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Tax Exam Prep is a daily podcast designed to help future tax professionals pass their tax certification and licensing exams with clarity and confidence.
Built and operated by OpenExamPrep, this podcast breaks down major tax exams into focused, easy-to-digest episodes covering the CPA & Enrolled Agent (EA) Exam, including Part 1 (Individuals), Part 2 (Businesses), and Part 3 (Representation, Practices, and Procedures). Each episode targets one key tax concept, common exam trap, or high-frequency test topic—making it ideal for studying during commutes, workouts, or short study sessions.
Created by Ran Chen, EA, CFP®, a financial professional and exam specialist who has personally passed multiple professional licensing exams, Tax Exam Prep was developed from firsthand experience with how complex—and often poorly explained—tax exam material can be. The goal is simple: make tax exam preparation clearer, more accessible, and more effective through structured explanations and modern learning tools. Whether you’re preparing for the EA Exam, transitioning into a tax career, or reviewing before test day, this podcast is designed to guide you step by step—one concept at a time.
Free practice tools, AI-powered explanations, and additional exam prep resources are available at: https://open-exam-prep.com/
Built and operated by OpenExamPrep, this podcast breaks down major tax exams into focused, easy-to-digest episodes covering the CPA & Enrolled Agent (EA) Exam, including Part 1 (Individuals), Part 2 (Businesses), and Part 3 (Representation, Practices, and Procedures). Each episode targets one key tax concept, common exam trap, or high-frequency test topic—making it ideal for studying during commutes, workouts, or short study sessions.
Created by Ran Chen, EA, CFP®, a financial professional and exam specialist who has personally passed multiple professional licensing exams, Tax Exam Prep was developed from firsthand experience with how complex—and often poorly explained—tax exam material can be. The goal is simple: make tax exam preparation clearer, more accessible, and more effective through structured explanations and modern learning tools. Whether you’re preparing for the EA Exam, transitioning into a tax career, or reviewing before test day, this podcast is designed to guide you step by step—one concept at a time.
Free practice tools, AI-powered explanations, and additional exam prep resources are available at: https://open-exam-prep.com/
42 Episodes
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![Enrolled Agent Exam [Part 1] 43, Earned Income Tax Credit (EITC)](https://s3.castbox.fm/86/4a/85/384813c924e6aa6219be2e57ff7d294d5c_scaled_v1_400.jpg "Enrolled Agent Exam [Part 1] 43, Earned Income Tax Credit (EITC)")
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
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
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
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
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 basic Qualified Business Income (QBI) deduction.
• The critical 'lesser of' limitation that determines the final deduction amount.
• Why taxable income before the QBI deduction is a key figure in the calculation.
• The specific role of net capital gains in reducing the taxable income limitation.
• A common exam trap where test-takers forget to apply the taxable income 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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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