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VITA 2025 ADVANCED TEST EXAM 2025 UPDATED QUESTIONS AND VERIFIED ANSWERS GRADED A+, Exams of Business Taxation and Tax Management

Aberystwyth UniversityBusiness Taxation and Tax Management

VITA 2025 ADVANCED TEST EXAM 2025 UPDATED QUESTIONS AND VERIFIED ANSWERS GRADED A+

Typology: Exams

2024/2025

Available from 07/01/2025

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VITA 2025 ADVANCED TEST EXAM 2025
UPDATED QUESTIONS AND VERIFIED
ANSWERS GRADED A+
10. As part of the intake process, each site must: - ANS
-Have a process to ensure a return is within the scope of the VIT/TEC
-Identify the certification level needed to prepare a return.
-Have a process to ensure volunteers have the certification needed for the
returns they prepare.
-ALL OF THE ABOVE <<< CORRECT
10. Linda is not eligible to claim Nancy for the earned income credit
because her filing status is Married Filing Separate. - ANSFalse
10. Mary, a VSC-certified greeter, reviews the taxpayer's completed Form
13614-C, page 2, to identify what potential volunteer certification level is
needed for this tax return. Mary sees the taxpayer has checked the "yes"
box indicating they have self-employment income and the certification level
next to the question is (A). All other questions answered "yes" have a (B)
certification. When Mary assigns the return to a tax preparer, what tax law
certification level does the tax preparer need? - ANSAdvanced
11. Ellen can claim the $400 she donated to her friend's personal
GoFundMe campaign as a deduction on her Schedule A. - ANSFalse
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Download VITA 2025 ADVANCED TEST EXAM 2025 UPDATED QUESTIONS AND VERIFIED ANSWERS GRADED A+ and more Exams Business Taxation and Tax Management in PDF only on Docsity!

VITA 2025 ADVANCED TEST EXAM 2025

UPDATED QUESTIONS AND VERIFIED

ANSWERS GRADED A+

  1. As part of the intake process, each site must: - ANS -Have a process to ensure a return is within the scope of the VIT/TEC -Identify the certification level needed to prepare a return. -Have a process to ensure volunteers have the certification needed for the returns they prepare. -ALL OF THE ABOVE <<< CORRECT
  2. Linda is not eligible to claim Nancy for the earned income credit because her filing status is Married Filing Separate. - ANSFalse
  3. Mary, a VSC-certified greeter, reviews the taxpayer's completed Form 13614-C, page 2, to identify what potential volunteer certification level is needed for this tax return. Mary sees the taxpayer has checked the "yes" box indicating they have self-employment income and the certification level next to the question is (A). All other questions answered "yes" have a (B) certification. When Mary assigns the return to a tax preparer, what tax law certification level does the tax preparer need? - ANSAdvanced
  4. Ellen can claim the $400 she donated to her friend's personal GoFundMe campaign as a deduction on her Schedule A. - ANSFalse
  1. What amount of gambling losses is Ellen eligible to claim as a deduction on her Schedule A? - ANS$2, $3,000 gambling losses --> limited to $2,000 gambling winnings
  2. John is not eligible to claim the lifetime learning credit on his 2022 tax return. - ANSFalse
  3. Which of the following is not a requirement for John to claim the earned income credit with no qualifying children in 2022? - ANSJohn must be a full-time student.
  4. What is the taxable portion of Emily's pension from Maple Enterprises using the simplified method? - ANS$18, Combined ages = 121 310 life annuity payments (joint and survivor annuity table) $14,500 / 310 = 46.77 * 12 = $561. $19,350 - $561 = $18,
  5. All of Emily's social security income is taxable. - ANSFalse
  6. What is the total amount of other income reported on the Lincoln's Form 1040, Schedule 1? - ANS$5, $4,414 gambling winnings + $175 lottery winnings + $850 debt cancellation
  1. Which of the following credits are the Lincolns eligible to claim on their tax return? - ANSa. Child tax credit b. Credit for other dependents c. American opportunity credit d. Only b and c <<< CORRECT
  2. What is the Lincoln's total federal income tax withholding? - ANS$7, $3000 + $1935 + $
  3. What is the net long term capital gain reported on Joanne's Schedule D? - ANS$2, $2,100 LTCG + $350 distributions
  4. Which of the following can be claimed as a business expense on Joanne's Schedule C? - ANSTolls
  5. What is the amount Joanne can take as a student loan interest deduction on her Form 1040, Schedule 1? - ANS$2, $3,250 loan interest --> limited to $2,
  6. How many miles can Joanne use to calculate her standard mileage deduction? - ANS2,
  7. What is the amount of Joanne's lifetime learning credit? - ANS$
  1. Joanne will have to pay $________ additional tax because she received the early distribution from her IRA. - ANS$ $2,500 * 10% penalty
  2. How can Joanne prevent having a balance due next year? - ANSa. She can increase the withholding on her Form W-4. b. She can make estimated tax payments. c. She can use the IRS withholding calculator to estimate her withholding for next year. d. All of the above <<< CORRECT
  3. If a taxpayer offers you a $20 bill because they were so happy about the quality service they received, what is the appropriate action to take? - ANSThank the taxpayer, and explain that you cannot accept any payment for your services.
  4. What amount of Chris's unemployment compensation is taxable? - ANS$1, (100% of unemployment income)
  1. Thomas's child and dependent care credit from Form 2441 is reported as a non-refundable credit on Form 1040, Schedule 3. - ANSTrue
  2. Jake is an IRS tax law-certified volunteer preparer at a VITA/TCE site. When preparing a return for Jill, Jake learns that Jill does not have a bank account to receive a direct deposit of her refund. Jill is distraught when Jake tells her the paper refund check will take three to four weeks longer than the refund being direct deposited. Jill asks Jake if he can deposit her refund in his bank account and then turn the money over to her when he gets it. What should Jake do? - ANSMax has violated the VSC because he is using the information he gained about Ali to further his own or another's personal benefit.
  3. VITA/TCE sites are required to conduct Quality Reviews: - ANSOf every return prepared at the site
  4. What is the maximum amount Adam and Lisa are eligible to claim for the child tax credit? - ANS$2,
  5. Max prepares a tax return for Ali at a VITA/TCE site. He finds out during the interview that Ali has no health insurance. After Ali leaves the site, Max writes her name and contact information down to take home to his wife who sells health insurance for profit. Which of the following statements is true? - ANSMax has violated the VSC because he is using the information he gained about Ali to

