2016 Annual Federal Tax Refresher (AFTR) Course

Student Login

.

Forgot? Show

Stay Logged In

.

My Profile

Sign Up

Log Out

Javascript Required

For testing.

Annual Federal Tax Refresher Course

Once you complete the Annual Federal Tax Refresher Course, you will have satisfied the IRS requirements and be recognized nationally at a higher level of professionalism. This Annual Federal Tax Refresher Course allows you 6 hours of continuing education. You will also receive the IRS Annual Federal Tax Refresher Course Record of Completion and you will be included in a public database with attorneys, CPAs, enrolled agents, enrolled retirement plan agents and enrolled actuaries and others who have met the continuing education requirements to be included.

Tax School Home Page

Student Instructions: Follow the following 4 steps:

Step	Instructions - You must do all of the following (steps 1 - 4)	Links:
	(We must receive from you both an assignment and a quiz for each Tax Subject)
1	Print the checklist:
2	Read the reading material.	Reading Material
3	Submit the answers to the Review Questions online (the questions on this page). Scroll down for all questions on this page. When you are ready to submit click on the Review Questions link. Make sure you either write your answers or print the page before you click on the Review Questions link.	Review-Questions
4	Complete a comprehension test on the reading material. You have 3 hours to complete 100 questions for this exam. You must study the reading material. You won't have time to look up questions in the reading material.	Knowledge-Based Comprehension Tax Test

Important: If you fail a topic you can try again until you pass. However, you should not try again until 24 hours later. Every time you try the questions will be different.

Most forms are in Adobe Acrobat PDF format. You will need Adobe Reader to view and print these forms. If you do not already have Adobe Reader installed on your computer, you may download the software for free.

Review Questions

Question

1 of 20

The tax rate of ________ affects singles whose income exceeds $413,200 ($464,850 for married taxpayers filing a joint return), up from $406,750 and $457,600, respectively.

A. 39.6 percent

B. 15.3 percent

C. 18.9 percent

D. 31.3 percent

| ___

2 of 20

The Affordable Care Act contains provisions for health insurance coverage and financial assistance options for individuals and families. This new law is administered by the Internal Revenue Service and is included in the tax code. The provisions require

A. You and each member of your family to have qualifying health insurance and it is called minimum essential coverage.
B. That you and everyone on your tax return must have minimum essential health coverage in order to avoid a penalty on your tax return.
C. That you or your family members be exempt from coverage or make a shared responsibility payment when you file your federal income tax return if you don't qualify to be exempt.
D. All of the above

| ___

3 of 20

The Small Business Health Care Tax Credit is a tax incentive offered to employers to help fill the health care coverage gap. The Small Business Health Care Tax credit is

A. Specifically targeted for those businesses with high income workers.
B. Designed to encourage small employers to offer health insurance coverage for the first time or maintain coverage they already have.
C. Available to large employers that pay at least half the cost of single coverage for their employees.
D. All of the above

| ___

4 of 20

Starting in 2014, individuals and families who get their health insurance coverage through the Health Insurance Marketplace may be eligible for the Premium Tax Credit. In general, you may be eligible for the Premium Tax Credit

A. If you buy health insurance through the Health Insurance Marketplace.

B. If you are ineligible for coverage through an employer or government plan and are within the income limits.

C. Both A and B above.

D. If your income is 200 percent below the poverty line to qualify.

| ___

5 of 20

The limitation for itemized deductions to be claimed on tax year 2015 returns of individuals begins with incomes of

A. $259,250 or more.

B. $309,900 or more.

C. $258,250 or more.

D. None of the above.

| ___

6 of 20

A shareholder that provides services to a corporation may be deemed to receive a dividend if the corporation pays the shareholder service-provider

A. In excess of what it would pay a third party for the same services.

B. What it would pay a third party for the same services.

C. An amount that is less than what is would pay a third party for the same services.

D. None of the above.

___

7 of 20

You must use Form 1040A or 1040 if,

· A. You receive interest as a nominee.

· B. You receive a 2015 Form 1099-INT for U.S. savings bond interest that includes amounts you reported before 2015.

