EA Part 1 Cheat Sheet

Preliminary Work and Taxpayer Data

16.5% of exam
Scored Items by Domain Filing Status Rules Dependency Tests 2025 Filing Thresholds Residency and IDs Due Dates 2025 Returns

Income and Assets

20% of exam
Taxable Income Items Excluded Income Items Basis and Holding Period 2025 Capital Gain Rates Retirement Distributions Above-the-Line Adjustments

Deductions and Credits

20% of exam
2025 Standard Deduction Itemized Deduction Limits Family Credits 2025 Education Credits 2025 New 2025 Deductions

Taxation

17.6% of exam
Other Taxes 2025 AMT and Kiddie Tax Estimates and Penalties Which Penalty Applies?

Advising the Individual Taxpayer

12.9% of exam
Planning and Relief Forms Marriage and Divorce Rules Injured vs Innocent Spouse Refund claim windows

Specialized Returns for Individuals

12.9% of exam
Estate and Gift 2025 Foreign Reporting Thresholds Decedent Returns Which Foreign Form?

Quick Facts

Exam SEE Part 1 — Individuals
Questions 100 items, 85 scored
Time 3.5 hours, 4-hour seat
Pass 500 scaled (200–800)
Fee $317 per part
Window July 1 2026-Feb 28 2027
Tax law tested Through December 31, 2025
Prerequisite Active PTIN required
Delivery PSI center or remote
Attempts Four per testing window
Breaks Two scheduled 10-minute breaks
Materials Closed book, onscreen calculator

Qualifying Child Tests PR

Relationship, Age, Residency, Support, Joint, Citizen
Relationship: family member Age: under 19 or 24 Residency: over half year Support: child under half Joint: no joint return Citizen: US, Canada, Mexico

Qualifying Child vs Relative PR

Qualifying child

Age or student test
Lives over half year
Child provides under half

Qualifying relative

Any age allowed
Gross income under $5,200
You provide over half
Age tests vs income

Which Filing Status? PR

Married on December 31 → MFJ or MFS ( Joint usually lower )
Spouse died during 2025 → MFJ ( Year of death )
Spouse died 2023-2024 → QSS ( Dependent child required )
Unmarried with qualifying person → HOH ( Over half home cost )
Considered unmarried, child → HOH ( Spouse absent six months )
Supports dependent parent → HOH ( Parent may live elsewhere )
None of these → Single

Scored Items by Domain PR

Preliminary work 14 of 85 items
Income and assets 17 of 85 items
Deductions and credits 17 of 85 items
Taxation 15 of 85 items
Advising the taxpayer 11 of 85 items
Specialized returns 11 of 85 items
Experimental questions 15 unscored items

HOH vs Qualifying Surviving Spouse PR

Head of household

Unmarried or considered unmarried
Any qualifying person
$23,625 deduction (2025)

Surviving spouse

Two years after death
Dependent child only
$31,500 deduction (2025)
Qualifying person vs dependent child

Qualifying Child or Relative? PR

Under 19 and resident → Qualifying child ( Support test reversed )
Age 19-23 full-time student → Qualifying child ( Student test )
Permanently disabled child → Qualifying child ( No age limit )
Fails age test → Qualifying relative ( Check gross income )
Gross income reaches $5,200 → No dependent ( 2025 limit )
Unrelated household member → Qualifying relative ( Whole-year residence )
Two taxpayers claim → Tiebreaker rules ( Nights, then AGI )

Filing Status Rules PR

Status date December 31 marital status
Single Unmarried, no better status
MFJ Joint and several liability
MFS Separate liability, credits lost
HOH Unmarried, over half home Qualifying person
QSS Two years after death Dependent child
Considered unmarried Spouse absent last six months
Dependent parent HOH without living together

Dependency Tests PR

QC relationship Child, sibling, or descendant
QC age Under 19, student 24 Or disabled
QC residency Over half year together
QC support Child provides under half
QR gross income Under $5,200 (2025)
QR support Taxpayer provides over half
QR relationship Relative or whole-year member
Tiebreaker Parent, then higher AGI
Joint return test No joint return filed
Citizen test US, Canada, or Mexico

