EA Exam Part 1 (Individuals): Review Sheet, 2026 SEE

Scope: testing window July 1, 2026 to Feb 28, 2027 (PSI Candidate Information Bulletin; the course says May 1). Law as amended through 12/31/2025; questions refer to tax year 2025 unless stated otherwise. Format: 100 questions (85 scored + 15 unscored), 3.5 hours. Sources: Rev. Proc. 2024-40 as modified by OBBBA (P.L. 119-21), 2025 Form 1040 instructions, Pubs 17/501/590-A/590-B/596/970/915, PSI SEE bulletin, FinCEN, Form 2555 instructions. Built from EA Tax Training 2026 Part 1 videos 1–7.

1. Content outline weighting (scored questions)

#	Domain	Qs	% of 85	Heaviest topics	Course video
1	Preliminary Work & Taxpayer Data	14	16%	Filing requirements and status, dependents, residency, due dates, FBAR/8938, kiddie tax, ACA	V1, V5, V7
2	Income & Assets	17	20%	Wages and fringes, interest/dividends, COD, gambling, 1099s, retirement distributions, RMDs, Social Security, basis, capital gains, §121, 1031, installment sales, adjustments, HSA	V2, V3, V4, V6
3	Deductions & Credits	17	20%	Itemized (medical, SALT, interest, charity, casualty), QBI, CTC/ODC, CDCC, education, EITC, adoption, PTC, energy	V4, V5
4	Taxation	15	18%	AMT, household employees, estimated tax penalties, SE tax, NIIT, Additional Medicare, clergy, military, IRD	V5, V7
5	Advising the Individual Taxpayer	11	13%	Planning, education/estate/retirement planning, divorce, injured/innocent spouse, carryovers, amended returns	V6, V7
6	Specialized Returns for Individuals	11	13%	Estate tax (706), gift tax (709), FBAR vs 8938, foreign information returns, penalties	V7

Domains 2 and 3 together are 34 of 85 questions (40%). Domain 6 (gift, estate, foreign reporting) is small in practice but has 11 questions. Don't skip it.

2. Filing requirements and status (2025)

Status	Std deduction	Filing threshold <65	Threshold 65+	Add'l std ded per 65+/blind
Single	$15,750	$15,750	$17,750	$2,000
MFJ	$31,500	$31,500	$33,100 / $34,700	$1,600 each
MFS	$15,750	$5	$5	$1,600
HOH	$23,625	$23,625	$25,625	$2,000
QSS	$31,500	$31,500	$33,100	$1,600

Dependent std deduction: greater of $1,350 or earned income + $450.
Dependent must file if unearned > $1,350, earned > $15,750, or gross > the larger of $1,350 or earned + $450 (single, < 65).
Always file if: SE net earnings ≥ $400; church wages ≥ $108.28; APTC received; owe AMT, SE, or other special taxes.
Due dates (2025 returns):
Apr 15, 2026 (Wed)
Extension (4868) to Oct 15, 2026; extends filing only
Abroad: automatic to Jun 15, 2026
Combat zone: 180 days + days remaining in the filing period
QSS: spouse died 2023 or 2024, dependent child lived with you all year, you paid > ½ the home cost.
HOH: unmarried (or considered unmarried: spouse out of the home for the last 6 months), paid > ½ the home cost, qualifying person > ½ year (dependent parent can live elsewhere).
QC: under 19 / under 24 full-time student / disabled; lived with you > ½ year; didn't provide > ½ of own support.
QR: gross income < $5,200; you provide > ½ of support; member of household all year or a listed relative.
Multiple support: each claimant > 10%, Form 2120. Divorced parents: Form 8332 (gives CTC/ODC only).
Substantial presence test: ≥ 31 days this year and current + ⅓ prior + ⅙ second prior ≥ 183.

