Social Sciences Business Insurance
Enrolled Agent Exam Part 1 |2025/2026
Individual tax identification number (ITIN):
- An ITIN does not authorize work in the U.S. or provide eligibility
for Social Security benefits or the Earned Income Tax Credit.
- Any ITIN that is not used on a federal tax return for three
consecutive tax years will expire.
-A taxpayer can't electronically file (e-file) a return using an ITIN in
the calendar year the ITIN is assigned.
Tax identification number (TIN):
- Everybody on the tax return, including dependents, needs a
Individual tax identification number
valid taxpayer identification number (TIN) issued by the due date of
(ITIN) vs Tax identification
the return (including extensions). There is an exception for a child
number (TIN)
that is born and dies in the same year
-A TIN is a Social Security number (SSN), an individual taxpayer
identification number (ITIN), or an adoption taxpayer identification
number (ATIN)
- Earned Income Credit, Child Tax Credit, and Additional Child Tax
Credit requires a valid SSN only
Under the American Rescue Plan Act of 2021, for 2021 and future
years, if a qualifying child does not have a valid SSN, taxpayer
may claim the earned income credit for individuals with no
qualifying children.
- Credit for Other Dependents and American Opportunity Credit
requires a valid SSN, ITIN, or ATIN
, For any failure relating to a return or claim for refund filed in 2023
(generally 2022 tax returns filed in 2023), penalty is $560 for each
failure with no maximum penalty unless failure is due to
reasonable cause and not willful neglect.
Due diligence penalty Failure to be diligent in determining eligibility for certain tax benefits
- Earned Income Credit, American Opportunity Credit, Child Tax
Credit (including Additional Child Tax Credit and Credit for Other
Dependents), and Head of Household filing status.
Preparer must ask all questions required on Form 8867 and
also ask additional questions when information seems incorrect,
inconsistent, or incomplete. Preparer must also verify identity,
prepare a computational checklist (Form 8867 or equivalent), and
meet a recordkeeping requirement.
The custodial parent is the parent with whom the child lived for the
greater number of nights during the year. Only the custodial parent
is entitled to claim the child for head of household filing status,
the credit for child and dependent care expenses, the exclusion
Custodial parent for dependent care benefits, the earned income credit, and the
health coverage tax credit.
The custodial parent can file form 8332 allowing the noncustodial
parent to claim the child for the child tax credit, additional child
tax credit, and the credit for other dependents
- Net earnings from self-employment are $400 or more
- Church wages are $108.28 or more (from a church that is FICA exempt)
- The taxpayer (or spouse, if filing jointly) received HSA, Archer
MSA, or Medicare Advantage MSA distributions
Situations where taxpayer is
required to file a return - Advance payments of the premium tax credit were made for the
taxpayer, spouse, or a dependent who enrolled in coverage
through the Health Insurance Marketplace
- The taxpayer owes special taxes (e.g. household
employment taxes) or must recapture certain credits or
taxes
- Unearned income more than $1,150 ($2,900 if blind or 65 or older,
$4,650 if blind and 65 or older)
- Earned income more than $12,950 ($14,700 if blind or 65 or older,
A single dependent (who may be
$16,450 if blind and 65 or older)
claimed by another taxpayer)
must file a return if any of the
-Gross income more than the larger of:
following apply in 2022
-$1,150 ($2,900 if blind or 65 or older, $4,650 if blind and 65 or older), or
-Earned income (up to $12,550) plus $400 (plus $2,150 if blind or 65 or older,
, plus
$3,900 if blind and 65 or older)
- Single $12,950 ($14,700 if 65 or older)
- Head of Household $19,400 ($21,150 if 65 or older)
A taxpayer with gross income
below the gross income - Married Filing Jointly $25,900 ($27,300 if one spouse 65 or
threshold (based on filing older, $28,700 if both spouses 65 or older)
status and age) is not
required to file a return. - Qualifying Surviving Spouse $25,900 ($27,300 if 65 or older)
Gross income threshold 2022:
- Married Filing Separately $5 (any age)
Enrolled Agent Exam Part 1 |2025/2026
Individual tax identification number (ITIN):
- An ITIN does not authorize work in the U.S. or provide eligibility
for Social Security benefits or the Earned Income Tax Credit.
