

    • B. 

      One

    • C. 

      Two

    • D. 

      Three

  • 3. 
    John is the sole support of his mother. To claim her as a dependent on his Form 1040, John's mother must be a resident of which of the following countries?
    • A. 

      United States

    • B. 

      Mexico

    • C. 

      Canada

    • D. 

      Any of the above

  • 4. 
    Avery, 52, is a single father with one adopted son named Wyatt who has Down syndrome. Wyatt is 32 years old and permanently disabled. He lives with Avery, who supports him. Wyatt had $800 in interest income and $2,000 in wages from a part-time job in 2010. Which of the following statements is true?
    • A. 

      Avery can file as Head of Household, with Wyatt as his qualifying child.

    • B. 

      Avery does not qualify for Head of Household, but he could still claim Wyatt as his qualifying child.

    • C. 

      Avery can file as Head of Household, with Wyatt as his qualifying relative, since Wyatt does not pass the Age Test for a qualifying child.

    • D. 

      Avery must file Single and he can claim Wyatt only as his qualifying relative.

  • 5. 
    Clifford and Lily divorced in 2009 and they have one child together. Clifford's child lived with him for ten months of the year in 2010. The child lived with Lily for the other two months. The divorce decree states that Lily is supposed to be the custodial parent, not Clifford. Who is considered the custodial parent for IRS purposes?
    • A. 

      Clifford

    • B. 

      Lily

    • C. 

      Neither

    • D. 

      Both

  • 6. 
    Haley is 23 and a full-time college student. During the year, Haley lived at home with her parents for four months and lived int he dorm for the remainder of the year. During the tax year, Haley worked part-time and earned $6,000, but that income did not amount to half of her total support. Can Haley's parents still claim her as a dependent?
    • A. 

      No, because Haley earned more than the personal exemption amount.

    • B. 

      No, because Haley does not meet the age test.

    • C. 

      Yes, Haley's parents can claim her as a qualifying child.

    • D. 

      Yes, Haley's parents can claim her as a dependent, but only as a qualifying relative, not as a qualifying child.

  • 7. 
    Carson has a 12-year-old daughter named Emma. In 2010, Emma had $900 in interest income from a bank account. Which of the following statements regarding Emma's unearned income is correct?
    • A. 

      Tax will be assessed to Carson and is calculated using Emma's tax rate.

    • B. 

      Emma is not required to file a return, and Carson is not required to report his daughter's income on his own tax return.

    • C. 

      Emma is required to file a tax return, and income tax will be assessed at a flat rate of 10%.

    • D. 

      Carson may elect to report Emily's interest income on his own tax return. Her income will be taxed at the parents' highest marginal rate.

  • 8. 
    Chloe's nephew Bradley lived with her all year and was 18 years old at the end of the year. Bradley did not provide more than half of his own support. He had $4,200 in income from wages and $1,000 in investment income. Which of the following is true?
    • A. 

      Bradley qualifies as Chloe's "qualifying child" for tax purposes.

    • B. 

      Bradley is not a qualifying child; however, he can be claimed by Chloe as a qualifying relative.

    • C. 

      Bradley is not a qualifying child or qualifying relative, because he had income that exceeded the personal exemption amount.

    • D. 

      Chloe can claim Bradley only if he is a full-time student, since he is no longer a minor child.

  • 9. 
    Jon and Suzanna have two children: Wendy, age 13, and Rachel, age 16. Wendy received $948 in dividends on XYZ stock that she legally owns. Rachel worked part-time at the mall during the Christmas holiday and earned $5,600. Rachel also held stocks in an account in her name but no dividends were paid. Which statement is TRUE with regard to filing tax returns for Jon and Suzanna's two children? Wendy: $0 Wages, $948 interest income Rachel: $5,500 Wages, $10 interest income
    • A. 

      Both children are required to file a tax return.

    • B. 

      Rachel needs to file, but Wendy does not.

    • C. 

      Wendy needs to file, but Rachel does not.

