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HR BLOCK Final Test Review Questions and
Answers Top Rated A+ Latest Version
Question >> 1
How much may an eligible educator deduct for qualified classroom expenses as an
adjustment to income?
Answer
Up to $250 per eligible educator.
Married taxpayers filing a joint return who are both eligible educators may each claim the
$250 deduction, totaling $500.
Question >> 2
Qualified business income (QBI) is derived from various trade or business net amounts. In
general, QBI is the net amount of what?
Answer
Qualified business income (QBI) is the net amount of qualified items of income, gain,
deductions, and losses with respect to the taxpayer's qualified trade or business.
Page 1 of 44
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Question >> 3
What is the purpose of Form 2120, Multiple Support Declaration?
Answer
If two or more persons combined provided over one-half of a person's support, they may
together agree to allow any
one of them who contributed at least 10% of the support to claim the exemption. A
statement waiving the right to claim the dependency exemption should be signed by each
contributor who is not claiming the exemption and retained by the one who is. Form 2120
is attached to the return of the taxpayer claiming the exemption.
Question >> 4
In the case of divorced or separated parents, which parent generally gets to claim the
qualifying child?
Answer
The custodial parent, according to the IRS definition, which is the person with whom the
child spent more nights during the year.
Question >> 5
What options does a taxpayer have for depositing their refund?
Answer
Page 2 of 44
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A taxpayer who will receive a refund can use Form 8888 to directly deposit their refund into
two or three different accounts. The account can be a checking or savings account, or it can
be another type of account, such as an IRA, a
health savings account (HSA), or a Coverdell education savings account. A taxpayer also has
the option to purchase up to
$5,000 in Series I U.S. Savings Bonds with a portion of their refund.
Question >> 6
When a taxpayer receives Form 1099-R with no amount entered in box 2a and code 7
entered in box 7, the entire distribution:
Could be partly or entirely taxable. Is never taxable.
Is an early distribution and taxable.
Has been rolled into a traditional IRA or into another qualified plan.
Answer
Is never taxable.
Question >> 7
How is the lifetime learning credit calculated?
Answer
It is 20% of the first $10,000 of qualifying expenses per return, per year.
Page 3 of 44
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Question >> 8
For tax purposes, when is a person's marital status determined?
Answer
On the last day of the tax year, or the date of death.
Question >> 9
How is the gross income filing requirement determined for most nondependent taxpayers?
Answer
The taxpayer's standard deduction, including the additional amounts for age. However, for
married filing separately, or married filing jointly when the spouses did not live together at
the end of the year, the amount is $5.
Question >> 10
A combined due diligence penalty of $2,180 would indicate a penalty for which of the
following?
EIC, CTC/ODC/ACTC, and head of household. EIC, AOTC, and CTC/ODC/ACTC.
EIC, AOTC, CTC/ODC/ACTC, and head of household. EIC, PTC, CTC/ODC/ACTC, and head of
household.
Answer
Page 4 of 44
HR BLOCK Final Test Review Questions and
Answers Top Rated A+ Latest Version
Question >> 1
How much may an eligible educator deduct for qualified classroom expenses as an
adjustment to income?
Answer
Up to $250 per eligible educator.
Married taxpayers filing a joint return who are both eligible educators may each claim the
$250 deduction, totaling $500.
Question >> 2
Qualified business income (QBI) is derived from various trade or business net amounts. In
general, QBI is the net amount of what?
Answer
Qualified business income (QBI) is the net amount of qualified items of income, gain,
deductions, and losses with respect to the taxpayer's qualified trade or business.
Page 1 of 44
,@#$%^&*(*&^%$()(*&^%$#$%^&
Question >> 3
What is the purpose of Form 2120, Multiple Support Declaration?
Answer
If two or more persons combined provided over one-half of a person's support, they may
together agree to allow any
one of them who contributed at least 10% of the support to claim the exemption. A
statement waiving the right to claim the dependency exemption should be signed by each
contributor who is not claiming the exemption and retained by the one who is. Form 2120
is attached to the return of the taxpayer claiming the exemption.
Question >> 4
In the case of divorced or separated parents, which parent generally gets to claim the
qualifying child?
Answer
The custodial parent, according to the IRS definition, which is the person with whom the
child spent more nights during the year.
Question >> 5
What options does a taxpayer have for depositing their refund?
Answer
Page 2 of 44
,@#$%^&*(*&^%$()(*&^%$#$%^&
A taxpayer who will receive a refund can use Form 8888 to directly deposit their refund into
two or three different accounts. The account can be a checking or savings account, or it can
be another type of account, such as an IRA, a
health savings account (HSA), or a Coverdell education savings account. A taxpayer also has
the option to purchase up to
$5,000 in Series I U.S. Savings Bonds with a portion of their refund.
Question >> 6
When a taxpayer receives Form 1099-R with no amount entered in box 2a and code 7
entered in box 7, the entire distribution:
Could be partly or entirely taxable. Is never taxable.
Is an early distribution and taxable.
Has been rolled into a traditional IRA or into another qualified plan.
Answer
Is never taxable.
Question >> 7
How is the lifetime learning credit calculated?
Answer
It is 20% of the first $10,000 of qualifying expenses per return, per year.
Page 3 of 44
, @#$%^&*(*&^%$()(*&^%$#$%^&
Question >> 8
For tax purposes, when is a person's marital status determined?
Answer
On the last day of the tax year, or the date of death.
Question >> 9
How is the gross income filing requirement determined for most nondependent taxpayers?
Answer
The taxpayer's standard deduction, including the additional amounts for age. However, for
married filing separately, or married filing jointly when the spouses did not live together at
the end of the year, the amount is $5.
Question >> 10
A combined due diligence penalty of $2,180 would indicate a penalty for which of the
following?
EIC, CTC/ODC/ACTC, and head of household. EIC, AOTC, and CTC/ODC/ACTC.
EIC, AOTC, CTC/ODC/ACTC, and head of household. EIC, PTC, CTC/ODC/ACTC, and head of
household.
Answer
Page 4 of 44
