1 | Page
Hrb Final Exam Prep 2026 Questions And
Answers .
What is the Difference between earned income and unearned
income? - correct answer- Earned income is received for
services performed. Examples are wages commissions, tips
and generally farming and other business income . Taxable
income other than that received for services performed.
Unearned Income includes money received ro the investment
of money or other property, such as interest, dividends, and
royalties. It also includes pensions alimony, unemployment
compensation and other income that is not earned
If an employee thinks their Form W2 is incorrect, what should
they do? - correct answer- Employee should discuss with
employer who issued the document and request a W2C. If no
help from employer, notify IRS. Tax prepaper can then file a
substitute.
What information do you need to know to determine whether a
taxpayer is required to file a return? - correct answer- Gross
income, filing status, age and if they are a dependent
For tax purposes, when is a person's marital status determined?
- correct answer- On the last day of the tax year
,2 | Page
Where on the tax form can you find the regular standard
deduction amounts? - correct answer- Line 22 on 1040A, In the
left margin at the top of the page 2 of forms 1040 and 1040A.
Look at actual form to look for line
How much is added to the standard deduction if the taxpayer
(or spouse is age 65 or older, or blind? - correct answer- $1550
if unmarried, $1250 if married
What is the personal exemption amount for 2016? - correct
answer- $4,050
What two amounts are combined to make up the gross income
filing requirments for most taxpayers? - correct answer- The
standard deduction and the personal exemption amounts
Under what circumstances might a taxpayer be required to file
a return even though they do not meet the gross income filing
requirements? - correct answer- 1. Has net employment of
$400 or more net self employment 2. You had unemployment
income you owe medicare Advantage MSA, receive HAS,
Archer, MSA 3. Reeived an Advanced Premium Tax credit even
if they didn't otherwise have a filing requirment for the year
*Tips, HSA, SE $400, PTC
,3 | Page
What is the difference between injured spouse allocation and
innocent spouse relief? - correct answer- The difference
between injured spouse and innocent spouse is significant in
the eyes of the IRS. Both release you from an income tax
liability arising from a "married filing jointly" return but different
outcomes. Innocent spouse filed a joint return byt was unaware
that their spouse deliberately under reported tax liability. Injured
spouse seeks to protect his or her share of the refund in case it
gets seized or offset due to the other spouse's debts or unpaid
obligations
CHAPTER 3: DEPENDENT EXEMPTIONS AND SUPPORT -
correct answer-
What four requirements must be met for an individual to be
claimed as a dependent - correct answer- Must pass the
dependent test, joint return test, citizenship, qualifying child or
relative
What are the five tests for a qualifying child? - correct answer-
1. Relationship 2. Age 3. Residency 4. Support 5. Joint Return
, 4 | Page
How can a married individual meet the joint return test to
remain a qualifying child? - correct answer- They can meet this
test by not filing a joint return with their spouse or they can file a
joint return with their spouse if they are filing only to claim a
refund on any taxes withheld
How can you determine who paid more than half of a person's
support? - correct answer- Total support is determined and
reduced by the funds received by and for the person from all
sources other than the taxpaer. The remaining support is
considered to be provided by the taxpayer. Other sources might
include government support Worksheet for Determining
Support
What happens if an individual is a qualifying child of more than
one taxpayer? - correct answer- Generally, the custodial parent
is the one in which the child spent the most nights
What happens when more than one taxpayer claims the same
qualifying child? - correct answer- Tie Breaker Rules apply : 1.
The parent, if only one of the persons is the childs parent 2.
The parent with whom the child lived the longest during the tax
3. The parents with the highest AGI if no parent can claim the
child as a qualifying child
Hrb Final Exam Prep 2026 Questions And
Answers .
What is the Difference between earned income and unearned
income? - correct answer- Earned income is received for
services performed. Examples are wages commissions, tips
and generally farming and other business income . Taxable
income other than that received for services performed.
Unearned Income includes money received ro the investment
of money or other property, such as interest, dividends, and
royalties. It also includes pensions alimony, unemployment
compensation and other income that is not earned
If an employee thinks their Form W2 is incorrect, what should
they do? - correct answer- Employee should discuss with
employer who issued the document and request a W2C. If no
help from employer, notify IRS. Tax prepaper can then file a
substitute.
What information do you need to know to determine whether a
taxpayer is required to file a return? - correct answer- Gross
income, filing status, age and if they are a dependent
For tax purposes, when is a person's marital status determined?
- correct answer- On the last day of the tax year
,2 | Page
Where on the tax form can you find the regular standard
deduction amounts? - correct answer- Line 22 on 1040A, In the
left margin at the top of the page 2 of forms 1040 and 1040A.
Look at actual form to look for line
How much is added to the standard deduction if the taxpayer
(or spouse is age 65 or older, or blind? - correct answer- $1550
if unmarried, $1250 if married
What is the personal exemption amount for 2016? - correct
answer- $4,050
What two amounts are combined to make up the gross income
filing requirments for most taxpayers? - correct answer- The
standard deduction and the personal exemption amounts
Under what circumstances might a taxpayer be required to file
a return even though they do not meet the gross income filing
requirements? - correct answer- 1. Has net employment of
$400 or more net self employment 2. You had unemployment
income you owe medicare Advantage MSA, receive HAS,
Archer, MSA 3. Reeived an Advanced Premium Tax credit even
if they didn't otherwise have a filing requirment for the year
*Tips, HSA, SE $400, PTC
,3 | Page
What is the difference between injured spouse allocation and
innocent spouse relief? - correct answer- The difference
between injured spouse and innocent spouse is significant in
the eyes of the IRS. Both release you from an income tax
liability arising from a "married filing jointly" return but different
outcomes. Innocent spouse filed a joint return byt was unaware
that their spouse deliberately under reported tax liability. Injured
spouse seeks to protect his or her share of the refund in case it
gets seized or offset due to the other spouse's debts or unpaid
obligations
CHAPTER 3: DEPENDENT EXEMPTIONS AND SUPPORT -
correct answer-
What four requirements must be met for an individual to be
claimed as a dependent - correct answer- Must pass the
dependent test, joint return test, citizenship, qualifying child or
relative
What are the five tests for a qualifying child? - correct answer-
1. Relationship 2. Age 3. Residency 4. Support 5. Joint Return
, 4 | Page
How can a married individual meet the joint return test to
remain a qualifying child? - correct answer- They can meet this
test by not filing a joint return with their spouse or they can file a
joint return with their spouse if they are filing only to claim a
refund on any taxes withheld
How can you determine who paid more than half of a person's
support? - correct answer- Total support is determined and
reduced by the funds received by and for the person from all
sources other than the taxpaer. The remaining support is
considered to be provided by the taxpayer. Other sources might
include government support Worksheet for Determining
Support
What happens if an individual is a qualifying child of more than
one taxpayer? - correct answer- Generally, the custodial parent
is the one in which the child spent the most nights
What happens when more than one taxpayer claims the same
qualifying child? - correct answer- Tie Breaker Rules apply : 1.
The parent, if only one of the persons is the childs parent 2.
The parent with whom the child lived the longest during the tax
3. The parents with the highest AGI if no parent can claim the
child as a qualifying child
