VITA Basic Exam Prep – Verified Questions & Answers |
Latest Update 2026 | 100% Pass Guarantee
1. Hank received Social Security in 2020 totaling $11,720. Hank also liquidated all
of his stock and moved into senior housing during the year. He received
$350,500 of taxable income from the stock sale. What is the maximum taxable
amount of Hank's Social Security benefits?
$9,962
$11,720
$5,860
$0
2. If Bobbie's income increases significantly, which of the following credits might
she no longer be eligible for?
Earned Income Credit
Child Tax Credit
American Opportunity Credit
Lifetime Learning Credit
3. Describe the criteria that determine whether Mary qualifies for the credits
mentioned.
Mary qualifies for the credits based on her specific tax situation and
eligibility requirements.
Mary qualifies for the credits because she has a high income.
Mary qualifies for the credits regardless of her filing status.
Mary qualifies for the credits due to her age.
,4. Mrs. Oak was divorced on January 1 of the current year. She had an unmarried
son living in her home for the entire year. It cost $3,000 to maintain Mrs.
Oak's home for the year, of which she contributed $2,000 and Joe Oak, ex-
husband, contributed $1,000 through support payments. Joe Oak, however,
provides more than one-half of the son's total support and claims him as his
dependent. Which is the most advantageous filing status for which Mrs. Oak
can qualify?
Married filing separately.
Single.
Married filing joint return.
Head of household.
5. If the Brooks have a dependent who is 19 years old and a full-time student,
do they qualify for the Credit for Other Dependents?
Yes, they qualify for the Credit for Other Dependents.
No, they do not qualify because the dependent is over 17.
No, they do not qualify because the dependent is not a relative.
Yes, but only if their income is below a certain level.
6. Interpret the tax implications of gambling winnings for a taxpayer. What is the
general rule regarding reporting these winnings?
Gambling winnings are exempt from taxation.
Gambling winnings must be reported as income on the taxpayer's
return.
Gambling losses can offset other income without reporting winnings.
Only winnings over a certain amount must be reported.
, 7. Mary's husband died in 10/2021. Which filing status will she probably use on
her 2021 income tax return?
Married filing jointly
Head of household
Qualifying
Single
8. Why might Chris and Marcie be ineligible for the Earned Income Tax Credit
(EITC)?
They are too young and have no qualifying children.
They earn too much income to qualify.
They have not filed their taxes correctly.
They are married and filing jointly.
9. Describe the criteria that a child must meet for a taxpayer to qualify for the
Earned Income Tax Credit (EITC).
The child must be a full-time student and live away from home.
The child must be over 18 and financially independent.
The child must be a relative and not live with the taxpayer.
The child must be under a certain age, live with the taxpayer for
more than half the year, and meet relationship requirements.
10. What is the eligibility criterion for claiming the student loan interest
deduction?
The taxpayer must be enrolled in a degree program.
The taxpayer must be a dependent.
Latest Update 2026 | 100% Pass Guarantee
1. Hank received Social Security in 2020 totaling $11,720. Hank also liquidated all
of his stock and moved into senior housing during the year. He received
$350,500 of taxable income from the stock sale. What is the maximum taxable
amount of Hank's Social Security benefits?
$9,962
$11,720
$5,860
$0
2. If Bobbie's income increases significantly, which of the following credits might
she no longer be eligible for?
Earned Income Credit
Child Tax Credit
American Opportunity Credit
Lifetime Learning Credit
3. Describe the criteria that determine whether Mary qualifies for the credits
mentioned.
Mary qualifies for the credits based on her specific tax situation and
eligibility requirements.
Mary qualifies for the credits because she has a high income.
Mary qualifies for the credits regardless of her filing status.
Mary qualifies for the credits due to her age.
,4. Mrs. Oak was divorced on January 1 of the current year. She had an unmarried
son living in her home for the entire year. It cost $3,000 to maintain Mrs.
Oak's home for the year, of which she contributed $2,000 and Joe Oak, ex-
husband, contributed $1,000 through support payments. Joe Oak, however,
provides more than one-half of the son's total support and claims him as his
dependent. Which is the most advantageous filing status for which Mrs. Oak
can qualify?
Married filing separately.
Single.
Married filing joint return.
Head of household.
5. If the Brooks have a dependent who is 19 years old and a full-time student,
do they qualify for the Credit for Other Dependents?
Yes, they qualify for the Credit for Other Dependents.
No, they do not qualify because the dependent is over 17.
No, they do not qualify because the dependent is not a relative.
Yes, but only if their income is below a certain level.
6. Interpret the tax implications of gambling winnings for a taxpayer. What is the
general rule regarding reporting these winnings?
Gambling winnings are exempt from taxation.
Gambling winnings must be reported as income on the taxpayer's
return.
Gambling losses can offset other income without reporting winnings.
Only winnings over a certain amount must be reported.
, 7. Mary's husband died in 10/2021. Which filing status will she probably use on
her 2021 income tax return?
Married filing jointly
Head of household
Qualifying
Single
8. Why might Chris and Marcie be ineligible for the Earned Income Tax Credit
(EITC)?
They are too young and have no qualifying children.
They earn too much income to qualify.
They have not filed their taxes correctly.
They are married and filing jointly.
9. Describe the criteria that a child must meet for a taxpayer to qualify for the
Earned Income Tax Credit (EITC).
The child must be a full-time student and live away from home.
The child must be over 18 and financially independent.
The child must be a relative and not live with the taxpayer.
The child must be under a certain age, live with the taxpayer for
more than half the year, and meet relationship requirements.
10. What is the eligibility criterion for claiming the student loan interest
deduction?
The taxpayer must be enrolled in a degree program.
The taxpayer must be a dependent.
