🧾 Tax Return Flashcards — Interview Prep
Basic Tax Concepts
1. Q: What is gross income?
A: All taxable income received before deductions and adjustments.
2. Q: What is AGI?
A: Adjusted Gross Income = gross income minus eligible adjustments.
3. Q: What is taxable income?
A: AGI minus the applicable deduction(s) and certain other adjustments.
4. Q: Standard deduction vs. itemized deductions?
A: The standard deduction is a fixed amount; itemized deductions are eligible expenses claimed individually.
5. Q: What is a tax credit?
A: A credit directly reduces tax liability.
6. Q: Tax deduction vs. tax credit?
A: A deduction reduces taxable income; a credit reduces the tax itself.
Dependents
7. Q: What is a qualifying child?
A: Generally, a child who meets relationship, age, residency, support, and joint-return requirements.
8. Q: What is a qualifying relative?
A: A person who meets specific relationship/household, gross-income, support, and other requirements.
9. Q: Why is dependent eligibility important?
A: It can affect filing status and credits such as the Child Tax Credit and Earned Income Tax Credit.
Filing Status
10. Q: What are the five federal filing statuses?
A: Single, Married Filing Jointly, Married Filing Separately, Head of Household, and Qualifying Surviving Spouse.
11. Q: Who may qualify for Head of Household?
A: Generally, an unmarried or considered-unmarried taxpayer who paid more than half the cost of keeping up a qualifying home and meets the dependent/qualifying-person rules.
Common Credits
12. Q: What is the Child Tax Credit?
A: A federal credit for eligible taxpayers with qualifying children, subject to current-year requirements and income limitations.
13. Q: What is the Earned Income Tax Credit?
A: A refundable credit generally available to eligible workers with earned income who meet specific requirements.
14. Q: What is the American Opportunity Tax Credit?
A: An education credit for eligible students and qualified education expenses, subject to eligibility rules.
15. Q: What is the Lifetime Learning Credit?
A: A nonrefundable education credit for eligible tuition and related expenses, subject to the applicable rules.
Forms
16. Q: What is Form W-2?
A: It reports wages and federal/state/local taxes withheld by an employer.
17. Q: What is Form 1099-NEC?
A: It generally reports nonemployee compensation.
18. Q: What is Form 1099-INT?
A: It generally reports interest income.
19. Q: What is Form 1099-DIV?
A: It generally reports dividends and certain distributions.
20. Q: What is Form 1098-T?
A: It reports certain information about qualified tuition and related expenses from eligible educational institutions.
TurboTax/Tax Expert Interview
21. Q: What would you do if a customer gives you incomplete tax information?
A: Ask targeted questions, explain what documentation is needed, and avoid making assumptions.
22. Q: What if a customer wants to claim a credit they don’t qualify for?
A: Explain the eligibility requirements and help them accurately report their situation rather than claiming an unsupported credit.
23. Q: What if you discover an error in a customer’s return?
A: Stop, verify the information, correct the error, and explain the correction clearly to the customer.
24. Q: How do you handle confidential tax information?
A: Protect taxpayer information, follow company procedures, and only access or disclose information as authorized.
25. Q: What makes a good tax expert?
A: Tax knowledge, accuracy, attention to detail, good questioning skills, empathy, clear communication, and knowing when to research or escalate an issue.
⚡ Quick Memory Formula
Income → Adjustments → AGI → Deductions → Taxable Income → Tax → Credits → Withholding/Payments → Refund or Balance Due
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