Finance Exam Prep

Enrolled Agent Exam [Part 1] 100, Exam Day Strategies and Final Review

Fri, 24 Apr 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • Master time management by aiming for an average of 2.1 minutes per question, banking time on easier questions for more complex ones. • Utilize the "Answer, Flag, and Drag" method to ensure you answer every question, flagging difficult ones to review at the end of the section. • Fully take your mandatory 15-minute break after the first 50 questions to reset mentally, remembering you cannot return to the first section. • Focus your final review on high-weight Part 1 topics like gross income, adjustments to AGI, and standard versus itemized deductions. • Beware of common exam traps like absolute words ("always," "never") and confusing similar concepts such as adjustments and itemized deductions. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 99, Form 1040 Review and Common Errors

Thu, 23 Apr 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • How to determine the most advantageous filing status between Qualifying Widow(er) and Head of Household. • The rule for correctly applying multiple additional standard deduction amounts for age and blindness. • Why an unsigned tax return is considered invalid and how this impacts the official filing date. • How the exam tests credit eligibility rules, like the investment income limit for the EITC, over complex math. • When common forms like Schedule B are required based on specific income thresholds. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 98, Individual Taxpayer Identification Number (ITIN)

Wed, 22 Apr 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • How to apply for an ITIN using Form W-7 and when it must be attached to a federal tax return. • The strict documentation requirements, including the difference between original, certified, and notarized copies. • The specific role of a Certifying Acceptance Agent (CAA) in verifying documents. • The "three-consecutive-year" non-use rule that causes an ITIN to expire. • The critical distinction that an ITIN is for tax purposes only and does not authorize work or provide Social Security benefits. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 97, Tax Return Preparer Due Diligence

Tue, 21 Apr 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • Due diligence under Section 6695(g) is mandatory for returns claiming EITC, CTC/ACTC, AOTC, and HOH status. • Completing and filing Form 8867 is a non-negotiable part of the due diligence process. • The "knowledge" requirement demands proactive questioning and probing of client information, not just passive acceptance. • The 2025 penalty is $600 per failure, meaning multiple errors on one return can lead to multiple penalties. • Use the mnemonic "Kings Can't Refuse Documents" to recall the four pillars: Knowledge, Checklists (Form 8867), Record Retention, and Documentation. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 96, Fringe Benefits - Taxable vs Excludable

Mon, 20 Apr 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • Cash or cash equivalents, regardless of the amount, are never excludable as a de minimis fringe benefit. • Transportation benefit exclusions are capped at a specific monthly limit ($315 for 2025) and any excess is taxable. • Dependent care assistance benefits are excludable only up to $5,000 per year; amounts over this are taxable income. • For a company-provided athletic facility to be an excludable benefit, it must be located on the employer's premises. • Qualified employee discounts on property are limited by the employer's gross profit percentage; discounts exceeding this are taxable. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 95, Recognition of Income - Cash vs Accrual

Sun, 19 Apr 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • Distinguish between the cash method (income when received) and the accrual method (income when earned). • Identify constructive receipt and when income is considered available without substantial limitation. • Apply the "all-events test" to determine income recognition for accrual-basis taxpayers. • Recognize the special one-year deferral rule for certain prepaid income under the accrual method. • Pinpoint which types of businesses are generally required to use the accrual method for tax purposes. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 94, Tax Benefits for Adoption

Sat, 18 Apr 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The critical timing difference for claiming expenses between domestic adoptions (claimable the year after payment if not final) and international adoptions (only claimable after finalization). • How the special needs adoption rule allows a taxpayer to claim the full maximum credit ($16,810 for 2025) for a finalized domestic adoption, regardless of their actual out-of-pocket expenses. • To distinguish between the nonrefundable tax credit and the employer assistance exclusion, and that the same expenses cannot be used for both benefits. • That any portion of the nonrefundable adoption credit unused due to tax liability limitations can be carried forward for up to five years. • To identify common ineligible expenses tested on the exam, such as costs related to a surrogate or the adoption of a spouse’s child. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 93, Scholarships, Fellowships, and Educational Assistance

Fri, 17 Apr 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • How to distinguish between tax-free qualified education expenses like tuition and fees, and taxable non-qualified expenses like room and board. • That funds requiring a student to teach or perform research are considered fully taxable compensation for services, not a tax-free scholarship. • The application of the annual exclusion limit of $5,250 for educational assistance benefits provided by an employer. • That only students who are candidates for a degree are eligible for tax-free treatment of their scholarships for qualified expenses. • Why the taxable portion of a scholarship can create an income tax filing requirement for a student, even if they are a dependent. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 92, Standard Mileage Rates and Transportation

Thu, 16 Apr 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • Understand the crucial difference between non-deductible commuting from home to work and deductible business transportation between job sites. • The standard mileage rate is a simplified calculation, but items like business-related parking fees and tolls can be deducted separately on top of it. • Your first-year choice matters immensely: using the standard mileage rate preserves future flexibility, while using the actual method with accelerated depreciation locks you in permanently. • If a taxpayer's principal place of business is a qualifying home office, the drive from home to the first client or temporary work location becomes a deductible business expense. • The IRS requires strict, contemporaneous mileage logs; without them, even legitimate vehicle expense deductions will be disallowed on the exam and in practice. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 91, Retirement Plan Contribution Limits for 2025

Wed, 15 Apr 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The 2025 base, standard catch-up, and special age 60-63 catch-up limits for 401(k) plans. • The 2025 contribution and catch-up limits for Traditional and Roth IRAs. • How to differentiate and apply the unique contribution rules for SIMPLE IRAs, including their two catch-up tiers. • The calculation method and overall limit for SEP IRA contributions for self-employed individuals. • Common exam traps, such as confusing different plan limits and misinterpreting the new age-based catch-up rules. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 90, Form 8949 Reporting Requirements

Tue, 14 Apr 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The critical distinction between reporting transactions directly on Schedule D versus detailing them on Form 8949. • How to use Form 1099-B information, specifically whether basis is reported to the IRS, to determine the correct reporting method. • The precise steps for reporting a wash sale on Form 8949, including the use of code 'W' and the basis adjustment for the new shares. • How to correctly report a non-deductible loss from a sale to a related party using adjustment code 'L'. • A simple mnemonic to remember that any transaction requiring an adjustment code or correction must be reported on Form 8949. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 89, Earned Income Definition and Sources

Mon, 13 Apr 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The primary sources of earned income are wages, salaries, tips, and net earnings from self-employment. • To distinguish earned income from unearned income like interest, dividends, pensions, and unemployment benefits. • That only the net profit from self-employment, not gross receipts, counts as earned income. • The specific rule for disability benefits: they are earned income only if received before minimum retirement age and from an employer-paid plan. • How to spot and ignore distractor income sources like unemployment benefits in exam questions. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 88, Foreign Tax Credit Fundamentals

