IRS Tax Preparation Exam Guide 2020: Filing
Status, Credits, Deductions, and Compliance
Q&A
1. Rebecca's most beneficial allowable filing status is Head of Household. - ✔✔false
2. Rebecca has $ in qualifying child care expenses for the child and dependent care credit.. -
✔✔2500
3. Pat and Terri are only eligible to claim the child tax credit on their 2020 tax return. - ✔✔false
4. The taxable amount of Pat's unemployment compensation is $ ? - ✔✔3300
5. Medicaid waiver payments can be considered earned income for the computation of the earned
income credit. - ✔✔true
6. Andrew's HSA deduction amount on Form 8889, Part I, line 13 is $3,000. - ✔✔False
7. The HSA contribution made by Andrew's employer will be shown in Box 12 on his Form W-2 with the
following: - ✔✔W
8. The over-the-counter allergy medication is a qualified medical expense for HSA purposes. - ✔✔true
9. Barbara and Claire can make an agreement on who can claim Molly as a dependent. - ✔✔false
10. Jenny is eligible for earned income credit, but can allow Claire to claim the credit. - ✔✔false
11. Robert is eligible to claim the donation to his friend's GoFundMe account as a charitable
contribution. - ✔✔false
, 12. Robert qualifies for an above-the-line charitable contribution adjustment of $300 on his 2020 tax
return if he chooses not to itemize. - ✔✔false
13. Carly can claim $3,960 as a student loan interest deduction on Form 1040, Schedule 1. - ✔✔false
14. Carly is eligible to deduct $250 as an adjustment to income on Form 1040, Schedule 1 for qualified
educator expenses. - ✔✔false
15. The Franklins can use $ of qualified child care expenses to calculate the child and
dependent care credit. - ✔✔6000 false
16. The refundable amount of the American opportunity credit located on Form 8863, Education Credit
is: - ✔✔918
17. The Franklins' Form 8962, Premium Tax Credit, shows they are entitled to a net premium tax credit
on their 2020 tax return. - ✔✔true
18. The Franklins can claim a recovery rebate credit of $1,200 for Christina on their 2020 tax return. -
✔✔false
19. What is the amount of the earned income credit on the Franklins' Form 1040? - ✔✔not 538
0
464
5920
20. The Kennedys' standard deduction for tax year 2020 is: - ✔✔not 24800
26100
27400
28700
Status, Credits, Deductions, and Compliance
Q&A
1. Rebecca's most beneficial allowable filing status is Head of Household. - ✔✔false
2. Rebecca has $ in qualifying child care expenses for the child and dependent care credit.. -
✔✔2500
3. Pat and Terri are only eligible to claim the child tax credit on their 2020 tax return. - ✔✔false
4. The taxable amount of Pat's unemployment compensation is $ ? - ✔✔3300
5. Medicaid waiver payments can be considered earned income for the computation of the earned
income credit. - ✔✔true
6. Andrew's HSA deduction amount on Form 8889, Part I, line 13 is $3,000. - ✔✔False
7. The HSA contribution made by Andrew's employer will be shown in Box 12 on his Form W-2 with the
following: - ✔✔W
8. The over-the-counter allergy medication is a qualified medical expense for HSA purposes. - ✔✔true
9. Barbara and Claire can make an agreement on who can claim Molly as a dependent. - ✔✔false
10. Jenny is eligible for earned income credit, but can allow Claire to claim the credit. - ✔✔false
11. Robert is eligible to claim the donation to his friend's GoFundMe account as a charitable
contribution. - ✔✔false
, 12. Robert qualifies for an above-the-line charitable contribution adjustment of $300 on his 2020 tax
return if he chooses not to itemize. - ✔✔false
13. Carly can claim $3,960 as a student loan interest deduction on Form 1040, Schedule 1. - ✔✔false
14. Carly is eligible to deduct $250 as an adjustment to income on Form 1040, Schedule 1 for qualified
educator expenses. - ✔✔false
15. The Franklins can use $ of qualified child care expenses to calculate the child and
dependent care credit. - ✔✔6000 false
16. The refundable amount of the American opportunity credit located on Form 8863, Education Credit
is: - ✔✔918
17. The Franklins' Form 8962, Premium Tax Credit, shows they are entitled to a net premium tax credit
on their 2020 tax return. - ✔✔true
18. The Franklins can claim a recovery rebate credit of $1,200 for Christina on their 2020 tax return. -
✔✔false
19. What is the amount of the earned income credit on the Franklins' Form 1040? - ✔✔not 538
0
464
5920
20. The Kennedys' standard deduction for tax year 2020 is: - ✔✔not 24800
26100
27400
28700