3. Tax rates (2025)

Rate	Single	MFJ/QSS	HOH	MFS
10%	≤ 11,925	≤ 23,850	≤ 17,000	≤ 11,925
12%	≤ 48,475	≤ 96,950	≤ 64,850	≤ 48,475
22%	≤ 103,350	≤ 206,700	≤ 103,350	≤ 103,350
24%	≤ 197,300	≤ 394,600	≤ 197,300	≤ 197,300
32%	≤ 250,525	≤ 501,050	≤ 250,500	≤ 250,525
35%	≤ 626,350	≤ 751,600	≤ 626,350	≤ 375,800
37%	above	above	above	above

LTCG / qualified dividends	Single	MFJ	HOH	MFS
0% up to	$48,350	$96,700	$64,750	$48,350
15% up to	$533,400	$600,050	$566,700	$300,000
20%	above	above	above	above

Unrecaptured §1250 gain: max 25%. Collectibles and taxable §1202 gain: max 28%.
Kiddie tax: unearned income over $2,700 is taxed at the parent's rate.
Applies under 18; age 18 or full-time students 19–23 if earned income ≤ ½ of support.
Form 8814 (parent's election): child's income < $13,500, interest/dividends only.
AMT:
Exemption $88,100 (single/HOH), $137,000 (MFJ), $68,500 (MFS)
Phase-out starts $626,350 / $1,252,700 (25¢ per $1)
26% / 28% break at $239,100 ($119,550 MFS)
Add back SALT, standard deduction, PAB interest, ISO spread
SE tax:
Net profit × 92.35% × 15.3% (12.4% SS up to $176,100 + 2.9% Medicare); ½ deductible
Additional Medicare 0.9%: wages/SE > $200,000 single/HOH, $250,000 MFJ, $125,000 MFS
NIIT 3.8%: lesser of NII or MAGI over the same thresholds
The 0.9% and 3.8% thresholds aren't indexed

4. Income items: key numbers

Item	2025
Health FSA	$3,300 (carryover $660 or 2½-month grace)
Transit/vanpool; parking (monthly, separate limits)	$325; $325
Educational assistance (incl. student loan payments)	$5,250
Group-term life tax-free coverage	$50,000
Dependent care assistance	$5,000 ($2,500 MFS)
LTC per diem exclusion	$420/day
Volunteer firefighter/EMS payments excluded	$50/month
Schedule B required	interest or ordinary dividends > $1,500
Qualified dividend holding period	> 60 days in the 121-day window (preferred: > 90 in 181)
Savings bond education exclusion phase-out	$99,500–$114,500 / MFJ $149,250–$179,250 (owner ≥ 24)
OID de minimis	< ¼% × redemption price × full years
1099-NEC / MISC threshold	$600 (→ $2,000 from 2026)
1099-K (third-party networks)	> $20,000 and > 200 transactions (OBBBA restored)
1099-C	$600+
Household employee W-2 / SS-Medicare threshold	$2,800; FUTA if $1,000 in any quarter
Olympic medal exclusion	AGI ≤ $1M ($500K MFS)
NOL (post-2020)	No carryback; carryforward indefinite; 80% of TI
Excess business loss	$313,000 / $626,000 MFJ
Capital loss deduction	$3,000 ($1,500 MFS); indefinite carryforward; lost at death
§121 home sale	$250,000 / $500,000 MFJ; 2-of-5 years ownership and use; once per 2 years
§1244 ordinary loss	$50,000 / $100,000 MFJ
§1202 QSBS	Greater of $10M ($5M MFS) or 10× basis; 100% for post-9/27/2010 stock held > 5 yrs
§1031	Real property only; identify within 45 days, receive by 180 days or the return due date
§1033 replacement period	2 yrs (3 yrs condemned business/investment real property; 4 yrs disaster main home)
Wash sale	30 days before/after
§1256 contracts	60% LT / 40% ST, marked to market
Social Security taxable	Up to 85%. Base $25,000 / $32,000 MFJ / $0 MFS living together; second tier $34,000 / $44,000

5. Adjustments and deductions (2025)

Item	2025
Educator expenses	$300 ($600 MFJ both), K–12, 900 hours
Student loan interest	$2,500; MAGI phase-out $85,000–$100,000 / $170,000–$200,000 MFJ; not MFS
Alimony	Deductible/taxable only for pre-2019 instruments
Moving	Active military (PCS) only
HSA	$4,300 self / $8,550 family; +$1,000 at 55+. HDHP minimum deductible $1,650 / $3,300; OOP max $8,300 / $16,600
Medical	> 7.5% of AGI. Lodging $50/night; mileage 21¢
LTC premium limits	≤40 $480; 41–50 $900; 51–60 $1,800; 61–70 $4,810; 71+ $6,020
SALT cap (OBBBA)	$40,000 ($20,000 MFS), reduced by 30% of MAGI over $500,000 ($250,000 MFS); floor $10,000 ($5,000 MFS)
Mortgage interest	$750,000 debt ($375,000 MFS) after 12/15/2017; $1,000,000 before. Home equity only if used to buy/build/improve. MIP not deductible in 2025
Charity AGI limits	Cash 60%; noncash 50%; capital gain property 30%; carryforward 5 yrs. Must itemize in 2025
Charity substantiation	≥ $250 written acknowledgment; > $500 Form 8283; > $5,000 qualified appraisal; quid-pro-quo disclosure > $75; vehicle > $500 limited to gross proceeds (1098-C)
Mileage (2025)	Business 70¢; medical/moving 21¢; charity 14¢
Casualty (federal disaster only)	−$100 per event, −10% of AGI. Qualified disaster: −$500, no 10% floor, can add to std deduction
Home office (self-employed)	Simplified $5/sq ft × 300 sq ft max = $1,500
Claim of right	Repayment > $3,000 → itemized deduction or §1341 credit
Gambling losses	Up to winnings; itemized only
2% miscellaneous itemized	Not deductible

