VITA Advanced Exam for insurance law

VITA Advanced Exam for insurance law 1. Tamara and her ex-husband's divorce was final before December 31, 2018.How does this affect their 2019 tax returns? - CORRECT ANSWER d. Tamara is allowed to deduct the alimony paid as an adjustment to income.Her ex-husband is required to include the alimony received as income." "2.What is the most beneficial filing status allowable for Tamara? - CORRECT ANSWER c. Head of Household" "3.Who can Tamara claim as a qualifying child(ren) for the earned income credit? - CORRECT ANSWER d. Tamara can claim both Kimberly and Christian." "4. Who can Charlie and Samantha claim as a qualifying dependent(s) for the credit for other dependents? - CORRECT ANSWER a. Harry" "5. Which credit(s) are Charlie and Samantha eligible to claim? - CORRECT ANSWER c. Child tax credit, child and dependent care credit, and credit for other dependents." "6. Which of the following statements is true? - CORRECT ANSWER a. Tony is not required to file a tax return because his gross income is below the filing requirement." "7. Gail can claim Tony on her tax return as a qualifying child for the earned income credit. - CORRECT ANSWER a. True" "8. Can Sandra claim Debbie as a qualifying relative on her 2019 return? - CORRECT ANSWER b. No, because Debbie had gross income of more than $4,200 during the tax year." "9. Which of the following statements is true regarding the Form 1095-A? - CORRECT ANSWER d. Sandra and Debbie have a shared policy.Information on the Form 1095-A must be allocated between their two tax returns.Both of their returns are out of scope." "10.Archie can claim total deductible medical expenses that exceed 7.5% of his adjusted gross income. - CORRECT ANSWER b. False" "11.What is the total amount of state income and real estate taxes deductible on Archie's Form 1040, Schedule A? - CORRECT ANSWER c. $10,000" "12.Which of the following is Archie able to claim as a deduction on his Form 1040, Schedule A? - CORRECT ANSWER c. Gambling losses" "13.Jennifer wants to have her refund directly deposited into her checking account.What is her bank routing number? - CORRECT ANSWER c. " "14.How do Jennifer's educator expenses affect her tax return? - CORRECT ANSWER c. $250 is deducted as an adjustment to income on Form 1040, Schedule 1." "15.What is the amount of Jennifer's child and dependent care credit shown on Form 2441, Child and Dependent Care Expenses? - CORRECT ANSWER b. $525" "16.The total amount of qualified education expenses used in the calculation of Jennifer's 2019 American opportunity credit is: - CORRECT ANSWER b. $3,650" "17.How does the Form 1095-A, Health Insurance Marketplace Statement, affect Jennifer's tax return? - CORRECT ANSWER d. Jennifer must file Form 8962, Premium Tax Credit (PTC), to reconcile the advanced premium tax credit." "18.Jennifer's income is too high to qualify for the credit on Form 8880, Credit for Qualified Retirement Savings Contributions. - CORRECT ANSWER b. False" "19.Jennifer's canceled debt on Form 1099-C, Cancellation of Debt, does not need to be reported on her tax return. - CORRECT ANSWER b. False" "20.In order to claim EIC for 2019, Jennifer must file Form 8862, Information To Claim Certain Credits After Disallowance, with her tax return. - CORRECT ANSWER a. True" "21.Since the Matthews did not itemize for 2018, their state refund is not reported on Form 1040. - CORRECT ANSWER a. True" "22.What is the amount of taxable interest reported on the Matthews' Form 1040? - CORRECT ANSWER b. $250" "23 - CORRECT ANSWER ?" "24 - CORRECT ANSWER ?" "25. Is Mark's Social Security income taxable? - CORRECT ANSWER a. Yes, a portion of the Social Security income is taxable" "26. The Matthews want to split their refund between savings and checking accounts. How is this accomplished, if possible? - CORRECT ANSWER a. Complete Form 8888, Allocation of Refund (Including Savings Bond Purchases)." "27. What is the total federal income tax withholding reported on the Matthews' Form 1040? - CORRECT ANSWER d. $6,778" "28. The only income Ramon needs to report on his Schedule C is his income from Form 1099-K, Payment Card and Third Party Network Transactions. - CORRECT ANSWER b. False" "29. Ramon's mileage expense deduction (at the standard mileage rate) for his business as a ride share driver (rounded to the nearest dollar) is $17,516. - CORRECT ANSWER b. False" "30. What is the amount of Ramon's student loan interest deduction shown on Form 1040, Schedule 1? $________. - CORRECT ANSWER $2,500" "31. How does Ramon's self-employment tax affect his tax return? - CORRECT ANSWER d. The self-employment tax is added to his other taxes and one half of the selfemployment tax is an adjustment to income." "32. What is the amount of Ramon's qualified business income (QBI) deduction? - CORRECT ANSWER c. $0 because Ramon does not have taxable income before the QBI deduction." "33. Ramon did not have health insurance in 2019, how does that affect his return? - CORRECT ANSWER b. It has no effect on his Form 1040. The "Full-year health care coverage or exempt" box is eliminated from Form 1040 because the shared responsibility payment is reduced to zero for tax year 2019." "34. Ramon has been assigned an Identity Protection PIN by the IRS. How does this affect preparation of Ramon's tax return? - CORRECT ANSWER d. All of the above." "35. What is the reason Ramon does not qualify for the earned income tax credit? - CORRECT ANSWER d. He had no qualifying children and he was under age 25." "