VITA Basic Exams Bundled Together | Questions and Verified Answers| 100% Correct| Grade A

VITA Basic Exams Bundled Together |

Questions and Verified Answers| 100%

Correct| Grade A

Q: Larry and Zelda are married but will not file a joint return. Both are under

65.Larry's gross income from wages is $30,150, and Zelda's is $4,100.Which of the following is

true?

A. Just Larry is required to file

B. Just Zelda is required to file

C. Both Larry and Zelda are required to file

D. Neither Larry nor Zelda must file

Answer:

C. Both Larry and Zelda are required to file

Taxpayers of any age who use the Married Filing Separately status must file a return if they had

gross income of $5 or more

Q: Trudy, 66, qualifies for Head of Household filing status and had $10,900 in gross income. Is

she required to file a return?

A. Yes

B. No

C. Depends on her net income

Answer:

B. No

Trudy's income is less than the $21,150 standard deduction for a Head of Household

($19,400) taxpayer older than 65 ($1,750)

Q: Depending on specific tax situations, standard taxpayers can file using which of the

following?

A. Form 1040-NR B. Form 1040-SR C. Form 1040

D. B and C

Answer:


D. B and C

Most taxpayers must use Form 1040, but Form 1040-SR may be used by taxpayers who are age

65 or older at the end of the tax year. Form 1040-NR is used only by non-resident aliens who

must file a tax return

Q: Melvin is 20 years old, single, a full-time student, and a U.S. citizen with a valid Social

Security number. During the interview with Melvin, you learn that:

-Melvin's only income was $6,400 in wages

-He lived with his parents all year, but they told him they will not claim him on their 2020 return

Is Melvin required to file a tax return?

Answer:

No

Children and Other Dependents younger than 65 who earn over $12,400 must file a return

Q: True or False? To determine if a taxpayer must file a tax return, do you need to know their

income for the year, filing status, and place of birth?

Answer:

False

You do not need to know their place of birth

Q: True or False? If a taxpayer cannot obtain a valid Social Security number and has not yet

applied for a taxpayer identification number, can you use the taxpayer's driver's license or

passport instead?

Answer:

False

For a taxpayer who cannot obtain an SSN and has not yet applied for an ITIN, you can use a

temporary identification number to prepare the return in the tax software. Refer them to the IRS

for Form W-7, Application for IRS Individual Taxpayer Identification Number

Q: A taxpayer cannot use a valid ITIN if it was not used on a federal tax return at least once in

the last three years.


Answer:

True

ITINs that have not been used on a federal tax return at least once in the last three consecutive

years will no longer be valid for use on a tax return unless renewed by the taxpayer

Q: Are the only acceptable means of verifying taxpayers's identity a valid U.S. drivers license,

passport, or military ID?

Answer:

False

Other acceptable means are a current state ID or other government-issued identifi- cation

Q: If the taxpayer with a valid Social Security number (SSN) receives a Form

W-2 with an incorrect SSN, can you prepare the return using that W-2?

Answer:

True

You can use the original W-2 to prepare the return, but the taxpayer needs to request a corrected

Form W-2 from the employer before submitting the tax return.

Q: If a taxpayer with an individual taxpayer identification number (ITIN) re- ceives a Form W2 with an erroneous Social Security number (SSN), is it ac- ceptable to e-file the return as long

as you enter the correct ITIN on the return and the mismatched SSN exactly as shown on the

Form W-2 issued?

Answer:

True

Taxpayers who file tax returns using their ITINs often have Forms W-2 showing erroneous

SSNs, and it's acceptable to e-file the return if you enter the correct ITIN on the return and the

mismatched SSN exactly as shown on the Form W-2 issued

Q: For the purpose of determining filing status, which of the following taxpay- ers would be

considered unmarried for the tax year?

A. Kris, who did not get married until December of the tax year


B. Torre, whose spouse died in February of the tax year

C. Hal, who was married until his divorce in November of the tax year

Answer:

C. Hal, who was married until his divorce in November of the tax year

Filing status is based in part on the taxpayer's marital status on the last day of the tax year.

However, if their spouse died during the year and they did not remarry, then they are still

considered married

Q: Ronald was widowed before the first day of the tax year and did not remarry during the tax

year. He has no children. For the purpose of determining filing status, Ronald is considered

A. Single

B. Married

C. Qualifying Surviving Spouse

Answer:

A. Single

A taxpayer with no children who was widowed before the beginning of the tax year and did not

remarry would be considered single

Q: Married Filing Jointly means that the spouses

A. Report their own incomes and deductions on separate returns

B. Combine their income and deductions on the same return

Answer:

B. Combine their income and deductions on the same return

Married Filing Jointly means that both spouses complete and sign the same tax return and are

both responsible for any tax owed on the return

Q: Who may choose to file under either the Married Filing Jointly or the

Married Filing Separately status?

A. A married taxpayer whose spouse does not have income

B. A divorced taxpayer who itemizes deductions

C. Taxpayers who are legally separated and share child custody

Answer:


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