New OBBBA Schedule 1-A deductions (2025–2028; claimable with the std deduction)

Deduction	Max	Phase-out (MAGI)	Notes
Qualified tips	$25,000 per return	−$100 per $1,000 over $150K / $300K MFJ	Listed tipped occupations; voluntary tips; MFS not allowed; SSN required
Qualified overtime	$12,500 / $25,000 MFJ	Same as tips	Only the FLSA premium (the "half" of time-and-a-half); MFS not allowed
Car loan interest	$10,000	−$200 per $1,000 over $100K / $200K MFJ	Loan after 2024; new; U.S. final assembly; < 14,000 lb; personal use; VIN
Senior deduction	$6,000 per person 65+	−6% of MAGI over $75K / $150K MFJ	SSN required; MFS not allowed

QBI (§199A)

Deduction = 20% of QBI + 20% of REIT/PTP income, capped at 20% × (TI − net capital gain).
Threshold $197,300 / $394,600 MFJ (full 20%, any business; Form 8995).
Phase-in range $50K / $100K. Fully phased at $247,300 / $494,600.
Above the range:
SSTB = $0
Others limited to the greater of 50% of W-2 wages or 25% of wages + 2.5% of UBIA (Form 8995-A)
QBI is reduced by ½ SE tax, SE health insurance, and SE retirement deductions.

6. Credits (2025)

Credit	Amount	Phase-out / key rule	Refundable?
Child tax credit	$2,200 per child < 17	−$50 per $1,000 over $200K / $400K MFJ. Child SSN; taxpayer SSN (OBBBA)	Up to $1,700 (ACTC; 15% of earned income over $2,500)
Credit for other dependents	$500	Same phase-out	No
Child & dependent care	20%–35% of $3,000 / $6,000	Child < 13; 20% once AGI > $43,000; provider can't be your child < 19	No
EITC	Max $649 / $4,328 / $7,152 / $8,046 (0/1/2/3+ children)	AGI limit (3+): $61,555 / $68,675 MFJ; 0 kids $19,104 / $26,214 MFJ; investment income ≤ $11,950; no-child age 25–64	Yes
AOTC	$2,500 per student (100% of $2,000 + 25% of $2,000)	MAGI $80K–$90K / $160K–$180K MFJ; first 4 years; ≥ half-time	40% (up to $1,000)
LLC	$2,000 per return (20% of $10,000)	Same phase-out	No
Adoption	$17,280 per child	MAGI $259,190–$299,190	Up to $5,000 (new 2025); 5-year carryforward
Premium tax credit	Via Form 8962	2025: no 400% FPL cap; excess APTC repayment caps $375–$1,625 single / $750–$3,250 others (< 400% FPL)	Yes
Saver's credit	50/20/10% of $2,000 ($4,000 MFJ)	AGI max $39,500 / $59,250 HOH / $79,000 MFJ	No
Energy efficient home improvement (§25C)	30%, $1,200/yr ($2,000 heat pumps); windows $600, doors $250/$500, audit $150	Ends after 12/31/2025; no carryforward	No
Residential clean energy (§25D)	30%	Ends after 12/31/2025; carryforward OK	No
New clean vehicle	Up to $7,500	Acquired by 9/30/2025; MSRP $80K / $55K; MAGI $300K MFJ / $225K HOH / $150K	No
Used clean vehicle	30%, max $4,000	Price ≤ $25K; MAGI $150K MFJ / $112.5K HOH / $75K	No

