What Type of Questions Are on a Tax Preparation Course Exam?


Quick Answer

The Registered Tax Return Preparer test asks questions about tax laws and how to correctly fill out tax forms, according to the Internal Revenue Service. The exam tests for basic knowledge of how to file income tax returns and find tax credits for taxpayers. The exam is for tax professionals who want to work with individuals, not businesses.

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Full Answer

The exam uses multiple-choice questions, generally with four answer options per question. It focuses on the income tax form 1040 and any potential sources of income, tax credits or deductions that preparers may encounter when using that form. The purpose of the Registered Tax Return Preparer designation is to add more government oversight and protections for taxpayers choosing to pay preparers to do their taxes for them, reports the IRS. Some sample questions from the exam provided by the IRS include those on topics such as mortgage interest, gambling winnings, tip income, dependents and the self-employment tax.

Typical exam questions ask which types of income are taxable, the requirements to qualify for tax credits such as the earned income credit, when itemized deductions or standard deductions are appropriate, which other tax forms taxpayers need for different sources of income, and about the process for electronic filing, notes the IRS.

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