EA Part 1 study guide
EA Part 1 · Work through your exam, one topic at a time.
EA Part 1 - Special Enrollment Examination, Part 1: Individuals is the individuals-focused paper in the IRS Special Enrollment Examination, the testing sequence that leads to Enrolled Agent status - the credential that allows a practitioner to represent taxpayers before the IRS. It is written for working return preparers, accountants, bookkeepers moving into representation work, and career-changers who need a verifiable professional credential rather than a course certificate. The EA Part 1 study guide has 6 sections and about 1,842 words.
01Preliminary Work with Taxpayer Data
Preliminary work begins with facts: identity, age, blindness, marital status on December 31, residence, and who paid whose support. Filing status drives rates, the standard deduction, and credit eligibility.
341 words, about 2 min02Income and Assets
Gross income is all income from whatever source derived unless specifically excluded. Wages, salaries, tips, interest, dividends, rents, royalties, annuities, pensions, and unemployment compensation are includible.
326 words, about 2 min03Deductions and Credits
Deductions reduce income; credits reduce tax dollar-for-dollar, and refundable credits can generate a refund. Above-the-line adjustments include deductible traditional IRA contributions, HSA contributions, one-half of self-employment tax, self-employed health insurance, student loan interest (up to 2,500 with phaseout), and alimony paid under pre-2019 divorce instruments.
286 words, about 1 min04Taxation
Start with total income, subtract adjustments to reach AGI, then subtract the standard or itemized deduction and the qualified business income deduction to reach taxable income. Ordinary income uses the progressive rate schedules or tax tables.
300 words, about 2 min05Advising the Individual Taxpayer
Advising starts with the rules that bind the preparer. Circular 230 requires due diligence, competence, and client consent before using taxpayer information for purposes other than preparing the return.
294 words, about 1 min06Specialized Returns and Taxpayers
Sole proprietors report business income and expenses on Schedule C and pay self-employment tax on 92.35% of net earnings, subject to the Social Security wage base. Partners and S corporation shareholders receive Schedule K-1 and must respect basis limits: a partner's basis cannot go below zero, and losses suspend until basis is restored.
295 words, about 1 min