    • D. 

      Neither needs to file a tax return.

  • 10. 
    Donnie's daughter Violet, age 16, lived with him for six months of the year. Donnie also paid for Violet to go to summer camp for two months. Violet then lived with Donnie's ex-wife for the rest of the year. Who is considered the custodial parent for tax purposes?
    • A. 

      Donnie

    • B. 

      Donnie's ex-wife

    • C. 

      Neither

    • D. 

      The summer camp director

  • 11. 
    Tony and Isabelle are the sole support of the following individuals (All are U.S. citizens but none lives with them, files a tax return, or has any income): 1. Jennie, Tony's grandmother 2. Julie, Isabelle's stepmother 3. Jonathan, father of Tony's first wife 4. Timothy, Isabelle's cousin How many exemptions may Tony and Isabelle claim on their joint return?
    • A. 

      3

    • B. 

      2

    • C. 

      4

    • D. 

      5

    • E. 

      6

  • 12. 
    In a multiple support agreement, what is the minimum amount of support that a taxpayer can provide and still claim a dependent?
    • A. 

      10% support

    • B. 

      15% support

    • C. 

      50% support

    • D. 

      75% support

  • 13. 
    Ted and Sharon (husband and wife) are the sole support of their 23-year-old son Ashton, who lives with them. Ashton is not a student. Ashton was unable to find steady work in 2010, but received $4,900 from a charitable foundation for a speaking engagement. Which of the following statements is true?
    • A. 

      Ted and Sharon may claim Ashton as a qualifying child on their 2010 federal income tax return.

    • B. 

      Ted and Sharon may claim Ashton as a qualifying relative on their 2010 federal income tax return.

    • C. 

      Ted and Sharon may not claim Ashton as a dependent in 2010.

    • D. 

      None of the above.

  • 14. 
    If a child being adopted is eligible to be claimed as a dependent by the adoptive parents, what must occur in order for the child to be taken as a dependent on the adoptive parents' tax return?
    • A. 

      An identifying number must be obtained for the child (an ATIN, ITIN, or Social Security Number).

    • B. 

      The adoption must become final first.

    • C. 

      The child must always be related to the taxpayer by blood.

    • D. 

      Only domestic adoptions qualify; a taxpayer cannot claim a dependency exemption for a foreign-born child.

  • 15. 
    There are many tests which must be met for a taxpayer to claim an exemption for a dependent as a qualifying relative. Which of the following is NOT a requirement?
    • A. 

      Citizen or Resident Test

    • B. 

      Member of Household or Relationship Test

    • C. 

      Disability Test

    • D. 

      Joint Return Test

  • 16. 
    Peter filed for divorce in 2010. He and his wife moved into separate residences on April 20, 2010. Peter's 10-year-old daughter lived with him for the entire year in 2010. Peter owns the home and pays all the costs of upkeep for it. His ex-wife did not live in the home at any time during the year. Which of the following is true?
    • A. 

      Peter must file jointly with his wife in 2010, since they are still legally married. They may claim their daughter as a dependent on their jointly filed return.

    • B. 

      Peter must file Single in 2010.

    • C. 

      Peter must file MFS in 2010.

    • D. 

      Peter qualifies for HOH filing status.

  • 17. 
    Tyler is single and 17 years old. He works a part-time job at night and is going to school full-time. His total income for 2010 was $10,500. Tyler lives with his parents, who provided the majority of Tyler's support. Tyler's parents are claiming him as a dependent on their 2010 tax return. Which of the following statements is true?
    • A. 

      Tyler is required to file his own return, and he may also take an exemption for himself.

    • B. 

      Tyler is not required to file his own return.

    • C. 

      Tyler's parents may not claim him as a dependent because Tyler earned more than the standard deduction amount for 2010.

    • D. 

      His parents may claim Tyler as their qualifying child. Tyler is required to file a tax return, but he cannot claim a personal exemption for himself. He is still entitled to the standard deduction for SINGLE filers.

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