HR BLOCK ACTUAL EXAMINATION TEST
2026 VERIFIED QUESTIONS AND
ACCURATE ANSWERS GRADED A+
◉ If a taxpayer has no qualifying children, what are the five
qualifications they must meet to receive the Earned Income Credit?
Answer: The five qualifications are:
1.
Be at least 19 years old. For 2021, there is no maximum age. There
are a few caveats to this age limit. These are listed below.
•
A specified student can be age 24.
•
18 years of age for a qualified former foster youth or a qualified
homeless youth.
2.
Not be able to be claimed as a dependent on another taxpayer's
return.
3.
Not be an EIC qualifying child of another person.
,4.
Live in the United States more than half the year.
5.
Have earned income and AGI less than $21,430 ($27,380 if married
filing jointly).
◉ What are the six qualifications that must be met for any taxpayer
to be eligible to claim the Earned Income Credit? Answer: The
taxpayer must:
Have a valid SSN.
Meet certain requirements if separated from their spouse.
Be a U.S. citizen or resident alien all year.
Not file a Form 2555.
Have investment income of $10,000 or less.
Have earned income
◉ Chris (26) has an earned income and AGI of $9,486. He has no
other income. He lived in the United States all year and is no one's
dependent. He has a valid SSN and is filing as single. He is a U.S.
citizen. Does Chris qualify for EIC? Answer: Yes, Chris meets all six
requirements for any taxpayer to claim the Earned Income Credit.
◉ What is the third due diligence requirement for the EIC,
CTC/ACTC, ODC,and AOTC, and how does a paid preparer meet this
, requirement for EIC and CTC/ACTC/ODC? Answer: Satisfy the
knowledge requirement.
To meet the knowledge requirement, the paid preparer cannot know
of, or have any reason to know, that any information used to
determine a taxpayer's eligibility for, or the amount of, the credit is
incorrect, inconsistent, or incomplete. They need to know the tax
law behind EIC and CTC/ACTC/ODC to ensure that all the eligibility
requirements are met before claiming one of these credits. Interview
each taxpayer, ask adequate questions, review the information the
taxpayer provides, and then document their responses. Ask
additional questions until you are satisfied that the eligibility
requirements are met and the taxpayer can claim the credit.
◉ Why are tax credits valuable to taxpayers? Answer: Credits are
valuable because they reduce tax liability dollar for dollar.
◉ What is the difference between nonrefundable and refundable
credits? Answer: Nonrefundable credits may not reduce a taxpayer's
tax liability below zero. Refundable credits may reduce the
taxpayer's tax liability below zero, and the difference is refunded to
the taxpayer.
◉ If a taxpayer's employer paid part of their child care expenses,
how will this affect their Child and Dependent Care Credit, and on
which form is it reported to the taxpayer? Answer: The expenses
eligible for the credit must be reduced by the employer-provided
2026 VERIFIED QUESTIONS AND
ACCURATE ANSWERS GRADED A+
◉ If a taxpayer has no qualifying children, what are the five
qualifications they must meet to receive the Earned Income Credit?
Answer: The five qualifications are:
1.
Be at least 19 years old. For 2021, there is no maximum age. There
are a few caveats to this age limit. These are listed below.
•
A specified student can be age 24.
•
18 years of age for a qualified former foster youth or a qualified
homeless youth.
2.
Not be able to be claimed as a dependent on another taxpayer's
return.
3.
Not be an EIC qualifying child of another person.
,4.
Live in the United States more than half the year.
5.
Have earned income and AGI less than $21,430 ($27,380 if married
filing jointly).
◉ What are the six qualifications that must be met for any taxpayer
to be eligible to claim the Earned Income Credit? Answer: The
taxpayer must:
Have a valid SSN.
Meet certain requirements if separated from their spouse.
Be a U.S. citizen or resident alien all year.
Not file a Form 2555.
Have investment income of $10,000 or less.
Have earned income
◉ Chris (26) has an earned income and AGI of $9,486. He has no
other income. He lived in the United States all year and is no one's
dependent. He has a valid SSN and is filing as single. He is a U.S.
citizen. Does Chris qualify for EIC? Answer: Yes, Chris meets all six
requirements for any taxpayer to claim the Earned Income Credit.
◉ What is the third due diligence requirement for the EIC,
CTC/ACTC, ODC,and AOTC, and how does a paid preparer meet this
, requirement for EIC and CTC/ACTC/ODC? Answer: Satisfy the
knowledge requirement.
To meet the knowledge requirement, the paid preparer cannot know
of, or have any reason to know, that any information used to
determine a taxpayer's eligibility for, or the amount of, the credit is
incorrect, inconsistent, or incomplete. They need to know the tax
law behind EIC and CTC/ACTC/ODC to ensure that all the eligibility
requirements are met before claiming one of these credits. Interview
each taxpayer, ask adequate questions, review the information the
taxpayer provides, and then document their responses. Ask
additional questions until you are satisfied that the eligibility
requirements are met and the taxpayer can claim the credit.
◉ Why are tax credits valuable to taxpayers? Answer: Credits are
valuable because they reduce tax liability dollar for dollar.
◉ What is the difference between nonrefundable and refundable
credits? Answer: Nonrefundable credits may not reduce a taxpayer's
tax liability below zero. Refundable credits may reduce the
taxpayer's tax liability below zero, and the difference is refunded to
the taxpayer.
◉ If a taxpayer's employer paid part of their child care expenses,
how will this affect their Child and Dependent Care Credit, and on
which form is it reported to the taxpayer? Answer: The expenses
eligible for the credit must be reduced by the employer-provided
