H&R BLOCK INCOME TAX COURSE
EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS NEW MODIFED
EXAM LATEST UPDATE
Julie Ann (72) was claimed by both her son, Mark, and her other son, Samuel.
Mark and Samuel each provided 40% of Julie Ann's support. The remaining
20% was paid by Julie Ann's niece, Kathy.
Who can claim Julie Ann's dependency exemption? - ✔✔✔ Correct
Answer > No One
Linda (17) was claimed by her grandmother, Nadine. Linda lived with her
mother, Rose, and grandmother for all of 2011. Nadine's AGI was $22,450.
Rose's AGI was $34,650. Rose did not claim any dependents in 2011. Who can
claim Linda's dependency exemption? - ✔✔✔ Correct Answer > No One
Mario (5) was claimed by both his mother, Janice, and his father, Frank. Mario
lived with both Janice and Frank for 3 months. Mario lived with his mother for
5 months separately. He lived with his father for 4 months separately. Who can
claim Mario's dependency exemption? - ✔✔✔ Correct Answer > Janice
Page 1 of 92
,Camille (16) was claimed by her mother, Ida, and her father,
Walter. Camille lived with each parent an equal amount of time in 2011. Ida's
AGI was $44,255. Walter's AGI was $47,525. Who can claim Camille's
dependency exemption? - ✔✔✔ Correct Answer > Walter
Gina (8) was claimed by her mother, Debra, and her grandmother, Myrna. Who
can claim Gina's dependency exemption? - ✔✔✔ Correct Answer > Debra
Darrell (12) was claimed by his aunt, Felicia, and his older brother, Gerald.
Darrell lived with both Felicia and Gerald for 4 months. He lived with Felicia
for 5 months separately. He lived with Gerald for 3 months separately. Felicia's
AGI was $29,290. Gerald's AGI was $31,205. Who can claim Darrell's
dependency exemption? - ✔✔✔ Correct Answer > Gerald
Long-Term Care Contract - ✔✔✔ Correct Answer > An insurance contract that
provides only coverage for long-term care services.
Insurance Policies for which Premiums are not Deductible - ✔✔✔
Correct Answer > Loss of earnings while injured; loss of life, limb, or sight;
paying guaranteed amount for a given time period while hospitalized or injured;
paying for medical care from a portion of auto insurance premiums.
Capital Expenditures - ✔✔✔ Correct Answer > The cost of special equipment
and structural improvements installed in a residence for medical purposes.
Page 2 of 92
,What part of capital expenditures is deductible? - ✔✔✔ Correct Answer > If the
taxpayer rents, the full cost is deductible. If the taxpayer owns the home, the
part of the cost that exceeds any increase in the value of the property is
deductible.
What portion of medical and dental expenses is deductible? - ✔✔✔
Correct Answer > To the extent they exceed 7.5% of the taxpayer's adjusted
gross income.
What taxes are deductible? - ✔✔✔ Correct Answer > State and local taxes
(income or general sales); real property taxes (state, local, and foreign);
personal property taxes (state and local); foreign income taxes.
General Sales Tax - ✔✔✔ Correct Answer > Imposed on retail sales of a broad
range of items at a single rate.
Total Available Income - ✔✔✔ Correct Answer > Adjusted gross income plus
any nontaxable income.
Real Estate Taxes - ✔✔✔ Correct Answer > State, local, or foreign taxes levied
on real property for the general public welfare.
Page 3 of 92
, Personal Property Tax - ✔✔✔ Correct Answer > Similar to a real estate tax,
except that it is imposed on personal property.
Is the amount of home mortgage interest paid deductible? - ✔✔✔ Correct
Answer > Yes
Form 1098 - ✔✔✔ Correct Answer > Mortgage Interest Statement
Form 8283 - ✔✔✔ Correct Answer > Noncash Charitable Contributions
Educator Expenses Deduction - ✔✔✔ Correct Answer > An above-theline
deduction of up to $250 for classroom supplies, books, and equipment, and
available to eligible educators of students in kindergarten through 12th grade.
Eligible Educator - ✔✔✔ Correct Answer > Any educator who works at least
900 hours during a school year as a teacher, instructor, counselor, principal or
aide in a public or private elementary or secondary school.
Health Savings Account (HSA) - ✔✔✔ Correct Answer > A trust or custodial
account created exclusively for the purpose of paying the qualified medical
expenses of a high deductible health plan of the account holder.
