Free practice test

Tax Preparer Practice Test

Check what you know about the tax preparer job with 15 free questions and instant explanations.

Updated By the Career Education Institute Curriculum Team
About this practice test

15 multiple-choice questions on tax preparer knowledge, safety and vocabulary. Submit to see your score and explanations, or open any question’s answer as you go. Nothing is saved or shared.

Question 1 of 15A PTIN is required for:
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Answer: Preparing returns for pay. Paid preparers need a PTIN.

Question 2 of 15A tax credit:
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Answer: Reduces tax dollar for dollar. Credits reduce tax directly.

Question 3 of 15Schedule C reports:
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Answer: Sole proprietor business income. It’s for self-employment businesses.

Question 4 of 15Enrolled Agents are licensed by:
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Answer: The IRS. The IRS licenses EAs.

Question 5 of 15A W-2 reports:
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Answer: Wages and tax withheld. Employers issue W-2s.

Question 6 of 15Which term matches this definition: “Specific deductions such as mortgage interest and charitable gifts.”
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Answer: Itemized deductions. Itemized deductions: Specific deductions such as mortgage interest and charitable gifts.

Question 7 of 15What does “Due diligence” mean?
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Answer: Required steps to verify eligibility for certain credits.. Due diligence: Required steps to verify eligibility for certain credits.

Question 8 of 15Which term matches this definition: “A form reporting non-wage income.”
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Answer: 1099. 1099: A form reporting non-wage income.

Question 9 of 15What does “E-file” mean?
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Answer: Electronic filing of returns.. E-file: Electronic filing of returns.

Question 10 of 15Which term matches this definition: “The form for sole proprietor business income.”
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Answer: Schedule C. Schedule C: The form for sole proprietor business income.

Question 11 of 15What does “Filing status” mean?
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Answer: Single, married filing jointly and other categories.. Filing status: Single, married filing jointly and other categories.

Question 12 of 15Which term matches this definition: “A fixed deduction most filers can take.”
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Answer: Standard deduction. Standard deduction: A fixed deduction most filers can take.

Question 13 of 15What does “Amended return” mean?
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Answer: A return that corrects a previously filed return.. Amended return: A return that corrects a previously filed return.

Question 14 of 15Which term matches this definition: “Preparer Tax Identification Number.”
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Answer: PTIN. PTIN: Preparer Tax Identification Number.

Question 15 of 15What does “Dependent” mean?
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Answer: A person claimed on a return.. Dependent: A person claimed on a return.

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