Sun, 12 Apr 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • Why taking a foreign tax credit is almost always more beneficial than taking an itemized deduction for foreign income taxes paid. • How to identify a creditable foreign tax, focusing on income taxes versus non-creditable taxes like VAT or property taxes, a common exam trap. • The foreign tax credit limitation, which restricts the credit to the amount of U.S. tax liability on that same foreign source income. • Why you must calculate the credit separately for different income categories, such as passive and general, preventing the use of excess credits from one category to offset tax in another. • The carryover rule for unused credits, which allows them to be carried back one year and then forward for up to ten years. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 87, Backup Withholding Requirements

Sat, 11 Apr 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • That backup withholding is a flat 24% rate applied to specific payments like interest, dividends, and nonemployee compensation. • How a missing or incorrect Taxpayer Identification Number (TIN) on Form W-9 is the most common trigger for backup withholding. • The process initiated by an IRS "B-Notice" when a payee's name and TIN on a Form 1099 do not match IRS records. • That backup withholding can also be required if the IRS notifies a payer that the payee has underreported interest or dividend income. • How to advise clients to stop backup withholding by providing a correct Form W-9 or resolving underreporting issues directly with the IRS. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 86, Statute of Limitations - Assessment and Collection

Fri, 10 Apr 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The general three-year statute of limitations for the IRS to assess additional tax and how filing dates affect it. • The six-year assessment statute for substantial understatements of gross income, including how to calculate the 25% threshold. • Situations where no statute of limitations applies, such as failure to file or filing a fraudulent return. • The distinct ten-year statute of limitations for the IRS to collect tax after an assessment has been made. • A simple mnemonic '3-6-10-Infinity' to remember the key periods for assessment and collection. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 85, Offer in Compromise Basics

Thu, 09 Apr 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • Distinguish the three grounds for an OIC: Doubt as to Collectibility, Doubt as to Liability, and Effective Tax Administration (ETA). • Understand that Reasonable Collection Potential (RCP) is the key metric for Doubt as to Collectibility offers. • Recognize that Doubt as to Liability focuses on the legitimacy of the tax debt, not the taxpayer's ability to pay. • Identify that ETA offers apply when collection in full would cause severe economic hardship, even if the taxpayer could technically pay. • Recall that taxpayers must be fully compliant with all current filing and payment obligations before an OIC will be considered. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 84, Qualified Charitable Distributions (QCD)

Wed, 08 Apr 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • Taxpayers must be age 70½ or older to make a Qualified Charitable Distribution (QCD). • A QCD allows a direct, tax-free transfer of up to $105,000 (indexed annually) from an IRA to an eligible charity. • The amount of the QCD can satisfy all or part of a taxpayer's Required Minimum Distribution (RMD) for the year. • A key exam trap is understanding that funds must go directly from the IRA to the charity; if the taxpayer receives them first, the distribution is taxable. • A QCD is excluded from the taxpayer's Adjusted Gross Income (AGI) and cannot also be claimed as an itemized charitable deduction. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 83, Health Savings Account Distributions

Tue, 07 Apr 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • Qualified HSA distributions for medical expenses are always tax-free and penalty-free. • Non-qualified distributions are subject to ordinary income tax plus a steep 20% penalty. • The 20% penalty is waived if the account holder is over age 65, disabled, or deceased, though the distribution is still taxable income. • All distributions are reported on Form 8889, where the taxpayer must prove expenses were qualified. • Do not confuse the 20% HSA penalty with the 10% early withdrawal penalty for other retirement accounts like IRAs. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 82, Statutory Employees and Form W-2

Mon, 06 Apr 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • How to identify a statutory employee on Form W-2 by looking for a check in Box 13. • The four specific categories of statutory employees, easily remembered with the "DISH" mnemonic. • Why statutory employees report their W-2 income on Schedule C, not as regular wages. • The unique tax withholding rule: FICA taxes are withheld, but federal income tax is not. • How statutory classification allows for the deduction of business expenses, a key exam concept. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 81, S Corporation Distributions and Basis

Sun, 05 Apr 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • How to determine if an S corporation distribution is a tax-free return of capital or a taxable capital gain. • The critical difference between stock basis and debt basis, and why only stock basis absorbs distributions tax-free. • The specific year-end basis ordering rule: Income first, then Distributions, then Losses. • How to apply the four-tier distribution system for S corps with prior C corporation Earnings and Profits (E&P). • Why shareholder basis is the ultimate limit for deducting S corporation losses passed through on Schedule K-1. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 80, Sale of Partnership Interest

Sat, 04 Apr 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The gain on a partnership interest sale is split between ordinary income and capital gain. • A partner's basis, crucial for the gain calculation, must be adjusted for all K-1 items like income, losses, and distributions. • Section 751 "hot assets," which are unrealized receivables and inventory, are what trigger ordinary income treatment. • Any gain remaining after accounting for the hot asset portion is treated as a capital gain. • Partnerships must file Form 8308 to report the sale of an interest involving hot assets to both the IRS and the partner. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 79, Excess Business Losses for Individuals

Fri, 03 Apr 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • How to calculate the excess business loss using the 2025 thresholds of $305,000 for single and $610,000 for joint filers. • That any disallowed excess business loss is treated as a Net Operating Loss (NOL) carryforward to subsequent tax years. • The critical order of loss limitations: basis, at-risk, and passive activity rules must be applied before the excess business loss limitation. • What constitutes a trade or business for this limitation, specifically excluding gains and losses from investment activities. • The purpose of Form 461, which is used to report and calculate the excess business loss limitation. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 78, Net Operating Losses (NOLs)

Thu, 02 Apr 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • How to apply the 80% taxable income limitation to Net Operating Loss deductions. • The modern rule for NOLs is indefinite carryforward with no carryback, except for specific farming losses. • Why nonbusiness deductions like the standard deduction cannot create or increase an NOL. • Common exam traps, such as confusing current NOL rules with outdated pre-TCJA or temporary CARES Act provisions. • The simple mnemonic "Eighty Forward Forever" to remember the core post-2020 NOL rules. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 77, Hobby Loss Rules

Wed, 01 Apr 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The post-TCJA rule: hobby income is fully taxable, while hobby expenses are entirely non-deductible. • How to apply the three-out-of-five-year presumption of profit, including the special two-out-of-seven-year rule for horses. • The purpose of the IRS's nine-factor test in determining if an activity is a business or a hobby. • A common exam trap of confusing hobby loss rules with separate passive activity loss limitations. • Why classifying an activity as a hobby can result in taxable income even with an overall economic loss. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 76, At-Risk Rules and Basis Limitations

