VITA Certification

Which of the following is a violation of the Volunteer Standards of Conduct?
a . Knowingly preparing a false tax return
b . Having a donation/tip jar in the taxpayer waiting area at the site
c . Using taxpayer’s personal information to ask for a date
d. All of the above

d. All of the above

Which volunteers must take Volunteer Standards of Conduct training and test?
a . Site Coordinators/Local Coordinators
b. Quality Reviewers and tax return preparers
c . Greeters
d. All VITA/TCE volunteers

d. All of the above

If a volunteer violates the Volunteer Standards of Conduct, what are the possible consequences?
a . Removal from the VITA/TCE programs
b . Criminal investigation c . Elimination of VITA/TCE grant funds
d . Deactivation of EFIN
e. All of the above

e. all of the above

Bob, an IRS tax law certified volunteer preparer, told the taxpayer that cash income does not need to be reported because the IRS will never find out. The return was completed without the cash income . Jim, the designated Quality Reviewer, simply missed this omission and the return was printed, signed, and e-filed. Who has violated the Volunteer Standards of Conduct?
a. Bob, the IRS tax law certified volunteer preparer
b . Jim, the designated Quality Reviewer
c . Betty, the Site Coordinator
d. No one has violated the Volunteer Standards of Conduct

a. Bob, the IRS tax law certified volunteer preparer

Heidi, a certified volunteer, is working at the intake station. As part of her duties, she is required to explain to the taxpayer what they are expected to do today as part of the return preparation process . What should Heidi tell them?
a . Form 13614-C must be completed prior to having the return prepared
b . You will be interviewed by the return preparer and asked additional questions as needed
c. You need to participate in a quality review of your tax return by someone other than the return preparer
d. All of the above

d. All of the above

Volunteers must verify the taxpayer has the following items as soon as possible:
a. Photo identification
b. Social security number documents
c. All income statements, including Forms W-2, 1099-R, etc .
d. All of the above

d. All of the above

True or False: The taxpayer should be informed of their responsibility for the information on the tax return during the quality review process .

True

True or False: Volunteers who refuse to use the intake/interview process are violating the Standards of Conduct.

True

True or False: Mary, the Greeter, identifies the taxpayer’s tax return requires Advanced IRS tax law certification. Therefore, the certified tax preparer must be certified to the Advanced level but the Quality Reviewer can be certified to any level, including Basic .

False

Yes or No: Is having a donation/tip jar in the waiting area at the VITA/TCE site a violation of the Volunteer Standards of Conduct?

Yes

True or False: I am currently a volunteer Greeter. I will not be preparing tax returns. I do not need to take the Volunteer Standards of Conduct test.

False

Yes or No: Can a volunteer be removed and barred from the VITA/TCE programs for violating the Volunteer Standards of Conduct?

Yes

Yes and No: An IRS tax law certified volunteer preparer told the taxpayer that cash income does not need to be reported. The return was completed without the cash income. The designated Quality Reviewer simply missed this omission and the return was printed, signed, and e-filed. Did the designated Quality Reviewer violate the Volunteer Standards of Conduct?

No

Maggie asks Josh, the tax law certified preparer, to deposit her refund into Josh’s checking account and turn the funds over to her when received. If Josh says yes, he is in violation of the standards.

Yes.

Every site is required to have a process for assigning taxpayers to tax law certified prepared who are certified at or above the level required to prepare their return.

True

Which of the following statements is NOT correct?
a. Volunteers should confirm the taxpayer’s identity through photo ID.
b. Volunteers should verify the Social Security number and/or ITIN.
c. Volunteers should review all documents needed to prepare an accurate return.
d. Volunteers do not need to refer to the intake sheet when preparing the tax return .

d. Volunteers do not need to refer to the intake sheet when preparing the tax return .

The quality review process includes:
a. Assigning a Quality Reviewer with the appropriate certification level.
b. Inviting the taxpayer to participate in the quality review.
c. Explaining to the taxpayer that they are responsible for the information on their tax return.
d. All of the above

d. All of the above

True or False: An interview of the taxpayer should only be performed if the site is not busy .

