AFSP Annual Filing Season Program

What is the standard filing deadline for individual federal income tax returns (Form 1040)?

• AMarch 15
• BApril 15
• CJune 15
• DOctober 15

Which form is used to request an automatic 6-month extension for filing an individual income tax return?

• AForm 1040-X
• BForm 4868
• CForm 2350
• DForm 1040-ES

What is the penalty rate per month for failure to file a tax return on time (without fraudulent intent)?

• A0.5% of unpaid tax per month
• B5% of unpaid tax per month
• C10% of unpaid tax per month
• D25% of unpaid tax per month

Which filing status generally provides the most favorable tax rates for an unmarried taxpayer supporting a qualifying dependent?

• ASingle
• BMarried Filing Separately
• CHead of Household
• DQualifying Surviving Spouse

For how many years after a spouse's death can a surviving spouse with a dependent child use the Qualifying Surviving Spouse filing status?

• A1 year
• B2 years
• C3 years
• D5 years

What is the standard deduction for a single filer for tax year 2025?

• A$13,850
• B$14,600
• C$15,000
• D$15,700

Which of the following types of income is NOT subject to self-employment tax?

• ANet earnings from a sole proprietorship
• BDistributive share of a general partnership
• CRental income from real property
• DFreelance consulting income

What is the maximum contribution limit for a traditional or Roth IRA for a taxpayer under age 50 in 2025?

• A$6,500
• B$7,000
• C$7,500
• D$8,000

Which of the following is a refundable tax credit?

• AChild and Dependent Care Credit
• BLifetime Learning Credit
• CEarned Income Tax Credit (EITC)
• DForeign Tax Credit

What is the maximum Child Tax Credit amount per qualifying child for tax year 2025?

• A$1,000
• B$1,500
• C$2,000
• D$3,000

A taxpayer received wages of $50,000 and $200 in bank interest. Where is the bank interest reported on the individual tax return?

• ASchedule A
• BSchedule B
• CSchedule C
• DSchedule D

Which of the following types of income must be reported on Schedule C?

• AWages from an employer
• BInterest from a savings account
• CNet profit from a sole proprietorship
• DCapital gains from stock sales

What is the self-employment tax rate for 2025?

• A7.65%
• B12.4%
• C15.3%
• D16.2%

A taxpayer uses their personal vehicle for business. Under the standard mileage rate method for 2025, what is the business mileage rate?

• A56 cents per mile
• B65.5 cents per mile
• C67 cents per mile
• D70 cents per mile

What is the maximum amount of the American Opportunity Tax Credit (AOTC) per eligible student?

• A$1,500
• B$2,000
• C$2,500
• D$4,000

What is the maximum Lifetime Learning Credit per tax return?

• A$1,000
• B$2,000
• C$2,500
• D$4,000

Which of the following is an above-the-line deduction (adjustment to income)?

• AMortgage interest
• BState and local taxes
• CStudent loan interest
• DCharitable contributions

What is the maximum SALT (State and Local Tax) deduction for a married couple filing jointly?

• A$5,000
• B$10,000
• C$15,000
• DUnlimited

A taxpayer sells stock for $15,000 that was purchased 2 years ago for $10,000. How is the $5,000 gain characterized?

• AOrdinary income
• BShort-term capital gain
• CLong-term capital gain
• DPassive income

What is the maximum capital loss deduction allowed against ordinary income in a single tax year?

• A$1,500
• B$3,000
• C$5,000
• DUnlimited

Which IRS publication contains the rules governing tax return preparer practice before the IRS?

• APublication 1
• BPublication 17
• CCircular 230
• DPublication 970

Under Circular 230, which of the following is a duty of a tax return preparer?

• AGuarantee the client a refund
• BExercise due diligence in preparing returns
• CRepresent the client in Tax Court
• DSign the return as the taxpayer

What type of representation rights do AFSP Record of Completion holders have before the IRS?

• AUnlimited representation rights
• BLimited representation rights
• CNo representation rights
• DFull practice rights identical to enrolled agents

How many hours of continuing education are required for non-exempt AFSP participants?

• A12 hours
• B15 hours
• C18 hours
• D24 hours

What is the passing score required on the AFTR comprehension test?

• A60%
• B65%
• C70%
• D75%

A taxpayer has W-2 wages of $45,000, $3,000 in student loan interest paid, and $250 in unreimbursed educator expenses. What is the taxpayer's Adjusted Gross Income (AGI)?

• A$41,500
• B$42,000
• C$42,250
• D$42,500

Which form is used to report income from rental real estate?

• ASchedule C
• BSchedule D
• CSchedule E
• DSchedule F

What is the maximum rental loss a taxpayer can deduct against ordinary income if they actively participate in rental activities?

• A$10,000
• B$15,000
• C$25,000
• D$50,000

A taxpayer paid $12,000 in mortgage interest on their primary residence. They also paid $4,000 in state income taxes and $6,000 in property taxes. What is their total itemized deduction for these items?

• A$22,000
• B$20,000
• C$18,000
• D$16,000

What is the Social Security wage base for 2025?

• A$160,200
• B$168,600
• C$176,100
• D$180,000

Which of the following types of Social Security benefits may be taxable?

• ASocial Security disability benefits
• BSSI (Supplemental Security Income)
• CSocial Security survivor benefits for minor children
• DNone — all Social Security benefits are tax-free

A tax preparer discovers an error on a client's previously filed return. What is the appropriate course of action?

• AIgnore the error since the return was already filed
• BNotify the client and advise them to file an amended return
• CFile an amended return without informing the client
• DReport the error directly to the IRS

What is the penalty for a paid preparer who fails to include their PTIN on a return they prepared?

• A$25 per failure
• B$50 per failure
• C$55 per failure
• D$100 per failure

What is the due diligence penalty (per return) for a paid preparer who fails to meet due diligence requirements for EITC, CTC, AOTC, or HOH filing status?

• A$100
• B$250
• C$560
• D$1,000

Which form must a paid preparer complete to document due diligence for EITC, CTC, AOTC, and HOH?

• AForm 2848
• BForm 8821
• CForm 8867
• DForm 8879

To claim the Earned Income Tax Credit (EITC), a taxpayer must have which type of income?

• AInvestment income only
• BEarned income from work
• CRental income
• DAlimony received

What is the maximum number of qualifying children that can increase the EITC amount?

• A1
• B2
• C3
• D4

Which of the following is NOT a requirement to be a qualifying child for the EITC?

• AThe child must be under age 19 (or 24 if a full-time student)
• BThe child must have lived with the taxpayer for more than half the year
• CThe child must have earned income of their own
• DThe child must have a valid Social Security number

A taxpayer contributed $3,000 to a Health Savings Account (HSA). They have self-only coverage. What is the maximum HSA contribution for self-only coverage in 2025?

• A$3,650
• B$4,150
• C$4,300
• D$4,400

What is the penalty for early withdrawal from a traditional IRA before age 59½?

• A5%
• B10%
• C15%
• D25%

At what age must a taxpayer begin taking Required Minimum Distributions (RMDs) from a traditional IRA?

• A70½
• B72
• C73
• D75

What is the maximum 401(k) elective deferral limit for an employee under age 50 in 2025?

• A$20,500
• B$22,500
• C$23,000
• D$23,500

A married couple has AGI of $150,000 and paid $8,000 in childcare expenses for two children. What is the maximum credit percentage for the Child and Dependent Care Credit?

• A20%
• B25%
• C30%
• D35%

What is the Qualified Business Income (QBI) deduction rate under Section 199A?

• A10%
• B15%
• C20%
• D25%