HR BLOCK FINAL TEST EXAM 112 VERIFIED
QUESTIONS AND ANSWERS UPDATED 2026 ||
GRADED A+
Which of the following is a requirement for all taxpayers who want to claim the
EIC?
Live in the U.S. for more than half a year.
Have a valid social security number.
Have a qualifying child dependent.
Have AGI less than $21,430 ($27,380 MFJ). - CORRECT ANSWER - Have a
valid social security number.
A combined due diligence penalty of $2,180 would indicate a penalty for which of
the following?
EIC, CTC/ODC/ACTC, and head of household.
EIC, AOTC, and CTC/ODC/ACTC.
EIC, AOTC, CTC/ODC/ACTC, and head of household.
EIC, PTC, CTC/ODC/ACTC, and head of household. - CORRECT ANSWER
- EIC, AOTC, CTC/ODC/ACTC, and head of household.
When dependent care benefits are withheld from a taxpayer's income, where are
they reported by the employer?
,Form 2441.
Form 1040.
Box 10 of Form W-2.
The employer is not required to report them. - CORRECT ANSWER - Box 10
of Form W-2.
All of the following are due diligence requirements a tax preparer must meet for
EIC, AOTC, CTC/ODC/ACTC, and HOH, EXCEPT:
Investigate and verify the accuracy of information the taxpayer provides to show
eligibility for EIC, AOTC, CTC/ODC/ACTC, and HOH.
Complete all worksheets used to compute the credits. If the worksheet is completed
by hand, keep a copy in the taxpayer's client file.
Maintain a copy of documents provided by the taxpayer that the tax preparer relied
on when determining credit eligibility. Then record the date the information was
obtained and the name of who provided the information.
When information provided by the taxpayer appears to be incorrect, inconsistent,
or incomplete, the tax preparer must make additional inquiries to determine if the
taxpayer is eligible for the benefit. Then document both the questions asked and
responses provided. - CORRECT ANSWER - Investigate and verify the
accuracy of information the taxpayer provides to show eligibility for EIC, AOTC,
CTC/ODC/ACTC, and HOH.
, When a taxpayer receives Form 1099-R with no amount entered in box 2a and
code 7 entered in box 7, the entire distribution:
Could be partly or entirely taxable.
Is never taxable.
Is an early distribution and taxable.
Has been rolled into a traditional IRA or into another qualified plan. -
CORRECT ANSWER - Is never taxable.
What is the maximum amount of the American Opportunity Tax Credit a taxpayer
could receive per student?
$1,650
$1,800
$2,000
$2,500 - CORRECT ANSWER - $2,500
Which test for a qualifying child does NOT need to be met in order for the child to
be a qualifying person for purposes of Earned Income Credit (EIC)?
Age.
Relationship.
Residency.
Support. - CORRECT ANSWER - Support.
Which of the following expenses qualifies for an education credit in 2021?
QUESTIONS AND ANSWERS UPDATED 2026 ||
GRADED A+
Which of the following is a requirement for all taxpayers who want to claim the
EIC?
Live in the U.S. for more than half a year.
Have a valid social security number.
Have a qualifying child dependent.
Have AGI less than $21,430 ($27,380 MFJ). - CORRECT ANSWER - Have a
valid social security number.
A combined due diligence penalty of $2,180 would indicate a penalty for which of
the following?
EIC, CTC/ODC/ACTC, and head of household.
EIC, AOTC, and CTC/ODC/ACTC.
EIC, AOTC, CTC/ODC/ACTC, and head of household.
EIC, PTC, CTC/ODC/ACTC, and head of household. - CORRECT ANSWER
- EIC, AOTC, CTC/ODC/ACTC, and head of household.
When dependent care benefits are withheld from a taxpayer's income, where are
they reported by the employer?
,Form 2441.
Form 1040.
Box 10 of Form W-2.
The employer is not required to report them. - CORRECT ANSWER - Box 10
of Form W-2.
All of the following are due diligence requirements a tax preparer must meet for
EIC, AOTC, CTC/ODC/ACTC, and HOH, EXCEPT:
Investigate and verify the accuracy of information the taxpayer provides to show
eligibility for EIC, AOTC, CTC/ODC/ACTC, and HOH.
Complete all worksheets used to compute the credits. If the worksheet is completed
by hand, keep a copy in the taxpayer's client file.
Maintain a copy of documents provided by the taxpayer that the tax preparer relied
on when determining credit eligibility. Then record the date the information was
obtained and the name of who provided the information.
When information provided by the taxpayer appears to be incorrect, inconsistent,
or incomplete, the tax preparer must make additional inquiries to determine if the
taxpayer is eligible for the benefit. Then document both the questions asked and
responses provided. - CORRECT ANSWER - Investigate and verify the
accuracy of information the taxpayer provides to show eligibility for EIC, AOTC,
CTC/ODC/ACTC, and HOH.
, When a taxpayer receives Form 1099-R with no amount entered in box 2a and
code 7 entered in box 7, the entire distribution:
Could be partly or entirely taxable.
Is never taxable.
Is an early distribution and taxable.
Has been rolled into a traditional IRA or into another qualified plan. -
CORRECT ANSWER - Is never taxable.
What is the maximum amount of the American Opportunity Tax Credit a taxpayer
could receive per student?
$1,650
$1,800
$2,000
$2,500 - CORRECT ANSWER - $2,500
Which test for a qualifying child does NOT need to be met in order for the child to
be a qualifying person for purposes of Earned Income Credit (EIC)?
Age.
Relationship.
Residency.
Support. - CORRECT ANSWER - Support.
Which of the following expenses qualifies for an education credit in 2021?
