H&R BLOCK VIRTUAL INCOME TAX
COURSE CHAPTERS 1-6 REVIEW
WITH CORRECT SOLUTIONS
Chap. 1: Which of the following is earned income?
A. Dividends.
B. Graduation gift from parents.
C. self-employed business income.
D. Social Security payments. - ANSWER-C. self-employed business income.
Chap. 1: After a return is completed, what are the methods used to submit your
return to the IRS? Choose all that apply.
A. E-file.
B. Email.
C. U.S. Mail.
D. Fax - ANSWER-A. E-file.
C. U.S. Mail.
Chap. 5: Deductions help taxpayers reduce the amount of tax by lowering the
amount of tax by lowering the amount of ____________ . - ANSWER-taxable
income
Chap. 5: Which of the following is NOT one of the rules for all taxpayers to claim the
Earned Income Credit?
A. Have a calid social security number (SSN).
B. File Form 2555, Foreign Earned Income.
C. Have investment income of $10,300 or less.
D. Have earned income. - ANSWER-B. File Form 2555, Foreign Earned Income.
Chap. 5: The qualifying person requirements for purposes the EIC are the same as
those for qualifying child dependency. - ANSWER-B. False
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The relationship, age, and joint return tests are the same. The residency test is
different in that the child must have lived with the taxpayer in the United States for
more than half of the tax year. Additionally, there is no support test for EIC.
, Chap. 1: The Tax Table is used by taxpayers whose taxable income are less than
$100000. - ANSWER-A. True
B. False
Chap. 1: Using Form 1040, U.S. Individual Income Tax Return, arrange the list in
order from top to bottom as they appear on the form. - ANSWER-- Filing Status
- Spouse's social security number.
- Home address (number and street).
- State
Chap. 1: Larry (37) has a savings account at a local bank. He earned $157 in
interest in 2022. He can expect to receive Form _______________ from the bank to
file his 2022 tax return. - ANSWER-1099-INT
Chap. 1: When filing a tax return for a deceased taxpayer, the surviving spouse will
need to file Form 1310, a Statement of Person Claiming a Refund Due to a
Deceased Taxpayer, to claim a refund. - ANSWER-False
Chap. 1: Which of the following statements is correct about interest?
A. Total interest of more than $1,500 from all sources must be reported on Schedule
B.
B. Credit Unions often call interest on deposits "dividends."
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.
D. U.S. Savings Bond & other Treasury obligation interest is taxable on the federal
return and all state returns.
E. Taxpayers will receiv - ANSWER-A. Total interest of more than $1,500 from all
sources must be reported on Schedule B.
B. Credit Unions often call interest on deposits "dividends."
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.
E. Taxpayers will receive a form 1099-INT, Interest Income, from their financial
institution if the total interest is $10 or more.
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It is important to be knowledgeable about interest income so that you can ask the
taxpayer appropriate questions. U.S. Savings Bond and other Treasury obligation
interest is never taxable on a state return and state bonds and state obligations are
never taxable on a federal return.
COURSE CHAPTERS 1-6 REVIEW
WITH CORRECT SOLUTIONS
Chap. 1: Which of the following is earned income?
A. Dividends.
B. Graduation gift from parents.
C. self-employed business income.
D. Social Security payments. - ANSWER-C. self-employed business income.
Chap. 1: After a return is completed, what are the methods used to submit your
return to the IRS? Choose all that apply.
A. E-file.
B. Email.
C. U.S. Mail.
D. Fax - ANSWER-A. E-file.
C. U.S. Mail.
Chap. 5: Deductions help taxpayers reduce the amount of tax by lowering the
amount of tax by lowering the amount of ____________ . - ANSWER-taxable
income
Chap. 5: Which of the following is NOT one of the rules for all taxpayers to claim the
Earned Income Credit?
A. Have a calid social security number (SSN).
B. File Form 2555, Foreign Earned Income.
C. Have investment income of $10,300 or less.
D. Have earned income. - ANSWER-B. File Form 2555, Foreign Earned Income.
Chap. 5: The qualifying person requirements for purposes the EIC are the same as
those for qualifying child dependency. - ANSWER-B. False
-----------------------------------------------------------------
The relationship, age, and joint return tests are the same. The residency test is
different in that the child must have lived with the taxpayer in the United States for
more than half of the tax year. Additionally, there is no support test for EIC.
, Chap. 1: The Tax Table is used by taxpayers whose taxable income are less than
$100000. - ANSWER-A. True
B. False
Chap. 1: Using Form 1040, U.S. Individual Income Tax Return, arrange the list in
order from top to bottom as they appear on the form. - ANSWER-- Filing Status
- Spouse's social security number.
- Home address (number and street).
- State
Chap. 1: Larry (37) has a savings account at a local bank. He earned $157 in
interest in 2022. He can expect to receive Form _______________ from the bank to
file his 2022 tax return. - ANSWER-1099-INT
Chap. 1: When filing a tax return for a deceased taxpayer, the surviving spouse will
need to file Form 1310, a Statement of Person Claiming a Refund Due to a
Deceased Taxpayer, to claim a refund. - ANSWER-False
Chap. 1: Which of the following statements is correct about interest?
A. Total interest of more than $1,500 from all sources must be reported on Schedule
B.
B. Credit Unions often call interest on deposits "dividends."
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.
D. U.S. Savings Bond & other Treasury obligation interest is taxable on the federal
return and all state returns.
E. Taxpayers will receiv - ANSWER-A. Total interest of more than $1,500 from all
sources must be reported on Schedule B.
B. Credit Unions often call interest on deposits "dividends."
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.
E. Taxpayers will receive a form 1099-INT, Interest Income, from their financial
institution if the total interest is $10 or more.
-----------------------------------------------------------------
It is important to be knowledgeable about interest income so that you can ask the
taxpayer appropriate questions. U.S. Savings Bond and other Treasury obligation
interest is never taxable on a state return and state bonds and state obligations are
never taxable on a federal return.