7. Retirement (2025)

Item	2025
IRA (traditional + Roth combined)	$7,000; +$1,000 at 50+; deadline Apr 15, 2026
Traditional IRA deduction, covered	Single/HOH $79,000–$89,000; MFJ $126,000–$146,000; MFS $0–$10,000
Spouse not covered, other spouse covered (MFJ)	$236,000–$246,000
Roth contribution phase-out	Single/HOH $150,000–$165,000; MFJ $236,000–$246,000; MFS $0–$10,000
401(k)/403(b)/457 deferral	$23,500; 50+ catch-up $7,500; ages 60–63: $11,250
SIMPLE	$16,500; catch-up $3,500; 60–63: $5,250
SEP / §415(c)	Lesser of 25% (SEP) / 100% of compensation or $70,000
QCD	Age 70½, $108,000 per person; counts toward the RMD
RMD	Age 73; first by April 1 of the following year; missed-RMD excise 25% (10% if timely corrected)
Early distribution	10% before 59½. Exceptions: medical > 7.5% AGI, disability, death, SEPP, higher ed (IRA), first home $10K (IRA), age-55 separation (plan), birth/adoption $5K, disaster $22K, domestic abuse $10,300 / 50%, emergency $1,000
Excess contribution	6% per year
Rollovers	60 days; 20% withholding on plan distributions paid to the participant; one IRA-to-IRA 60-day rollover per 12 months
Roth qualified distribution	5 years + 59½, disability, death, or first home ($10K)
Inherited (non-spouse, non-EDB)	10-year rule, with annual RMDs if the owner died after their RBD

8. Estimated tax, penalties, statutes

Estimated tax due: Apr 15, Jun 15 (Jun 16 in 2025), Sep 15, Jan 15.
No underpayment penalty if: < $1,000 due, or paid ≥ 90% of current-year tax, or 100% of prior-year tax (110% if prior-year AGI > $150,000). Form 2210.
Failure to file: 5%/month (max 25%). Fraud: 15%/month (max 75%). > 60 days late: minimum = lesser of $525 or 100% of tax due.
Failure to pay: 0.5%/month (max 25%). Interest compounds daily.
Amend: later of 3 years from filing or 2 years from payment. 7 years for bad debt / worthless securities; 10 years for FTC.
IRS assessment: 3 years; 6 years if > 25% of income omitted; unlimited for fraud or no return.

9. International, household, spouses, gift and estate

Item	2025
Foreign earned income exclusion	$130,000 per person; housing expense cap $39,000 (base 16% = $20,800); physical presence 330 days / 12 months; revoke → 5-year wait
Foreign tax credit	Carry back 1, forward 10; no 1116 if passive and ≤ $300 / $600
FBAR (FinCEN 114)	> $10,000 aggregate at any time; due Apr 15, auto-extended to Oct 15. Non-willful up to $16,536 per report (Bittner); willful greater of $165,353 or 50%
Form 8938 (U.S. resident)	> $50,000 year end / $75,000 any time (MFJ $100,000 / $150,000). Abroad: $200,000 / $300,000 (MFJ $400,000 / $600,000)
Passive rental allowance	$25,000; active participation (≥ 10%); phase-out 50% of MAGI over $100,000 (gone at $150,000)
Injured / innocent spouse	8379 / 8857
Divorce property transfers	No gain/loss within 1 year or under the instrument within 6 years
Estate/gift exemption	$13,990,000 (portability → $27,980,000)
Annual gift exclusion	$19,000 ($38,000 split); non-citizen spouse $190,000
Gift/estate tax rates	18%–40%; GST 40%
Form 709	Apr 15
Form 706	9 months after death (+6 months on Form 4768); file to elect portability
529	K–12 tuition $10,000/yr; student loans $10,000 lifetime; Roth rollover $35,000 lifetime; OBBBA expanded K–12 and credentialing for distributions after 7/4/2025
Coverdell	$2,000 per beneficiary; MAGI $95K–$110K / $190K–$220K; contribute until 18, distribute by 30
ABLE	$19,000 per year