Tue, 31 Mar 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • Loss deductions must sequentially clear three hurdles: Basis, At-Risk, and Passive (B-A-P). • S corp shareholders do not receive basis for entity-level debt, unlike partners in a partnership. • At-risk amounts generally include cash invested plus recourse debt, but exclude nonrecourse financing. • Form 6198 is used to calculate and apply the at-risk limitations to losses. • A key exam exception allows qualified nonrecourse financing for real estate activities to be included in the at-risk amount. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 75, Passive Activity Loss Carryovers

Mon, 30 Mar 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • Suspended passive losses are not permanently lost; they are carried forward indefinitely to future tax years. • Carryover losses are first used to offset passive income from any source before being applied to nonpassive income. • A complete, taxable disposition of a passive activity unlocks all suspended losses associated with that specific activity. • Upon death, suspended losses are deductible on the final return, but reduced by the step-up in basis. • When a passive activity is gifted, the suspended losses are added to the recipient's basis and are not deductible by the donor. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 74, Form 8863 - Education Credits

Sun, 29 Mar 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The AOTC is a per-student credit with a 40% refundable portion, while the LLC is a per-return credit and is entirely non-refundable. • Qualified education expenses must be reduced by tax-free assistance like scholarships and grants before any credit is calculated. • A student who can be claimed as a dependent cannot claim an education credit, even if the parent does not claim them. • AOTC qualified expenses include required course materials purchased from any vendor, whereas LLC expenses are more restricted. • Taxpayers with a Married Filing Separately status are ineligible to claim either the AOTC or the LLC. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 73, Form 8962 - Premium Tax Credit Reconciliation

Sat, 28 Mar 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • How to reconcile Advance Premium Tax Credits (APTC) with the final allowable Premium Tax Credit (PTC) on Form 8962. • The role of Modified AGI, the Federal Poverty Line (FPL), and the applicable figure in calculating a taxpayer’s required contribution. • Why the second-lowest-cost silver plan, or benchmark plan, is critical for determining the final PTC amount. • How income-based repayment limitations can cap the amount of excess APTC a taxpayer must pay back, a common exam trap. • A mnemonic to remember the PTC calculation and reconciliation process for exam day. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 72, Household Employment Taxes

Fri, 27 Mar 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The critical difference between the $2,700 annual FICA threshold and the $1,000 quarterly FUTA threshold for household employees. • That all household employment taxes (FICA and FUTA) are reported on Schedule H, which is filed with the employer's Form 1040. • Why a household employee must receive a Form W-2 and never a Form 1099-NEC, a common point of confusion on the exam. • That withholding federal income tax is optional and requires an agreement between the employer and employee via Form W-4. • How to apply the control test to determine if a worker is an employee, triggering Schedule H, or an independent contractor. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 71, Cancellation of Debt Income

Thu, 26 Mar 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • That cancelled debt is generally taxable income reported on Form 1099-C, but exam questions focus on the exceptions. • The insolvency exclusion is strictly limited to the amount by which total liabilities exceed the FMV of total assets immediately before the debt cancellation. • Debt discharged in a Title 11 bankruptcy case is always fully excluded from income, regardless of the taxpayer's solvency. • Excluding COD income under most exceptions requires a reduction of tax attributes on Form 982 in a specific, testable order. • Qualified Principal Residence Indebtedness exclusion requires a direct reduction to the basis of the home, not the standard attribute reduction order. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 70, Like-Kind Exchanges under Section 1031

Wed, 25 Mar 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • Why Section 1031 tax deferral now applies exclusively to real property and not personal property. • How to navigate the strict 45-day identification and 180-day receipt timelines, including a common exam trap involving tax return due dates. • The rule for recognizing gain when "boot," such as cash or debt relief, is received in an exchange. • The essential role of a Qualified Intermediary in preventing constructive receipt of funds. • That losses are never recognized in a like-kind exchange, a key distinction from gain recognition rules. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 69, Installment Sales and Form 6252

Tue, 24 Mar 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • How to calculate the gross profit percentage to determine the taxable gain recognized from each payment. • Why depreciation recapture under Sections 1245 and 1250 must be recognized in the year of sale. • The rule prohibiting dealers from using the installment method for sales of their inventory. • Key restrictions for installment sales of depreciable property between related parties. • The mnemonic "Dealers, Depreciation, and Dependents Don't Defer" to remember key exceptions. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 68, Basis of Inherited Property

Mon, 23 Mar 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • Inherited property’s basis is generally its Fair Market Value (FMV) on the decedent's date of death, and the holding period is always considered long-term. • The alternate valuation date (six months after death) can only be elected if it reduces both the gross estate value and the estate tax liability. • If an asset is sold within six months of death and the alternate valuation date is elected, its basis is the selling price, not the FMV on the alternate date. • In community property states, both the decedent's and the surviving spouse's shares of the property get a basis adjustment to FMV. • Income in Respect of a Decedent (IRD), such as a traditional IRA, is a major exception and does not receive a stepped-up basis. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 67, Gift Tax Fundamentals

Sun, 22 Mar 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • Learn when Form 709 is required for gifts exceeding the $19,000 annual exclusion (2025). • Understand how taxable gifts reduce the lifetime estate and gift tax exemption, even if no tax is paid immediately. • Distinguish between a "present interest" gift, which qualifies for the exclusion, and a "future interest" gift, which does not. • Identify the rules for gift splitting, which allows married couples to double the annual exclusion per recipient. • Recognize qualified transfers for tuition and medical expenses, which are unlimited and exempt from gift tax. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 66, Estate Tax Basics

Sat, 21 Mar 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • How to determine if a Form 706 is required based on the gross estate and basic exclusion amount. • Why life insurance proceeds are a common exam trap for inclusion in the gross estate. • The critical role of the unlimited marital deduction and its U.S. citizen spouse requirement. • When and why the portability election necessitates filing a Form 706 even for non-taxable estates. • The standard nine-month filing deadline for Form 706 and the available extension. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 65, Injured Spouse Claims

Fri, 20 Mar 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The critical difference between an Injured Spouse claim (Form 8379) for refund offsets and an Innocent Spouse claim (Form 8857) for tax liability relief. • How to identify the specific past-due obligations, like child support or student loans, that trigger the need for an injured spouse claim. • The two correct methods for filing Form 8379, either with the original joint return or by itself after an offset notice is received. • How to correctly allocate income, withholding, and credits to determine the injured spouse’s rightful portion of the seized refund. • The special allocation rules for taxpayers residing in community property states, which is a frequent exam complication. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 64, Innocent Spouse Relief

