Registered Tax Return Preparer RTRP Practice Exam

Question: 1 / 400

What type of income cannot be claimed on Form 1040A?

Investment income

Student loan interest deduction

The correct answer is that student loan interest deduction cannot be claimed on Form 1040A. Form 1040A is a simplified version of the individual income tax return that allows taxpayers to report certain types of income and deductions without the complexity of itemizing. While it does allow for some deductions, taxpayers cannot claim certain specified deductions like the student loan interest deduction directly on this form. Instead, this deduction is typically reported on the main Form 1040.

Investment income, business profits, and rental income can be included on Form 1040A as they fall within the categories of income that the form is designed to handle. This highlights that the other types of income mentioned can indeed be reported, whereas the student loan interest deduction is restricted from being included on this simplified return.

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Business profits

Rental income

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