H&R Block Income Tax Course Question and
Answer (2026) | Newest Update Verified
Answers with Detailed Rationales | A+
Verified
• Estimated Tax -✓✓The amount of tax a taxpayer expects to owe for the year after
subtracting expected amounts withheld and certain refundable credits.
• Estimated Tax Voucher -✓✓A statement by an individual of (1) the amount of income
tax he estimates he will incur during the current taxable year on income that is not
subject to withholding, (2) the excess amount over that withheld on income which is
subject to withholding, and (3) his estimated self-employment tax.
• Exemption from Withholding -✓✓Status claimed on Form W-4 directing the employer
not to withhold federal income taxes from the employee.
• Underpayment Penalty -✓✓If a taxpayer did not pay enough tax on a timely basis
during the year, he may be required to pay an underpayment penalty.
• Two Ways to Pay as You Go -✓✓Withholding and Estimated Tax Payments
• Form W-4 -✓✓Employee's Withholding Allowance Certificate
• Form 4868 -✓✓Application for Automatic Extension of Time To File U.S. Individual
Income Tax Return
• Amended Return -✓✓A tax return filed on Form 1040X after the original return has
been filed.
• Closed Year -✓✓A tax year for which the statute of limitations has expired.
• Open Year -✓✓A taxable year for which the statute of limitations has not yet expired.
• Failure-to-File Penalty -✓✓Generally 5% for each month or part of a month the return
is late, but not more than 25% of the tax not paid.
• Failure to File -✓✓Taxpayer fails to file the return by the due date, and there is a
balance due.
• Form 1040X -✓✓Amended U.S. Individual Income Tax Return
,• When can an amended return be filed? -✓✓Within three years of the date the original
return was filed, or within two years of the date the tax was paid, whichever is later.
• Can the 1040X be e-filed? -✓✓No.
• Portfolio Income and Losses -✓✓Those from such sources as dividends, interest,
capital gains and losses, and royalties.
• Schedule E -✓✓Supplemental Income and Loss
• Royalty -✓✓Payments received for the right to extract natural resources from the
taxpayer's property or to use a taxpayer's literary, musical, or artistic creation.
• Annuity -✓✓A series of payments under a contract made at regular intervals over a
period of more than one year.
• Beneficiary -✓✓The owner or recipient of funds in an account, such as an IRA, or from
an insurance policy or will.
• Contribution -✓✓When a person puts money into a retirement plan.
• Defined Benefit Plan -✓✓An employee benefit plan that provides determinable benefits
not based on employer profits.
• Defined Contribution Plan -✓✓An employee benefit plan that provides a separate
account for each person covered and pays benefits based on account earnings.
• Disability Pension -✓✓A taxable pension from an employer-funded disability plan or a
disability provision of a retirement plan.
• Distribution -✓✓When a person takes or receives money from a retirement plan.
• Pension -✓✓Generally a series of definitely determinable payments made to a
taxpayer after retirement from work.
• Rollover -✓✓A qualified transfer of funds from one tax-favored account to another,
usually of the same type.
• Roth IRA -✓✓A type of individual retirement arrangement in which contributions are
not tax deductible, earnings grow tax deferred, and qualified withdrawals are tax free.
• Traditional IRA -✓✓An individual retirement arrangement, contributions to which may
or may not be deductible depending on the taxpayer's AGI and whether or not he is
covered under an employer-sponsored retirement plan.
, • What is the full retirement age? -✓✓For workers born before 1938, it is 65. For those
born after it is gradually being increased to 67.
• How much of a client's social security and equivalent tier 1 RR benefits may be
taxable? -✓✓Up to 85%.
• Form SSA-1099 -✓✓Social Security Benefits
• Form RRB-1099 -✓✓Railroad Retirement Benefits
• None of Social Security Benefits Taxable -✓✓Single, Head of Household, Qualified
Widow - $0-$25,000; Married Filing Jointly - $0-$32,000
• Up to 50% of Social Security Benefits Taxable -✓✓Single, Head of Household,
Qualified Widow - $25,001-$34,000; Married Filing Jointly - $32,001-$44,000
• Up to 85% of Social Security Benefits Taxable -✓✓Single, Head of Household,
Qualified Widow - $34,001+; Married Filing Jointly - $44,001+; Married Filing Single -
$1+
• Fully Taxable Pension -✓✓Pensions to which the taxpayer did not make after-tax
contributions or from which all pre-tax amounts have been recovered in previous years.
• Partly Taxable Pensions -✓✓Those pensions funded through employer plans to which
the employee contributed some after-tax money.
• Form 1099-R -✓✓Distributions from Pensions, Annuities, Retirement, or Profit-Sharing
Plans, IRAs, Insurance Contracts, Etc.
• Exceptions to the Early Withdrawal Penalty -✓✓01 - The distribution was made to an
employee who separated from service during or after the year in which they reached
age 55.
02 - The distribution is part of a series of substantially equal periodic payments, made at
least annually for the life of the participant or the life expenctancy of the participant.
03 - The distribution was made due to permanent and total disability.
04 - The distribution was made due to the death of the employee.
05 - The distribution was made in a year that the taxpayer's medical expenses exceeds
7.5% of AGI.
06 - The distribution was made to an alternate payee under a qualified domestic
relations order.
07 - The distribution was made in a year an unemployed taxpayer paid health insurance
premiums.
08 - The distribution was made to pay qualified higher education expenses for the
taxpayer, spouse, their child, or their grandchild.