Thu, 19 Mar 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The distinct qualifications for Innocent Spouse Relief, Separation of Liability, and Equitable Relief under IRC Section 6015. • How the "reason to know" standard is a critical factor for the IRS to deny Innocent Spouse Relief. • The strict two-year deadline for filing Form 8857, which begins from the first IRS collection activity. • Why Separation of Liability is specifically for spouses who are divorced, legally separated, or living apart. • That Equitable Relief is the only option that can apply to an underpayment of tax, not just an understatement. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 63, Kiddie Tax Rules

Wed, 18 Mar 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The Kiddie Tax applies to unearned income for children under 19, or under 24 if a full-time student. • For 2025, the first $1,300 of unearned income is offset by the child's standard deduction and is tax-free. • The next $1,300 of unearned income is taxed at the child's own marginal tax rate. • Unearned income exceeding the $2,600 threshold is taxed at the parents' higher marginal rate using Form 8615. • The election to use Form 8814 is only available if the child's income consists solely of interest and dividends and meets specific criteria. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 62, Education Savings Accounts and 529 Plans

Tue, 17 Mar 2026 22:03:45 -0400

Enrolled Agent Exam [Part 1] 61, Military Tax Benefits

Mon, 16 Mar 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • How the combat zone pay exclusion differs for enlisted members versus commissioned officers. • The scope of the automatic extension of deadlines for filing, paying, and other tax acts. • How the Military Spouses Residency Relief Act (MSRRA) impacts a spouse's state income tax liability. • Why active-duty military members are a key exception to the suspension of the moving expense deduction. • When reserve and National Guard members can claim an above-the-line deduction for travel expenses. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 60, Identity Protection PIN and Fraud Prevention

Sun, 15 Mar 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The IP PIN is a mandatory six-digit number for taxpayers whom the IRS has issued one, used to validate identity when filing a tax return. • E-filed returns submitted without a required IP PIN are automatically rejected, while paper-filed returns without the PIN face significant processing delays. • Taxpayers can voluntarily obtain an IP PIN through the IRS's online tool, but they must pass a stringent identity verification process. • A new IP PIN is issued annually on a CP01A notice for confirmed identity theft victims and is only valid for that specific tax year. • If a client loses their IP PIN, the correct procedure is for them to retrieve it using the official IRS online portal, as the practitioner cannot obtain it for them. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 59, Prior Year Refund Applications

Sat, 14 Mar 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The three-year lookback period for refunds runs from the original due date, not an extended filing date. • The statute of limitations for claiming refunds on bad debts and worthless securities is a special seven-year period. • A protective claim formally preserves a taxpayer's right to a refund that depends on a future event. • How an informal claim, like a letter, can establish a timely filing date if later perfected. • The statute of limitations can be suspended during periods of medically-proven financial disability. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 58, Recovering Refunds and Amended Returns

Fri, 13 Mar 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The general rule for the statute of limitations for a refund is the later of 3 years from filing or 2 years from payment. • How to identify a common exam trap where an early-filed return is treated as filed on the due date for the 3-year rule. • How the 2-year rule from the date of tax payment can extend the amendment deadline. • Why you must always calculate both the 3-year and 2-year deadlines to select the later date on an exam question. • A simple mnemonic to remember the rule: "Three from filing, two from paying, whichever gives you more staying." For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 57, Underpayment Penalties and Exceptions

Thu, 12 Mar 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The underpayment penalty applies if a taxpayer pays less than the safe harbor amount, which is generally 90% of the current year's tax or 100% of the prior year's tax (110% for high-income taxpayers). • The annualized income installment method is crucial for taxpayers with uneven income streams, as it calculates required payments based on when income was actually earned. • The exam tests specific penalty exceptions, including recent retirement after age 62, becoming disabled, or experiencing a casualty or natural disaster. • A 'reasonable cause' waiver can be requested if the underpayment was not due to willful neglect, but this is a high standard to meet and requires detailed explanation. • Remember the mnemonic 'Don't Despair, Retire with Reason' to recall the key exceptions for the underpayment penalty: Disaster, Disability, Retirement, and Reasonable Cause. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 56, Estimated Tax Requirements

Wed, 11 Mar 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The $1,000 threshold that triggers the requirement to pay estimated taxes. • The two primary safe harbor rules to avoid underpayment penalties: 90% of the current year's tax or 100% of the prior year's tax. • The critical high-income exception, which increases the prior-year safe harbor to 110% if AGI exceeds $150,000. • How to use the annualized income method via Form 2210 for taxpayers with uneven income streams to avoid penalties. • The four specific quarterly payment due dates and the purpose of Form 1040-ES. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 55, Withholding and Form W-4

Tue, 10 Mar 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The redesigned Form W-4 uses direct dollar adjustments for withholding, not allowances. • For households with multiple jobs, checking the box in Step 2(c) on both W-4s is the simplest way to ensure accurate withholding. • Only the W-4 for the highest-paying job should include adjustments for dependents (Step 3) and other income/deductions (Step 4). • Step 4(c) is a key tool for employees to add extra withholding per paycheck to cover tax liability from other income sources, like a side business. • Failing to account for a spouse's income or other jobs is a major exam trap that leads to under-withholding penalties. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 54, Additional Medicare Tax

Mon, 09 Mar 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The 0.9% Additional Medicare Tax applies to earned income over $200,000 for single filers and $250,000 for joint filers. • Employers use a universal $200,000 wage threshold to begin withholding, regardless of the employee's actual filing status or total income. • A tax liability can exist without any employer withholding, especially for married couples where each spouse earns under $200,000 but their combined income exceeds $250,000. • Form 8959 is used to calculate and report the Additional Medicare Tax liability with the taxpayer's Form 1040. • This tax is separate from and in addition to regular Medicare and self-employment taxes, and it is never deductible. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 53, Net Investment Income Tax (NIIT)

Sun, 08 Mar 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • NIIT is a 3.8% tax calculated on the lesser of net investment income or the excess of Modified AGI over specific thresholds. • The critical MAGI thresholds to memorize are $250,000 for Married Filing Jointly, $200,000 for Single/Head of Household, and $125,000 for Married Filing Separately. • Investment income includes interest, dividends, capital gains, and passive rental income, but crucially excludes wages, active business income, and tax-exempt interest. • A major exam trap is miscalculating the tax base; it is not always the full amount of net investment income. • Taxpayers qualifying as real estate professionals who materially participate can treat their rental income as non-passive, thereby avoiding the NIIT on that income. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 52, Alternative Minimum Tax (AMT) - Individuals

Sat, 07 Mar 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • How the Alternative Minimum Tax (AMT) operates as a parallel tax system calculated on Form 6251. • Why state and local tax deductions, a key itemized deduction, are fully added back to determine AMT income. • The specific AMT adjustment required for the bargain element when Incentive Stock Options (ISOs) are exercised. • How the significant 2025 AMT exemption is phased out at higher income levels, a common exam testing point. • The difference between deferral and exclusion items and how it impacts the creation of the AMT credit carryforward. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 51, Tax Computation Methods

