Part 1 Exam 3

EA Full Length Practice Test Part I – Exam 3

This is an EA full-length practice exam designed to replicate real test conditions as closely as possible.

📘 Exam Instructions

Before You Begin

Time Limit: 210 minutes (Timer will start when you click ‘Start’)
Format: 100 multiple-choice questions
Environment: Choose a quiet space with no distractions
No Resources: Close books, notes, and this guide
Answer Every Question: Even if unsure, make your best guess
Simulate Real Conditions:
- No phone
- No interruptions
- No unnecessary breaks

🧠 When You Start

Start the timer and begin with Question 1
Work steadily — do not spend too much time on one question
If a question is too difficult, skip it and return later if time allows
Stay focused and maintain a consistent pace

⏱️ After Completion

Stop immediately at 210 minutes, even if you are not finished
Do not check answers during the test
Review your answers only after completing the entire exam

1 / 100

Tags: taxpayer, must, file, return

A. A taxpayer must file a return if gross income exceeds:

A. Adjusted gross income

B. Standard deduction plus exemptions

C. Filing threshold for status and age

D. Total deductions

2 / 100

Tags: Which, filing, status, generally

B. Which filing status generally provides the highest standard deduction?

A. Single

B. Married Filing Separately

C. Head of Household

D. Married Filing Jointly

3 / 100

Tags: surviving, spouse, status, many

C. A surviving spouse may use MFJ status for how many years after death?

A. 1

B. 4

C. 3

D. 2

4 / 100

Tags: Head, Household, requires

D. Head of Household requires:

A. Supporting a qualifying person

B. Married status

C. Filing jointly

D. No dependents

5 / 100

Tags: Which, taxpayer, qualifies, dependent

E. Which taxpayer qualifies as a dependent?

A. A friend living independently

B. A cousin earning $10,000

C. A child under age 19 living with taxpayer

D. A neighbor

6 / 100

Tags: qualifying, child, must

F. A qualifying child must:

A. Live with taxpayer over half the year

B. Provide over half own support

C. Be older than taxpayer

D. Be unrelated

7 / 100

Tags: nonresident, alien, generally, files

G. A nonresident alien generally files:

A. Form 1040

B. Form 1040-NR

C. Form 1120

D. Form 941

8 / 100

Tags: Married, taxpayers, file, separately

H. Married taxpayers can file separately if:

A. They agree

B. They are divorced

C. They live together

D. They have dependents

9 / 100

Tags: What, date, individual, returns

I. What is the due date for individual returns?

A. March 15

B. April 15

C. May 15

D. June 15

10 / 100

Tags: Automatic, Extension, extends, filing

J. Automatic extension extends filing deadline by:

A. 3 months

B. 4 months

C. 6 months

D. 12 months

11 / 100

Tags: Which, taxable, income

K. Which is taxable income?

A. Life insurance proceeds

B. Gifts

C. Inheritance

D. Wages

12 / 100

Tags: Interest, municipal, bonds

L. Interest from municipal bonds is:

A. Fully taxable

B. Tax-exempt

C. Partially taxable

D. Deferred

13 / 100

Tags: Social, Security, benefits

M. Social Security benefits may be:

A. Partially taxable

B. Always taxable

C. Never taxable

D. Deductible

14 / 100

Tags: Alimony, post, agreements

N. Alimony (post-2018 agreements) is:

A. Deductible to payer

B. Taxable to recipient

C. Not deductible or taxable

D. Tax credit

15 / 100

Tags: Which, excluded, income

O. Which is excluded from income?

A. Gambling winnings

B. Jury duty pay

C. Employer-provided health insurance

D. Interest income

16 / 100

Tags: Cancellation, debt

P. Cancellation of debt is:

A. Always excluded

B. Deductible

C. Never taxable

D. Usually taxable

17 / 100

Tags: Scholarships, used, tuition

Q. Scholarships used for tuition are:

A. Taxable

B. Excluded

C. Deductible

D. Credit

18 / 100

Tags: Rental, income

R. Rental income is:

A. Excluded