False

Explaining the intake/interview and quality review process is important so the taxpayer understands they are expected to:
a . Have a completed Form 13614-C prior to having the return prepared
b . Answer the tax preparer’s additional questions during the interview
c . Participate in the quality review of their tax return
d . All of the above

d. All of the above

True or False: 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

True

What should the certified volunteer preparer do before starting the tax return?
a. Make sure all questions on Form 13614-C are answered
b. Change "Unsure" answers to "Yes" or "No" based on a conversation with the taxpayer
c. Verify the return is within your certification level
d. All of the above

c. Verify the return is within your certification level

True or False: When reviewing Form 13614-C, you see the "Interest" question is marked "Yes" and the taxpayer gives you a Form 1099-INT . You should ask the taxpayer if they had any other interest income

True

VITA and TCE sites are required to conduct quality reviews:
a. Of all the returns prepared by volunteers who have less than two years of experience preparing returns
b. Of every return prepared at the site
c. Only when there is a Quality Reviewer available
d. Of all returns prepared by volunteers with certification levels below Advanced, Military, or International

b. Of every return prepared at the site

True or False: You do not need to see proof of insurance coverage for a taxpayer if you feel that this information is not unusual or questionable .

True

True or False: A volunteer must review photo identification for every taxpayer to deter the possibility of identity theft .

True

When does the taxpayer sign the tax return?
a. Before quality review and before being advised of their responsibility for the accuracy of the information on the return
b. Before quality review and after being advised of their responsibility for the accuracy of the information on the return
c. After quality review and before being advised of their responsibility for the accuracy of the information on the return
d. After quality review and after being advised of their responsibility for the accuracy of the information on the return

d. After quality review and after being advised their responsibility for the accuracy of the information on the return.

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?
a . Yes, if it is a returning taxpayer b . Yes, with approval of the Site Coordinator
c. No, self review is never an acceptable quality review method d. No, unless you are certified at the Advanced level

c. No, self review is never an acceptable quality review method

Which of the following is true?
a. 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
d. Taxpayers do not need to be involved in the quality review process

c. Quality review is an effective tool for preparing an accurate tax return

As part of the intake process, each site must:
a. Have a process to ensure a return is within the scope of the VITA/TCE Programs
b. Identify the certification level needed to prepare a return
c. Have a process to ensure volunteers have the certification needed for the returns they prepare
d. All of the above

d. All of the above

When should an IRS-certified volunteer preparer participating in the VITA/TCE Programs perform a complete interview of a taxpayer?
a. Only when the taxpayer has questions
b. Only if the taxpayer has never visited your site
c. Only when the site is not busy d. For every return prepared at the site

d. For every prepared tax return

The certified volunteer preparer should verify the return is within their certification level as part of the Intake/Interview process.

True

When reviewing Form 13614-C, you see the "Interest" question is marked "Yes" and the taxpayer gives you a Form 1099-INT. What should you do next?

c. ask the taxpayer if they had any other interest income

True or False: VITA and TCE sites are required to conduct quality reviews of every return prepared at the site.

True

A taxpayer tells you that they had health insurance coverage for the entire year, but they did not bring proof of the coverage. This information along with all other information gathered during your interview does not seem unusual or questionable. As a tax preparer, you should:

b. prepare the return using the information without seeing any proof of insurance coverage

What information must a volunteer review to deter the possibility of identity theft?
a. Form W-2 b. Photo identification c. Last year’s tax return d. Medicaid card

b. photo identification

Basic Scenario 1:
Wendy Gordon.
AGE: 20, is a U.S. citizen with valid SS.
"Unsure" to question "Can anyone claim you or your spouse on their tax return?"
– full time student during 2015
– only income for $6,500 in wages
– lived with her parents all year, but they told her they will not claim her
– does not provide more than half of her own support.