Fri, 06 Mar 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • To use IRS Tax Tables for taxable income under $100,000 and the Tax Computation Worksheet for income of $100,000 or more. • When to use the Qualified Dividends and Capital Gain Tax Worksheet to apply preferential tax rates. • Why the more complex Schedule D Tax Worksheet is required for situations like capital loss carryovers. • How the exam tests the specific income thresholds that determine the correct calculation method. • To spot common exam traps involving unrecaptured Section 1250 gain, which forces the use of the Schedule D Tax Worksheet. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 50, Other Nonrefundable Credits

Thu, 05 Mar 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • That Schedule R eligibility for the Elderly or Disabled Credit hinges on strict AGI and non-taxable income limitations, not just age. • How the Residential Energy Efficient Property Credit applies to major installations like solar panels and is not subject to a hard dollar cap. • Why the Plug-in EV Credit's eligibility is determined by the placed-in-service date and the taxpayer's modified AGI for that year. • That the Foreign Tax Credit is generally more beneficial than a deduction but is limited based on the U.S. tax liability on foreign-source income. • To always verify that a taxpayer's income and the specific property or vehicle meet the precise qualifications for these nonrefundable credits. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 49, Premium Tax Credit and Excess APTC Reconciliation

Wed, 04 Mar 2026 22:03:45 -0400

Enrolled Agent Exam [Part 1] 48, Residential Energy Credits

Tue, 03 Mar 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • How to distinguish between the Section 25C credit for home improvements and the Section 25D credit for clean energy systems. • The specific annual credit limits for Section 25C, including the $1,200 general cap and the separate $2,000 cap for heat pumps. • That the Section 25D credit is a straight 30% of the cost with no maximum dollar limit, a key exam distinction. • To identify that both credits are nonrefundable, but only Section 25D has a provision to carry forward unused credit amounts. • A simple mnemonic: “C is for Capped Components” and “D is for Dynamic Dollars” to recall the rules for each credit. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 47, Adoption Credit and Employer-Provided Benefits

Mon, 02 Mar 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The adoption credit is a nonrefundable credit with a five-year carryforward for unused amounts, reported on Form 8839. • You cannot claim both the tax credit and the income exclusion for employer-provided assistance for the same adoption expenses. • For a domestic adoption, the credit for expenses paid before the finalization year is claimed in the year AFTER payment. • For a foreign adoption, all expenses are claimed only in the year the adoption becomes final. • A domestic adoption of a child with special needs allows the taxpayer to claim the maximum credit amount, regardless of actual expenses paid. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 46, Retirement Savings Contributions Credit

Sun, 01 Mar 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The Saver's Credit is a non-refundable credit with a maximum of $1,000 for single filers and $2,000 for married couples filing jointly. • Eligibility requires being age 18 or older, not being a dependent, and not being a full-time student for five or more months. • The credit is calculated on the first $2,000 of retirement contributions per person ($4,000 for a joint return), not the total contribution amount. • The credit percentage (50%, 20%, or 10%) is strictly determined by the taxpayer's AGI and filing status, which must be referenced carefully. • A critical exam trap is reducing qualifying contributions by any recent retirement plan distributions taken by the taxpayer. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 45, Education Credits - Lifetime Learning Credit

Sat, 28 Feb 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The Lifetime Learning Credit is capped at $2,000 per tax return, not per student. • Qualified expenses are strictly limited to tuition and fees required for enrollment, differing from other education credits. • The LLC is a non-refundable credit, meaning it can only reduce tax liability to zero and no portion is paid out as a refund. • Unlike the AOTC, the LLC can be claimed for an unlimited number of years, making it suitable for graduate or professional development courses. • Taxpayers cannot claim both the LLC and the American Opportunity Tax Credit (AOTC) for the same student in the same tax year. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 44, Education Credits - American Opportunity Credit

Fri, 27 Feb 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The AOTC is worth up to $2,500 per student, calculated as 100% of the first $2,000 and 25% of the next $2,000 in expenses. • Qualified expenses include tuition, fees, and required course materials, but specifically exclude room, board, and transportation. • The credit is only available for a student's first four years of post-secondary education and they must be enrolled at least half-time. • If a student is a dependent, only the taxpayer who claims them can receive the AOTC, regardless of who paid the expenses. • Up to $1,000 (40%) of the AOTC is refundable, meaning a taxpayer can receive it even if they owe no tax. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 43, Earned Income Tax Credit (EITC)

Thu, 26 Feb 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • EITC is the largest refundable tax credit, providing a refund even with zero tax liability. • The 2025 investment income limit is a strict $11,950 cliff; exceeding it by one dollar means zero credit. • A qualifying child must meet four specific tests: Relationship, Age, Residency, and Joint Return (R-A-R-J). • Taxpayers must satisfy separate limits for both their earned income and their Adjusted Gross Income (AGI). • Taxpayers without a qualifying child can be eligible, but they must be between the ages of 25 and 65. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 42, Child and Dependent Care Credit

Wed, 25 Feb 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • A qualifying child must be under age 13; expenses stop qualifying on their 13th birthday. • Expenses must be for care, not education; overnight camps and school tuition are common non-qualifying examples. • The credit is limited by the lower of the two spouses' earned incomes. • A non-working student or disabled spouse is deemed to have earned income of $250 or $500 per month. • The maximum expenses used for the credit are $3,000 for one qualifying person and $6,000 for two or more. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 41, Child Tax Credit and Additional Child Tax Credit

Tue, 24 Feb 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The Child Tax Credit for 2025 increases to $2,200 per child under the One Big Beautiful Bill. • How to apply the "CARES" mnemonic to determine if a child is a qualifying child for the credit. • How the credit is reduced by $50 for every $1,000 of income over the $200,000 (Single) or $400,000 (MFJ) thresholds. • The rules for the refundable Additional Child Tax Credit (ACTC), which is capped at $1,700 per child. • That a taxpayer must have at least $2,500 in earned income to claim the refundable portion of the credit. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 40, QBI Deduction - Limitations and Phase-Outs

Mon, 23 Feb 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The critical 2025 QBI income thresholds ($197,300 Single / $394,600 MFJ) that trigger the complex limitations. • How the QBI deduction for a Specified Service Trade or Business (SSTB) is completely eliminated if taxable income exceeds the phase-out range. • The two-part calculation for the W-2 wage and unadjusted basis of qualified property (UBIA) limitation for taxpayers above the threshold. • The common exam trap of choosing the lesser of the 20% QBI calculation and the greater of the wage/property limitation formulas. • The conceptual purpose of the aggregation rule, which allows combining businesses to potentially increase the QBI deduction. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 39, Qualified Business Income (QBI) Deduction