B. Tax-deferred

C. Taxable

D. Deductible

19 / 100

Tags: Unemployment, compensation

S. Unemployment compensation is:

A. Excluded

B. Taxable

C. Deferred

D. Credited

20 / 100

Tags: Which, taxable

T. Which is not taxable?

A. Child support

B. Dividends

C. Wages

D. Interest

21 / 100

Tags: distributions

U. IRA distributions are:

A. Often taxable

B. Always taxable

C. Always tax-free

D. Never reported

22 / 100

Tags: Gambling, losses

V. Gambling losses:

A. Not deductible

B. Deductible up to winnings

C. Fully deductible

D. Credit

23 / 100

Tags: Fringe, benefits

W. Fringe benefits may be:

A. Always taxable

B. Never taxable

C. Sometimes excluded

D. Always deductible

24 / 100

Tags: Royalties

X. Royalties are:

A. Excluded

B. Taxable income

C. Deductible

D. Deferred

25 / 100

Tags: Which, taxable

Y. Which is taxable?

A. Workers’ compensation

B. Damages for physical injury

C. Gifts

D. Punitive damages

26 / 100

Tags: line, deductions, reduce

Z. Above-the-line deductions reduce:

A. AGI

B. Tax

C. Credits

D. Filing status

27 / 100

Tags: Educator, expenses, Deduction

AA. Educator expenses deduction max:

A. $100

B. $250

C. $500

D. $1,000

28 / 100

Tags: Student, loan, Interest, Deduction

AB. Student loan interest deduction max:

A. $1,000

B. $1,500

C. $2,500

D. $3,500

29 / 100

Tags: Standard, Deduction, depends

AC. Standard deduction depends on:

A. Age

B. Filing status

C. Blindness

D. All of the above

30 / 100

Tags: Itemized, deductions, include

AD. Itemized deductions include:

A. Mortgage interest

B. Rent

C. Groceries

D. Clothing

31 / 100

Tags: Medical, expenses, deductible

AE. Medical expenses deductible above:

A. 5% AGI

B. 7.5% AGI

C. 10% AGI

D. 15% AGI

32 / 100

Tags: SALT, Deduction, limit

AF. SALT deduction limit:

A. $5,000

B. $8,000

C. $10,000

D. $15,000

33 / 100

Tags: Charitable, contributions

AG. Charitable contributions:

A. Always limited

B. Never deductible

C. Credit

D. Deductible with limits

34 / 100

Tags: Gambling, losses, reported

AH. Gambling losses reported:

A. Schedule A

B. Schedule C

C. Schedule D

D. Form 8949

35 / 100

Tags: Casualty, losses, allowed

AI. Casualty losses allowed:

A. Always

B. Never

C. Federally declared disasters

D. Only businesses

36 / 100

Tags: Qualified, business, income, Deduction

AJ. Qualified business income deduction:

A. 10%

B. 20%

C. 30%

D. 50%

37 / 100

Tags: contribution

AK. IRA contribution may be:

A. Always deductible

B. Never deductible

C. Always credit

D. Sometimes deductible

38 / 100

Tags: Self, Employment, Deduction

AL. Self-employment tax deduction:

A. Half deductible

B. None

C. Fully deductible

D. Credit

39 / 100

Tags: Moving, expenses, Deduction

AM. Moving expenses deduction:

A. Always allowed

B. Never allowed

C. Military only

D. Business only

40 / 100

Tags: Alimony, Deduction, applies

AN. Alimony deduction applies:

A. All agreements

B. Pre-2019 agreements

C. Post-2019 only

D. Never

41 / 100

Tags: child, Credit, child

AO. Child Tax Credit max per child:

A. $1,000

B. $5,000

C. $3,000

D. $2,000

42 / 100

Tags: Earned, income, Credit, based

AP. Earned Income Credit based on:

A. Investment income

B. Earned income

C. Gifts

D. Inheritance

43 / 100

Tags: American, Opportunity, Credit

AQ. American Opportunity Credit max:

A. $1,500

B. $2,000

C. $2,500

D. $4,000

44 / 100

Tags: Lifetime, Learning, Credit

AR. Lifetime Learning Credit:

A. Nonrefundable

B. Refundable

C. Both

D. None

45 / 100

Tags: child, dependent, Care, Credit

AS. Child and Dependent Care Credit:

A. Refundable

B. Nonrefundable

C. Deduction

D. Exclusion

46 / 100

Tags: Saver, Credit, applies

AT. Saver’s Credit applies to:

A. Retirement contributions

B. Education

C. Housing

D. Medical

47 / 100

Tags: Premium, Credit, relates

AU. Premium Tax Credit relates to:

