Enrolled Agent (EA) Part 1 — Individuals: Taxpayer Data, Filing Status, and Income Syllabus

Part 1 — Individuals: Taxpayer Data, Filing Status, and Income syllabus — full chapter and topic list

Expand any chapter to see its topics and sub-topics. This is the whole examinable outline for Part 1 — Individuals: Taxpayer Data, Filing Status, and Income in Enrolled Agent (EA), not a summary of it.

1. 1

   Preliminary Work and Taxpayer Data

   4 topics

   • Identifying and verifying taxpayer information
     • Social Security Numbers, ITINs, and ATINs
     • Prior-year return review and carryover items
     • Income source documents (Forms W-2, 1099 series, K-1)
   • Filing requirements and thresholds
     • Gross income filing thresholds by status and age
     • Return due dates, extensions (Form 4868), and amended returns
     • Statute of limitations on assessment and refund
   • Filing status determination
     • Single, MFJ, and MFS
     • Head of Household qualifying tests
     • Qualifying Surviving Spouse rules
   • Dependency rules
     • Qualifying child tests (relationship, age, residency, support)
     • Qualifying relative tests and gross income limit
     • Tiebreaker rules and multiple support agreements
2. 2

   Income and Assets

   4 topics

   • Taxable and nontaxable income
     • Wages, tips, and taxable fringe benefits
     • Interest, dividends, and original issue discount
     • Tax-exempt interest and excludable items
   • Retirement income and distributions
     • Traditional and Roth IRA distributions
     • Pension, annuity, and Social Security benefit taxation
     • Required minimum distributions and early withdrawal penalties
   • Property and investment income
     • Capital gains and losses, holding periods, and basis
     • Rental income, passive activity rules, and at-risk limits
     • Sale of a principal residence (Section 121 exclusion)
   • Other income items
     • Alimony, gambling winnings, and cancellation of debt
     • Unemployment compensation and taxable state refunds
3. 3

   Deductions and Credits for Individuals

   4 topics

   • Adjustments to income (above-the-line)
     • IRA and HSA contribution deductions
     • Student loan interest and educator expenses
     • Self-employment tax, SE health insurance, and retirement plans
   • Standard vs. itemized deductions
     • Standard deduction amounts and additional amounts
     • Medical, SALT, mortgage interest, and charitable contributions
     • Casualty losses in federally declared disaster areas
   • Tax credits
     • Child Tax Credit and Credit for Other Dependents
     • Earned Income Tax Credit and due diligence
     • Education credits (AOTC, Lifetime Learning) and Saver's Credit
   • Refundable vs. nonrefundable credits
     • Premium Tax Credit and Form 8962 reconciliation
     • Foreign tax credit basics and dependent care credit

Part 1 — Individuals: Taxpayer Data, Filing Status, and Income flashcards for Enrolled Agent (EA)

18 of 51 cards from the Part 1 — Individuals: Taxpayer Data, Filing Status, and Income deck — real questions with worked answers.

1. What is a Taxpayer Identification Number (TIN), and what are its four common forms?

   A TIN is the number the IRS uses to identify a taxpayer. The four forms are: SSN (Social Security Number), ITIN (Individual Taxpayer Identification Number), EIN (Employer Identification Number), and ATIN (Adoption Taxpayer Identification Number).

2. Who must obtain an ITIN, and what is its purpose?

   An ITIN is issued to individuals who must file or be listed on a U.S. return but are not eligible for an SSN (e.g., nonresident aliens, certain resident aliens, and their dependents/spouses). It is used only for federal tax reporting, not work authorization or benefits.

3. What form is used to apply for an ITIN, and when do ITINs expire?

   Form W-7 is used to apply for an ITIN. ITINs expire if not used on a federal return for three consecutive years, and must then be renewed.

4. What document does an employee complete so an employer can verify identity and withhold the correct federal income tax?

   Form W-4 (Employee's Withholding Certificate). Identity/work eligibility is separately verified using Form I-9.

5. When verifying taxpayer information, what must a paid preparer do regarding a client's identity and dependents under due diligence rules?

   The preparer must confirm correct names, SSNs/ITINs, and dates of birth match Social Security records, and exercise due diligence (especially for EITC, CTC, AOTC, and head of household) to verify eligibility, keeping documentation.

6. What is the general rule for whether a single taxpayer under 65 must file a federal income tax return (2024)?

   A single taxpayer under 65 must file if gross income is at least the standard deduction amount ($14,600 for 2024). The filing threshold generally equals the standard deduction for that filing status.

7. At what gross income must a self-employed individual file a return regardless of the normal threshold?

   A self-employed person must file if net self-employment earnings are $400 or more, because self-employment tax is owed even below the income-tax filing threshold.

8. For 2024, what is the additional standard deduction (and thus higher filing threshold) consideration for taxpayers 65 or older?

   Taxpayers 65 or older (or blind) get an additional standard deduction, raising their filing threshold. For 2024 the additional amount is $1,550 (married) or $1,950 (single/HOH) per condition.

9. How is the filing threshold determined for a dependent with only earned income vs. only unearned income (2024)?

   A dependent must file if earned income exceeds $14,600, OR unearned income exceeds $1,300, OR gross income exceeds the larger of $1,300 or earned income + $450 (up to $14,600).

10. Name three situations that require filing a return even when income is below the normal threshold.

    Examples: net self-employment income of $400+, owing special taxes (e.g., AMT, additional tax on retirement plans/HSAs), receiving advance premium tax credit, owing household employment taxes, or having $108.28+ in church employee income.

11. What are the five filing statuses available to individual taxpayers?

    Single; Married Filing Jointly (MFJ); Married Filing Separately (MFS); Head of Household (HOH); and Qualifying Surviving Spouse (QSS).

12. What date determines a taxpayer's marital status for filing status purposes?

    Marital status is generally determined as of the last day of the tax year (December 31). If married on that date, the taxpayer is considered married for the entire year.

13. What are the requirements to file as Head of Household?

    Be unmarried (or 'considered unmarried') on the last day of the year, pay more than half the cost of keeping up a home for the year, and have a qualifying person live with you more than half the year (a dependent parent need not live with you).

14. What does it mean to be 'considered unmarried' for Head of Household status?

    A married taxpayer is 'considered unmarried' if they file separately, paid more than half the cost of the home, the spouse did not live in the home during the last 6 months of the year, and the home was the main home of a qualifying child for more than half the year.

15. What are the requirements for Qualifying Surviving Spouse (QSS) status?

    Spouse died in one of the two prior years, the taxpayer did not remarry, the taxpayer has a dependent child living in the home all year and paid more than half the home's cost, and the taxpayer could have filed jointly in the year of death.

16. When might Married Filing Separately produce a better result than Married Filing Jointly?

    MFS can help when separating tax liability (innocent spouse concerns), when one spouse has high medical expenses or miscellaneous deductions subject to AGI floors, or for income-driven student loan calculations—despite generally higher rates and lost credits.

17. What are the two categories of dependents, and what are their names?

    A dependent is either a Qualifying Child or a Qualifying Relative.

18. List the five tests for a Qualifying Child.

    Relationship, Age, Residency, Support, and Joint Return tests. (Relationship: child/sibling/descendant; Age: under 19, under 24 if full-time student, or any age if permanently disabled; Residency: lived with taxpayer more than half the year; Support: child didn't provide more than half own support; Joint Return: child doesn't file jointly except to claim a refund.)

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