2025 Filing Thresholds PR

Single under 65 $15,750 gross income
Single 65 or older $17,750 gross income
MFJ both under 65 $31,500 gross income
MFJ one spouse 65 $33,100 gross income
MFJ both 65 $34,700 gross income
Head of household $23,625 gross income
HOH 65 or older $25,625 gross income
Married filing separately $5 gross income
Self-employment $400 net earnings
Dependent floor $1,350 or earned plus $450

Residency and IDs PR

Green card test Lawful permanent resident
Substantial presence 31 days plus 183 weighted
Day weighting 1, 1/3, 1/6
Closer connection Escapes resident status
Resident alien Taxed on worldwide income
ITIN For SSN-ineligible filers
IP PIN Six digits, reissued yearly
Nonresident return Form 1040-NR

Due Dates 2025 Returns PR

Form 1040 April 15, 2026
Form 4868 Extends to October 15 Filing only
Estimate 1 April 15, 2025
Estimate 2 June 16, 2025
Estimate 3 September 15, 2025
Estimate 4 January 15, 2026
Form 709 April 15, 2026
Form 706 Nine months after death
FBAR April 15, automatic October
Refund claim Later of three, two

Capital Gain Rate Ladder IN

0, 15, 20, then 25 and 28
0% to $48,350 single 15% to $533,400 single 25% unrecaptured 1250 28% collectibles

Traditional vs Roth IRA IN

Traditional IRA

Deduction may apply
Distributions taxable
RMDs begin at 73

Roth IRA

No deduction allowed
Qualified distributions tax-free
No lifetime RMDs
Deduct now vs later

Taxable or Excludable? IN

Employer paid wages → Taxable ( Form W-2 )
Gift received → Excludable ( Donor may file 709 )
Life insurance death benefit → Excludable ( Interest is taxable )
Debt cancelled while insolvent → Excludable ( Form 982 limit )
Main home gain → Excludable to limit ( Two of five years )
Municipal bond interest → Excludable ( Raises provisional income )
Scholarship covering room → Taxable ( Tuition portion excluded )
State refund, previously itemized → Taxable ( Tax benefit rule )

Taxable Income Items IN

Wages Form W-2 box 1
Unemployment Fully taxable
Gambling winnings Losses only if itemizing
Alimony pre-2019 Taxable to recipient
Cancelled debt Form 1099-C income
Hobby income Taxable, expenses nondeductible
Bartering Fair market value income
Illegal income Still reportable
Constructive receipt Available without substantial restriction
State refund Taxable if previously itemized

Social Security Taxability IN

25/32 half, 34/44 up to 85%
Provisional: AGI plus half $25,000 single base $32,000 joint base 85% above $34,000/$44,000

Gift vs Inherited Basis IN

Gifted property

Carryover donor basis
Dual basis for losses
Donor holding period

Inherited property

Value at death
Always long-term
Alternate valuation possible
Carryover vs stepped up

Excluded Income Items IN

Gifts and inheritances Not recipient income
Life insurance proceeds Death benefit excluded
Municipal interest Excluded, raises provisional income
Child support Never taxable
Qualified scholarship Tuition, fees, books only
Insolvency discharge Excluded up to insolvency
Section 121 gain $250,000 or $500,000
Roth qualified distribution Five years plus event
Foreign earned income $130,000 exclusion (2025)
Combat pay Excluded, elective for EITC

Basis and Holding Period IN

Purchased asset Cost plus improvements
Gift, gain basis Donor carryover basis
Gift, loss basis Value at gift date
Price between both No gain or loss
Inherited property Value at death Always long-term
Alternate valuation Six months after death
Wash sale Loss added to basis
Stock split Spread basis, holding tacks
Long-term Held over one year

2025 Capital Gain Rates IN

0% ends single $48,350 taxable income
0% ends joint $96,700 taxable income
0% ends HOH $64,750 taxable income
15% ends single $533,400 taxable income
15% ends joint $600,050 taxable income
Collectibles 28% maximum rate
Unrecaptured 1250 25% maximum rate
Section 1245 recapture Ordinary income
Capital loss limit $3,000; $1,500 separate