A. Medicare

B. Social Security

C. Health insurance marketplace

D. Disability

48 / 100

Tags: Adoption, Credit

AV. Adoption credit:

A. Refundable

B. None

C. Both

D. Nonrefundable

49 / 100

Tags: Foreign, Credit

AW. Foreign tax credit:

A. Deduction only

B. Credit or deduction

C. Neither

D. Refund

50 / 100

Tags: Residential, Energy, Credit

AX. Residential energy credit:

A. Personal allowed

B. Business only

C. Not allowed

D. Deferred

51 / 100

Tags: child, Credit, child

AY. Child Tax Credit max per child:

A. $1,000

B. $5,000

C. $3,000

D. $2,000

52 / 100

Tags: Earned, income, Credit, based

AZ. Earned Income Credit based on:

A. Investment income

B. Earned income

C. Gifts

D. Inheritance

53 / 100

Tags: American, Opportunity, Credit

BA. American Opportunity Credit max:

A. $1,500

B. $2,000

C. $2,500

D. $4,000

54 / 100

Tags: Lifetime, Learning, Credit

BB. Lifetime Learning Credit:

A. Refundable

B. Nonrefundable

C. Both

D. None

55 / 100

Tags: child, dependent, Care, Credit

BC. Child and Dependent Care Credit:

A. Refundable

B. Nonrefundable

C. Deduction

D. Exclusion

56 / 100

Tags: Saver, Credit, applies

BD. Saver’s Credit applies to:

A. Retirement contributions

B. Education

C. Housing

D. Medical

57 / 100

Tags: Premium, Credit, relates

BE. Premium Tax Credit relates to:

A. Medicare

B. Disability

C. Social Security

D. Health insurance marketplace

58 / 100

Tags: Adoption, Credit

BF. Adoption credit:

A. Nonrefundable

B. Refundable

C. Both

D. None

59 / 100

Tags: Foreign, Credit

BG. Foreign tax credit:

A. Deduction only

B. Refund

C. Neither

D. Credit or deduction

60 / 100

Tags: Residential, Energy, Credit

BH. Residential energy credit:

A. Personal allowed

B. Business only

C. Not allowed

D. Deferred

61 / 100

Tags: Short, term, capital, gains

BI. Short-term capital gains taxed as:

A. Capital rates

B. Deferred

C. Excluded

D. Ordinary income

62 / 100

Tags: Long, term, capital, gains

BJ. Long-term capital gains require holding period:

A. 6 months

B. 12 months

C. 18 months

D. 24 months

63 / 100

Tags: Basis, generally, equals

BK. Basis generally equals:

A. FMV

B. Sale price

C. Cost

D. Gain

64 / 100

Tags: Depreciation, reduces

BL. Depreciation reduces:

A. Basis

B. Gain

C. Income

D. Credits

65 / 100

Tags: Like, kind, exchanges, apply

BM. Like-kind exchanges apply to:

A. Personal property

B. Real property

C. Inventory

D. Securities

66 / 100

Tags: capital, loss, Deduction, limit

BN. Capital loss deduction limit:

A. $1,000

B. $2,000

C. $3,000

D. $5,000

67 / 100

Tags: Wash, sale, rule, disallows

BO. Wash sale rule disallows losses if:

A. Sold at gain

B. Repurchased within 30 days

C. Held long-term

D. Donated

68 / 100

Tags: Home, sale, exclusion

BP. Home sale exclusion:

A. $100,000

B. Unlimited

C. $400,000

D. $250,000 single

69 / 100

Tags: Depreciation, recapture, taxed

BQ. Depreciation recapture taxed as:

A. Capital gain

B. Excluded

C. Ordinary income

D. Credit

70 / 100

Tags: Gift, Basis

BR. Gift basis:

A. Donor basis

B. FMV

C. Zero

D. Sale price

71 / 100

Tags: Early, Withdrawal, penalty, retirement

BS. Early withdrawal penalty from retirement accounts is:

A. 5%

B. 10%

C. 15%

D. 20%

72 / 100

Tags: required, Minimum, distributions, RMDs

BT. Required Minimum Distributions (RMDs) begin at age:

A. 70

B. 72

C. 73

D. 75

73 / 100

Tags: Investment, income, NIIT, rate

BU. Net Investment Income Tax (NIIT) rate is:

A. 3.8%

B. 2%

C. 5%

D. 10%

74 / 100

Tags: Self, Employment, includes

BV. Self-employment tax includes:

A. Income tax

B. Property tax

C. Sales tax

D. Social Security and Medicare

75 / 100

Tags: Kiddie, applies

BW. Kiddie tax applies to:

A. Earned income

B. Unearned income of children

C. All income

D. Adult dependents

76 / 100

Tags: Estimated, payments, required, expected

BX. Estimated tax payments are required when expected tax liability is at least:

A. $1,000

B. $500

C. $2,000

D. $5,000

77 / 100

Tags: Failure, file, penalty, generally

BY. Failure-to-file penalty is generally:

A. 1% per month

B. 10% per month

C. 5% per month

D. 25% flat

78 / 100

Tags: Failure, penalty, generally

BZ. Failure-to-pay penalty is generally:

A. 0.5% per month

B. 1% per month

C. 5% per month

D. 10% per month

79 / 100

Tags: general, statute, limitations, Assessment

CA. The general statute of limitations for IRS assessment is:

A. 2 years

B. 3 years

C. 5 years

D. 10 years

80 / 100

Tags: statute, limitations, Fraud

CB. The statute of limitations for fraud is:

A. 3 years

B. 6 years

C. 10 years

D. Unlimited

81 / 100

Tags: Estimated, payments, required

CC. Estimated tax payments required if:

A. No income

B. Owe tax

C. Expect $1,000+ tax liability

D. Refund expected

82 / 100

Tags: Underpayment, penalty, applies

CD. Underpayment penalty applies if:

A. Paid late

B. Underpaid estimates

C. Filed extension

D. Filed jointly

83 / 100

Tags: Record, retention

CE. Record retention:

A. 1 year

B. 2 years

C. 3 years

D. 10 years

84 / 100

Tags: audit, types, include

CF. IRS audit types include:

A. Field

B. Office

C. Correspondence

D. All of the above

85 / 100

Tags: Power, attorney, form

CG. Power of attorney form:

A. 1040

B. 2848

C. W-2

D. 1099

86 / 100

Tags: Refund, statute

CH. Refund statute:

A. 1 year

B. 2 years

C. 3 years

D. 5 years

87 / 100

Tags: filing, false, return, penalty

CI. Filing false return penalty:

A. Criminal possible

B. Civil only

C. None

D. Warning only

88 / 100

Tags: Circular, governs

CJ. Circular 230 governs:

A. Businesses

B. States

C. Corporations

D. Tax professionals

89 / 100

Tags: diligence, applies

CK. Due diligence applies to:

A. Credits like EITC

B. All returns

C. Only audits

D. Corporations

90 / 100

Tags: PTIN, required

CL. PTIN required for:

A. Filing

B. Audits

C. Preparing returns

D. Appeals

91 / 100

Tags: Backup, withholding, rate

CM. Backup withholding rate:

A. 10%

B. 20%

C. 24%

D. 30%

92 / 100

Tags: Identity, theft, indicator

CN. Identity theft indicator:

A. Duplicate SSN

B. Late filing

C. High income

D. Refund

93 / 100

Tags: Innocent, spouse, relief

CO. Innocent spouse relief:

A. Always granted

B. Automatic

C. Never granted

D. Based on conditions

94 / 100

Tags: Installment, agreement, allows

CP. Installment agreement allows:

A. No payment

B. Payment over time

C. Credit

D. Refund

95 / 100

Tags: Offer, compromise, based

CQ. Offer in compromise based on:

A. Income only

B. Age

C. Ability to pay

D. Filing status

96 / 100

Tags: penalty, Failure, file

CR. Penalty for failure to file:

A. 1%

B. 5%

C. 10%

D. 25%

97 / 100

Tags: Failure, penalty

CS. Failure to pay penalty:

A. 0.5% monthly

B. 1% monthly

C. 5% monthly

D. 10% monthly

98 / 100

Tags: Refundable, Credit, means

CT. Refundable credit means:

A. Reduces tax only

B. Can exceed tax liability

C. Deduction

D. Exclusion

99 / 100

Tags: taxpayer, Advocate, Service, helps

CU. Taxpayer Advocate Service helps with:

A. Filing

B. Audits

C. Hardship cases

D. Credits

100 / 100

Tags: statute, limitations, Fraud

CV. Statute of limitations for fraud:

A. 3 years

B. 6 years

C. 10 years

D. Unlimited

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