HRB CERTIFICATION SCRIPT 2026
COMPLETE QUESTIONS AND CORRECT
ANSWERS
◉What form is used to report HSA contributions and determine any
allowable deduction? Answer: Form 8889. Reported on Form 1040
Line 25.
◉What is a qualified retirement plan? Answer: A plan which is
eligible for favorable tax treatment because it meets the
requirements of IRC §401(a) and the Employment Retirement
Income Security Act of 1974 (ERISA) (21.2)
◉What is the 2009 contribution limit to 401(k) plans? Answer: •
The maximum contribution for 2009 is $16,500 (and 2010).
• Taxpayers age 50 and above are allowed a $5,500 annual "catch-
up" contribution. (21.4)
◉In tax terms, what is it called when a taxpayer puts money into an
IRA? Answer: Contribution.
◉What is it called when a taxpayer takes money out of an IRA?
Answer: Distribution.
,◉What is it called if a taxpayer takes money out of one IRA and puts
it into another (and all requirements are met)? Answer: Roll-over.
◉What is the last date on which a contribution may be made and
qualify as a contribution for a given year? Answer: The due date
(not including extensions) of the return for that year.
◉Why is it important to distinguish between taxpayers who are
active participants in an employer-maintained retirement plan and
those who are not? Answer: • Those who are not active participants
and whose spouses are not active participants may deduct the full
amount they contribute to a traditional IRA, assuming they stay
within the contribution limits.
• Those who are active participants or whose spouses are active
participants may still contribute within the limits but may find their
allowable deduction reduced or eliminated. (21.13)
◉What are the main differences between traditional IRAs and Roth
IRAs? Answer: • Contributions to a Roth IRA are never deductible,
but qualified distributions are exempt from tax.
• Participation in an employer-maintained retirement plan has no
effect on Roth IRA contributions, and contributions can be made
after the taxpayer has reached age 70½.
• As long as they have compensation, contributions to Roth IRAs are
not reported on the tax return. (21.15)
, ◉Under what circumstances do you need to determine whether a
taxpayer paid over half of the cost of maintaining his home?
Answer: If you are determining if the taxpayer may be considered
unmarried, a qualifying widow(er), or head of household. (5.2)
◉What are some of the costs of maintaining a home? Answer: •
Rent
• Mortgage interest
• Real Estate Taxes
• Homeowners Insurance
• Property Taxes
• Repairs
• Utilities
• Food eaten in the home
(5.3)
◉What requirements must be met for a taxpayer to use the
qualifying widow(er) status? Answer: • The death of the taxpayer's
spouse must have occurred during one of the two preceding tax
years;
• The taxpayer must not have remarried and must have been
entitled to file a joint return for the year of death.
COMPLETE QUESTIONS AND CORRECT
ANSWERS
◉What form is used to report HSA contributions and determine any
allowable deduction? Answer: Form 8889. Reported on Form 1040
Line 25.
◉What is a qualified retirement plan? Answer: A plan which is
eligible for favorable tax treatment because it meets the
requirements of IRC §401(a) and the Employment Retirement
Income Security Act of 1974 (ERISA) (21.2)
◉What is the 2009 contribution limit to 401(k) plans? Answer: •
The maximum contribution for 2009 is $16,500 (and 2010).
• Taxpayers age 50 and above are allowed a $5,500 annual "catch-
up" contribution. (21.4)
◉In tax terms, what is it called when a taxpayer puts money into an
IRA? Answer: Contribution.
◉What is it called when a taxpayer takes money out of an IRA?
Answer: Distribution.
,◉What is it called if a taxpayer takes money out of one IRA and puts
it into another (and all requirements are met)? Answer: Roll-over.
◉What is the last date on which a contribution may be made and
qualify as a contribution for a given year? Answer: The due date
(not including extensions) of the return for that year.
◉Why is it important to distinguish between taxpayers who are
active participants in an employer-maintained retirement plan and
those who are not? Answer: • Those who are not active participants
and whose spouses are not active participants may deduct the full
amount they contribute to a traditional IRA, assuming they stay
within the contribution limits.
• Those who are active participants or whose spouses are active
participants may still contribute within the limits but may find their
allowable deduction reduced or eliminated. (21.13)
◉What are the main differences between traditional IRAs and Roth
IRAs? Answer: • Contributions to a Roth IRA are never deductible,
but qualified distributions are exempt from tax.
• Participation in an employer-maintained retirement plan has no
effect on Roth IRA contributions, and contributions can be made
after the taxpayer has reached age 70½.
• As long as they have compensation, contributions to Roth IRAs are
not reported on the tax return. (21.15)
, ◉Under what circumstances do you need to determine whether a
taxpayer paid over half of the cost of maintaining his home?
Answer: If you are determining if the taxpayer may be considered
unmarried, a qualifying widow(er), or head of household. (5.2)
◉What are some of the costs of maintaining a home? Answer: •
Rent
• Mortgage interest
• Real Estate Taxes
• Homeowners Insurance
• Property Taxes
• Repairs
• Utilities
• Food eaten in the home
(5.3)
◉What requirements must be met for a taxpayer to use the
qualifying widow(er) status? Answer: • The death of the taxpayer's
spouse must have occurred during one of the two preceding tax
years;
• The taxpayer must not have remarried and must have been
entitled to file a joint return for the year of death.