10. Top 25 exam traps

MFS filing threshold is $5. SE income ≥ $400 always requires a return.
Marital status is tested on Dec 31. Spouse died in 2025 → MFJ for 2025, QSS for 2026–2027 (with a dependent child).
Can't switch from MFJ to MFS after the due date. MFS → MFJ is allowed within 3 years.
Form 8332 transfers only the CTC/ODC (dependency). It doesn't transfer HOH, EITC, or CDCC.
QR gross income must be < $5,200.
Constructive receipt: garnished wages and uncashed year-end checks are income now.
Transit and parking limits are $325 each (separate).
Federal tax refunds are never income. State refunds are taxable only if you itemized and got a benefit.
Alimony: only pre-2019 instruments are deductible/taxable. Child support is never either.
Gambling: report gross winnings; losses only as itemized, up to winnings.
Long-term = more than 1 year. Selling on the anniversary date is short-term.
Wash sale: 30 days before or after. The disallowed loss goes into the new shares' basis.
§121 MFJ $500K: one spouse meets ownership, both meet use.
1031: real property only; mortgage relief counts as boot.
SALT 2025 is $40,000 (not $10,000), phased down above $500K MAGI to a $10,000 floor.
MIP isn't deductible in 2025. The non-itemizer charity deduction starts 2026.
Tips cap is per return ($25,000 even if both spouses have tips). Overtime counts only the premium half.
CTC child under 17; CDCC child under 13; EITC QC under 19 / 24 student (no support test).
AOTC (40% refundable, 4 years, half-time) vs LLC (per return, nonrefundable).
HSA catch-up at 55; IRA and 401(k) catch-up at 50; super catch-up ages 60–63.
RMD at 73: the first one can be delayed to April 1, which means two RMDs in that year.
20% withholding on employer-plan rollovers paid to the participant. IRA-to-IRA: once per 12 months.
Social Security: max 85% taxable; $0 base for MFS living together.
FBAR (> $10K, FinCEN) vs 8938 (> $50K, IRS). Filing one doesn't excuse the other.
706 = estate (9 months); 709 = gift (Apr 15). The donor pays gift tax. Tuition and medical paid directly are unlimited exclusions.

11. OBBBA: what is and isn't on the 2026 exam

Tested (effective 2025)	Not tested (effective 2026+)
Std deduction $15,750 / $31,500 / $23,625	Non-itemizer charity $1,000 / $2,000; 0.5% charity floor; 35% itemized cap
SALT $40,000 cap with phase-down	Mortgage insurance premiums deductible again
Tips / overtime / car loan interest / senior Schedule 1-A deductions	Gambling losses limited to 90%
CTC $2,200 (ACTC $1,700); taxpayer SSN requirement	CDCC up to 50%; dependent care FSA $7,500
Adoption credit $5,000 refundable	APTC repayment caps eliminated
1099-K $20,000 / 200 restored	1099-NEC/MISC threshold $2,000
Clean vehicle credits end 9/30/2025; §25C/§25D end 12/31/2025	Estate/gift exemption $15M; Trump accounts
529 expansion (distributions after 7/4/2025)	529 K–12 $20,000/yr; QBI $400 minimum and wider phase-in
Qualified disaster loss window extended; EBL and many TCJA rules made permanent	Student loan COD exclusion ends (taxable from 2026)

12. Course vs IRS discrepancies (use the IRS figure)

Topic	Course says	IRS / official
2026 testing window	Starts May 1, 2026	July 1, 2026 to Feb 28, 2027 (PSI bulletin)
Domestic abuse victim distribution limit	$10,000	$10,300 for 2025 (or 50% of the account, if less) (Pub 590-B)
Duplex rental example (V7)	$8,850 deductible	$10,350: half of the $3,000 whole-house exterior painting is a common expense (Pub 527)
§1202 non-excluded gain rate (V3)	Max 25%	28% rate group (Schedule D instructions, §1(h)(4))
§1202 $5M MFS cap (V3)	New under OBBBA	Already in §1202(b)(3). The figure ($5M MFS) is the same
Nonstatutory stock options (V2)	Gain at capital gains rates	Spread at exercise is ordinary compensation (Pub 525)
Home equity interest (V4)	Qualifies in 2025 but not going forward	Deductible only if used to buy, build, or improve the home, in both 2025 and later (OBBBA made it permanent)
Second RMD date (V6)	"Dec 31, 2027" (turned 73 in 2025)	Dec 31, 2026
Foreign housing (V7)	Exclude up to $39,000	$39,000 is the expense cap. Exclusion = expenses over the $20,800 base
CDCC rate (V5)	Captions read "between 20% of expenses" (probably "20% to 35%" with words dropped)	20%–35% depending on AGI (20% once AGI > $43,000). Minor/uncertain
Involuntary conversion 3-year period (V3)	Business/investment real property	Only for condemnation of such property; otherwise 2 years