VITA 2026 ADVANCED TEST EXAM 2026 UPDATED
QUESTIONS AND VERIFIED ANSWERS GRADED A+
| ASSURED SUCCESS
1. If a volunteer discovers that a taxpayer has not reported their net long term
capital gains on Schedule D, what should the volunteer do?
Report the taxpayer to the IRS immediately.
Advise the taxpayer to amend their return to include the gains.
Suggest the taxpayer file a new return without the gains.
Ignore the oversight as it is not significant.
2. In 2022, the Lifetime Learning Credit is limited to $2,000 per:
Taxpayer.
Qualifying student.
Tax return.
Dependent.
3. What is a violation of the Volunteer Standards of Conduct regarding the
handling of taxpayer information?
Using the information for personal benefit
Reporting taxpayer information to the IRS
Providing accurate tax preparation services
Offering financial advice to clients
4. Describe how the choice of filing status can impact a taxpayer's overall tax
liability.
, Filing status has no impact on tax liability; it is only for record-keeping.
Filing status only determines the due date for tax returns.
The choice of filing status affects tax rates, eligibility for deductions
and credits, and ultimately the amount of tax owed.
Filing status is irrelevant to tax deductions but affects the refund
amount.
5. David MacLee's adjusted gross income on his Form 1040 is _______
$36,130
$36,000
$36,104
$8,404
6. Which of the following statements about the child and dependent care credit
is correct?
The child must be under the age of 18 years
The child must be a direct descendant of the taxpayer
The maximum credit is $600
The credit is nonrefundable
7. If Nancy is 17 years old, lives with her aunt for the entire year, and her aunt
provides all her financial support, who can claim Nancy as a qualifying child
for tax purposes?
Nancy can claim herself as a qualifying child.
Nancy cannot be claimed as a qualifying child by anyone.
Nancy's aunt can claim her as a qualifying child.
Nancy's parents can claim her as a qualifying child.
,8. Why is it important to ask the taxpayer about additional interest income when
Form 13614-C indicates 'Yes' for interest?
To determine eligibility for tax credits.
To ensure all interest income is reported accurately for tax
purposes.
To assess the taxpayer's overall financial situation.
To verify the taxpayer's identity.
9. Describe the relationship between gambling losses and the amount of
gambling winnings for tax deductions.
Taxpayers can only deduct gambling losses up to the amount of
their gambling winnings.
Gambling losses are not deductible under any circumstances.
Taxpayers can deduct gambling losses regardless of their winnings.
Gambling losses can be deducted without any limit.
10. Braxton is single and has no qualifying child. His adjusted gross income is
$13,800. In order to claim the Earned Income Credit, he must meet which of
the following requirements?
He may have either an ITIN or a social security number.
He must earn his income as an employee. He cannot be self-
employed.
He cannot be the dependent of another taxpayer.
He must be age 18 or older.
11. Advanced premium tax credit (APTC) is available to persons who purchase
any metal level of coverage on the Exchange and have an income of not
more than ____ % of the Federal Poverty Level.
, 133
400
300
200
12. Which credits are specifically mentioned as options for the Lincolns in the
provided question?
Earned income credit, Child tax credit
Child tax credit, Credit for other dependents, American opportunity
credit
Credit for other dependents, Earned income credit
American opportunity credit, Lifetime learning credit
13. In 2022, George and Martha are married and file a joint tax return claiming
their two children, ages 10 and 8 as dependents. Assuming their AGI is
$119,650, George and Martha's child tax credit is:
$2,000
$0
$4,000
$3,000
14. What information must a volunteer review to deter the possibility of identity
theft?
Form W-2
Last year's tax return
Medicaid card
QUESTIONS AND VERIFIED ANSWERS GRADED A+
| ASSURED SUCCESS
1. If a volunteer discovers that a taxpayer has not reported their net long term
capital gains on Schedule D, what should the volunteer do?
Report the taxpayer to the IRS immediately.
Advise the taxpayer to amend their return to include the gains.
Suggest the taxpayer file a new return without the gains.
Ignore the oversight as it is not significant.
2. In 2022, the Lifetime Learning Credit is limited to $2,000 per:
Taxpayer.
Qualifying student.
Tax return.
Dependent.
3. What is a violation of the Volunteer Standards of Conduct regarding the
handling of taxpayer information?
Using the information for personal benefit
Reporting taxpayer information to the IRS
Providing accurate tax preparation services
Offering financial advice to clients
4. Describe how the choice of filing status can impact a taxpayer's overall tax
liability.
, Filing status has no impact on tax liability; it is only for record-keeping.
Filing status only determines the due date for tax returns.
The choice of filing status affects tax rates, eligibility for deductions
and credits, and ultimately the amount of tax owed.
Filing status is irrelevant to tax deductions but affects the refund
amount.
5. David MacLee's adjusted gross income on his Form 1040 is _______
$36,130
$36,000
$36,104
$8,404
6. Which of the following statements about the child and dependent care credit
is correct?
The child must be under the age of 18 years
The child must be a direct descendant of the taxpayer
The maximum credit is $600
The credit is nonrefundable
7. If Nancy is 17 years old, lives with her aunt for the entire year, and her aunt
provides all her financial support, who can claim Nancy as a qualifying child
for tax purposes?
Nancy can claim herself as a qualifying child.
Nancy cannot be claimed as a qualifying child by anyone.
Nancy's aunt can claim her as a qualifying child.
Nancy's parents can claim her as a qualifying child.
,8. Why is it important to ask the taxpayer about additional interest income when
Form 13614-C indicates 'Yes' for interest?
To determine eligibility for tax credits.
To ensure all interest income is reported accurately for tax
purposes.
To assess the taxpayer's overall financial situation.
To verify the taxpayer's identity.
9. Describe the relationship between gambling losses and the amount of
gambling winnings for tax deductions.
Taxpayers can only deduct gambling losses up to the amount of
their gambling winnings.
Gambling losses are not deductible under any circumstances.
Taxpayers can deduct gambling losses regardless of their winnings.
Gambling losses can be deducted without any limit.
10. Braxton is single and has no qualifying child. His adjusted gross income is
$13,800. In order to claim the Earned Income Credit, he must meet which of
the following requirements?
He may have either an ITIN or a social security number.
He must earn his income as an employee. He cannot be self-
employed.
He cannot be the dependent of another taxpayer.
He must be age 18 or older.
11. Advanced premium tax credit (APTC) is available to persons who purchase
any metal level of coverage on the Exchange and have an income of not
more than ____ % of the Federal Poverty Level.
, 133
400
300
200
12. Which credits are specifically mentioned as options for the Lincolns in the
provided question?
Earned income credit, Child tax credit
Child tax credit, Credit for other dependents, American opportunity
credit
Credit for other dependents, Earned income credit
American opportunity credit, Lifetime learning credit
13. In 2022, George and Martha are married and file a joint tax return claiming
their two children, ages 10 and 8 as dependents. Assuming their AGI is
$119,650, George and Martha's child tax credit is:
$2,000
$0
$4,000
$3,000
14. What information must a volunteer review to deter the possibility of identity
theft?
Form W-2
Last year's tax return
Medicaid card