Answer (2026) | Newest Update Verified
Answers with Detailed Rationales | A+
Verified
• Estimated Tax -✓✓The amount of tax a taxpayer expects to owe for the year after
subtracting expected amounts withheld and certain refundable credits.
• Estimated Tax Voucher -✓✓A statement by an individual of (1) the amount of income
tax he estimates he will incur during the current taxable year on income that is not
subject to withholding, (2) the excess amount over that withheld on income which is
subject to withholding, and (3) his estimated self-employment tax.
• Exemption from Withholding -✓✓Status claimed on Form W-4 directing the employer
not to withhold federal income taxes from the employee.
• Underpayment Penalty -✓✓If a taxpayer did not pay enough tax on a timely basis
during the year, he may be required to pay an underpayment penalty.
• Two Ways to Pay as You Go -✓✓Withholding and Estimated Tax Payments
• Form W-4 -✓✓Employee's Withholding Allowance Certificate
• Form 4868 -✓✓Application for Automatic Extension of Time To File U.S. Individual
Income Tax Return
• Amended Return -✓✓A tax return filed on Form 1040X after the original return has
been filed.
• Closed Year -✓✓A tax year for which the statute of limitations has expired.
• Open Year -✓✓A taxable year for which the statute of limitations has not yet expired.
• Failure-to-File Penalty -✓✓Generally 5% for each month or part of a month the return
is late, but not more than 25% of the tax not paid.
• Failure to File -✓✓Taxpayer fails to file the return by the due date, and there is a
balance due.
• Form 1040X -✓✓Amended U.S. Individual Income Tax Return
,• When can an amended return be filed? -✓✓Within three years of the date the original
return was filed, or within two years of the date the tax was paid, whichever is later.
• Can the 1040X be e-filed? -✓✓No.
• Portfolio Income and Losses -✓✓Those from such sources as dividends, interest,
capital gains and losses, and royalties.
• Schedule E -✓✓Supplemental Income and Loss
• Royalty -✓✓Payments received for the right to extract natural resources from the
taxpayer's property or to use a taxpayer's literary, musical, or artistic creation.
• Annuity -✓✓A series of payments under a contract made at regular intervals over a
period of more than one year.
• Beneficiary -✓✓The owner or recipient of funds in an account, such as an IRA, or from
an insurance policy or will.
• Contribution -✓✓When a person puts money into a retirement plan.
• Defined Benefit Plan -✓✓An employee benefit plan that provides determinable benefits
not based on employer profits.
• Defined Contribution Plan -✓✓An employee benefit plan that provides a separate
account for each person covered and pays benefits based on account earnings.
• Disability Pension -✓✓A taxable pension from an employer-funded disability plan or a
disability provision of a retirement plan.
• Distribution -✓✓When a person takes or receives money from a retirement plan.
• Pension -✓✓Generally a series of definitely determinable payments made to a
taxpayer after retirement from work.
• Rollover -✓✓A qualified transfer of funds from one tax-favored account to another,
usually of the same type.
• Roth IRA -✓✓A type of individual retirement arrangement in which contributions are
not tax deductible, earnings grow tax deferred, and qualified withdrawals are tax free.
• Traditional IRA -✓✓An individual retirement arrangement, contributions to which may
or may not be deductible depending on the taxpayer's AGI and whether or not he is
covered under an employer-sponsored retirement plan.
, • What is the full retirement age? -✓✓For workers born before 1938, it is 65. For those
born after it is gradually being increased to 67.
• How much of a client's social security and equivalent tier 1 RR benefits may be
taxable? -✓✓Up to 85%.
• Form SSA-1099 -✓✓Social Security Benefits
• Form RRB-1099 -✓✓Railroad Retirement Benefits
• None of Social Security Benefits Taxable -✓✓Single, Head of Household, Qualified
Widow - $0-$25,000; Married Filing Jointly - $0-$32,000
• Up to 50% of Social Security Benefits Taxable -✓✓Single, Head of Household,
Qualified Widow - $25,001-$34,000; Married Filing Jointly - $32,001-$44,000
• Up to 85% of Social Security Benefits Taxable -✓✓Single, Head of Household,
Qualified Widow - $34,001+; Married Filing Jointly - $44,001+; Married Filing Single -
$1+
• Fully Taxable Pension -✓✓Pensions to which the taxpayer did not make after-tax
contributions or from which all pre-tax amounts have been recovered in previous years.
• Partly Taxable Pensions -✓✓Those pensions funded through employer plans to which
the employee contributed some after-tax money.
• Form 1099-R -✓✓Distributions from Pensions, Annuities, Retirement, or Profit-Sharing
Plans, IRAs, Insurance Contracts, Etc.
• Exceptions to the Early Withdrawal Penalty -✓✓01 - The distribution was made to an
employee who separated from service during or after the year in which they reached
age 55.
02 - The distribution is part of a series of substantially equal periodic payments, made at
least annually for the life of the participant or the life expenctancy of the participant.
03 - The distribution was made due to permanent and total disability.
04 - The distribution was made due to the death of the employee.
05 - The distribution was made in a year that the taxpayer's medical expenses exceeds
7.5% of AGI.
06 - The distribution was made to an alternate payee under a qualified domestic
relations order.
07 - The distribution was made in a year an unemployed taxpayer paid health insurance
premiums.
08 - The distribution was made to pay qualified higher education expenses for the
taxpayer, spouse, their child, or their grandchild.