Which of the following statements is correct? a. Wendy must claim 0 exemptions, because her income was less than $10,000. b. Wendy must claim 0 exemptions, because her parents can claim her as a dependent on their tax return. CORRECT c. Wendy can claim 1 exemption, because she had earned income. d. Wendy can claim 1 exemption, because her parents have decided not to claim her. Using Publication 4012, Who Must File tab, Chart B, is Wendy required to file a tax return? a. Yes CORRECT b. No

Basic Scenario 2:
Joanne Parks
AGE: 32, unmarried and earned $40,000 in wages.
Joanne’s 67-year-old single father, John, lives in his own apartment in Seattle.
Joanne provides more than half of her father’s support and all the cost of keeping her father’s home.
– John’s income is o$6,800 SS benefits
– None of John’s SS income is table, and he is no required to file a tax return
– Joanne had qualified employee health insurance coverage over all of 2015. John had Medicare Part A & B coverage all year.
Joanne and John are U.S. Citizens with valid SS.

Joanne’s most advantageous allowable filing status is: a. Married Filing Jointly b. Qualifying Widow c. Head of Household CORRECT d. Single Both Joanne and John have qualifying health insurance coverage (also known as minimum essential coverage) as defined under the Affordable Care Act. a. True CORRECT b. False

Basic Scenario 3:
Mike Hastings
AGE 45, made $19,000 in wages
Single and pays for home.
Mike’s daughter, Brittany, live with him all year.
Brittany’s son, Hayden, was born in Nov 2015. Hayden lived with Mike’s home since birth
Brittany is 18, single and had wages of $,1700 in 2015.
Mike provides more than half of the support for both Brittany and Hayden.
Mike, Brittany, and Hayden are all U.S. Citizen’s and has valid SS.

Who can claim Hayden as a dependent? a. No one can claim Hayden because he was not a member of the household for more than six months. b. Mike cannot claim Hayden because Hayden is not Mike’s child. c. Brittany can claim Hayden because she is his parent. CORRECT d. Mike can claim Hayden; Brittany cannot claim Hayden because Brittany qualifies as Mike’s dependent. Who can Mike claim as a qualifying child(ren) for the earned income credit? a. Mike has no qualifying children. b. Mike can claim Brittany, but not Hayden. c. Mike can claim Hayden, but not Brittany. d. Mike can claim both Brittany and Hayden. CORRECT

Can Brittany claim Hayden as a dependent?

No, because Brittany qualifies as Mike’s dependent.

Mike has no qualifying children for the earned income credit.

False

…

…

Basic Scenario 4:
Paul and Jessica Vermillion
AGE: 24 and 22, married and want to file joint
CHILDREN: Naomi, 3 and lived with them all year.
Paid and Jessica lived in the U.S. all year and have Individual Taxpayer Identification Numbers. They are not U.S. Citizens and are not lawfully present in the U.S.
Paul earned $32,000 in wages.
Both provide support for Naomi.
Naomi has a SS and is a U.S. Citizen.
Paul and Jessica do not have insurance, and Naomi has minimum coverage.

Paul and Jessica qualify for a health insurance coverage exemption. a. True b. False CORRECT Are Paul and Jessica eligible to claim the earned income credit? a. Yes, because Naomi is a U.S. citizen. CORRECT b. Yes, because they have earned income. c. No, because Jessica had no earned income. d. No, because Paul and Jessica have ITINs. Paul and Jessica can claim Naomi as a dependent on their tax return. a. True CORRECT b. False

Would earning income in a foreign country prevent a taxpayer from being eligible for the EIC?

No; Taxpayers who do not exclude their foreign income from their gross income may still be eligible for the EIC

Would receiving $2,100 in investment income prevent a taxpayer from being eligible for the EIC?

No; a taxpayer may receive up to $3,400 in investment income and still be eligible for EIC.

Would filing a joint return with a spouse who has an Individual Taxpayer Identification Number (ITIN) instead of a social security number prevent a taxpayer from being eligible for the EIC?

