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Tax Prep Basic 2024/2025 already graded A+
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Tax Prep Basic 2024/2025 already graded A+
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Tax Prep BasicOnly volunteers who prepare and review tax returns are required to complete the Volunteer
Standards of Conduct Training and certification. - ANSFalse
Volunteers are generally held liable for the tax returns they prepare at VITA/TCE sites. -
ANSFalse
Volunteers are not required to complete a return if they have concerns about the accuracy of
information provided by the taxpayer or other concerns. - ANSTrue
1. 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? - ANSNo- You need to know their approximate income,
likely filing status, and age.
If a taxpayer cannot obtain a valid Social Security number and has not yet applied for an
taxpayer identification number, can you use the taxpayer's driver's license or passport instead? -
ANSNo- Taxpayers must have a valid Social Security number or taxpayer identification number
before you can assist them.
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. - ANSYes- 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.
Are the only acceptable means of verifying taxpayers's identity a valid U.S. drivers license,
passport, or military ID? - ANSNo- Other acceptable means are a current state ID, visa, national
ID, employer ID, school ID or other proof of taxpayer identification.
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? - ANSYes- 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.
If a taxpayer with an individual taxpayer identification number (ITIN) receives a Form W-2 with
an erroneous Social Security number (SSN), is it acceptable 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? - ANSYes- 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.
,Bob is 27 years old. No one can claim him as a dependent. His gross income was $17,000
during the tax year. Based only on this information, Bob is required to file a tax return. -
ANSTrue
Individuals who are not required to file a tax return should file a return if they can claim the
earned income credit. - ANSTrue
A driver's license can be used to verify a taxpayer's Social Security number and correct name
spelling. - ANSFalse
Taxpayers age 65 or older must use Form 1040-SR instead of Form 1040 to file their return. -
ANSFalse
You are clarifying Larry's Form 13614-C. Larry is at a VITA/TCE site to have his taxes prepared.
He completes Form 13614-C and tells the tax preparer:
He is 26 years old
His filing status is Head of Household
He wants to claim his 2-year-old nephew for EITC
He has no child care expenses
He earned $19,000 in wages
Do you think it's safe to rely on good faith for Larry's information? - ANSNo, Larry's situation
requires more inquiry
Based on the information you will learn in the course, Larry's information regarding his qualifying
child and filing status is questionable. Further inquiries should include:
Why is the uncle claiming the child and not the parents?
Why isn't there child care expense and who cares for the child while the taxpayer works?
Is there anyone else living in the household that contributes?
Is there anyone else eligible to claim the child?
Do the tie-breaker rules apply?
If asked, can the taxpayer provide proof that the qualifying child lived with him for more than half
of the year?
You are clarifying Steven's Form 13614-C. Steven is at a VITA/TCE site to have his taxes
prepared. He completes Form 13614-C and tells the tax preparer:
He is 22 years old
He has two sons, ages 10 and 11
He has Social Security cards for both boys and himself
His W-2 wage indicates earnings of $20,000
Do you think it's safe to rely on good faith for Steven's information? - ANSNo, Steven's situation
requires more inquiry
Steven's age and the age of the qualifying children appear to be inconsistent. Further inquiries
are needed to determine:
Are the boys his sons by birth, foster sons, adopted sons, step-sons?
Is there anyone else eligible to claim the children as qualifying children?
, Do the tie-breaker rules apply?
If asked, can the taxpayer provide proof that the qualifying children lived with him for more than
half of the year?
You are helping a taxpayer who has given you two different Social Security numbers. Then, he
tells you he has two children, but later corrects it to three. You are concerned about the
truthfulness of this information. You should _____. - ANSDecline to prepare the tax return-
If you suspect an individual is not providing truthful information, you should refuse to prepare the
tax return.
True or False? It is perfectly acceptable to accept a taxpayer's invitation to lunch as a thank you
for preparing his or her tax return. - ANSFalse- Although lunch is not a monetary "payment" for
services rendered, some may interpret it as such. It is best to politely decline such offers in
order to maintain the integrity of the VITA/TCE programs.
You are helping Anita fill out her tax return. She has questions about how her divorce effects her
tax situation. To provide answers for her, you decide to ask a more experienced volunteer for
help. Which of the following should you say to the more experienced volunteer? - ANSI am
helping a taxpayer who divorced her husband last year. She has some questions about her filing
status for last year.- You should never use a taxpayer's name in front of other taxpayers or
volunteers. However, you may discuss specific tax situations with other taxpayers and
volunteers.
If needed, refer to the Chart A - For Most People Who Must File to answer this question.
Lucy is 36 years old and single, and her gross income is $20,000. Is Lucy required to file a tax
return? - ANSYes- That's right. Lucy must file a tax return since her income exceeds the amount
for her age and filing status.
If needed, refer to the Chart A - For Most People Who Must File to answer this question.
Henrietta and Javier are married and plan to file a joint return. Henrietta is 67 and had a gross
income of $11,000 for the tax year. Javier is 66. His gross income was $5,000 for the year. Do
they need to file a tax return? - ANSNo- That's right. Since their combined gross income is less
than the minimum amount for their ages and filing status, they do not have to file a return.
If needed, refer to the Sources of taxable and non taxable income to answer this question.
Which of the following is considered taxable income? - ANSAnnuities- You need to include
annuities when calculating a taxpayer's taxable income.
Which of the following individuals could use Chart A to determine if they must file a tax return? -
ANSMrs. Fulton, 70, who is single and whose only sources of income are her pension and
investments. Her income was less than $10,000.- Mrs. Harlan can be claimed as a dependent
on her son's return, so she must use Chart B. Mr. Emmet must use Chart C.
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