Basic Course Retest Questions

Question 1

Retest Basic Scenario 1: Adam Baker
Interview Notes
* Adam is 38 years old and has never been married.
* Benjamin, age 15, is Adam’s nephew who lived with him all year. Adam provided all of Benjamin’s support
and provided over half the cost of keeping up the home.
* Adam earned $46,000 in wages.
* Adam is blind and cannot be claimed as a dependent by another taxpayer.
* Adam and Benjamin are U.S. citizens, have valid Social Security numbers, and lived in the U.S. the entire
year.

Basic Scenario 1: Retest Questions
1. Adam’s most advantageous filing status for 2023 is Single.
a. True
b. False

2. What is the amount of Adam’s standard deduction?
   a. $0
   b. $15,700
   c. $22,650
   d. $27,700

Question 2

Retest Basic Scenario 2: Cameron and Deirdre Edmunds
Interview Notes
* Cameron, age 30, and Deirdre, age 29, are married and will file a joint return.
* They cannot be claimed as dependents by any other taxpayer.
* Cameron and Deirdre have no children or other dependents.
* Cameron and Deirdre both work and are not full-time students. Cameron earned wages of $16,000 and
Deirdre earned wages of $6,000.
* Cameron and Deirdre are U.S. citizens and have valid Social Security numbers.
* Cameron and Deirdre have investment income of $200 in taxable interest.

Basic Scenario 2: Retest Questions
3. Cameron and Deirdre are eligible to claim the Earned Income Tax Credit (EITC) without a qualifying
child.
a. True
b. False

4. Cameron and Deirdre Edmunds can claim the Earned Income Credit because their investment income
   (taxable interest) is less than $11,000.
   a. True
   b. False

Question 3

Retest Basic Scenario 3: Eric and Fiona Fisher
Interview Notes
* Eric and Fiona Fisher are married and always file Married Filing Jointly.
* Eric earned $32,000 in wages and Fiona earned $24,000 in wages.
* The Fishers paid all the cost of keeping up a home and provided all the support for their two children,
Grace and Ian, who lived with them all year.
* Grace is 15 years old and Ian turned 19 in November 2023.
* Eric, Fiona, Grace, and Ian are all U.S. citizens with valid Social Security numbers and lived in the U.S. the
entire year.

Basic Scenario 3: Retest Questions
5. The Fishers qualify for the Child Tax Credit (CTC).
a. True
b. False

6. The refundable Additional Child Tax Credit is limited to $1,600 per child.
   a. True
   b. False

Question 4

Retest Basic Scenario 4: Jack and Diane Gibson
Interview Notes
* Jack and Diane are married and will file a joint return.
* Diane is a U.S. citizen with a valid Social Security number. Jack is a resident alien with an Individual
Taxpayer Identification Number (ITIN).
* Diane worked in 2023 and earned wages of $32,000. Jack worked part-time and earned wages of $18,000.
* The Gibsons have two children: Keith, age 12 and Hanna, age 18.
* The Gibsons provided the total support for their two children, who lived with them in the U.S. all year. Keith
and Hanna are U.S. citizens and have valid Social Security numbers.

Basic Scenario 4: Retest Questions
7. Hanna qualifies the Gibsons for the Credit for Other Dependents.
a. True
b. False

8. Jack has an ITIN, therefore the Gibsons cannot claim the Earned Income Credit.
   a. True
   b. False

Question 5

Retest Basic Scenario 5: Jasmine Harris
Interview Notes
* Jasmine is single and turned 72 years old on October 1, 2023.
* Jasmine worked as a public historian at the local library and earned wages of $32,000. Jasmine also
received Social Security benefits of $16,500. She received a taxable pension of $14,000.
* She retired from her previous job on October 30, 2020. During her career she contributed pretax dollars to
a qualified 401(k) retirement plan through her employer.
* Jasmine cannot be claimed as a dependent by another taxpayer.
* Jasmine is a U.S. citizen with a valid Social Security number.

