Tax Laws Tested

Question: What tax laws are tested on the CPA exam?

Answer: 1. Technically, all tax laws are testable by the AICPA six months after becoming effective. Therefore, 2008 tax law can be tested. However, the AICPA does not update the exam every quarter. Therefore, you may see some questions or parts of Simulations with outdated tax laws. Just use what is given.

2. The AICPA does NOT generally test COLA numbers. These are the numbers such as the standard deduction, personal exemption, etc. These numbers are given to you, and you must use them appropriately.

3. The AICPA generally does NOT test phaseout numbers that change from year to year. Therefore, most of the phaseouts for the credits are not tested.

4. The AICPA does NOT test on actual tax rate schedules. These will be given in the question.

5. The AICPA DOES test on some actual credit amounts and the rules that allow the credit to be taken.