HR BLOCK PROFESSIONAL EXAM PAPER
2026 FULL QUESTIONS AND ANSWERS
COMPLETE STUDY GUIDE
◉ Nova, a taxpayer who uses the single filing status, purchased 200
shares od ELM stock for 2,000 on august 15, 2019. She sold the
shares on december 19, 2019, for 3,000. nova's 2019 taxable income
is $37,250, so her marginal tax rate is 12%. How much tax will Nova
pay on the sale of her shares of stock? Answer: b. $120
◉ A property owner lives in one unity of a duplex and has a tennat
renting the other unit. The owner will deduct 50% of which of the
following expenses on Schedule E? Answer: A. Landscaping.
◉ Four taxpayers own a business together. which one satisfies one of
the material participation tests? Answer: B. Alexa, who Participates
550 hours
◉ In addition to rental real estate activities , which type of income is
considered passive? Answer: a. Income from a business in which the
taxpaper does not materially participate .
,◉ Which of the following is an example of portfollo income?
Answer: D. Royalities from an oil well
◉ Which of the following is not a example of a management decision
considered for active particpation Answer: A. particaption in the
operation's activity on a regular and substatial basis.
◉ Matthwed is not a real estate proffessional, but he is an active
particpiant in a rental real estate acitvity. Where will he report his
income and expenses? Answer: C. Schedule E, Page 1.
◉ Who has the superior claim to Blake's dependency? Answer:
Jamie
◉ Which of the following types of interest must be reported on a
taxpayer's return, but is not Taxal: Answer: B. Muncipial Bond
◉ Which of the following statements is correct about interest?
Answer: C. The amount of a penalty on early withdrawal of savings
may be more than the total amount of interest income received by
the taxpayer.
◉ Curtis(71) and Shirley(64) are married filing jointly with gross
income of $25,770. Curtis and Shirley, are required to file a return
, because their gross income exceeds their filing requirement of
Answer: c. 25,700
◉ Which of the following statements is true but dividends? Answer:
d. Qualified dividends are those recived on shares of stock in
domestic corporations and certain foregin corporations that meet
the holding requirements.
◉ Which of the following statements about the child tax credit
and/or the Additional child tax credit true? Answer: B. The
additional child tax credit is a refundable credit?
◉ Which of the following statements is not correct regarding a paid
tax return prepar's due diligeen for ACTC? Answer: d. must meet
three of the four due diligence requirments to allow the taxpayer to
claim the additional child tax credit
◉ Why must a taxpayer file from 4962, Premium tax credit (PTC) of
they receive Form 1095-A? Answer: C. to reconcile the Premium Tax
Credit
◉ Which of the following statements is not true about the american
opportunity tax credit (AOCTC) Answer: c. Taxpayers may claim the
AOCTC if they file MFS or have modified adjusted gross income
(MAG) above $90,000 (180,000 for MFJ)
2026 FULL QUESTIONS AND ANSWERS
COMPLETE STUDY GUIDE
◉ Nova, a taxpayer who uses the single filing status, purchased 200
shares od ELM stock for 2,000 on august 15, 2019. She sold the
shares on december 19, 2019, for 3,000. nova's 2019 taxable income
is $37,250, so her marginal tax rate is 12%. How much tax will Nova
pay on the sale of her shares of stock? Answer: b. $120
◉ A property owner lives in one unity of a duplex and has a tennat
renting the other unit. The owner will deduct 50% of which of the
following expenses on Schedule E? Answer: A. Landscaping.
◉ Four taxpayers own a business together. which one satisfies one of
the material participation tests? Answer: B. Alexa, who Participates
550 hours
◉ In addition to rental real estate activities , which type of income is
considered passive? Answer: a. Income from a business in which the
taxpaper does not materially participate .
,◉ Which of the following is an example of portfollo income?
Answer: D. Royalities from an oil well
◉ Which of the following is not a example of a management decision
considered for active particpation Answer: A. particaption in the
operation's activity on a regular and substatial basis.
◉ Matthwed is not a real estate proffessional, but he is an active
particpiant in a rental real estate acitvity. Where will he report his
income and expenses? Answer: C. Schedule E, Page 1.
◉ Who has the superior claim to Blake's dependency? Answer:
Jamie
◉ Which of the following types of interest must be reported on a
taxpayer's return, but is not Taxal: Answer: B. Muncipial Bond
◉ Which of the following statements is correct about interest?
Answer: C. The amount of a penalty on early withdrawal of savings
may be more than the total amount of interest income received by
the taxpayer.
◉ Curtis(71) and Shirley(64) are married filing jointly with gross
income of $25,770. Curtis and Shirley, are required to file a return
, because their gross income exceeds their filing requirement of
Answer: c. 25,700
◉ Which of the following statements is true but dividends? Answer:
d. Qualified dividends are those recived on shares of stock in
domestic corporations and certain foregin corporations that meet
the holding requirements.
◉ Which of the following statements about the child tax credit
and/or the Additional child tax credit true? Answer: B. The
additional child tax credit is a refundable credit?
◉ Which of the following statements is not correct regarding a paid
tax return prepar's due diligeen for ACTC? Answer: d. must meet
three of the four due diligence requirments to allow the taxpayer to
claim the additional child tax credit
◉ Why must a taxpayer file from 4962, Premium tax credit (PTC) of
they receive Form 1095-A? Answer: C. to reconcile the Premium Tax
Credit
◉ Which of the following statements is not true about the american
opportunity tax credit (AOCTC) Answer: c. Taxpayers may claim the
AOCTC if they file MFS or have modified adjusted gross income
(MAG) above $90,000 (180,000 for MFJ)
