Enrolled Agent Exam – Part 1 (Individuals) - Exam Weighting - Taxpayer Data and Filing Requirements

Sep 26, 2026

Uploaded by Dipper

Comprehensive outline for the Enrolled Agent Exam Part 1 focused on Individuals, detailing how exam points are distributed across six domains. It explains preliminary work with taxpayer data, including filing status rules, who must file under IRC §6012, income threshold concepts, dependent filing tests, and key special filing circumstances such as self-employment net earnings and marketplace premium tax credits. It also covers gross income definitions under IRC §61, major inclusions and exclusions, and common exam traps plus practice examples.

LanguageEnglish

CategoryExam

FormatPDF

Pages80

Reading Time3 h 22 min

AccessFree to download

Domain 1: Preliminary Work with Taxpayer Data (17%)

Filing Requirements

Gross Income – Definitions (IRC §61)

Exam Focus Points

Examples for Practice

Summary for EA Exam

Income Recordkeeping

General Recordkeeping Rules

Wage & Salary Income

Non-Employee & Miscellaneous Income

PCS eLearn 2024/2026 Enrolled Agent Exam – Part 1 (Individuals) Exam Weighting: • Domain 1: Preliminary Work with Taxpayer Data – 17% • Domain 2: Income and Assets – 21% • Domain 3: Deductions and Credits – 21% • Domain 4: Taxation and Advice – 18% • Domain 5: Specialized Returns for Individuals – 13% • Domain 6: Completion of the Filing Process – 10% | Domain 1: Preliminary Work with Taxpayer Data (17%)
Covers initial preparation, gathering info, and compliance requirements.
• Filing Requirements
o Who must file; thresholds; gross income definitions
o Filing status (single, MFJ, MFS, HoH, qualifying surviving spouse)
o Dependents: relationship, residency, age, support tests
• Income Recordkeeping
o W-2, 1099 series, K-1, brokerage statements
o Documentation for Social Security, retirement, unemployment, gambling
• Other Information Gathering
o Prior-year returns, estimated tax payments, extensions, withholding
o Taxpayer identification numbers (SSN, ITIN, ATIN)
o Foreign financial assets reporting requirements (FBAR, Form 8938) | | --- | | Filing Requirements | 1. Who Must File a Return? Rule (IRC §6012): An individual must file an income tax return if gross income is at least equal to the standard deduction plus the applicable additional standard deduction(s) for their filing status, age, and blindness. Key Filing Requirement Thresholds (2024 for reference – exam often uses general rules, not a specific year): • Single under 65: must file if gross income ≥ standard deduction. • Single 65+: threshold is higher (extra standard deduction) . • Married Filing Jointly (MFJ) : both under 65 vs. one or both over 65 changes threshold. • Married Filing Separately (MFS): must file if any gross income. • Head of Household (HOH) and Qualifying Widow(er): own thresholds. Special Filing Situations (must file regardless of income): • Net self-employment income ≥ $400 (Schedule SE) . • Received advance premium tax credit (Health Insurance Marketplace) . • Owe special taxes (e.g., AMT, household employment tax, first-time homebuyer credit recapture, etc.) . • Recapture of IRA tax, additional tax on HSAs/MSAs. Dependent Filing Requirements: A dependent must file if: • Unearned income > standard deduction for dependents (limited) . • Earned income > standard deduction. • Gross income > larger of $1,300 (2024) or earned income + $450, but not above standard deduction for single. 2. Gross Income – Definitions (IRC §61) General Rule (IRC §61(a)): Gross income = “all income from whatever source derived”unless specifically excluded by law. Examples of Gross Income (inclusions): • Compensation for services (wages, fees, fringe benefits) . • Business income. • Gains from property dealings. • Interest, dividends, rents, royalties. • Alimony (pre-2019 agreements) . • Annuities, pensions. • Partnership income (K-1) . • Income from discharge of indebtedness (§108 exceptions) . • Unemployment compensation. • Prizes, awards, gambling winnings. Exclusions from Gross Income (not taxable): • Gifts & inheritances (§102) . • Life insurance proceeds (§101) . • Municipal bond interest (§103) . • Certain fringe benefits (meals, lodging, employer-provided healthcare, de minimis) . • Qualified scholarships/fellowships (§117) . • Certain disaster relief payments (§139) . | 3. Exam Focus Points
• Threshold traps:
o MFS → must file if any gross income, no threshold.
o Self-employed → must file if net earnings ≥ $400 .
o Dependents → need to know earned vs unearned income tests.
• Gross Income “catch-all”: If not specifically excluded, it’s included.
o EA questions often test: “Is this included in gross income?”
• Common trick areas:
o Social Security → partially taxable depending on provisional income.
o Alimony → only taxable/deductible for pre-2019 agreements.
o Cancelled debt → income unless exception app

FAQs

Who must file an individual income tax return under IRC §6012?

An individual must file when gross income is at least equal to the standard deduction plus applicable additional standard deductions based on filing status, age, and blindness. Specific filing-status rules and special situations override the threshold approach.

What counts as gross income and what is excluded?

Gross income is “all income from whatever source derived” unless excluded by law (IRC §61). Common inclusions include wages, interest, dividends, alimony for pre-2019 agreements, and certain partnership and unemployment income; exclusions include gifts and inheritances, life insurance proceeds, municipal bond interest, and qualified scholarships/fellowships.

What are the key exam traps in determining filing requirements and gross income?

Common traps include MFS requiring a return with any gross income, self-employed filing when net earnings are at least $400, and dependent earned-vs-unearned income tests. The outline also highlights issues like partially taxable Social Security, the timing rules for alimony, and that canceled debt is generally income unless an exception applies.

Sep 26, 2026

Uploaded by Dipper