Yes; Both spouses on a joint return must have valid social security numbers

Would being married to a nonresident alien prevent a taxpayer from being eligible for the EIC?

No; Nonresidents may qualify for the EIC if they file a joint return with a U.S. citizen or resident.

Twila, age 32, lives alone, is single, and earns $10,250. Her adjusted gross income is $10,950. She is not the qualifying child of another person. Is Twila eligible to claim the EIC?

Yes; Twila is between 25 and 26; her earned income and her AGI are both less than $14,820; she cannot be claimed as a dependent; and she is not a qualifying child or another person.

Antonio has $23,050 in earned income, and his adjusted gross income is $23,175. His filing status is single. Antonio’s 20-year-old daughter, Maria, lived with him for eight months of the year. Maria is not married and is a full-time college student. Can Antonio claim the EIC?

Yes; Antonio can claim the EIC because he has a qualifying child who lived with him more than half the year, and his earned income and adjusted gross income are both under $39,131

Jim and Sally can both file as Head of Household on their individual returns.

False

Jim and Sally are not married. They lived together all year.
Sally had $5,000 in earned income during 2015. Jim earned $30,000 in wages.
Jim and Sally have two children. Tyler is 10 years old, and Jamie is 8.
Tyler and Jamie lived with Jim and Sally for all of 2015.
Tyler and Jamie did not provide over half of their own support.
Jim paid all the rent, utilities, groceries, and other household expenses, which totaled $16,000. Sally paid none of the household expenses.
Jim and Sally agreed they would each claim one child on their individual tax returns.
Jim, Sally, Tyler and Jamie are all U.S. citizens with valid Social Security numbers.

What are the correct filing statuses for Jim’s and Sally’s individual returns? a. Both can file as Head of Household. b. They can choose which one files as Head of Household. c. Jim can file as Head of Household and Sally must file as Single. CORRECT d. Both must file as Single. It is allowable for both Jim and Sally to each claim one qualifying child for the earned income credit on their individual returns. a. True b. False CORRECT

Melinda is single and employed as a clerk.
• Melinda earned $47,000 in wages, and had no other income.
• In 2015, she took a computer class at the community college to improve her job
skills.
• She has a student account statement showing she paid $900 for tuition.
• She paid $300 for a course book that she ordered from an online bookseller.
Purchase of the book was not a requirement of enrollment.
• She also paid $50 for a parking permit that was not a requirement of enrollment.
• Melinda does not have enough deductions to itemize.
• Melinda is a U.S. citizen with a valid Social Security number.

Melinda’s only qualified educational expense for the lifetime learning credit is $900 for tuition. True Which education credit is Melinda eligible to take? a. American opportunity credit b. Lifetime learning credit CORRECT c. Both the American opportunity credit and lifetime learning credit d. She does not qualify for any education credit Is Melinda’s course book a qualified educational expense for the lifetime learning credit? a. No, because the book costs too much. CORRECT b. No, because it is not required as a condition of enrollment and paid to the institution. c. Yes, because it will improve her job skills. d. Yes, because qualified educational expenses are the same for all education credits.

Warren has an Identity Protection PIN. How does this affect his return preparation?
a. The return must be filed as a paper return.
b. This return cannot be prepared at a volunteer site.
c. The Identity Protection PIN must be entered during return preparation.
d. All of the above.

d. All of the above

What is the correct amount of taxable interest shown on the Graves’ Form 1040,
line 8a?
a. $0
b. $9
c. $80
d. $89

b. 9

What is the taxable amount of Warren’s Social Security? $_______.

…

Warren is over 65. How does that affect their tax return?
a. There is no effect.
b. It increases their standard deduction.
c. It increases their personal exemptions.
d. They must itemize their deductions

b. It increases their standard deduction

Warren and Shirley want to avoid having a balance due next year. Warren can
submit a Form W4-P to have tax withheld on his pension.
a. True
b. False

True

The Graves are not required to make a shared responsibility payment on Form
1040, page 2.
a. True
b. False

False

Milton is covered by Medicare Parts A and B for the whole year. He is not have required to make a shared responsibility payment,

Yes; Under ACA minimum essential coverage includes specified government-sponsored program.

