TAX PREPARER FINAL EXAM REVIEW || MOST RECENT
EXAM 2026/2027 ACTUAL COMPLETE REAL EXAM
QUESTIONS AND CORRECT ANSWERS (VERIFIED
ANSWERS) ALREADY GRADED A+ | GUARANTEED
SUCCESS!! | NEWEST EXAM | JUST RELEASED!!
Why is it important to distinguish between taxpayers who are
active participants in an employer-maintained retirement plan
and those who are not? - ANSWER • Those who are not active
participants and whose spouses are not active participants
may deduct the full amount they contribute to a traditional IRA,
assuming they stay within the contribution limits.
• Those who are active participants or whose spouses are
active participants may still contribute within the limits but
may find their allowable deduction reduced or eliminated.
(21.13)
What are the main differences between traditional IRAs and
Roth IRAs? - ANSWER -• Contributions to a Roth IRA are never
deductible, but qualified distributions are exempt from tax.
• Participation in an employer-maintained retirement plan has
no effect on Roth IRA contributions, and contributions can be
made after the taxpayer has reached age 70½.
• As long as they have compensation, contributions to Roth
IRAs are not reported on the tax return. (21.15)
,Under what circumstances do you need to determine whether a
taxpayer paid over half of the cost of maintaining his home? -
ANSWER -If you are determining if the taxpayer may be
considered unmarried, a qualifying widow(er), or head of
household. (5.2)
What are some of the costs of maintaining a home? - ANSWER
-• Rent
• Mortgage interest
• Real Estate Taxes
• Homeowners Insurance
• Property Taxes
• Repairs
• Utilities
• Food eaten in the home
(5.3)
What requirements must be met for a taxpayer to use the
qualifying widow(er) status? - ANSWER -• The death of the
taxpayer's spouse must have occurred during one of the two
preceding tax years;
• The taxpayer must not have remarried and must have been
entitled to file a joint return for the year of death.
• The taxpayer must have paid over half the cost of maintaining
the home which, for the entire year, was the main home of
their dependent son, daughter, stepson, or stepdaughter.
, In general, which parent gets to claim the qualifying child
in a divorce? -
ANSWER -The custodial
parent. (5.7)
What happens if an individual is a qualifying child for more than
one taxpayer? -
ANSWER -The taxpayers may decide among themselves who
will claim the
credit.
(7.9)
What happens when more than one taxpayer claims the same
qualifying child?
- ANSWER -The IRS will decide based on the tiebreaker
rules. (7.9)
How does one determine the taxable income of the taxpayers
who itemize deductions? - ANSWER -Adjusted gross income
(AGI) minus total itemized deductions and total exemptions.
(12.2)
What types of taxes are deductible? - ANSWER -• State and
local taxes
• Real property taxes
• Personal property taxes
• Foreign income taxes
(12.12)
EXAM 2026/2027 ACTUAL COMPLETE REAL EXAM
QUESTIONS AND CORRECT ANSWERS (VERIFIED
ANSWERS) ALREADY GRADED A+ | GUARANTEED
SUCCESS!! | NEWEST EXAM | JUST RELEASED!!
Why is it important to distinguish between taxpayers who are
active participants in an employer-maintained retirement plan
and those who are not? - ANSWER • Those who are not active
participants and whose spouses are not active participants
may deduct the full amount they contribute to a traditional IRA,
assuming they stay within the contribution limits.
• Those who are active participants or whose spouses are
active participants may still contribute within the limits but
may find their allowable deduction reduced or eliminated.
(21.13)
What are the main differences between traditional IRAs and
Roth IRAs? - ANSWER -• Contributions to a Roth IRA are never
deductible, but qualified distributions are exempt from tax.
• Participation in an employer-maintained retirement plan has
no effect on Roth IRA contributions, and contributions can be
made after the taxpayer has reached age 70½.
• As long as they have compensation, contributions to Roth
IRAs are not reported on the tax return. (21.15)
,Under what circumstances do you need to determine whether a
taxpayer paid over half of the cost of maintaining his home? -
ANSWER -If you are determining if the taxpayer may be
considered unmarried, a qualifying widow(er), or head of
household. (5.2)
What are some of the costs of maintaining a home? - ANSWER
-• Rent
• Mortgage interest
• Real Estate Taxes
• Homeowners Insurance
• Property Taxes
• Repairs
• Utilities
• Food eaten in the home
(5.3)
What requirements must be met for a taxpayer to use the
qualifying widow(er) status? - ANSWER -• The death of the
taxpayer's spouse must have occurred during one of the two
preceding tax years;
• The taxpayer must not have remarried and must have been
entitled to file a joint return for the year of death.
• The taxpayer must have paid over half the cost of maintaining
the home which, for the entire year, was the main home of
their dependent son, daughter, stepson, or stepdaughter.
, In general, which parent gets to claim the qualifying child
in a divorce? -
ANSWER -The custodial
parent. (5.7)
What happens if an individual is a qualifying child for more than
one taxpayer? -
ANSWER -The taxpayers may decide among themselves who
will claim the
credit.
(7.9)
What happens when more than one taxpayer claims the same
qualifying child?
- ANSWER -The IRS will decide based on the tiebreaker
rules. (7.9)
How does one determine the taxable income of the taxpayers
who itemize deductions? - ANSWER -Adjusted gross income
(AGI) minus total itemized deductions and total exemptions.
(12.2)
What types of taxes are deductible? - ANSWER -• State and
local taxes
• Real property taxes
• Personal property taxes
• Foreign income taxes
(12.12)