Page 4 of 92
EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS NEW MODIFED
EXAM LATEST UPDATE
Julie Ann (72) was claimed by both her son, Mark, and her other son, Samuel.
Mark and Samuel each provided 40% of Julie Ann's support. The remaining
20% was paid by Julie Ann's niece, Kathy.
Who can claim Julie Ann's dependency exemption? - ✔✔✔ Correct
Answer > No One
Linda (17) was claimed by her grandmother, Nadine. Linda lived with her
mother, Rose, and grandmother for all of 2011. Nadine's AGI was $22,450.
Rose's AGI was $34,650. Rose did not claim any dependents in 2011. Who can
claim Linda's dependency exemption? - ✔✔✔ Correct Answer > No One
Mario (5) was claimed by both his mother, Janice, and his father, Frank. Mario
lived with both Janice and Frank for 3 months. Mario lived with his mother for
5 months separately. He lived with his father for 4 months separately. Who can
claim Mario's dependency exemption? - ✔✔✔ Correct Answer > Janice
Page 1 of 92
,Camille (16) was claimed by her mother, Ida, and her father,
Walter. Camille lived with each parent an equal amount of time in 2011. Ida's
AGI was $44,255. Walter's AGI was $47,525. Who can claim Camille's
dependency exemption? - ✔✔✔ Correct Answer > Walter
Gina (8) was claimed by her mother, Debra, and her grandmother, Myrna. Who
can claim Gina's dependency exemption? - ✔✔✔ Correct Answer > Debra
Darrell (12) was claimed by his aunt, Felicia, and his older brother, Gerald.
Darrell lived with both Felicia and Gerald for 4 months. He lived with Felicia
for 5 months separately. He lived with Gerald for 3 months separately. Felicia's
AGI was $29,290. Gerald's AGI was $31,205. Who can claim Darrell's
dependency exemption? - ✔✔✔ Correct Answer > Gerald
Long-Term Care Contract - ✔✔✔ Correct Answer > An insurance contract that
provides only coverage for long-term care services.
Insurance Policies for which Premiums are not Deductible - ✔✔✔
Correct Answer > Loss of earnings while injured; loss of life, limb, or sight;
paying guaranteed amount for a given time period while hospitalized or injured;
paying for medical care from a portion of auto insurance premiums.
Capital Expenditures - ✔✔✔ Correct Answer > The cost of special equipment
and structural improvements installed in a residence for medical purposes.
Page 2 of 92
,What part of capital expenditures is deductible? - ✔✔✔ Correct Answer > If the
taxpayer rents, the full cost is deductible. If the taxpayer owns the home, the
part of the cost that exceeds any increase in the value of the property is
deductible.
What portion of medical and dental expenses is deductible? - ✔✔✔
Correct Answer > To the extent they exceed 7.5% of the taxpayer's adjusted
gross income.
What taxes are deductible? - ✔✔✔ Correct Answer > State and local taxes
(income or general sales); real property taxes (state, local, and foreign);
personal property taxes (state and local); foreign income taxes.
General Sales Tax - ✔✔✔ Correct Answer > Imposed on retail sales of a broad
range of items at a single rate.
Total Available Income - ✔✔✔ Correct Answer > Adjusted gross income plus
any nontaxable income.
Real Estate Taxes - ✔✔✔ Correct Answer > State, local, or foreign taxes levied
on real property for the general public welfare.
Page 3 of 92
, Personal Property Tax - ✔✔✔ Correct Answer > Similar to a real estate tax,
except that it is imposed on personal property.
Is the amount of home mortgage interest paid deductible? - ✔✔✔ Correct
Answer > Yes
Form 1098 - ✔✔✔ Correct Answer > Mortgage Interest Statement
Form 8283 - ✔✔✔ Correct Answer > Noncash Charitable Contributions
Educator Expenses Deduction - ✔✔✔ Correct Answer > An above-theline
deduction of up to $250 for classroom supplies, books, and equipment, and
available to eligible educators of students in kindergarten through 12th grade.
Eligible Educator - ✔✔✔ Correct Answer > Any educator who works at least
900 hours during a school year as a teacher, instructor, counselor, principal or
aide in a public or private elementary or secondary school.
Health Savings Account (HSA) - ✔✔✔ Correct Answer > A trust or custodial
account created exclusively for the purpose of paying the qualified medical
expenses of a high deductible health plan of the account holder.
Page 4 of 92