Basic Scenario 5: Retest Questions
9. Jasmine does not qualify for the Earned Income Tax Credit because she does not meet the age
requirement.
a. True
b. False

10. When must Jasmine begin taking her required minimum distribution?
    a. April 1 of the calendar year following the year she reaches age 70 1/2.
    b. April 1 of the calendar year following the year she reaches age 73.
    c. April 1 of the calendar year following the year she retired.
    d. Never. Required minimum distributions only apply to Roth IRAs.

Question 6

Retest Basic Scenario 6: Lucas Turner
Interview Notes
* Lucas Turner is single and has never been married.
* Lucas earned wages of $25,000 during the first half of the year. Lucas lost his job in July and received a
total of $11,000 in unemployment compensation.
* Lucas is a welder and took a class at a local vocational school to improve his welding skills. He paid the
cost of tuition and a course-related book. His qualified education expenses were $3,500.
* Lucas also paid student loan interest for the courses he previously took to earn his Bachelor’s degree. For
2023, he paid student loan interest of $750.
* Lucas does not have any dependents.
* Lucas is a U.S. citizen with a valid Social Security number.

Basic Scenario 6: Retest Questions
11. What is the taxable amount of Lucas’s unemployment compensation?
a. $0
b. $750
c. $3,500
d. $11,000

12. Lucas’s class qualifies him to claim the Lifetime Learning Credit.
    a. True
    b. False
13. Lucas can deduct $2,500 of student loan interest as an adjustment to his income.
    a. True
    b. False

Question 7

Basic Scenario 7: Retest Questions
Directions
Read the scenario information for Owen and Kimberly Walker.

14. Owen and Kimberly’s standard deduction is:
    a. $13,850
    b. $15,350
    c. $27,700
    d. $29,200
15. Owen and Kimberly can claim $1,050 of qualified education expenses to calculate the American
    Opportunity Credit.
    a. True
    b. False
16. Owen and Kimberly can claim the Credit for Other Dependents for Shelby.
    a. True
    b. False
17. The Walker’s total amount of federal income tax withholding for 2023 is $_____________.
    (Note: whole number only, do not use special characters.)
18. How much of Owen’s Social Security is taxable income?
    a. $0
    b. $7,500
    c. $12,715
    d. $15,000
19. Qualified dividends are reported on Form 1099-DIV.
    a. True
    b. False

Question 8

Basic Scenario 8: Retest Questions
Directions
Read the scenario information for Zoe Watson.

20. Zoe’s disability pension is reported as wages until she reaches the minimum retirement age for her
    employer.
    a. True
    b. False
21. Zoe is eligible to claim Head of Household on her tax return.
    a. True
    b. False
22. Joshua qualifies Zoe for the Earned Income Tax Credit (EITC).
    a. True
    b. False
23. Who qualifies as Zoe’s dependent?
    a. Yvonne
    b. Joshua
    c. Both Joshua and Yvonne
    d. Neither Joshua nor Yvonne
24. Zoe can prevent having a balance due next year by adjusting her withholding if necessary.
    a. True
    b. False

Question 9

Basic Scenario 9: Retest Questions
Directions
Read the scenario information for Hailey Simpson.

25. Hailey must report $_________ of her gambling winnings on her 2023 return.
    (Note: whole number only, do not use special characters.)
26. Hailey’s most advantageous filing status is Qualifying Surviving Spouse (QSS).
    a. True
    b. False
27. Hailey must pay an additional_______ tax on the early distribution from her IRA.
    a. 0%
    b. 5%
    c. 10%
    d. 15%
28. Hailey is eligible to claim Olivia for the Child Tax Credit.
    a. True
    b. False
29. Hailey can split her refund between her savings and checking accounts by completing Form 8888,
    Allocation of Refund (Including Savings Bonds Purchases).
    a. True
    b. False
30. Hailey can claim $450 as an adjustment to income for classroom supplies she purchased.
    a. True
    b. False