VITA/TCE Advanced Certification Test Question 28 for Tax Year 2014
VITA Advanced Test Question No. 28
VITA/TCE Advanced Certification Test Question 28 for 2014
Question 28 on Advanced Scenarios Page 95 IRS booklet 6744 VITA/TCE, Test-Retest for 2014 Returns. How much of the $17,500 gross distribution reported on Form 1099-R is taxable in 2014?
The following information is given: Advanced Scenario 8, Page 84:
Elliot retired from the local school district and began receiving retirement income in November, 2010. No distributions were received prior to his retirement. Eliot and Kathy selected a joint survivor annuity for these payments. Eliot has recovered $1,320 tax free through 2013.
Eliot’s 1099R for tax year 2014 from the Hickory Corporation is found on Advanced Scenarios Page 89. Box 1: Gross Distribution shows $17,500. What is the taxable amount of this distribution that goes into Box 2a?
Eliot has received $1,320 from November, 2010 through December, 2013. Therefore he received benefits for 2 months in 2010; 12 months in 2011; 12 months in 2012 and 12 months in 2013 for a total of 38 months.
We divide the 38 months into the $1,320 that Eliot has received tax free.
[$1,320 divided by 38 months] = $34.7368 per month.
We multiply $34.74 per month times 12 months in 2014. [$34.74 times 12] = $416.84
We subtract $417 from the $17,500 distribution and get the answer $17,083.
This is the taxable amount that goes in Box 2a. The answer is $17,083.
To check this answer go to Question 28, Advanced Scenario 8: Retest Questions Page 113. Question 28: How much of the $17,500 gross distribution reported on Form 1099-R from the Hickory Corporation is taxable in 2014?
There is a choice of answers: a) $16,786; b) $17,016; c) $17,083; d) $17,134.
The answer is c) $17,083.
When a student studies for this advanced certification exam, the student should do all 40 questions in the test section and all 40 questions in the retest section. . The retest questions help the student re-enforce answers. The exam is open book and the choice of questions only comes from the test and retest sections.
This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.
Comments
I understand no problem
Question 21. What is the total taxable interest income shown on Line 8a of Form 1040? $70, $95, $150, $245
same question as peter
when you say "Check some of the previous answers on other questions in this forum. There should be a similar answer."
where do i go?
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Peter: I am not doing the VITA program this year. So I have not done the exam.
But Question 11: False because he underestimated his income therefore he will have to pay back some of the premium credit he received.
Question 22: Code Q means a Roth IRA and all the tax was previously paid.
Therefore the entire distribution is not taxable. However there can be a 10% penalty for early withdrawal unless it is used for education expenses, health reasons or buying a first home. In this case the 10% penalty is waived for education expense. Books with a college bookstore receipt count as an education deduction with the tuition.
For Questions 21 and Question 23: Look through some of the previous questions and answers from other years. You may come up with the answers you want from them.
James
Hi, thank you. I am also wondering about the taxable portion of the 1099-R, box 2a. I would like to know the manual calculation for this amount.
Where is your blog for the basic VITA, and where you show the calculation for the taxable portion of the social security from advanced scenario 7?
Thank you James Cage!!!!!!!!!! All of your explanations were extremely helpful!!!!!!!!!!!
How does the code Q on Elliot's Form 1099-R from Essex Bank affect the return?
A. The entire $4,500 distribution is taxable.
B. Half of the $4,500 distribution is taxable.
C. There is a 10% additional tax on the distribution.
D. The entire $4,500 distribution is not taxable.
-The net capital gain or loss reported on Form 1040, Line 13 is a gain of $1,239.
True
False
20. What is the amount of additional tax on IRAs, other qualified retirement plans, etc., from the Other Taxes section of Kelly's Form 1040, page 2?
Thank you
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Not sure if this posted correctly,
33. What is Enrique’s total itemized deductions on Schedule A, line 29? $______.
34. What is the amount of Enrique's retirement savings contributions credit? $______.
35. Enrique is not able to pay the entire balance due. One way to reduce the amount of penalties and interest is to file his return and pay as much as he can by April 15. True or False?
Thank you
33. What is Enrique’s total itemized deductions on Schedule A, line 29? $______.
34. What is the amount of Enrique's retirement savings contributions credit? $______.
35. Enrique is not able to pay the entire balance due. One way to reduce the amount of penalties and interest is to file his return and pay as much as he can by April 15. True or False?
Thank you
Question 11: 11. Matthew will receive an additional amount of premium tax credit on his tax return. True or False?
Question 10:
10. Matthew's Form 1095-A contains information that must be entered on Form 8965. True or False?
19. Kelly and her children qualify for the short coverage gap exemption.
true or false
The wording for this is confusing can someone help?
