HRB FINAL ACTUAL EXAM PAPER
2026 QUESTIONS WITH ANSWERS
GRADED A+
◍ Which of the following individuals is an eligible educator and may deduct
up to $300 of qualified educator expenses? (None of them received any
reimbursements.).
Answer: Mr. Chang is a fourth-grade teacher. He taught full-time in a
classroom and worked more than 900 hours during the school year. He spent
$750 on teaching supplies used in his classroom
◍ Kailani has a bank account at Lending Bank. She received Form 1099-INT,
Interest Income, shown below. She has no other interest or dividends to
report. Where should this income be reported on Kailani's tax return?
Answer choices are below the image..
Answer: $410 on line 2a, $230 on line 2b of Form 1040, and $45 on line 18
of Schedule 1 (Form 1040).
◍ Ellen and her husband were legally divorced in 2017. After the divorce,
Ellen retained physical custody of their children. Ellen received the
following amounts from her ex-husband, on behalf of the children or as
ordered by the court through a divorce decree:Court-ordered child support
of $1,000 per month.Court-ordered alimony of $500 per month.How much
of this income should be reported on Ellen's federal return?.
Answer: 6,000
◍ Karen and Pete are married and will file a joint return. They brought all their
tax documents to Jamal to prepare their return. The three documents are a
Form W-2 for Karen ($55,300), a Form W-2 for Pete ($22,400), and
unemployment compensation for Pete of $5,200. What will be their total
income reported on their 2022 Form 1040, line 9?.
, Answer: $82,900
◍ Brian and Joy are divorced. Their divorce settlement agreement signed on
June 1, 2017, states Brian must pay Joy $1,000 per month for child support
and $1,000 per month for alimony.Joy's child support payments are:.
Answer: Nontaxable.
◍ George graduated from college last year and started repaying his student
loans. He received Form 1098-E, Student Loan Interest Statement, showing
he paid $3,000 in interest on his student loans for the year. His total income
before adjustments is $68,500, and he meets all requirements to be able to
deduct the interest. How much, if any, will George be allowed to deduct as
an adjustment to his income?.
Answer: $2,500
◍ Soledad is single. He borrowed $900,000 and purchased a new main home
in March of 2020. Soledad will be itemizing his deductions. On what
portion of the acquisition debt will interest be deductible on Soledad's tax
return for 2022?.
Answer: $750,000
◍ Harmony donated a car to a qualified charitable organization. She purchased
the car in 2013 for $28,000. The fair market value of the car when she
donated it was $3,750. The charitable organization immediately sold the car
for $2,000. They did not significantly use or make any improvements to it.
The organization provided Harmony with a Form 1098-C, Contributions of
Motor Vehicles, Boats, and Airplanes. How much can she deduct as a
charitable contribution on her Schedule A (Form 1040), Itemized
Deductions?.
Answer: $2,000
◍ HTN CC.
Answer: asymptomatic
◍ Choose the response that accurately completes the following sentence.
Written acknowledgment from the donee for contributions to qualified
, charitable organizations is required when a taxpayer makes a single
donation of:.
Answer: $250 or more.
◍ HLD CC.
Answer: asymptomatic
◍ On the Schedule A (Form 1040), Itemized Deductions, the deduction for
state and local income taxes is limited to what amoun.
Answer: $10,000 ($5,000 if MFS).
◍ Robert is single. He purchased a new main home in March of 2017 for
$900,000. Robert will be itemizing his deductions. On what portion of the
acquisition debt will interest be deductible on Robert's tax return for 2022?.
Answer: $900,000
◍ DM CC.
Answer: polyuria, polydipsia
◍ CAD CC.
Answer: CP or pressure
◍ Nash was reimbursed in 2022 by his insurance company for a medical
expense that he had previously deducted on his 2021 Schedule A (Form
1040), Itemized Deductions. What is the tax treatment of the recovered
medical expense, if any?.
Answer: The recovery is includable in income in the year received up to the
amount by which the deduction or credit claimed reduced taxes in the prior
year.
◍ Paloma purchased a home with her husband, Neville, in January of 2021 for
$700,000. In June of 2021, Paloma and Neville separated. On December 31,
2022, they were still legally married but did not live together all year. They
do not live in a community property state. Neville refused to file a joint
return with Paloma. Paloma filed her return using the married filing
separately filing status. Paloma is living in the home and has continued to
make the mortgage payments using funds from her own account. Paloma
2026 QUESTIONS WITH ANSWERS
GRADED A+
◍ Which of the following individuals is an eligible educator and may deduct
up to $300 of qualified educator expenses? (None of them received any
reimbursements.).