Sun, 22 Feb 2026 22:03:45 -0400

Enrolled Agent Exam [Part 1] 38, Gambling Losses Deduction

Sat, 21 Feb 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • Gambling losses are only deductible up to the amount of your reported gambling winnings. • For casual gamblers, losses are an itemized deduction on Schedule A and do not reduce Adjusted Gross Income (AGI). • Professional gamblers report on Schedule C, but a net gambling loss cannot offset other types of income. • Gross winnings must be reported as income; you cannot simply report the net result of winnings minus losses. • The IRS requires strict documentation to substantiate claimed losses, and without it, the deduction can be fully disallowed. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 37, Casualty and Theft Loss Deductions

Fri, 20 Feb 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • Personal casualty and theft losses are only deductible if they occur in a federally declared disaster area. • The deductible loss is calculated by taking the lesser of the property's basis or the decrease in FMV, then subtracting insurance payouts. • Each casualty event is subject to a $100 reduction, followed by a reduction of 10% of the taxpayer's Adjusted Gross Income (AGI). • The strict disaster area rule does not apply to business or income-producing property, which is a common exam distinction. • Taxpayers may elect to deduct the loss on the tax return for the year preceding the disaster year, potentially for a greater tax benefit. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 36, Charitable Contributions - Property

Thu, 19 Feb 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • Deduct the Fair Market Value (FMV) for long-term capital gain property, but this deduction is limited to 30% of your Adjusted Gross Income (AGI). • For ordinary income property, such as business inventory or short-term capital assets, the deduction is capped at the lesser of the property's cost basis or its FMV. • Vehicle donation deductions are generally restricted to the gross proceeds the charity receives from its sale, an amount reported to the donor on Form 1098-C. • A qualified appraisal is mandatory for any noncash contribution of an item or a group of similar items valued at more than $5,000. • You must file Form 8283, Noncash Charitable Contributions, if your total deduction for all noncash gifts in a year exceeds $500. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 35, Charitable Contributions - Cash

Wed, 18 Feb 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The maximum deduction for cash contributions to public charities is limited to 60% of Adjusted Gross Income (AGI). • Excess contributions over the 60% AGI limit can be carried forward for a maximum of five years. • A canceled check is insufficient proof for any single donation of $250 or more; a formal written acknowledgment from the charity is required. • The deductible amount of a "quid pro quo" contribution must be reduced by the value of any benefit or service the donor receives. • Pandemic-era provisions allowing non-itemizers to deduct charitable contributions have expired and are not applicable for the 2025 tax year. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 34, Home Mortgage Interest Deduction

Tue, 17 Feb 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The home acquisition debt limit is $750,000 ($375,000 MFS) for mortgages taken out after December 15, 2017. • Mortgages from on or before December 15, 2017 are grandfathered under the older $1 million limit ($500,000 MFS). • Interest on home equity debt is only deductible if the proceeds are used to buy, build, or substantially improve the qualified residence. • Points paid on an original mortgage are deductible in the year paid, but points on a refinance must be amortized over the loan's life. • The interest amount on Form 1098 must be adjusted if the mortgage balance exceeds the legal debt limitations. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 33, State and Local Tax (SALT) Deduction

Mon, 16 Feb 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The SALT deduction is capped at $10,000 per household, or $5,000 for Married Filing Separately taxpayers. • The cap applies to the combined total of state/local income (or sales) taxes, real property taxes, and personal property taxes. • Property taxes on business or rental properties are fully deductible on business schedules (like Schedule E) and are not subject to the personal SALT cap. • Taxpayers must elect to deduct either state and local income taxes or state and local sales taxes, not both. • State Pass-Through Entity Tax (PTET) elections are a workaround that shifts the tax payment to the business entity, bypassing an individual's $10,000 limit. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 32, Medical and Dental Expenses

Sun, 15 Feb 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • Medical expenses are only deductible to the extent they exceed 7.5% of your Adjusted Gross Income (AGI). • Qualified expenses include insurance premiums paid with after-tax dollars, long-term care premiums up to age-based limits, and medical mileage. • A capital expenditure for medical care is only deductible for the amount exceeding the increase in the home's value. • Non-deductible items are common exam traps, including elective cosmetic surgery, gym memberships, and over-the-counter medicines without a prescription. • You cannot deduct expenses that have been reimbursed by insurance or paid with pre-tax dollars, such as through an employer-sponsored plan. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 31, Itemized Deductions - Overview

Sat, 14 Feb 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • Itemize on Schedule A only when total deductions exceed the standard deduction, which for 2025 is $15,750 for single filers. • Medical expense deductions are limited; only the amount exceeding 7.5% of your Adjusted Gross Income (AGI) is deductible. • The State and Local Tax (SALT) deduction, including property and income or sales taxes, is capped at $10,000 per household annually. • Home mortgage interest is only deductible on acquisition debt up to $750,000 for mortgages taken out after December 15, 2017. • Bunching is an exam-tested strategy where taxpayers consolidate deductible expenses into one year to surpass the standard deduction threshold. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 30, Moving Expenses for Armed Forces

Fri, 13 Feb 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The moving expense deduction is exclusively for active-duty Armed Forces members on a Permanent Change of Station (PCS); civilian moving costs are not deductible. • The old distance and time tests do not apply to qualifying military moves. • Deductible costs are unreimbursed expenses for moving household goods and personal travel, including lodging and transportation mileage. • An extremely common exam trap is the inclusion of meals; the cost of meals during a move is never deductible. • Use the mnemonic "PCS: Pack, Cars, Sleep" to remember the move must be a Permanent Change of Station and deductible costs include moving goods (Pack), transportation (Cars), and lodging (Sleep), but not meals. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 29, Educator Expenses Deduction

Thu, 12 Feb 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The Educator Expense Deduction is an 'above-the-line' adjustment, not an itemized deduction. • An 'eligible educator' must teach in a K-12 school for at least 900 hours per school year. • The deduction is capped at $300 per educator, with a $600 limit for married couples if both spouses are qualifying educators. • Qualifying expenses include classroom supplies and professional development, and are only deductible if unreimbursed. • Common exam traps involve non-eligible educators (like preschool teachers) and misinterpreting the $600 limit for married couples. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 28, Student Loan Interest Deduction

Wed, 11 Feb 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The student loan interest deduction is an "above-the-line" adjustment, available even if you don't itemize. • The maximum deduction is the lesser of $2,500 or the actual interest paid per return, per year. • The deduction is subject to strict Modified Adjusted Gross Income (MAGI) phase-out rules that are frequently tested. • Only the person legally obligated to repay the loan can claim the deduction, regardless of who actually makes the payment. • A loan only qualifies if it was for an eligible student, enrolled at least half-time, at an eligible educational institution. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 27, Traditional IRA Contributions and Deductions