If Beth does not qualify for a health coverage exemption, Julia must make a shared responsibility payment. TRUE/FALSE?
14. Which exception can Matthew use to avoid the 10% additional tax on the early distribution from his IRA on Form 5329?
A. Distribution made for higher education expenses
B. Distribution made for purchase of a first home
C. Distribution due to total and permanent disability
D. He does not qualify for an exception
31. How does Enrique's self-employment tax affect his tax return?
A. Enrique's self-employment tax is not reported anywhere on Form 1040.
B. A portion of the self-employment tax is deducted as a business expense on Schedule C-EZ or C.
C. The self-employment tax is shown on Form 1040, Other Taxes section, and the full amount is deducted on Schedule A, Taxes You Paid section.
D. The self-employment tax is shown on Form 1040, Other Taxes section, and the deductible part is an adjustment on Form 1040, page 1.
This one is a little tricky for me!
26. The Blackburns are not required to make a shared responsibility payment on Form 1040, page 2.
True
False
25. Is Elliot's Social Security income taxable?
A. No, because their total income is less than $32,000.
B. No, Social Security benefits are never taxable.
C. Yes, a portion of the Social Security income is taxable.
D. Yes, all of the Social Security income is taxable.
need help with 3, 8, 24, 25... thank you in advance!
your explaination was so helpful,
thanks again
thanks a million
hi
would you please explain the question # 15 & 16 on advanced test?
thanks
You saved me and my roommates life! I owe you!
Thank you so much.
Also, Where should Enrique's cash income be reported on the tax return?
Would it be on form 1040, line 7?
Because first he does the Schedule C-Ez and then he reports the total of that in line 7. Doesn't he? I am confused.
Would being married to a nonresident alien prevent a taxpayer from being eligible for the EIC?
(Yes) Incorrect. Nonresidents may qualify for the EIC if they file a joint return with a U.S. citizen or resident.
Isn't George a U.S citizen with SSN?
Don't they have one child, Isabel, who is 5 years old and lived with them all year? And also has a SSN
Can you please answer to Q # 6
"George and Maria are eligible to claim the earned income credit:?
1) True
2) False
Youre awesome James
James. If you can, please clear something up. When I'm trying to input figures in the w2's in the software, I keep getting the "calculated entries" message. So it wont let me fix the wages, taxes withheld, etc. I tried to just link it to a replacement w2 but I cant type all the information in the replacement either. I even unchecked "remove calculated areas". Also help with advanced problems #11 and #26 would be much appreciated. Thanks!
Thanks James! I included the $100. I guess I should not have.
Greatly appreciated!
hi james question 7 still confused maria must make a share responsibility parment? (true or false)
question 10 and 11
Thank you so much ! I just pass the advance exam too!
can assistance be provided for question 25
James Cage! YOU ARE THE MAN! thank you very much for all your answers and posts! I just finished my advanced test and I passed with all your help!
James,
Not sure if you have looked at the military scenarios. My issue is with #12 - What are Madeline’s total deductible rental expenses?
I came up with $5010 and I was wrong. Why is it not $5010?
This has been the most helpful thing ever and I really appreciate all of your posts! Thank you so, so much! :)
thanks james cage!!! u are awesome! I just passed the test thanks to you!
Hi James,
Do you have any support for the Foreign Student exam?
Is there a discussion or forum about the Basic Exam for 2015 VITA volunteer ?
Hi James,
I think I figured out Enrique...you mentioned you keep getting a refund.
Add the Unreported Tips on Form 4137 - this will change your numbers for Income Line 7, Line 27, Line 57 and Line 58.
The other answers are not affected.
Hi, I'm confused with questions 7 and 9 of the advance
Question 7 -maria must make a shared responsibility payment ( true or false) and Question 9 -which of the following are chad's qualified educational expenses for the lifetime learning credit? a. 1,095 b.350 c. 90 d. none of his expenses qualify
answers for 2015 please
1, 2,4,5,7,9,10,17,19,20,21,22,23,27
thank you
Hi James
Could you help with Q.15 Which allowable filing status is most advantageous to Kelly? b . Head of Household d . Qualifying Widow with Dependent Child. with answer D Kelly gets more refund, but in the program I used head of household. so I'm a little confused which one would be the correct answer for the advanced exam.
Hi James,
Thank you for all your assistance! I just passed the advanced exam but I still have trouble running through the Enrique. I know that they didn't ask for how much he owes or gets refunded but would you be able to tell me what that number is so I know that I got it right?
I really wish the IRS released a few more practice problems with solutions so I can get the hang of this.