· C. You owned or had authority over one or more foreign financial accounts with a combined value over $10,000 at any time during 2015.

· D. Any of the above.

8 of 20

To file your tax return electronically, you must sign the tax return electronically

A. By scanning your signature and pasting it your tax return.

B. Using a personal identification number (PIN)

C. By sending the signature form in advance.

D. By calling the IRS information center and let them know that you will be sending your tax return electronically.

9 of 20

On October 22, 1986, President Reagan signed into law the Tax Reform Act of 1986. The act called for

A. A decrease is tax credits and deductions.

B. An increase in individual taxation over a five-year period.

C. A decrease in individual taxation over a five-year period.

D. More taxes and less deductions for the coming tax season.

10 of 20

Two tax bills signed in 2005 and 2006 extended through 2010 the favorable rates on capital gains and dividends that had been enacted in 2003, raised the exemption levels for the Alternative Minimum Tax, and enacted new tax incentives designed to

· A. Persuade individuals to save more for retirement.

· B. Pursue their college education.

· C. Invest in stocks and bonds.

· D. Extend to individuals a cornucopia of tax breaks.

11 of 20

When you receive interest income as a nominee, it means that

· A. You are responsible to report this income in your tax return.

· B. The IRS has name you the owner of such income.

· C. The income is in your name, but it actually belongs to someone else.

· D. You can choose whomever you want as the owner of this income.

12 of 20

On or before the ___________ of each year the President is required by law to submit to the Congress a budget proposal for the fiscal year that begins the following October.

· A. First Monday in January.

· B. First Monday in February.

· C. First Monday in March.

· D. First Monday in April.

13 of 20

In 1997, President Clinton signed a tax revenue act which

· A. Cut taxes by $152 billion.

· B. Included a cut in capital-gains tax for individuals.

· C. Included a $500 per child tax credit and tax incentives for education.

· D. All of the above.

14 of 20

If you changed your name because of marriage, divorce, etc., be sure to report the change to the Social Security Administration (SSA) before you file your return. This

· A. Prevents delays in processing your tax return.

· B. Prevents delays in issuing tax refunds.

· C. Safeguards your social security benefits.

· D. All of the above.

15 of 20

You direct deposit request will be rejected and a check will be sent instead if

· A. Any numbers or letters on lines 11b through 11d are crossed out or whited out.

· B. Your financial institution will not allow a joint refund to be deposited to an individual account.

· C. You request a deposit of your refund to an account that is not in your name.

· D. Any of the above.

16 of 20

A shareholder that provides services to a corporation may be deemed to receive a dividend if the corporation pays the shareholder service-provider

A. In excess of what it would pay a third party for the same services.

B. What it would pay a third party for the same services.

C. An amount that is less than what is would pay a third party for the same services.

D. None of the above.

___

17 of 20

You must use Form 1040A or 1040 if,

· A. You receive interest as a nominee.

· B. You receive a 2015 Form 1099-INT for U.S. savings bond interest that includes amounts you reported before 2015.

· C. You owned or had authority over one or more foreign financial accounts with a combined value over $10,000 at any time during 2015.

· D. Any of the above.

18 of 20

To file your tax return electronically, you must sign the tax return electronically

A. By scanning your signature and pasting it your tax return.

B. Using a personal identification number (PIN)

C. By sending the signature form in advance.

D. By calling the IRS information center and let them know that you will be sending your tax return electronically.

19 of 20

On October 22, 1986, President Reagan signed into law the Tax Reform Act of 1986. The act called for

A. A decrease is tax credits and deductions.

B. An increase in individual taxation over a five-year period.

C. A decrease in individual taxation over a five-year period.

D. More taxes and less deductions for the coming tax season.

20 of 20

· A. Persuade individuals to save more for retirement.

· B. Pursue their college education.

· C. Invest in stocks and bonds.

· D. Extend to individuals a cornucopia of tax breaks.

Please Note: If you filled out the answers directly on this page, please print this page or write down the answers before you proceed to submit them by clicking on "Review Questions" link in step 3 above.

Back to Tax School Homepage

Revised: 11/23/15