HR BLOCK TEST EXAM 2026 QUESTION BANK
TAX LAW AND COMPLIANCE MODULE
SOLVED ITEMS AND RESPONSE KEY
◉ the deduction for state and local income taxes is limited to what
amount? Answer: a. $10,000 ($5,000 if MFS).
◉ A married couple who materially participate in the operation of a
jointly owned business may elect for each spouse to file their own
Schedule C, with each reporting their respective amounts of income,
loss, and deductions. This known as what? Answer: C. A qualified
joint venture
◉ Stock owned by an individual would be classified as what type of
property? Answer: a. Intangible personal, investment -use property
◉ Which of the following is not deductible on Schedule A? Answer:
C. Federal taxes withheld.
◉ Which of the following types of property may be depreciated?
Answer: d. a copier purchased by a tax preparation office.
,◉ a taxpayer who actively participates in a rental real estate activity
may, in many cases, deduct up to what amount of rental losses
against any other kind of income? Answer: a. 25,000
◉ A sole proprietor who computes self-employment tax should be
filling what form? Answer: b. Schedule SE.
◉ An employee tells their employer how much income tax to
withold from their taxable wages by completing what form? Answer:
C. Form W-4.
◉ The IRS may assess penalties on taxpayers for which of the
folllowing? Answer: d. All of the Above
◉ Which of the following best describes gross income? Answer: a. all
income from whatever source derived, unless excluded from
taxation by law
◉ Which of the following best describes earned income? Answer: c.
Income received for services, performed, including wages,
commissions, tips, and generally, farming and other business
income.
,◉ Which of the following taxpayers is not required to file a federal
tax return for 2019? Answer: d. Ron (66) and sue (64) have gross
income of $ 25,250. they wish to file a joint return
◉ In 2019, Jennfier's (27) brother, jim (18), her fiancee Steve(29)
and her daughter, Kim (5) lived with her for the entire year.
Jennfier's AGI is $27,800, Jim's AGI is $5,050, Steve AGI is $4,0050,
and Kim had no icome. Jim and Kim did not provide over 50% of
steve's support. Jennifer quailties and files as head of household in
2019. How many qualifying dependents can jennfier claim on her
return? Answer: c. Three
◉ Which of the following items is included in federal gross income?
Answer: d. Unemployment compensation.
◉ Which of the following items is not included in federal gross
income? Answer: B. Federal income tax refunds
◉ Which of the following taxpayers is not required to file a federal
income tax return for 2019? Answer: b. Elizabeth (68) has gross
income of $12,250. she is single and has no dependents
◉ Mike is single and has a taxable income of $17,405. His amount of
tax from the 2019 Tax tables is Answer: c. $1,897.
, ◉ Adrian is married filing separatly, and has a taxable income of
$26,100. His amount of tax from the 2019 tax tables is Answer: c.
$2,941.
◉ Which of the following is not one of the five quailfying child tests a
taxpayer must meet their child to be considered their dependent?
Answer: a. Gross income test.
◉ Marissa and lucius were married 18 years ago. They had one
child, Matthew (13.) luciuis pased away in 2015. Marissa did not
remary. Marissa and mathhew lived together all year long, and no
one else lived with them. Matthew had no income in 2019. Marissa
paid 100% of the cost of the maintaining their home. What is the
most benefical 2019 filing status for Marissa? Answer: a. Head of
household.
◉ Brian had dividened income reported on Form 1099-DIV. Brian
would be required to file a form 1040, schedule B, when his
dividened income exceeds of which of the following households?
Answer: b. $1,500.
◉ Which of the following taxpayers is not required does not quailfy
to deduct qualified educator expenses? Answer: C. Gaylene is a high
school substitute teacher in her local school district. She worked
1,040 hours in 2019. She speny $590 home schooling, her fifth-
grade daughter jodie. She spent $230 on supplies used in various
classrooms. she reimbursed for the supplies.
TAX LAW AND COMPLIANCE MODULE
SOLVED ITEMS AND RESPONSE KEY
◉ the deduction for state and local income taxes is limited to what
amount? Answer: a. $10,000 ($5,000 if MFS).
◉ A married couple who materially participate in the operation of a
jointly owned business may elect for each spouse to file their own
Schedule C, with each reporting their respective amounts of income,
loss, and deductions. This known as what? Answer: C. A qualified
joint venture
◉ Stock owned by an individual would be classified as what type of
property? Answer: a. Intangible personal, investment -use property
◉ Which of the following is not deductible on Schedule A? Answer:
C. Federal taxes withheld.
◉ Which of the following types of property may be depreciated?
Answer: d. a copier purchased by a tax preparation office.
,◉ a taxpayer who actively participates in a rental real estate activity
may, in many cases, deduct up to what amount of rental losses
against any other kind of income? Answer: a. 25,000
◉ A sole proprietor who computes self-employment tax should be
filling what form? Answer: b. Schedule SE.
◉ An employee tells their employer how much income tax to
withold from their taxable wages by completing what form? Answer:
C. Form W-4.
◉ The IRS may assess penalties on taxpayers for which of the
folllowing? Answer: d. All of the Above
◉ Which of the following best describes gross income? Answer: a. all
income from whatever source derived, unless excluded from
taxation by law
◉ Which of the following best describes earned income? Answer: c.
Income received for services, performed, including wages,
commissions, tips, and generally, farming and other business
income.
,◉ Which of the following taxpayers is not required to file a federal
tax return for 2019? Answer: d. Ron (66) and sue (64) have gross
income of $ 25,250. they wish to file a joint return
◉ In 2019, Jennfier's (27) brother, jim (18), her fiancee Steve(29)
and her daughter, Kim (5) lived with her for the entire year.
Jennfier's AGI is $27,800, Jim's AGI is $5,050, Steve AGI is $4,0050,
and Kim had no icome. Jim and Kim did not provide over 50% of
steve's support. Jennifer quailties and files as head of household in
2019. How many qualifying dependents can jennfier claim on her
return? Answer: c. Three
◉ Which of the following items is included in federal gross income?
Answer: d. Unemployment compensation.
◉ Which of the following items is not included in federal gross
income? Answer: B. Federal income tax refunds
◉ Which of the following taxpayers is not required to file a federal
income tax return for 2019? Answer: b. Elizabeth (68) has gross
income of $12,250. she is single and has no dependents
◉ Mike is single and has a taxable income of $17,405. His amount of
tax from the 2019 Tax tables is Answer: c. $1,897.
, ◉ Adrian is married filing separatly, and has a taxable income of
$26,100. His amount of tax from the 2019 tax tables is Answer: c.
$2,941.
◉ Which of the following is not one of the five quailfying child tests a
taxpayer must meet their child to be considered their dependent?
Answer: a. Gross income test.
◉ Marissa and lucius were married 18 years ago. They had one
child, Matthew (13.) luciuis pased away in 2015. Marissa did not
remary. Marissa and mathhew lived together all year long, and no
one else lived with them. Matthew had no income in 2019. Marissa
paid 100% of the cost of the maintaining their home. What is the
most benefical 2019 filing status for Marissa? Answer: a. Head of
household.
◉ Brian had dividened income reported on Form 1099-DIV. Brian
would be required to file a form 1040, schedule B, when his
dividened income exceeds of which of the following households?
Answer: b. $1,500.
◉ Which of the following taxpayers is not required does not quailfy
to deduct qualified educator expenses? Answer: C. Gaylene is a high
school substitute teacher in her local school district. She worked
1,040 hours in 2019. She speny $590 home schooling, her fifth-
grade daughter jodie. She spent $230 on supplies used in various
classrooms. she reimbursed for the supplies.
