HR BLOCK Final Test Review (ITC 2026) || Most Recent Exam
2026-2027 Actual Complete Real Exam Questions And
Correct Answers (Verified Answers) Already Graded
A+ | Guaranteed Success!! | Newest Exam |
Just Released!!
Where is income tax withheld from a retirement account or IRA
distribution reported on the tax return? - ANSWER -Amounts
withheld and reported to the taxpayer on Form 1099-R are
included on Form 1040 or Form 1040-SR, line 25b.
How do you determine the taxable portion of a social security
distribution? - ANSWER -The amount of a taxpayer's social
security or tier 1 railroad retirement benefits subject to federal
tax varies from zero to 85%, depending upon filing status and
income. The level of taxability is based on MAGI increased by
one-half of the net benefits received by the taxpayer (and
spouse, if MFJ).
The taxable portion is calculated using the Social Security
Taxable Benefits
Worksheet.
When is an asset held long-term? - ANSWER -In general, assets
held for more
,than one year are long-term. Assets held for one year or less
are short-term.
Define basis. - ANSWER -Basis is a measure of the taxpayer's
investment in
property, which is used to determine gain or loss for
tax purposes
What is the cost basis of purchased property? - ANSWER -The
basis of property acquired by purchase is generally the cost,
which includes cash paid, the fair market value (FMV) of
services rendered, and the FMV of property traded in exchange
for the property. It also includes certain closing costs, such as
commissions paid by the purchaser, legal and recording fees,
and state transfer taxes on real estate.
On what schedule do you report the gain or loss from the
sale of a capital
asset? - ANSWER -Schedule D, Capital Gains
and Losses.
What are the long-term capital gain tax rates? - ANSWER -
Long-term capital
gains are taxed at lower rates than ordinary income and
short-term capital
gains.
For 2021, the maximum tax rates for most long-term capital
gains are:
,0% on taxable income less than $80,800 MFJ/QW, $54,100 HH,
and $40,400
S/MFS that otherwise would be taxed at
higher tax rates.
15% on taxable income greater than the amounts listed
above and below
$501,600 MFJ/QW, $473,750 HH, $445,850 S, and
$250,800 MFS.
20% on any amount above the maximum 15%
rate amount.
What income is taxed at the 28% maximum rate? - ANSWER -
Long-term gain
from the sale of collectibles and certain gain from the sale of
qualified small
business
stock.
What is the maximum net capital loss that a taxpayer may
deduct in one year? - ANSWER -Capital losses may be used to
offset capital gains from the sale of other property. If a
taxpayer's capital losses exceed their capital gains, they can
use up to $3,000 of the excess loss to offset ordinary income
each year. For taxpayers using the MFS filing status, the
amount that can be used to offset ordinary income is limited to
$1,500 each year.
, What does Form 1099-B report? What about Form 1099-S? -
ANSWER -Form 1099-B is used by brokers to report the
proceeds from the sale of shares of stock, mutual funds,
bonds, commodities, futures contracts, foreign currency
contracts, and other securities.
Form 1099-S is used by the person responsible for the closing
of a real estate transaction to report the sales proceeds.
When can a taxpayer exclude all or some of the gains from
the sale of their
home? - ANSWER -A taxpayer can exclude up to $250,000
($500,000 MFJ) on
the sale of their main home if they owned the home and used it
as their main residence for at least two of the last five years
and did not exclude the gain from the sale of another home in
the two-year period ending on the date of the sale.
How do you determine whether someone is an employee or
an independent
contractor? - ANSWER -There are three main factors to look
at to determine
whether someone is an employee or independent
contractor.
Does the employer have a right to direct and control the
behavior of the employee?
Does the employer have the right to control the business
portion of the work? How do the employer and employee view
2026-2027 Actual Complete Real Exam Questions And
Correct Answers (Verified Answers) Already Graded
A+ | Guaranteed Success!! | Newest Exam |
Just Released!!
Where is income tax withheld from a retirement account or IRA
distribution reported on the tax return? - ANSWER -Amounts
withheld and reported to the taxpayer on Form 1099-R are
included on Form 1040 or Form 1040-SR, line 25b.
How do you determine the taxable portion of a social security
distribution? - ANSWER -The amount of a taxpayer's social
security or tier 1 railroad retirement benefits subject to federal
tax varies from zero to 85%, depending upon filing status and
income. The level of taxability is based on MAGI increased by
one-half of the net benefits received by the taxpayer (and
spouse, if MFJ).
The taxable portion is calculated using the Social Security
Taxable Benefits
Worksheet.
When is an asset held long-term? - ANSWER -In general, assets
held for more
,than one year are long-term. Assets held for one year or less
are short-term.
Define basis. - ANSWER -Basis is a measure of the taxpayer's
investment in
property, which is used to determine gain or loss for
tax purposes
What is the cost basis of purchased property? - ANSWER -The
basis of property acquired by purchase is generally the cost,
which includes cash paid, the fair market value (FMV) of
services rendered, and the FMV of property traded in exchange
for the property. It also includes certain closing costs, such as
commissions paid by the purchaser, legal and recording fees,
and state transfer taxes on real estate.
On what schedule do you report the gain or loss from the
sale of a capital
asset? - ANSWER -Schedule D, Capital Gains
and Losses.
What are the long-term capital gain tax rates? - ANSWER -
Long-term capital
gains are taxed at lower rates than ordinary income and
short-term capital
gains.
For 2021, the maximum tax rates for most long-term capital
gains are:
,0% on taxable income less than $80,800 MFJ/QW, $54,100 HH,
and $40,400
S/MFS that otherwise would be taxed at
higher tax rates.
15% on taxable income greater than the amounts listed
above and below
$501,600 MFJ/QW, $473,750 HH, $445,850 S, and
$250,800 MFS.
20% on any amount above the maximum 15%
rate amount.
What income is taxed at the 28% maximum rate? - ANSWER -
Long-term gain
from the sale of collectibles and certain gain from the sale of
qualified small
business
stock.
What is the maximum net capital loss that a taxpayer may
deduct in one year? - ANSWER -Capital losses may be used to
offset capital gains from the sale of other property. If a
taxpayer's capital losses exceed their capital gains, they can
use up to $3,000 of the excess loss to offset ordinary income
each year. For taxpayers using the MFS filing status, the
amount that can be used to offset ordinary income is limited to
$1,500 each year.
, What does Form 1099-B report? What about Form 1099-S? -
ANSWER -Form 1099-B is used by brokers to report the
proceeds from the sale of shares of stock, mutual funds,
bonds, commodities, futures contracts, foreign currency
contracts, and other securities.
Form 1099-S is used by the person responsible for the closing
of a real estate transaction to report the sales proceeds.
When can a taxpayer exclude all or some of the gains from
the sale of their
home? - ANSWER -A taxpayer can exclude up to $250,000
($500,000 MFJ) on
the sale of their main home if they owned the home and used it
as their main residence for at least two of the last five years
and did not exclude the gain from the sale of another home in
the two-year period ending on the date of the sale.
How do you determine whether someone is an employee or
an independent
contractor? - ANSWER -There are three main factors to look
at to determine
whether someone is an employee or independent
contractor.
Does the employer have a right to direct and control the
behavior of the employee?
Does the employer have the right to control the business
portion of the work? How do the employer and employee view