further his own or another's personal benefit.

  1. The Garcias qualify for the child and dependent care credit. - ANSFalse
  2. You do not need to see proof of cash donations made by a taxpayer if you feel that the information is not unusual or questionable. - ANSTrue
  3. Bob, an IRS tax law-certified volunteer preparer, told the taxpayer that cash income does not need to be reported because the IRS does not know about it. Bob indicated NO cash income on Form 13614-C. Bob prepared a tax return excluding the cash income. Jim, the designated quality reviewer, was unaware of the conversation and therefore unaware of the cash income and the return was printed, signed, and e-filed. Who violated the Volunteer Standards of Conduct? - ANSBob, the tax law-certified volunteer who prepared the return.
  4. Form 8889, Part 1 is used to report HSA contributions made by - ANSa. Jenny b. Jenny's employer c. Jenny's mother d. All of the above <<< CORRECT
  5. In most cases a volunteer must review photo identification for every taxpayer(s) to deter the possibility of identity theft. - ANSTrue
  6. Jenny is eligible to contribute an additional $1,000 to her HSA because she is age 55 or older. - ANSTrue

return preparer. d. All of the above. <<< CORRECT

  1. The site is busy with many taxpayers waiting for assistance. All volunteers are busy preparing tax returns. Can you quality review the return you just prepared instead of waiting for someone else to quality review the return? - ANSNo, self review is never an acceptable quality review method.
  2. What is the total unreimbursed qualified medical expenses reported on Form 8889, Part II? - ANS$3, No gym membership
  3. During the intake process, the volunteer should verify the taxpayer (and/or spouse, if applicable) has photo identification. Additionally, taxpayers must provide verification of taxpayer identification numbers (SSN or ITIN) for everyone listed on the tax return. - ANSTrue
  4. For the purpose of determining dependency, Nancy could be the qualifying child of - ANSEither Alice or Linda
  5. Which of the following is true? - ANSa. Quality review can be conducted by a volunteer preparer certified at Basic when the tax return required an Advanced certification to prepare. b. Quality review is conducted after the taxpayer signs the tax return.

c. Quality review is an effective tool for preparing an accurate tax return. <<< CORRECT d. Taxpayers do not need to be involved in the quality review process. ADVANCED COURSE SCENARIOS AND TEST QUESTIONS

  1. What is the most beneficial of the following filing statuses that Chris is eligible to claim on her 2022 tax return? - ANSHead of Household INTAKE / INTERVIEW AND QUALITY REVIEW TEST QUESTIONS
  2. All IRS-certified volunteer preparers participating in the VITA/TCE programs must use Form 13614-C along with an effective interview for every return prepared at the site. - ANSTrue VOLUNTEER STANDARDS OF CONDUCT TEST QUESTIONS
  3. Prior to working at a VITA/TCE site, ALL VITA/TCE volunteers (greeters, client facilitators, tax preparers, quality reviewers, etc.) must: - ANSa. Annually pass the Volunteer Standards of Conduct (VSC) certification test with a score of 80% or higher. b. Sign and date the Form 13615, Volunteer Standards of Conduct Agreement, agreeing to comply with the VSC by upholding the highest ethical standards. c. Pass the Advanced tax law certification. d. All of the above.