Retirement Distributions IN

RMD start age 73 under SECURE 2.0
Missed RMD 25%, 10% if corrected
Roth owner RMD None during lifetime
Early distribution 10% before age 59½
First-time home $10,000 lifetime, IRAs only
Rollover window 60 days, one yearly
QCD limit $108,000 for 2025 Age 70½
Form 8606 Nondeductible IRA basis
Provisional income AGI, exempt interest, half
50% tier $25,000 single, $32,000 joint
85% tier $34,000 single, $44,000 joint

Above-the-Line Adjustments IN

Educator expenses $300 each educator (2025)
HSA contribution $4,300 self, $8,550 family
HSA catch-up $1,000 at age 55
HDHP minimum deductible $1,650 self, $3,300 family
IRA limit $7,000 plus $1,000 catch-up
Student loan interest $2,500 maximum, phases out
Half SE tax Deducted on Schedule 1
SE health insurance Capped by business income
Alimony paid Pre-2019 decrees only
Moving expenses Active military only

2025 Standard Deduction DE

15,750 single | 23,625 head | 31,500 joint
Single: $15,750 Head of household: $23,625 Joint: $31,500 Extra 65: $2,000 unmarried

Above vs Below the Line DE

Above-the-line

Reduces AGI directly
No itemizing needed
HSA, IRA, half SE

Below-the-line

Reduces taxable income
Standard or itemized
Tips, overtime, senior
AGI first, taxable second

Which Credit Applies? DE

Child under 17 → Child tax credit ( $2,200 for 2025 )
Dependent over 16 → Other dependent credit ( $500 nonrefundable )
Care needed to work → Form 2441 credit ( Provider TIN required )
First four college years → AOTC ( 40% refundable )
Graduate or single course → Lifetime Learning ( Nonrefundable )
Low earned income → EITC ( Investment limit $11,950 )
Foreign tax paid → Form 1116 credit ( Or itemized deduction )
Adoption expenses paid → Form 8839 ( $5,000 refundable )

2025 Standard Deduction DE

Single or MFS $15,750 for 2025
Married filing jointly $31,500 for 2025
Qualifying surviving spouse $31,500 for 2025
Head of household $23,625 for 2025
Age 65 or blind $2,000 unmarried, $1,600 married
Senior deduction $6,000 extra, age 65
Senior phase-out $75,000; $150,000 joint
Dependent minimum $1,350 for 2025
MFS rule Both itemize or neither

Credit vs Deduction DE

Credit

Cuts tax directly
May be refundable
CTC, EITC, AOTC

Deduction

Cuts taxable income
Worth marginal rate
SALT, mortgage, charity
Dollar vs bracket value

Itemized Deduction Limits DE

Medical floor 7.5% of AGI
SALT cap $40,000; $20,000 separate
SALT phase-down 30% above $500K MAGI; MFS $250K
SALT floor Never below $10,000
Acquisition debt $750,000 after 2017
Older mortgage debt $1,000,000 grandfathered
Home equity interest Only if improving home
Cash charity limit 60% of AGI
Charity receipt $250 written acknowledgment
Casualty loss Disaster, $100, 10% AGI
Investment interest Capped by investment income

AOTC vs Lifetime Learning DE

AOTC

$2,500 per student
40% refundable
First four years

Lifetime Learning

$2,000 per return
Nonrefundable
Any coursework, unlimited years
Per student vs return

Family Credits 2025 DE

Child tax credit $2,200 per child
Refundable portion Up to $1,700
ACTC formula 15% over $2,500 earned
CTC phase-out $200,000; $400,000 joint
Other dependent credit $500 nonrefundable
Care expense cap $3,000 one, $6,000 two
Care credit rate 35% down to 20%
Adoption credit $17,280 per child
Adoption refundable Up to $5,000
EITC maximum $8,046 with three children
EITC investment limit $11,950 for 2025
Childless EITC ages 25 through 64