Tue, 10 Feb 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The 2025 IRA contribution limits ($7,000) and the age 50+ catch-up provision ($1,000). • How "active participant" status on a W-2 is the first critical step in determining deductibility. • The Modified AGI phase-out ranges that limit deductions for active participants. • The critical contribution deadline which is the tax return's original due date, not the extended due date. • How spousal IRA rules allow non-working spouses to contribute and the unique deductibility rules that apply. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 26, Health Savings Accounts (HSA)

Mon, 09 Feb 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • HSA contributions for 2025 are capped at $4,300 for self-only and $8,550 for family coverage, with a $1,000 catch-up for those age 55 and over. • Eligibility requires coverage under a High-Deductible Health Plan (HDHP) and you cannot be enrolled in Medicare or be claimed as a dependent. • HSAs offer a triple tax advantage: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. • Using HSA funds for non-qualified expenses before age 65 results in the distribution being taxed as ordinary income plus a 20% penalty. • The 20% penalty on non-qualified distributions is waived if the account holder is age 65 or older, becomes disabled, or dies. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 25, Self-Employment Tax Calculation

Sun, 08 Feb 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • Always multiply net self-employment earnings by 92.35% before applying any tax rates. • The 15.3% SE tax combines a 12.4% Social Security tax up to the wage base limit ($176,100 for 2025) and a 2.9% Medicare tax with no income limit. • The deduction for one-half of the SE tax is an adjustment to income on Schedule 1, not a reduction of the SE tax itself. • W-2 wages count first toward the Social Security limit, reducing the amount of SE income subject to the 12.4% SS tax component. • The 0.9% Additional Medicare Tax is a separate tax for high earners and is not part of the standard 15.3% SE tax calculation. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 24, Adjustments to Income - Overview

Sat, 07 Feb 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • Adjustments to income, or "above-the-line" deductions, reduce your Adjusted Gross Income (AGI), the most critical number for determining tax benefits. • A lower AGI can increase eligibility for numerous tax credits and deductions that have income limitations. • The exam frequently tests specific deduction limits, such as the $300 for educator expenses and the $2,500 for student loan interest. • A common exam trap for the self-employed is knowing to deduct only one-half of the self-employment taxes paid, not the full amount. • You can claim adjustments to income even if you also take the standard deduction, unlike itemized deductions. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 23, Foreign Income and Foreign Accounts

Fri, 06 Feb 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • U.S. persons are subject to tax on their worldwide income, no matter where they reside. • Form 2555, the Foreign Earned Income Exclusion, applies only to earned income like salaries, not to investment income like dividends or interest. • You cannot claim the Foreign Tax Credit (Form 1116) for taxes paid on income you've already excluded with Form 2555. • An FBAR (FinCEN Form 114) filing is required if the combined value of all foreign financial accounts exceeds $10,000 at any time during the year. • The FBAR is a reporting form filed separately with FinCEN, not the IRS, and has significant penalties for non-compliance. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 22, Virtual Currency and Cryptocurrency Taxation

Thu, 05 Feb 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The IRS classifies virtual currency as property, meaning its use to buy goods or services is a taxable disposition. • Gains and losses from cryptocurrency transactions are reported on Form 8949 and Schedule D. • Income from mining is taxable as ordinary income at its fair market value on the date mined and may be subject to self-employment tax. • The basis in mined cryptocurrency is the amount included in income upon its creation. • The digital asset question on Form 1040 must be checked "yes" for most activities beyond simply buying and holding with U.S. dollars. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 21, Schedule 1 - Additional Income

Wed, 04 Feb 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • How Schedule 1 functions as a critical on-ramp for reporting additional income to the main Form 1040. • The "tax benefit rule" for state and local tax refunds, a frequently tested and tricky concept on the exam. • The correct reporting pathway for business income (Schedule C) and capital gains (Schedule D) through Schedule 1. • Why unemployment compensation is fully taxable and a common point of confusion for exam candidates. • The mnemonic "Itemized, It's In; Standard, Stay out" to instantly determine the taxability of a state tax refund. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 20, Alimony and Separate Maintenance

Tue, 03 Feb 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • Alimony is non-deductible and non-taxable for divorce agreements finalized after December 31, 2018. • For pre-2019 agreements, alimony remains deductible for the payer and taxable income for the recipient. • Modifying a pre-2019 agreement does not change its tax treatment unless the modification explicitly adopts the new TCJA rules. • Child support is never deductible or taxable, regardless of the divorce date, and the exam often tries to confuse it with alimony. • A key test of whether a payment is true alimony, under old rules, is if the payment obligation terminates upon the recipient's death. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 19, Unemployment Compensation and Other Income

Mon, 02 Feb 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • Unemployment compensation is always 100% taxable on a federal return, with no exceptions or income thresholds. • Gambling winnings are fully taxable income, and losses are only deductible up to the amount of winnings as an itemized deduction on Schedule A. • Prizes and awards, whether received as cash or property, must be included in gross income at their full fair market value. • Hobby income is fully reportable, but related expenses are not deductible, meaning a hobby cannot generate a taxable loss. • Jury duty pay is taxable, but if an employer requires an employee to turn it over, that amount can be deducted as an adjustment to income. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 18, Social Security Benefits Taxation

Sun, 01 Feb 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The provisional income formula is Modified AGI plus one-half of Social Security benefits. • The first-tier base amounts you must memorize are $25,000 for single filers and $32,000 for joint filers. • A zero-dollar base amount applies to Married Filing Separately taxpayers who lived together, a common exam trap. • Taxability is determined by a two-tier system, making 0%, up to 50%, or up to 85% of benefits taxable. • The taxable amount is always the result of a "lesser of" comparison, a crucial step in the calculation. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 17, Roth IRA Rules and Qualified Distributions

Sat, 31 Jan 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The 2025 Roth IRA contribution limits and the critical Modified Adjusted Gross Income (MAGI) phase-out ranges that determine eligibility. • The two-part test for a qualified distribution, combining a qualifying event (like age 59½) with the five-year holding period. • How the five-year holding period clock for initial contributions starts on January 1st of the first contribution's tax year. • The ordering rules for non-qualified distributions, remembered by the phrase "Can Everyone Get Paid?" which stands for Contributions, Conversions, and Earnings. • The distinction between the five-year clock for contributions and the separate five-year clock for each conversion, a common exam trap. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 16, IRA Distributions and Taxation

