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IRS Special Enrollment Examination (SEE) for Enrolled Agents

3. Deductions and credits: practice questions

Our Enrolled Agent (SEE) bank has 56 questions on this topic. Here are 5 of them with answers; the full mock exam draws from every topic, like the real one.

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Question 1

Which tax is NOT deductible as an itemized deduction?

  1. Personal property tax based on a car's value
  2. State income tax
  3. Federal income tax
  4. Real estate tax on a personal home
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C. Federal income tax — Federal income, Social Security and estate taxes are not deductible. State and local income (or sales), real property and value-based personal property taxes are, subject to the SALT cap.

Question 2

For 2025, the child and dependent care credit is based on up to how much of qualifying expenses for two or more qualifying persons?

  1. $5,000
  2. $6,000
  3. $8,000
  4. $3,000
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B. $6,000 — Expenses up to $3,000 for one qualifying person or $6,000 for two or more count, multiplied by 20%-35% depending on AGI.

Question 3

For 2025, the child tax credit is a maximum of how much per qualifying child?

  1. $3,000
  2. $1,700
  3. $2,200
  4. $2,000
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C. $2,200 — The One Big Beautiful Bill Act raised the 2025 child tax credit to $2,200 per child. Up to $1,700 per child is refundable as the additional child tax credit.

Question 4

Which of these is deductible as a charitable contribution?

  1. Out-of-pocket costs of uniforms required for volunteer work
  2. A gift to a specific needy family
  3. A political campaign contribution
  4. The value of volunteer time
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A. Out-of-pocket costs of uniforms required for volunteer work — Unreimbursed expenses of volunteering, such as required uniforms and 14 cents a mile for 2025, are deductible. The value of services and gifts to individuals or political organizations are not.

Question 5

Which business is a specified service trade or business (SSTB) for the QBI deduction?

  1. A manufacturing plant
  2. An architecture firm
  3. A medical practice
  4. An engineering firm
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C. A medical practice — SSTBs include health, law, accounting, actuarial science, performing arts, consulting, athletics, financial and brokerage services. Engineering and architecture are specifically excluded.

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