AI for Tax Planning Scenarios Quiz

Answers and explanations appear as you take the quiz.

1. When modeling a Roth conversion, why does the guide say planners look two years ahead for Medicare costs?
   • Roth accounts become taxable after two years
   • IRMAA surcharges are based on income from two years earlier
   • Conversions take two years to process
   • Medicare enrollment happens every two years
2. What changed for Roth conversions starting in 2018, according to the guide?
   • Conversions became tax-free
   • Conversions were limited to $10,000 a year
   • Conversions can no longer be undone through recharacterization
   • Only people under 50 can convert
3. In an S corporation election scenario, what must the owner be paid, according to the guide?
   • Reasonable compensation
   • Minimum wage only
   • No salary at all
   • A salary equal to all profits
4. Why does the guide recommend a deterministic rules engine rather than a language model for the tax arithmetic?
   • Language models cannot read tax returns
   • Rules engines are always free
   • Clients prefer spreadsheets
   • A single dollar can cross a phase-out or IRMAA tier, and generated arithmetic is error-prone
5. A couple bunches two years of charitable gifts into one year through a donor-advised fund. What is the goal?
   • To avoid all income tax
   • To itemize in one year and take the standard deduction in the other
   • To qualify for Medicare earlier
   • To convert the gifts into a Roth IRA
6. What does the guide call the most common misconception about AI planning software?
   • That it can read PDFs
   • That it runs multiple scenarios
   • That it finds the right answer, when conclusions depend on assumptions
   • That it requires an internet connection
7. Before modeling from extracted return data, what check does the guide suggest?
   • Reconcile extracted totals with summary lines such as AGI and taxable income
   • Email the return to the IRS
   • Delete the original document
   • Round all figures to the nearest thousand
8. Which output helps a client see how robust a Roth conversion recommendation is?
   • A single projected tax bill
   • A marketing brochure
   • A list of IRS form numbers
   • A sensitivity table varying future tax rates and return assumptions