H&R BLOCK INCOME TAX COURSE-
COMPLETE EXAM WITH VERIFIED
SOLUTIONS 2026
Due Diligence - correct-answer -Requirements that tax professionals must follow
when preparing income tax returns.
Estimated Tax - correct-answer -The amount of tax a taxpayer expects to owe for
the year after subtracting expected amounts withheld and certain refundable
credits.
Estimated Tax Voucher - correct-answer -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 - correct-answer -Status claimed on Form W-4
directing the employer not to withhold federal income taxes from the employee.
,Underpayment Penalty - correct-answer -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 - correct-answer -Withholding and Estimated Tax
Payments
Form W-4 - correct-answer -Employee's Withholding Allowance Certificate
Form 4868 - correct-answer -Application for Automatic Extension of Time To File
U.S. Individual Income Tax Return
Amended Return - correct-answer -A tax return filed on Form 1040X after the
original return has been filed.
Closed Year - correct-answer -A tax year for which the statute of limitations has
expired.
Open Year - correct-answer -A taxable year for which the statute of limitations
has not yet expired.
,Failure-to-File Penalty - correct-answer -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 - correct-answer -Taxpayer fails to file the return by the due date,
and there is a balance due.
Form 1040X - correct-answer -Amended U.S. Individual Income Tax Return
When can an amended return be filed? - correct-answer -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? - correct-answer -No.
Portfolio Income and Losses - correct-answer -Those from such sources as
dividends, interest, capital gains and losses, and royalties.
Schedule E - correct-answer -Supplemental Income and Loss
, Royalty - correct-answer -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 - correct-answer -A series of payments under a contract made at regular
intervals over a period of more than one year.
Beneficiary - correct-answer -The owner or recipient of funds in an account, such
as an IRA, or from an insurance policy or will.
Contribution - correct-answer -When a person puts money into a retirement plan.
Defined Benefit Plan - correct-answer -An employee benefit plan that provides
determinable benefits not based on employer profits.
Defined Contribution Plan - correct-answer -An employee benefit plan that
provides a separate account for each person covered and pays benefits based on
account earnings.
COMPLETE EXAM WITH VERIFIED
SOLUTIONS 2026
Due Diligence - correct-answer -Requirements that tax professionals must follow
when preparing income tax returns.
Estimated Tax - correct-answer -The amount of tax a taxpayer expects to owe for
the year after subtracting expected amounts withheld and certain refundable
credits.
Estimated Tax Voucher - correct-answer -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 - correct-answer -Status claimed on Form W-4
directing the employer not to withhold federal income taxes from the employee.
,Underpayment Penalty - correct-answer -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 - correct-answer -Withholding and Estimated Tax
Payments
Form W-4 - correct-answer -Employee's Withholding Allowance Certificate
Form 4868 - correct-answer -Application for Automatic Extension of Time To File
U.S. Individual Income Tax Return
Amended Return - correct-answer -A tax return filed on Form 1040X after the
original return has been filed.
Closed Year - correct-answer -A tax year for which the statute of limitations has
expired.
Open Year - correct-answer -A taxable year for which the statute of limitations
has not yet expired.
,Failure-to-File Penalty - correct-answer -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 - correct-answer -Taxpayer fails to file the return by the due date,
and there is a balance due.
Form 1040X - correct-answer -Amended U.S. Individual Income Tax Return
When can an amended return be filed? - correct-answer -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? - correct-answer -No.
Portfolio Income and Losses - correct-answer -Those from such sources as
dividends, interest, capital gains and losses, and royalties.
Schedule E - correct-answer -Supplemental Income and Loss
, Royalty - correct-answer -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 - correct-answer -A series of payments under a contract made at regular
intervals over a period of more than one year.
Beneficiary - correct-answer -The owner or recipient of funds in an account, such
as an IRA, or from an insurance policy or will.
Contribution - correct-answer -When a person puts money into a retirement plan.
Defined Benefit Plan - correct-answer -An employee benefit plan that provides
determinable benefits not based on employer profits.
Defined Contribution Plan - correct-answer -An employee benefit plan that
provides a separate account for each person covered and pays benefits based on
account earnings.