Education Credits 2025 DE

AOTC maximum $2,500 per student
AOTC refundable 40%, up to $1,000
AOTC limits Four years, half-time enrollment
AOTC phase-out $80,000; $160,000 joint
Lifetime Learning $2,000 per return
LLC features Nonrefundable, unlimited years
529 nonqualified Earnings taxed plus 10%
529 K-12 limit $10,000 each year
529 loan payoff $10,000 lifetime per beneficiary

New 2025 Deductions DE

Tips deduction Up to $25,000
Overtime deduction $12,500; $25,000 joint
Tips/overtime phase-out $150,000; $300,000 joint
Car loan interest Up to $10,000
Car loan rules US assembly, new vehicle
Car loan phase-out $100,000; $200,000 joint
Deduction placement Below the line
Years available 2025 through 2028
Married claimants Must file jointly

Self-Employment Tax Steps TA

Profit x 92.35%, then 15.3% total
12.4% Social Security 2.9% Medicare Base: $176,100 (2025) Half deducted above line

NIIT vs Additional Medicare TA

Net investment tax

3.8% rate
Investment income only
Form 8960

Additional Medicare

0.9% rate
Wages and SE income
Form 8959
Portfolio vs earned income

Which Penalty Applies? TA

Return filed late → Failure to file ( 5% monthly )
Tax paid late → Failure to pay ( 0.5% monthly )
Underpaid estimates → Form 2210 penalty ( Check safe harbors )
Substantial understatement → Accuracy-related penalty ( 20% of underpayment )
Intent to evade → Civil fraud penalty ( 75% of underpayment )
Over 60 days late → Minimum penalty ( Lesser: $525/unpaid-tax; due 2026 )

Other Taxes 2025 TA

SE tax rate 15.3% after 92.35%
Social Security wage base $176,100 for 2025
Medicare portion 2.9%, no ceiling
Additional Medicare tax 0.9% over threshold
Additional Medicare thresholds $200,000; $250,000; $125,000
NIIT rate 3.8% on lesser
NIIT thresholds $200,000; $250,000; $125,000
Excess Social Security Credit on Schedule 3
Household employee wages $2,800 triggers FICA
Household FUTA $1,000 in a quarter
Schedule H Filed with Form 1040
Church employee income $108.28 triggers SE tax

Estimated Tax Safe Harbors TA

90 current, 100 prior, 110 wealthy
90% of current tax 100% of prior tax 110% over $150,000 AGI Under $1,000 owed

AMT and Kiddie Tax TA

AMT exemption single $88,100 for 2025
AMT exemption joint $137,000 for 2025
AMT exemption MFS $68,500 for 2025
AMT phase-out single Begins at $626,350
AMT phase-out joint Begins at $1,252,700
AMT credit Form 8801, deferral items
Kiddie tax trigger Unearned over $2,700
Kiddie tax tiers $1,350 free, $1,350 child
Form 8615 Parent rate computation

Kiddie Tax Tiers TA

1,350 free, 1,350 child, rest parent
First $1,350 untaxed Next $1,350 child rate Over $2,700 parent rate Reported on Form 8615

Estimates and Penalties TA

Safe harbor current 90% of current tax
Safe harbor prior 100% of prior tax
High-income safe harbor 110% over $150,000 AGI
De minimis Under $1,000 balance
Withholding timing Treated as paid evenly
Failure to file 5% monthly, 25% maximum
Failure to pay 0.5% monthly, 25% maximum
Minimum late penalty Lesser: $525/unpaid-tax; due 2026
Accuracy-related penalty 20% of underpayment
Civil fraud penalty 75% of underpayment

Injured vs Innocent Spouse AD

Injured spouse

Form 8379
Refund taken for debt
Recovers own share

Innocent spouse

Form 8857
Other spouse's erroneous items
Relief from liability
Refund split vs liability

Planning and Relief Forms AD

Form 1040-X Amended individual return
Form 2210 Estimated tax penalty
Form 8379 Injured spouse allocation
Form 8857 Innocent spouse relief
Form 982 Discharged debt exclusion
Form 8862 Reclaim disallowed credits
Form 1116 Foreign tax credit
Form 8960 Net investment income tax
Form 8959 Additional Medicare tax
Form 8332 Release dependent exemption