Fri, 30 Jan 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The baseline age 59½ rule for penalty-free traditional IRA distributions and the standard 10% early withdrawal penalty. • Key penalty exceptions, including the $10,000 lifetime limit for first-time homebuyers and unlimited withdrawals for qualified education expenses. • The timing rules for Required Minimum Distributions (RMDs), which must begin by April 1st of the year after the taxpayer turns 73. • How a Qualified Charitable Distribution (QCD) allows taxpayers over age 70½ to make tax-free donations that also satisfy their RMD. • The function of Substantially Equal Periodic Payments (SEPPs) as a method to receive penalty-free income before age 59½. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 15, Retirement Income - Pensions and Annuities

Thu, 29 Jan 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • How to differentiate between fully and partially taxable pension distributions based on contributions. • The step-by-step calculation for the taxable portion of an annuity using the Simplified Method. • How to interpret key distribution codes on Form 1099-R, such as Code 1 for early distributions. • The most common, testable exceptions to the 10% early withdrawal penalty, including disability and medical expenses. • Why a checked Box 2b on Form 1099-R is a critical signal that you must calculate the taxable amount. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 14, Passive Activity Loss Rules

Wed, 28 Jan 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • How passive activity losses (PALs) are generally only deductible against passive income, not active or portfolio income. • The mechanics of the special $25,000 loss allowance for individuals who actively participate in rental real estate. • The critical Modified Adjusted Gross Income (MAGI) phase-out range of $100,000 to $150,000 for the rental loss allowance. • The rules for carrying forward suspended passive losses and how they are fully released upon a taxable disposition of the activity. • How to meet the material participation standard, focusing on the 500-hour test, to reclassify an activity as non-passive. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 13, Depreciation of Rental Property

Tue, 27 Jan 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • How to distinguish between the 27.5-year residential and 39-year commercial depreciation periods. • Why you must always exclude the value of land from the depreciable basis of a property. • The correct way to calculate first-year depreciation using the mandatory mid-month convention. • How to identify the correct "placed-in-service" date, a common exam distraction. • The strict limitation preventing the use of Section 179 expensing on rental buildings. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 12, Rental Real Estate Income and Expenses

Mon, 26 Jan 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • How to correctly identify rental income, especially tricky items like security deposits and advance rent. • The default classification of all rental activities as passive, regardless of participation. • The specific requirements to qualify for the active participation exception. • How to apply the $25,000 maximum loss allowance against non-passive income. • The critical Modified AGI phase-out rule that reduces the $25,000 allowance for higher-income taxpayers. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 11, Sale of Principal Residence

Sun, 25 Jan 2026 22:03:45 -0400

Enrolled Agent Exam [Part 1] 10, Sale of Stocks and Bonds

Sat, 24 Jan 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • How to determine cost basis for securities using the default FIFO method versus specific identification. • The correct way to adjust a stock's per-share basis after a stock split or from reinvested dividends. • How the wash sale rule disallows a loss and requires an upward adjustment to the basis of the new shares. • The application of the $3,000 maximum annual capital loss deduction against ordinary income. • How to calculate the amount and determine the character of a capital loss carryover to future tax years. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 09, Capital Gains and Losses Introduction

Fri, 23 Jan 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The critical distinction between a capital asset (like a stock) and a non-capital asset (like a business delivery van). • How to master the holding period rule: a sale must occur *more than one year* after purchase to be long-term. • The proper reporting flow from the detailed transaction list on Form 8949 to the summary on Schedule D. • Why long-term gains on collectibles are taxed at a special 28% maximum rate, not the standard 0/15/20% rates. • How unrecaptured Section 1250 gain from depreciable real property is subject to a 25% maximum tax rate. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 08, Interest and Dividend Income

Thu, 22 Jan 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • Report all interest on Schedule B if it exceeds $1,500, but only include taxable interest in your gross income calculation. • Tax-exempt interest is shown on Schedule B for informational purposes but is not added to your taxable income on Form 1040. • Penalties for early withdrawal of savings are an above-the-line deduction on Schedule 1, not a direct reduction of interest income on Schedule B. • A dividend's "qualified" status, which grants a lower tax rate, depends on a specific holding period of more than 60 days. • Exceeding the investment income limit, such as the $11,950 threshold for tax year 2025, can disqualify a taxpayer from receiving credits like the Earned Income Tax Credit. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 07, Self-Employment Income Basics

Wed, 21 Jan 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • How to calculate net profit on Schedule C by subtracting ordinary and necessary expenses from gross receipts. • The critical factors the IRS uses to differentiate an employee from an independent contractor, focusing on the right to control. • Why bartered services must be included in gross receipts at their fair market value. • The common exam trap of distinguishing between currently deductible expenses and capital expenditures. • How net self-employment earnings are subject to SE tax and the proper placement of the one-half SE tax deduction. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 06, Wages, Salaries, and Tips

Tue, 20 Jan 2026 22:03:45 -0400

Enrolled Agent Exam [Part 1] 05, Gross Income Inclusions

Mon, 19 Jan 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • Gross income under IRC Section 61 includes all income from any source unless specifically excluded. • Income is taxable regardless of its form; bartered services and property are taxed at their fair market value. • Prizes, awards, and bonuses are fully includible in gross income, even if they are not received in cash. • Items labeled as "gifts" from an employer are almost always considered taxable compensation on the exam. • Your default exam assumption should be that any item of value received is taxable income. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 04, Dependent Rules and Requirements

Sun, 18 Jan 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The critical difference between the support tests for a qualifying child versus a qualifying relative. • Key age test requirements for a qualifying child, including the under 19, under 24 for students, and disability exceptions. • The strict gross income limit that a qualifying relative must meet to be claimed as a dependent. • How to apply the tie-breaker rules when a child is a qualifying child for multiple taxpayers. • The distinction between relatives who must live with you all year and those who do not. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 03, Standard Deduction for 2025

Sat, 17 Jan 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The specific 2025 standard deduction amounts for Single, MFJ, and Head of Household. • How to determine whether a taxpayer should take the standard deduction or itemize their deductions. • How the standard deduction is increased for taxpayers who are age 65 or older, or are blind. • How the new "One Big Beautiful Bill" creates a significant senior deduction that replaces the prior age-based add-on. • How to calculate a taxpayer's full standard deduction in a complex exam scenario involving multiple additional amounts. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 02, Filing Status Determination

Fri, 16 Jan 2026 22:03:45 -0400

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • Marital status for tax filing is determined on the last day of the year, December 31st. • The Head of Household status requires being unmarried, paying for more than half the cost of a home, and having a qualifying person reside there for more than half the year. • A taxpayer can claim Head of Household based on a dependent parent even if the parent does not live with them. • Qualifying Surviving Spouse status extends joint filing benefits for two years after a spouse's death if the survivor has a dependent child and remains unmarried. • The 'considered unmarried' rule allows a married individual to file as Head of Household if their spouse has not lived with them for the last six months of the year. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 1] 01, Introduction to Individual Taxation

Wed, 14 Jan 2026 21:58:00 -0400