Answer: Mr. Chang is a fourth-grade teacher. He taught full-time in a
classroom and worked more than 900 hours during the school year. He spent
$750 on teaching supplies used in his classroom
◍ Kailani has a bank account at Lending Bank. She received Form 1099-INT,
Interest Income, shown below. She has no other interest or dividends to
report. Where should this income be reported on Kailani's tax return?
Answer choices are below the image..
Answer: $410 on line 2a, $230 on line 2b of Form 1040, and $45 on line 18
of Schedule 1 (Form 1040).
◍ Ellen and her husband were legally divorced in 2017. After the divorce,
Ellen retained physical custody of their children. Ellen received the
following amounts from her ex-husband, on behalf of the children or as
ordered by the court through a divorce decree:Court-ordered child support
of $1,000 per month.Court-ordered alimony of $500 per month.How much
of this income should be reported on Ellen's federal return?.
Answer: 6,000
◍ Karen and Pete are married and will file a joint return. They brought all their
tax documents to Jamal to prepare their return. The three documents are a
Form W-2 for Karen ($55,300), a Form W-2 for Pete ($22,400), and
unemployment compensation for Pete of $5,200. What will be their total
income reported on their 2022 Form 1040, line 9?.
, Answer: $82,900
◍ Brian and Joy are divorced. Their divorce settlement agreement signed on
June 1, 2017, states Brian must pay Joy $1,000 per month for child support
and $1,000 per month for alimony.Joy's child support payments are:.
Answer: Nontaxable.
◍ George graduated from college last year and started repaying his student
loans. He received Form 1098-E, Student Loan Interest Statement, showing
he paid $3,000 in interest on his student loans for the year. His total income
before adjustments is $68,500, and he meets all requirements to be able to
deduct the interest. How much, if any, will George be allowed to deduct as
an adjustment to his income?.
Answer: $2,500
◍ Soledad is single. He borrowed $900,000 and purchased a new main home
in March of 2020. Soledad will be itemizing his deductions. On what
portion of the acquisition debt will interest be deductible on Soledad's tax
return for 2022?.
Answer: $750,000
◍ Harmony donated a car to a qualified charitable organization. She purchased
the car in 2013 for $28,000. The fair market value of the car when she
donated it was $3,750. The charitable organization immediately sold the car
for $2,000. They did not significantly use or make any improvements to it.
The organization provided Harmony with a Form 1098-C, Contributions of
Motor Vehicles, Boats, and Airplanes. How much can she deduct as a
charitable contribution on her Schedule A (Form 1040), Itemized
Deductions?.
Answer: $2,000
◍ HTN CC.
Answer: asymptomatic
◍ Choose the response that accurately completes the following sentence.
Written acknowledgment from the donee for contributions to qualified
, charitable organizations is required when a taxpayer makes a single
donation of:.
Answer: $250 or more.
◍ HLD CC.
Answer: asymptomatic
◍ On the Schedule A (Form 1040), Itemized Deductions, the deduction for
state and local income taxes is limited to what amoun.
Answer: $10,000 ($5,000 if MFS).
◍ Robert is single. He purchased a new main home in March of 2017 for
$900,000. Robert will be itemizing his deductions. On what portion of the
acquisition debt will interest be deductible on Robert's tax return for 2022?.
Answer: $900,000
◍ DM CC.
Answer: polyuria, polydipsia
◍ CAD CC.
Answer: CP or pressure
◍ Nash was reimbursed in 2022 by his insurance company for a medical
expense that he had previously deducted on his 2021 Schedule A (Form
1040), Itemized Deductions. What is the tax treatment of the recovered
medical expense, if any?.
Answer: The recovery is includable in income in the year received up to the
amount by which the deduction or credit claimed reduced taxes in the prior
year.
◍ Paloma purchased a home with her husband, Neville, in January of 2021 for
$700,000. In June of 2021, Paloma and Neville separated. On December 31,
2022, they were still legally married but did not live together all year. They
do not live in a community property state. Neville refused to file a joint
return with Paloma. Paloma filed her return using the married filing
separately filing status. Paloma is living in the home and has continued to
make the mortgage payments using funds from her own account. Paloma