Marriage and Divorce Rules AD

Post-2018 alimony Neither deducted nor taxed
Pre-2019 alimony Deductible unless modified
Property settlement No gain recognized
Community property Split income when separate
Joint liability Either spouse fully liable
Child support Neither deducted nor taxed
Custodial parent Claims child by default

FBAR vs Form 8938 SP

FBAR

FinCEN Form 114
Accounts over $10,000
Filed on BSA system

Form 8938

FATCA reporting
Assets, not just accounts
Attached to return
Separate filing vs return

Which Foreign Form? SP

Accounts over $10,000 → FinCEN Form 114 ( BSA e-filing system )
Assets over $50,000 → Form 8938 ( With Form 1040 )
Foreign earned wages → Form 2555 ( $130,000 exclusion )
Foreign tax paid → Form 1116 ( Credit election )
Large foreign gift → Form 3520 ( Information return )
Foreign corporation owner → Form 5471 ( Information return )

Estate and Gift 2025 SP

Annual gift exclusion $19,000 per donee
Gift splitting $38,000 with spousal consent
Basic exclusion amount $13,990,000 for 2025
Form 706 trigger Estate over basic exclusion
Portability election Needs timely Form 706
Marital deduction Unlimited, citizen spouse
Non-citizen spouse QDOT generally required
Future interest gift No annual exclusion
Unified credit Offsets gift and estate

Foreign Reporting Thresholds SP

FBAR threshold Over $10,000 aggregate
FBAR form FinCEN 114, BSA e-filing
FBAR due date April 15, automatic extension
Form 8938 single $50,000 year-end, $75,000 peak
Form 8938 joint $100,000 year-end, $150,000 peak
Living abroad single $200,000 year-end, $300,000 peak
Form 8938 filing Attached to Form 1040
Form 3520 Foreign gifts and trusts
Form 5471 Foreign corporation ownership

Decedent Returns SP

Final Form 1040 Income through death date
Income in respect No basis step-up
IRD deduction Section 691(c) estate tax
Form 1310 Refund to claimant
Year of death Joint return still allowed
Estate income tax Form 1041 at $600
Medical expenses Elect final return deduction

Common Traps

Extension vs payment

Form 4868 extends filing ≠ Tax still due April 15

FBAR vs tax return

FBAR goes to FinCEN ≠ Form 8938 attaches to 1040

Senior deduction vs additional

$6,000 senior deduction separate ≠ $2,000 extra standard deduction

Gross income test

Taxable Social Security counts ≠ Tax-exempt interest excluded

Gift vs inherited basis

Gift keeps donor basis ≠ Inheritance uses death value

Wash sale direction

Losses deferred into basis ≠ Gains always recognized

Roth distribution myth

Roth owner takes none ≠ Inherited Roth must distribute

SALT cap floor

$40,000 cap for 2025 ≠ Never reduced below $10,000

Refundable vs nonrefundable

ACTC refunds beyond tax ≠ Lifetime Learning never refunds

Filing status on December 31

Year-end status controls ≠ Death year still joint

Last Minute

1. 85 scored items, 15 unscored
2. Passing score 500 scaled
3. Every question uses 2025 law
4. Standard deduction 15,750/23,625/31,500
5. Senior deduction $6,000 extra
6. Child credit $2,200; $1,700 refundable
7. SALT cap $40,000, floor $10,000
8. Qualifying relative income under $5,200
9. Kiddie tax over $2,700 unearned
10. Self-employment 15.3% after 92.35%
11. Wage base $176,100 for 2025
12. AMT exemptions $88,100 and $137,000
13. Gift exclusion $19,000 per donee
14. Estate exclusion $13,990,000 for 2025
15. FBAR over $10,000, FinCEN 114
16. Safe harbors 90/100/110 percent
17. Form 4868 extends filing only
18. Capital gains 0/15/20 rates