Free Special Enrollment Examination: Part 1 Practice Questions

Sample Practice Questions

Try these 10 sample questions from the Special Enrollment Examination: Part 1 practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1For a U.S. citizen or resident, which combination generally determines whether a federal income tax return is required for 2025?

   1. A. Gross income, filing status, and age
   2. B. Taxable income, occupation, and age
   3. C. Gross income, withholding, and dependents
   4. D. Adjusted gross income, residence, and age

   Answer: A

   Explanation: Publication 17 lists the three factors directly: "If you are a U.S. citizen or resident, whether you must file a return depends on three factors. 1. Your gross income. 2. Your filing status. 3. Your age." The other options replace one or more of the stated factors.

   Reference: Publication 17 (2025), Your Federal Income Tax — Publication 17, chapter 1, Individuals—In General

2. 2An employee earned pay in 2025 but did not receive Form W-2. What should the employee do with the pay on the federal return?

   1. A. Include the pay despite the missing Form W-2
   2. B. Exclude the pay until Form W-2 arrives
   3. C. Treat the pay as a nontaxable gift
   4. D. Report only the withheld income tax

   Answer: A

   Explanation: "Include your pay on Form 1040 or 1040-SR, line 1a, even if you don’t receive a Form W-2." The information form's absence does not remove wages from income.

   Reference: Publication 17 (2025), Your Federal Income Tax — Publication 17, chapter 5, Form W-2

3. 3A 2025 taxpayer is eligible for either the standard deduction or itemized deductions. Which deduction choice will generally produce less federal income tax?

   1. A. The larger of the two deductions
   2. B. The smaller of the two deductions
   3. C. The standard deduction regardless of amounts
   4. D. Itemized deductions regardless of amounts

   Answer: A

   Explanation: "In most cases, your federal income tax will be less if you take the larger of your itemized deductions or your standard deduction." A larger deduction usually lowers taxable income more.

   Reference: 2025 Instructions for Schedule A (Form 1040), Itemized Deductions — General Instructions

4. 4For 2025, what rate applies to Additional Medicare Tax on covered earnings above the applicable threshold?

   1. A. 0.9%
   2. B. 1.45%
   3. C. 2.9%
   4. D. 3.8%

   Answer: A

   Explanation: The rate is 0.9% on the excess earnings; the other rates confuse it with regular Medicare or NIIT. "A 0.9% Additional Medicare Tax applies to your Medicare wages, Railroad Retirement Tax Act (RRTA) compensation, and self-employment income above a threshold amount."

   Reference: Instructions for Form 8959 (2025) — General Instructions, Additional Medicare Tax

5. 5A couple files jointly for 2025, and one spouse earned all the income. What joint-return liability should the adviser explain?

   1. A. Only the earning spouse owes the tax.
   2. B. Each spouse can be liable for all tax, interest, and penalties.
   3. C. Each spouse is liable for exactly half the tax.
   4. D. Neither spouse is liable after a divorce decree.

   Answer: B

   Explanation: Joint filing can make either spouse responsible for the full liability, regardless of income allocation. "Both you and your spouse may be held responsible, jointly and individually, for the tax and any interest or penalty due on your joint return."

   Reference: Publication 504: Divorced or Separated Individuals (2025) — Married Filing Jointly, Joint and individual liability

6. 6For a U.S. citizen dying in 2025, which combined amount generally triggers a Form 706 filing requirement when there is no portability election?

   1. A. Gross estate plus adjusted taxable gifts and specific exemption exceeding $13,990,000
   2. B. Gross estate alone reaching exactly $13,990,000
   3. C. Taxable income plus gifts exceeding $2,800
   4. D. Any inheritance received by a beneficiary

   Answer: A

   Explanation: The 2025 filing test compares the combined estate-and-gift amount to the stated threshold. "Whose gross estate, plus adjusted taxable gifts and specific exemption, is more than $13,990,000;"

   Reference: Instructions for Form 706 (Rev. September 2025) — Which Estates Must File

7. 7For most 2025 calendar year returns, on what date is a taxpayer's filing status determined?

   1. A. The date the return is signed
   2. B. The date the return is filed
   3. C. The last day of the tax year
   4. D. The first day of the tax year

   Answer: C

   Explanation: "Your filing status is determined on the last day of your tax year, which is December 31 for most taxpayers." A change earlier in the year does not replace the year end test.

   Reference: Publication 17 (2025), Your Federal Income Tax — Publication 17, chapter 1, Filing Information

8. 8A taxpayer was paid to babysit neighborhood children during 2025. How should the pay generally be treated?

   1. A. Include the pay in income
   2. B. Exclude it because care was occasional
   3. C. Exclude it because the children were neighbors
   4. D. Report it only if the parents issued a Form W-2

   Answer: A

   Explanation: "If you provide childcare, either in the child’s home or in your home or other place of business, the pay you receive must be included in your income." Compensation for childcare is income regardless of the work location.

   Reference: Publication 17 (2025), Your Federal Income Tax — Publication 17, chapter 5, Childcare providers

9. 9A taxpayer has $100,000 of adjusted gross income and $10,000 of otherwise eligible medical expenses in 2025, with no reimbursements. How much exceeds the Schedule A medical floor?

   1. A. $2,500
   2. B. $7,500
   3. C. $10,000
   4. D. $17,500

   Answer: A

   Explanation: "You can deduct only the part of your medical and dental expenses that exceeds 7.5% of the amount of your adjusted gross income" 7.5% of $100,000 is $7,500; $10,000 minus that floor is $2,500.

   Reference: 2025 Instructions for Schedule A (Form 1040), Itemized Deductions — Specific Instructions, Medical and Dental Expenses

10. 10A married couple files jointly in 2025. What is their Additional Medicare Tax threshold?

    1. A. $125,000
    2. B. $200,000
    3. C. $250,000
    4. D. $400,000

    Answer: C

    Explanation: The joint-filer threshold is $250,000; $125,000 applies to separate filers and $200,000 to single filers. "Married filing jointly $250,000"

    Reference: Instructions for Form 8959 (2025) — Threshold Amounts for Additional Medicare Tax chart