EA Exam 1 – Review Questions With Correct
Answers
Form 8938 if the total value of those assets exceeds $---- on the last day of the tax year or $--- at any
time during the tax year. Attach Form 8938 to your annual return and file by . - answer$50k on last day
or $75k at any time
File with re...
Form 8938 if the total value of those assets exceeds $---- on the last day of the tax year or $--- at any
time during the tax year. Attach Form 8938 to your annual return and file by . - answer✔$50k on last day
or $75k at any time
File with return by the due date (including extensions) for that return
FinCen 114 - answer✔File F BAR if
-INTEREST in or signature or other authority over a financial account located outside the U.S.,
-or owned more than 50% of the stock of a corporation that owns one or more bank accounts located
outside the U.S. FinCEN Form 114 is not required if
-acounts are $10k or more
Not required if the accounts are at a U.S. military banking facility.
- file electronically, using the Bank Security Act (BSA) e-filing system w/ Fin. Crimes Network
-the FBAR due date is April 15. A 6-month extension is allowed.
Upon reviewing a new client's prior year tax return, the preparer sees taxes paid for the First-Time
Homebuyer Credit. The preparer should ask the taxpayer all of the following - answer✔A taxpayer who
claimed the First-Time Homebuyer Credit for 2008 must repay it over 15 years, in amounts equal to
6.67% of the original credit. In order to calculate the payment, the preparer needs to know the amount
of the original credit received.
need to know - how much orginial amount, how much paid back. is it still being used?
when get 1099-misc? - answer✔income not reported on a W-2 or other specific Form 1099, that are
made in the course of a trade or business, and for which the taxpayer paid during the year
-At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest or
-At least $600, e.g., in medical and healthcare payments or crop insurance proceeds.
What is the limit for fling a return if MFS? - answer✔$4,050!!! Just PE!
For a relative to qualify as exemption how long must they live w/ TP? - answer✔all year!
GI for dependent test includes
Support GI includes - answer✔GI for Dependent = all income not exempt from tax! = tax return income
GI for Support = ALL INCOME, regarldess of taxable or not
*when calculation total persons support, include ALL expenses. including medical
If a nonresident alien receives income that is effectively connected with U.S. trade or business, which
itemized deductions may be taken? - answer✔casualty and theft
Nonresident aliens can deduct certain itemized deductions if income is received that is effectively
connected with U.S. trade or business.
**These deductions include state and local income taxes, charitable contributions to U.S. organizations,
casualty and theft losses, and miscellaneous deductions.
When will a minor's income be taxed at his or her parent's rate? - answer✔When a child has net
unearned income and is under age 18 with at least one living parent.
Interest on federal income tax refund is - answer✔included in income
HH Bond interest - answer✔included in income
Cash base tax payer, Interest of $2,000 that had accrued on a loan to a friend was not paid until the
following year. Is it taxable? - answer✔no! not until received
private activity bond is a - answer✔muni bond, tax exempt!
formula for excluding EE bond interest - answer✔= qualified exxpenses/bond total * interest
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