- Any ITIN that is not used on a federal tax return for three
consecutive tax years will expire.
-A taxpayer can't electronically file (e-file) a return using an ITIN in
the calendar year the ITIN is assigned.
Tax identification number (TIN):
- Everybody on the tax return, including dependents, needs a
Individual tax identification number
valid taxpayer identification number (TIN) issued by the due date of
(ITIN) vs Tax identification
the return (including extensions). There is an exception for a child
number (TIN)
that is born and dies in the same year
-A TIN is a Social Security number (SSN), an individual taxpayer
identification number (ITIN), or an adoption taxpayer identification
number (ATIN)
- Earned Income Credit, Child Tax Credit, and Additional Child Tax
Credit requires a valid SSN only
Under the American Rescue Plan Act of 2021, for 2021 and future
years, if a qualifying child does not have a valid SSN, taxpayer
may claim the earned income credit for individuals with no
qualifying children.
- Credit for Other Dependents and American Opportunity Credit
requires a valid SSN, ITIN, or ATIN
, For any failure relating to a return or claim for refund filed in 2023
(generally 2022 tax returns filed in 2023), penalty is $560 for each
failure with no maximum penalty unless failure is due to
reasonable cause and not willful neglect.
Due diligence penalty Failure to be diligent in determining eligibility for certain tax benefits
- Earned Income Credit, American Opportunity Credit, Child Tax
Credit (including Additional Child Tax Credit and Credit for Other
Dependents), and Head of Household filing status.
Preparer must ask all questions required on Form 8867 and
also ask additional questions when information seems incorrect,
inconsistent, or incomplete. Preparer must also verify identity,
prepare a computational checklist (Form 8867 or equivalent), and
meet a recordkeeping requirement.
The custodial parent is the parent with whom the child lived for the
greater number of nights during the year. Only the custodial parent
is entitled to claim the child for head of household filing status,
the credit for child and dependent care expenses, the exclusion
Custodial parent for dependent care benefits, the earned income credit, and the
health coverage tax credit.
The custodial parent can file form 8332 allowing the noncustodial
parent to claim the child for the child tax credit, additional child
tax credit, and the credit for other dependents
- Net earnings from self-employment are $400 or more
- Church wages are $108.28 or more (from a church that is FICA exempt)
- The taxpayer (or spouse, if filing jointly) received HSA, Archer
MSA, or Medicare Advantage MSA distributions
Situations where taxpayer is
required to file a return - Advance payments of the premium tax credit were made for the
taxpayer, spouse, or a dependent who enrolled in coverage
through the Health Insurance Marketplace
- The taxpayer owes special taxes (e.g. household
employment taxes) or must recapture certain credits or
taxes
- Unearned income more than $1,150 ($2,900 if blind or 65 or older,
$4,650 if blind and 65 or older)
- Earned income more than $12,950 ($14,700 if blind or 65 or older,
A single dependent (who may be
$16,450 if blind and 65 or older)
claimed by another taxpayer)
must file a return if any of the
-Gross income more than the larger of:
following apply in 2022
-$1,150 ($2,900 if blind or 65 or older, $4,650 if blind and 65 or older), or
-Earned income (up to $12,550) plus $400 (plus $2,150 if blind or 65 or older,
, plus
$3,900 if blind and 65 or older)
- Single $12,950 ($14,700 if 65 or older)
- Head of Household $19,400 ($21,150 if 65 or older)
A taxpayer with gross income
below the gross income - Married Filing Jointly $25,900 ($27,300 if one spouse 65 or
threshold (based on filing older, $28,700 if both spouses 65 or older)
status and age) is not
required to file a return. - Qualifying Surviving Spouse $25,900 ($27,300 if 65 or older)
Gross income threshold 2022:
- Married Filing Separately $5 (any age)
