JACKSON HEWITT TAX PREP EXAM COMPLETE
QUESTIONS AND CORRECT ANSWERS (LATEST)
To determine if an independent taxpayer is required to file a tax return, you
need to know their: - ANSWER Filing status, age, and gross income
The taxpayer's age is determined by... - ANSWER how old they are as of
December 31st of that year
What is the exception to the December 31st taxpayer age determination rule? -
ANSWER The taxpayer is considered 65 on December 31st if their 65th
birthday is January 1st of the next year
What is gross income - ANSWER all income the taxpayer receives that is not
exempt from tax, including earned income and unearned income
What forms of income are NOT exempt from tax - ANSWER money, goods,
property, and services
what is considered earned income - ANSWER wages from a job, and money
from self-employment
what is considered unearned income - ANSWER interest from a bank account,
unemployment benefits, retirement income, and pension
To see if a dependent taxpayer needs to file, you need to know their... -
ANSWER marital status, age, blindness, and income
Dependent info is entered on Form ____ - ANSWER 1040
If a dependent is not eligible for a social security number (SSN), they can apply
for an... - ANSWER individual taxpayer identification number (ITIN)
, Taxpayers apply for an ITIN by filing form ____ - ANSWER W-7
If an adopted dependent does not have an SSN yet, they can apply for an... -
ANSWER adoption taxpayer identification number (ATIN)
If the taxpayer dependent was born and died during the tax year and they did
not have an identifying number... - ANSWER attach a copy of their birth
certificate and enter "died" in place of the number
If the taxpayer has more than four dependents... - ANSWER mark the
checkbox in the dependents section of Form 1040 and create a statement
containing the dependents info required to complete all columns
There are two types of dependents: - ANSWER qualifying child and qualifying
relative
A qualifying child must pass all the following tests: - ANSWER Relationship
test, age test, residency test, support test, joint return test
A qualifying relative must pass all the following tests: - ANSWER Not a
qualifying child test, member of household or relationship test, gross income
test, support test
What is the (qualifying child) relationship test - ANSWER must be child under
the uniform definition of child, sibling, or descendent (relationships established
by marriage remain intact after divorce, separation, or death)
What is the (qualifying child) age test - ANSWER must be under age 19 at the
end of the year, a full-time student under age 24 at the end of the year,
permanently and totally disabled at any time during the year (regardless of age),
and must be younger than the taxpayer
What is the (qualifying child) residency test - ANSWER must have lived with
the taxpayer for more than half a year (except for temporary absences, children
who were born or died during the year, kidnapped children, children of
divorced/separated parents)
QUESTIONS AND CORRECT ANSWERS (LATEST)
To determine if an independent taxpayer is required to file a tax return, you
need to know their: - ANSWER Filing status, age, and gross income
The taxpayer's age is determined by... - ANSWER how old they are as of
December 31st of that year
What is the exception to the December 31st taxpayer age determination rule? -
ANSWER The taxpayer is considered 65 on December 31st if their 65th
birthday is January 1st of the next year
What is gross income - ANSWER all income the taxpayer receives that is not
exempt from tax, including earned income and unearned income
What forms of income are NOT exempt from tax - ANSWER money, goods,
property, and services
what is considered earned income - ANSWER wages from a job, and money
from self-employment
what is considered unearned income - ANSWER interest from a bank account,
unemployment benefits, retirement income, and pension
To see if a dependent taxpayer needs to file, you need to know their... -
ANSWER marital status, age, blindness, and income
Dependent info is entered on Form ____ - ANSWER 1040
If a dependent is not eligible for a social security number (SSN), they can apply
for an... - ANSWER individual taxpayer identification number (ITIN)
, Taxpayers apply for an ITIN by filing form ____ - ANSWER W-7
If an adopted dependent does not have an SSN yet, they can apply for an... -
ANSWER adoption taxpayer identification number (ATIN)
If the taxpayer dependent was born and died during the tax year and they did
not have an identifying number... - ANSWER attach a copy of their birth
certificate and enter "died" in place of the number
If the taxpayer has more than four dependents... - ANSWER mark the
checkbox in the dependents section of Form 1040 and create a statement
containing the dependents info required to complete all columns
There are two types of dependents: - ANSWER qualifying child and qualifying
relative
A qualifying child must pass all the following tests: - ANSWER Relationship
test, age test, residency test, support test, joint return test
A qualifying relative must pass all the following tests: - ANSWER Not a
qualifying child test, member of household or relationship test, gross income
test, support test
What is the (qualifying child) relationship test - ANSWER must be child under
the uniform definition of child, sibling, or descendent (relationships established
by marriage remain intact after divorce, separation, or death)
What is the (qualifying child) age test - ANSWER must be under age 19 at the
end of the year, a full-time student under age 24 at the end of the year,
permanently and totally disabled at any time during the year (regardless of age),
and must be younger than the taxpayer
What is the (qualifying child) residency test - ANSWER must have lived with
the taxpayer for more than half a year (except for temporary absences, children
who were born or died during the year, kidnapped children, children of
divorced/separated parents)
