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ATP (Accredited Tax Preparer) exam COMPLETE
QUESTIONS AND DETAILED SOLUTIONS LATEST
UPDATE THIS YEAR-JUST RELEASED
Summarized Exam Coverage
The ATP (Accredited Tax Preparer) exam is administered by the Accreditation Council for Accountancy
and Taxation (ACAT) . ATP certification is a national credential for tax practitioners who have a
thorough knowledge of the existing tax code and individual tax return preparation, with expertise in
comprehensive 1040 issues, supporting schedules (A, C, D, E), self-employed returns, and ethics .
Exam Details :
• 100 multiple-choice questions
• 3-hour time limit
• Passing score: 70%
• Format: Computer-based at testing centers or remote proctoring
• Fee: $250
Exam Domains :
1. Personal Income Taxation – Taxable entities, income reporting, adjustments, deductions, tax
credits, additional taxes
2. Ethics and Procedures – Ethical guidelines, best practices, Circular 230, professional conduct
Key Covered Topics :
• Filing Status and Determination of Tax
• Accounting Methods and Periods
• Gross Income Inclusions and Exclusions
• Deductions for AGI and Itemized Deductions
• Income Tax Credits
• Sole Proprietorships, Rental Income, Self-Employed
• Payroll Taxes
• Ethics and Professional Conduct
ATP credential holders automatically qualify for the IRS Annual Filing Season Program (AFSP) Record of
Completion and are exempt from the Annual Federal Tax Refresher (AFTR) course and exam . ATPs who
are AFSP Record of Completion holders also have limited representation rights before the IRS .
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1. What is the minimum age requirement for a taxpayer to claim the Earned Income Tax Credit (EITC)
without a qualifying child?
A) 18
B) 21
C) 25
D) There is no age requirement
Answer: C
For 2024, a taxpayer without a qualifying child must be at least age 25 but under age 65 to claim EITC.
2. Under Circular 230, a practitioner must exercise due diligence in preparing tax returns. Which of the
following is NOT required?
A) Relying on client-provided information that appears correct
B) Independently verifying every piece of information regardless of source
C) Inquiring about inconsistent or incomplete information
D) Documenting reasonable inquiries made to the client
Answer: B
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Due diligence does not require independent verification of all client information, but practitioners must
ask about inconsistent or questionable information .
3. A single taxpayer, age 30, has no qualifying children. What is their maximum AGI limit for EITC
eligibility (approximate for 2024)?
A) $11,000
B) $16,480
C) $23,000
D) $30,000
Answer: B
For single filers without qualifying children, AGI must be less than $16,480 (2024) to qualify for EITC.
4. A tax preparer leaves client files on their desk with names visible to other clients. Is this acceptable?
A) Yes, only names are visible, not Social Security numbers
B) Yes, clients should not look at other papers
C) No, confidentiality requires protecting all client information from unauthorized viewing
D) Yes, if files will be put away at the end of the day
Answer: C
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Confidentiality obligations require protecting all client information, not just SSNs; leaving files visible
violates professional standards .
5. What filing status must a married taxpayer who lived apart from their spouse for the last 6 months of
the year use if they do not qualify for Head of Household?
A) Married Filing Jointly
B) Married Filing Separately
C) Single
D) Qualifying Widow(er)
Answer: B
Married taxpayers who do not qualify for Head of Household must file as Married Filing Jointly or
Married Filing Separately.
6. Which tax credit is partially refundable, meaning a portion can be received even if no tax is owed?
A) Child Tax Credit (non-refundable portion)
B) Child and Dependent Care Credit
C) Lifetime Learning Credit
D) Earned Income Tax Credit
ATP (Accredited Tax Preparer) exam COMPLETE
QUESTIONS AND DETAILED SOLUTIONS LATEST
UPDATE THIS YEAR-JUST RELEASED
Summarized Exam Coverage
The ATP (Accredited Tax Preparer) exam is administered by the Accreditation Council for Accountancy
and Taxation (ACAT) . ATP certification is a national credential for tax practitioners who have a
thorough knowledge of the existing tax code and individual tax return preparation, with expertise in
comprehensive 1040 issues, supporting schedules (A, C, D, E), self-employed returns, and ethics .
Exam Details :
• 100 multiple-choice questions
• 3-hour time limit
• Passing score: 70%
• Format: Computer-based at testing centers or remote proctoring
• Fee: $250
Exam Domains :
1. Personal Income Taxation – Taxable entities, income reporting, adjustments, deductions, tax
credits, additional taxes
2. Ethics and Procedures – Ethical guidelines, best practices, Circular 230, professional conduct
Key Covered Topics :
• Filing Status and Determination of Tax
• Accounting Methods and Periods
• Gross Income Inclusions and Exclusions
• Deductions for AGI and Itemized Deductions
• Income Tax Credits
• Sole Proprietorships, Rental Income, Self-Employed
• Payroll Taxes
• Ethics and Professional Conduct
ATP credential holders automatically qualify for the IRS Annual Filing Season Program (AFSP) Record of
Completion and are exempt from the Annual Federal Tax Refresher (AFTR) course and exam . ATPs who
are AFSP Record of Completion holders also have limited representation rights before the IRS .
, Page 2 of 126
1. What is the minimum age requirement for a taxpayer to claim the Earned Income Tax Credit (EITC)
without a qualifying child?
A) 18
B) 21
C) 25
D) There is no age requirement
Answer: C
For 2024, a taxpayer without a qualifying child must be at least age 25 but under age 65 to claim EITC.
2. Under Circular 230, a practitioner must exercise due diligence in preparing tax returns. Which of the
following is NOT required?
A) Relying on client-provided information that appears correct
B) Independently verifying every piece of information regardless of source
C) Inquiring about inconsistent or incomplete information
D) Documenting reasonable inquiries made to the client
Answer: B
, Page 3 of 126
Due diligence does not require independent verification of all client information, but practitioners must
ask about inconsistent or questionable information .
3. A single taxpayer, age 30, has no qualifying children. What is their maximum AGI limit for EITC
eligibility (approximate for 2024)?
A) $11,000
B) $16,480
C) $23,000
D) $30,000
Answer: B
For single filers without qualifying children, AGI must be less than $16,480 (2024) to qualify for EITC.
4. A tax preparer leaves client files on their desk with names visible to other clients. Is this acceptable?
A) Yes, only names are visible, not Social Security numbers
B) Yes, clients should not look at other papers
C) No, confidentiality requires protecting all client information from unauthorized viewing
D) Yes, if files will be put away at the end of the day
Answer: C
, Page 4 of 126
Confidentiality obligations require protecting all client information, not just SSNs; leaving files visible
violates professional standards .
5. What filing status must a married taxpayer who lived apart from their spouse for the last 6 months of
the year use if they do not qualify for Head of Household?
A) Married Filing Jointly
B) Married Filing Separately
C) Single
D) Qualifying Widow(er)
Answer: B
Married taxpayers who do not qualify for Head of Household must file as Married Filing Jointly or
Married Filing Separately.
6. Which tax credit is partially refundable, meaning a portion can be received even if no tax is owed?
A) Child Tax Credit (non-refundable portion)
B) Child and Dependent Care Credit
C) Lifetime Learning Credit
D) Earned Income Tax Credit
