H&R Block Income Tax Course Exam
Questions and Verified Answers
100% Guarantee Pass
1. Due Diligence
Answer: Requirements that tax professionals must follow when preparing income tax returns.
2. Estimated Tax
Answer: The amount of tax a taxpayer expects to owe for the year after subtracting expected amounts withheld
and certain refundable credits.
3. Estimated Tax Voucher
Answer: A statement by an individual of (1) the amount of income tax he estimates he will incur during the
current taxable year on income that is not subject to withholding, (2) the excess amount over that withheld on income
which is subject to withholding, and (3) his estimated self-employment tax.
4. Exemption from Withholding
Answer: Status claimed on Form W-4 directing the employer not to withhold federal income taxes from
the employee.
5. Underpayment Penalty
,Answer: If a taxpayer did not pay enough tax on a timely basis during the year, he may be required to pay an
underpayment penalty.
6. Two Ways to Pay as You Go
Answer: Withholding and Estimated Tax Payments
7. Form W-4
Answer: Employee's Withholding Allowance Certificate
8. Form 4868
Answer: Application for Automatic Extension of Time To File U.S. Individual Income Tax Return
9. Amended Return
Answer: A tax return filed on Form 1040X after the original return has been filed.
10. Closed Year
Answer: A tax year for which the statute of limitations has expired.
11. Open Year
Answer: A taxable year for which the statute of limitations has not yet expired.
12. Failure-to-File Penalty
Answer: Generally 5% for each month or part of a month the return is late, but not more than 25% of the tax
not paid.
13. Failure to File
Answer: Taxpayer fails to file the return by the due date, and there is a balance due.
,14. Form 1040X
Answer: Amended U.S. Individual Income Tax Return
15. When can an amended return be filed?
Answer: Within three years of the date the original return was filed, or within two years of the date the tax
was paid, whichever is later.
16. Can the 1040X be e-filed?
Answer: No.
17. Portfolio Income and Losses
Answer: Those from such sources as dividends, interest, capital gains and losses, and royalties.
18. Schedule E
Answer: Supplemental Income and Loss
19. Royalty
Answer: Payments received for the right to extract natural resources from the taxpayer's property or to use a
taxpayer's literary, musical, or artistic creation.
20. Annuity
Answer: A series of payments under a contract made at regular intervals over a period of more than one year.
21. Beneficiary
Answer: The owner or recipient of funds in an account, such as an IRA, or from an insurance policy or will.
22. Contribution
, Answer: When a person puts money into a retirement plan.
23. Defined Benefit Plan
Answer: An employee benefit plan that provides determinable benefits not based on employer profits.
24. Defined Contribution Plan
Answer: An employee benefit plan that provides a separate account for each person covered and pays
benefits based on account earnings.
25. Disability Pension
Answer: A taxable pension from an employer-funded disability plan or a disability provision of a retirement
plan.
26. Distribution
Answer: When a person takes or receives money from a retirement plan.
27. Pension
Answer: Generally a series of definitely determinable payments made to a taxpayer after retirement from work.
28. Rollover
Answer: A qualified transfer of funds from one tax-favored account to another, usually of the same type.
29. Roth IRA
Answer: A type of individual retirement arrangement in which contributions are not tax deductible, earnings grow
tax deferred, and qualified withdrawals are tax free.
30. Traditional IRA
Questions and Verified Answers
100% Guarantee Pass
1. Due Diligence
Answer: Requirements that tax professionals must follow when preparing income tax returns.
2. Estimated Tax
Answer: The amount of tax a taxpayer expects to owe for the year after subtracting expected amounts withheld
and certain refundable credits.
3. Estimated Tax Voucher
Answer: A statement by an individual of (1) the amount of income tax he estimates he will incur during the
current taxable year on income that is not subject to withholding, (2) the excess amount over that withheld on income
which is subject to withholding, and (3) his estimated self-employment tax.
4. Exemption from Withholding
Answer: Status claimed on Form W-4 directing the employer not to withhold federal income taxes from
the employee.
5. Underpayment Penalty
,Answer: If a taxpayer did not pay enough tax on a timely basis during the year, he may be required to pay an
underpayment penalty.
6. Two Ways to Pay as You Go
Answer: Withholding and Estimated Tax Payments
7. Form W-4
Answer: Employee's Withholding Allowance Certificate
8. Form 4868
Answer: Application for Automatic Extension of Time To File U.S. Individual Income Tax Return
9. Amended Return
Answer: A tax return filed on Form 1040X after the original return has been filed.
10. Closed Year
Answer: A tax year for which the statute of limitations has expired.
11. Open Year
Answer: A taxable year for which the statute of limitations has not yet expired.
12. Failure-to-File Penalty
Answer: Generally 5% for each month or part of a month the return is late, but not more than 25% of the tax
not paid.
13. Failure to File
Answer: Taxpayer fails to file the return by the due date, and there is a balance due.
,14. Form 1040X
Answer: Amended U.S. Individual Income Tax Return
15. When can an amended return be filed?
Answer: Within three years of the date the original return was filed, or within two years of the date the tax
was paid, whichever is later.
16. Can the 1040X be e-filed?
Answer: No.
17. Portfolio Income and Losses
Answer: Those from such sources as dividends, interest, capital gains and losses, and royalties.
18. Schedule E
Answer: Supplemental Income and Loss
19. Royalty
Answer: Payments received for the right to extract natural resources from the taxpayer's property or to use a
taxpayer's literary, musical, or artistic creation.
20. Annuity
Answer: A series of payments under a contract made at regular intervals over a period of more than one year.
21. Beneficiary
Answer: The owner or recipient of funds in an account, such as an IRA, or from an insurance policy or will.
22. Contribution
, Answer: When a person puts money into a retirement plan.
23. Defined Benefit Plan
Answer: An employee benefit plan that provides determinable benefits not based on employer profits.
24. Defined Contribution Plan
Answer: An employee benefit plan that provides a separate account for each person covered and pays
benefits based on account earnings.
25. Disability Pension
Answer: A taxable pension from an employer-funded disability plan or a disability provision of a retirement
plan.
26. Distribution
Answer: When a person takes or receives money from a retirement plan.
27. Pension
Answer: Generally a series of definitely determinable payments made to a taxpayer after retirement from work.
28. Rollover
Answer: A qualified transfer of funds from one tax-favored account to another, usually of the same type.
29. Roth IRA
Answer: A type of individual retirement arrangement in which contributions are not tax deductible, earnings grow
tax deferred, and qualified withdrawals are tax free.
30. Traditional IRA
