CPA REG Filing Status, Tax & Credits Practice Questions
Filing Status, Tax & Credits makes up 4 of every 50 questions on a Tigertest CPA REG practice test. Here are 10 of the 16 questions on it, each with the answer and the reason.
Updated by the Tigertest team. Based on the AICPA's 2026 REG blueprint. Original multiple-choice questions; 50 per test, weighted like the real section's five areas, 75% target. Not affiliated with the AICPA or NASBA.
1. A taxpayer's marital status for filing purposes is generally determined on:
- A.July 1 of the year
- B.The last day of the year
- C.The first day of the year
- D.The date the return is filed
Answer: B. Marital status is set on the last day of the tax year, or on the date of death if a spouse dies during the year.
2. Dana's spouse died in Year 1. She keeps a home for her dependent son and does not remarry. For Year 2 her best filing status is:
- A.Head of household
- B.Single
- C.Married filing jointly
- D.Qualifying surviving spouse
Answer: D. A joint return is allowed for the year of death. For the next two years, a surviving spouse who keeps a home for a dependent child may use qualifying surviving spouse status.
3. For head of household status, an unmarried taxpayer pays over half the cost of a home where a qualifying person, other than a parent, lives for:
- A.More than half the year
- B.At least nine months
- C.At least three months
- D.The whole year
Answer: A. The qualifying person must generally live with the taxpayer for more than half the year. A dependent parent may live in a separate home the taxpayer pays for.
4. A qualifying child who is not disabled must be under what age at year end, or under 24 if a full-time student?
- A.18
- B.21
- C.19
- D.17
Answer: C. The age test needs the child to be under 19, or under 24 and a full-time student, and younger than the taxpayer. Permanently disabled children meet it at any age.
5. For a qualifying relative, the taxpayer must generally provide more than what share of the person's total support?
- A.Two thirds
- B.Three quarters
- C.One half
- D.One quarter
Answer: C. The support test for a qualifying relative is more than half of total support, unless a multiple support agreement applies.
6. Which credit is fully refundable?
- A.Earned income credit
- B.Dependent care credit
- C.Foreign tax credit
- D.Lifetime learning credit
Answer: A. The earned income credit is paid out even when it exceeds the tax. The others can only reduce tax to zero.
7. A refundable tax credit differs from a nonrefundable credit because it:
- A.Can only be carried forward
- B.Must be repaid in a later year
- C.Reduces AGI instead of tax
- D.Is paid out beyond tax owed
Answer: D. A refundable credit can produce a refund larger than the tax liability. A nonrefundable credit stops when tax reaches zero.
8. The American opportunity credit is available for:
- A.The first two years only
- B.The first four years of college
- C.Any year of college or grad school
- D.Graduate school only
Answer: B. The American opportunity credit covers the first four years of postsecondary education. The lifetime learning credit has no year limit and covers graduate study.
9. What share of the American opportunity credit is refundable?
- A.60%
- B.40%
- C.100%
- D.25%
Answer: B. Up to 40% of the American opportunity credit is refundable; the rest can only reduce tax to zero.
10. The lifetime learning credit equals 20% of qualified education expenses up to:
- A.$2,000
- B.$5,000
- C.$4,000
- D.$10,000
Answer: D. The lifetime learning credit is 20% of the first $10,000 of expenses per return. That limit is set in the Code and not indexed.
Practice all 16 filing status, tax & credits questions, and the rest of the 200-question bank, in the free CPA REG training sets. Questions you miss come back until you have mastered them.
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