Question 30 of 40.

Danielle Miller is domiciled in North Dakota, but attended college in Florida. She joined the military right out of college and was sent to San Antonio, Texas to attend basic training. From there, she moved to South Carolina for advanced training before being deployed to Germany.

What is Danielle's legal state of residence?

Florida.

North Dakota.

South Carolina.

Texas.

Question 31 of 40.

Priya is 22 years old and just graduated. She got her first job with a multinational company, Conglommo, Inc., and has come to you for her first tax return. She has questions about what benefits she should be looking at. How would you determine the best options to recommend?

Ask Priya what options are available to her and go over the choices with her. You can give her a general idea of what may be the best options and make a note in the return to follow up with her next year to adjust the selections as needed.

Ask Priya what options are available to her and go over the choices with her. Use What If mode in BlockWorks to give her the most accurate possible numbers and make a note in the return to follow up with her next year to adjust the selections as needed.

Generally, all large companies have the same benefits, so you can assume that Priya will have access to any program you might suggest. Pick out some of your preferences and share them with her.

Look at her Form W-2 and determine which benefits she is currently using, then make recommendations regarding those benefits for her.

Mark for follow up

Question 32 of 40.

Which of these statements about benefit programs is TRUE?

Generally, taxpayers with lower income benefit more from programs that lower their AGI. Taxpayers with higher income may reduce refundable tax credits if they lower their AGI.

Most employee benefit programs do not have a major impact on a taxpayer's return.

Generally, taxpayers with higher income benefit more from programs that lower their AGI. Taxpayers with lower income will not impact their tax return because their AGI is already lower.

Generally, taxpayers with higher income benefit more from programs that lower their AGI. Taxpayers with lower income may reduce refundable tax credits if they lower their AGI.

Mark for follow up

Question 33 of 40.

Which of the following employee benefits has a direct impact on a taxpayer's tax liability?

Federal withholding.

Snacks and drinks available in the breakroom at no charge.

Complimentary parking at the office.

Retirement matching contributions.