Senior Tax Specialist (2025/2026 Tax Law)
Questions and Answers Verified 100%
Correct||GRADED A+
Question:1
Sam pays his 19 yr. old son, Joshua, $550/month to maintain the lawn & garden at
the family residence. Sam is subject to what household employment tax rules for
Joshua?
A. Since Joshua is not performing any child case services, the household tax rules
do not apply.
B. Since Joshua is the taxpayer's child under age 21, the household employment
tax rules do not apply.
C. Since no evidence is given that Joshua is a student, he is considered to be Sam's
household employee.
D. Since Joshua's wages are over $2,100 for the yr., Sam is subject to the
household employment tax rules for Joshua.
Answer: B
Question:2
A taxpayer should include which of the following when figuring their federal gross
income?
A. Prior-year federal income tax refund.
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,B. Ordinary dividends.
C. Personal injury compensation.
D. Qualified disaster relief payments.
Answer: B
Question:3
A taxpayer is required to file Schedule 1 (Form 1040) when claiming which of the
following?
A. Retirement savings contributions credit.
B. Health savings account deduction
C. Education credit
D. Excess advance premium tax credit repayment
Answer: B
Question:4
In 2018, the excise tax for excess contributions to a health savings account is
_____________.
-A. 0%
B. 6%
C. 10%
D. 20%
Answer: B
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, Question:5
In 2018, the additional excise tax for non-qualified distributions from a health
savings account is ____________. –
-A. 0%
B. 6%
C. 10%
D. 20%
Answer: D
Question:6
Cynthia works full-time as a teacher's aide at an elementary school. In 2018, she
paid $250 to participate in a professional development course, hoping to upgrade
her job skills. Since she was no reimbursed for this expense, she would like to
claim the educator expense deduction. As Cynthia's Tax Pro, what advice would
you offer her?
A. She may not claim the deduction b/c she is not considered an eligible educator.
B. Since she spent the $250 on professional development rather than classroom
supplies, she is not eligible for this deduction.
C. She may claim the deduction since she is an eligible educator and the
professional development course is a qualified expense.
D. Since employee business expenses are no longer deductible on SCH A, she may
not claim a deduction for the cost of the professional development course.
Answer: C
Question:7
Major Winters, a member of the Army Reserve, traveled to a location 250 miles
from his home to perform his work in the reserve in June 2018. His unreimbursed
3|Page
Questions and Answers Verified 100%
Correct||GRADED A+
Question:1
Sam pays his 19 yr. old son, Joshua, $550/month to maintain the lawn & garden at
the family residence. Sam is subject to what household employment tax rules for
Joshua?
A. Since Joshua is not performing any child case services, the household tax rules
do not apply.
B. Since Joshua is the taxpayer's child under age 21, the household employment
tax rules do not apply.
C. Since no evidence is given that Joshua is a student, he is considered to be Sam's
household employee.
D. Since Joshua's wages are over $2,100 for the yr., Sam is subject to the
household employment tax rules for Joshua.
Answer: B
Question:2
A taxpayer should include which of the following when figuring their federal gross
income?
A. Prior-year federal income tax refund.
1|Page
,B. Ordinary dividends.
C. Personal injury compensation.
D. Qualified disaster relief payments.
Answer: B
Question:3
A taxpayer is required to file Schedule 1 (Form 1040) when claiming which of the
following?
A. Retirement savings contributions credit.
B. Health savings account deduction
C. Education credit
D. Excess advance premium tax credit repayment
Answer: B
Question:4
In 2018, the excise tax for excess contributions to a health savings account is
_____________.
-A. 0%
B. 6%
C. 10%
D. 20%
Answer: B
2|Page
, Question:5
In 2018, the additional excise tax for non-qualified distributions from a health
savings account is ____________. –
-A. 0%
B. 6%
C. 10%
D. 20%
Answer: D
Question:6
Cynthia works full-time as a teacher's aide at an elementary school. In 2018, she
paid $250 to participate in a professional development course, hoping to upgrade
her job skills. Since she was no reimbursed for this expense, she would like to
claim the educator expense deduction. As Cynthia's Tax Pro, what advice would
you offer her?
A. She may not claim the deduction b/c she is not considered an eligible educator.
B. Since she spent the $250 on professional development rather than classroom
supplies, she is not eligible for this deduction.
C. She may claim the deduction since she is an eligible educator and the
professional development course is a qualified expense.
D. Since employee business expenses are no longer deductible on SCH A, she may
not claim a deduction for the cost of the professional development course.
Answer: C
Question:7
Major Winters, a member of the Army Reserve, traveled to a location 250 miles
from his home to perform his work in the reserve in June 2018. His unreimbursed
3|Page