Mr. Cage,
Thank you for your help. You have a great forum here. I want to mention that I already passed the exam, but the correct answer, at least on my exam was 572.
Maybe the IRS updated the answers. Who knows!
One last question: do you know how many attempts do we have for the Foreign Students Test? I ask this because I don't see any retests on the publication 4704-FS.
Thank you!
I am taking advance Exam 2015, I am confusing for the following retest questions:
Scenario 3: Geroge & Maria Newton
#6 George & Maria are eligible to claim the earned income credit?
Scenario 4: Which education credit is Chad eligible to take:
a. American opportunity credit
b. Lifetime learning credit
c. Both American opportunity credit and lifetime learning credit
d. He does not qualify for any education credit
Scenario 7:
#24 How much of the $17,500 gross distribution reported on Form 1099-R from Hickory Corporation ts taxable in 2015?
a. $16.719
b. $16,905
c. $17,097
d. $17,500
Please help me.
Hello Mr. Cage,
For Question #18 (Advanced Exam - 2015) I get d) $572 for the credit for child and dependent care expenses on Form 2441, line 11.
On Form 2441, line 6 is $2,600 and Kelly's AGI is 40,900
Anyone else got this answer as well?
Thank you
Thank you so much Mr.Cage! I just passed the advanced exam!
Hello,
I am stuck on two questions from the 2015 advanced scenarios
2015 Advanced Exam - Scenario 6: Kelly Floyd - Question 5 of 6.
19. Kelly and her children qualify for the short coverage gap exemption.
T
F
2015 Advanced Exam - Scenario 6: Kelly Floyd - Question 4 of 6.
18. What is the credit for child and dependent care expenses on Form 2441, line 11? $___?
Just want to clarify, my answer for question 28-31 are B B A D, question 35 C. Is that all correct?
Thanks for help!
I have another several questions, 2015 Advanced Scenario 8 question 32, is the answer c correct?
Question 33, my answer in the software show is $10911, which is not found in options, I don't know why.
Question 34, is the answer False? Because in the software it shows $0 not $120. I still have some red worksheet in the software and I cannot figure out the error in my own. Could you please help me?
advanced scenario 7, question 26. Is there a shared responsibility payment on the Blackburn's Form 1040 Page 2? Could you tell me on the Form 1040 Page 2, which line shows shared responsibility payment?
Yes you are right
Thanks, I finished this part of the Advanced test and passed after struggling :( and I saw your answers later after I finished. I almost got that one wrong on Question 14, but found out about the educational exemption and got it right. I can't remember which number it was, but the one I got wrong was the American Opportunity Credit, I think I only put the cost of the book for $500. Not sure why I answered that way. If I am correct there is one scenario where he was billed but didn't pay the bill yet and that question was confusing at first because he can only deduct an expense if he made a payment. You have to look carefully at the school bill. The wording had confused me, then I realized later that there were 2 tuition bills for each semester and he paid one of them.
I wanted to add that I am also doing the 2015 test and a little stressed, but for me on line 7 I put AGI of 40,900 X .22 to get the 572. Not sure if this helps.
for the 2015 I also got $572 for that one I remember distinctly so I think you are right and I am filling out the 1040's by hand I have it somewhere here. I was wondering with Mathew Clark he has a scholarship for $3,000 and I listed everything on there for income but his scholarship because I am pretty sure it is tax free, but some of the info seems vague in the scenarios they give you. So long as they don't specify otherwise I assume you go with the information they give you and not list it as income.. I have a little trouble i think I got it right. If Mathew Clarke underestimated his income when buying healthcare through the marketplace, but he did buy minimal essential coverage so that he is covered for the year does he need to take info from form 1095-A and enter it on 8965. I put false because I do not think he can claim an exemption and 8965 is only used for exemptions. This is for the 2015 test. Any feedback is appreciated. Thanks.
I did and the number indicated the credit on form 2441 was $546 ( 21% bracket) Yet, the test results stated that this was incorrect. So I don't understand what I did that was incorrect--unless I just clicked on the wrong answer by mistake, not sure.
Thank you James for your response. Subtracting the $2100 would put the AGI in the 22% bracket which rationalizes $572 as an answer but according to the scenario, Kelly cashed in her 401k (which IS a earned income from a qualified deferred compensation plan, challenges 2441 instructions) and "she does not qualify for any exception" from early distribution, which I understand to mean that form 5329 with a exception code cannot be used. So I am still not sure how the $2100 can be subtracted from being included with the AGI. Form 2441 provides the qualified expense of $2600 which I believe is the correct sum. Thanks again for spending time with this.
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