Joe was covered by Medicaid until February 23rd. He started a new job and his employer-sponsored health coverage started on May 1st. Does an exemption apply?

Yes; Jow is eligible for the short coverage gap exemption because he was without coverage for less than three months. Short coverage gap means an individual went without coverage for less than three consecutive months during the year.

A U.S. citizen lived outside the U.S. for 330 full days during a 12-month period. They qualify for an exemption.

Yes; A U.S. citizen or resident who spent at least 330 full days outside of the the U.S. during a 12-month period qualifies for an exemption.

If the amount the individual would have paid for the lowest cost employer sponsored coverage available, or for self-only coverage through the Marketplace, is more than 8.05% of the taxpayer’s household income for 2015, they qualify for an exemption.

Yes; Coverage is considered unaffordable if the amount the individual would have paid for the lowest cost employersponsored coverage available, or for self-only coverage through the Marketplace, is more than 8.05% of the taxpayer’s household income for 2015.

The applicable dollar amount for one adult in 2015 is $95.00

No; . The applicable dollar amount for one adult is for 2015 is $325 for and $695 for 2016. After 2016, the applicable dollar amount increases for a cost-of-living adjustment.

Which allowable filing status is most advantageous to Teresa?
a. Single
b. Head of Household
c. Married Filing Separately
d. Married Filing Jointly

d. Married filing jointly

Zack is Teresa’s qualifying child for which of the following benefits?
a. Exemption for a dependent
b. Child tax credit
c. Earned income credit
d. All of the above

d. All of the above

What is the total federal income tax withholding for Teresa’s tax return? $________.

3342

Jason, who is an assistant manager, received Form W-2 reporting federal income tax withholding of $2,200. He also received Form 1099-INT from his savings bank, which reflected federal income tax withholding of $35. What is the correct total withholding to report on Jason’s tax return?

2235 (2200 + 35 federal withholding)

What is the credit for child and dependent care expenses on Form 2441, line 11?
a. $0
b. $315
c. $331
d. $362

331

4. Teresa and her children did not have Minimum Essential Coverage (MEC) for two
months of the tax year. How does this affect her tax return?
a. She must make an Individual Shared Responsibility Payment for herself.
b. She must make an Individual Shared Responsibility Payment for Zack and
Mackenzie.
c. She must complete Form 8965 to claim the short coverage gap exemption.
d. All of the above.

c. She must complete Form 8965 to claim the short coverage gap exemption.

Teresa qualifies for the short coverage gap exemption.

Yes

What is the amount of additional tax on the distribution from Teresa’s 401(k), shown in the Other Taxes section of Form 1040?

b. 130

. What is Evan’s total deduction for charitable contributions on Schedule A, line 19?

d. 1840

What is the total of Evan’s itemized deductions on Schedule A, line 29?
a. $10,692
b. $12,406
c. $12,646
d. $13,346

…

Can Evan claim Head of Household filing status?
a. No, because he is married.
b. No, because Noah did not live at home for the whole year.
c. No, because Evan did not pay Noah’s educational expenses.
d. Yes, because Evan is considered unmarried, has a qualifying person and
meets all the other required tests

b. No, because Noah did not live at home for the whole year.

To compute the American opportunity credit, which of Noah’s expenses qualify?
a. Tuition and fees paid by the scholarship
b. Room and board
c. Course-related books
d. All of the above

b. room and board

What is the amount of Evan’s student loan interest deduction from Form 1040, page 1? $________.

4900

What is Evan’s retirement savings contributions credit? $________.

0

Evan must file Married Filing Separately.

F

Wendy can claim one personal exemption on her 2015 tax return.

false

Using Publication 4012, Who Must File tab, Chart B, Wendy has a filing requirement and must file a tax return.

True

Joanne’s most advantageous allowable filing status is Single.

False