HR BLOCK TEST EXAM 2026 TAX PREPARATION CERTIFICATION TEST PAPER QUESTIONS AND SOLUTIONS GRADED A+

HR BLOCK TEST EXAM 2026 TAX PREPARATION
CERTIFICATION TEST PAPER QUESTIONS AND
SOLUTIONS GRADED A+

◉ Standard Deduction. Answer: Set by statute. Included in
calculating the Below-the-Line deductions (for Taxable Income).
Alternative is Itemized Deduction


◉ Itemized Deduction. Answer: Sum of allowable deductions in
calculating the Below-the-Line deductions (for Taxable Income).
Alternative is Standard Deduction


◉ Tax Rate (Individuals) - Ordinary Income. Answer: 10% - 37%


◉ Tax Rate (Individuals) - Net Gains / Qualified Dividends. Answer:
0% - 20% (sometimes) 20% - 28% (usually)


◉ Alternative Minimum Tax Rate. Answer: 26% - 28%


◉ Capital Gains. Answer: Profit (or Loss) from the sale of property
or investments (preferential tax rate compared to Ordinary Income)


◉ Adjusted Gross Income (AGI). Answer: Gross Income - Deductions

, ◉ Taxable Income. Answer: AGI - (Larger of Standard or Itemized
Deduction)


◉ Tentative Tax. Answer: Taxable Income (x) Tax Rate


◉ Taxes Due (+) or Refund (-). Answer: Tentative Tax - Credits


◉ Refundable Tax Credit. Answer: Taxpayer can receive money
through a refund


◉ Nonrefundable Tax Credit. Answer: Tax is lowered to a possible
$0. But no refund.


◉ Title 26 (US. Code). Answer: The statutory bas of all federal tax
law.


◉ Gross Income. Answer: "All income from whatever source derived"


◉ Haig-Simons Definition of Income. Answer: Market Value of Rights
Exercised in Consumption + Change in Property Rights over the
Term.