HRB FINAL FINAL TEST 2026
QUESTIONS WITH CORRECT
ANSWERS GRADED A+
◍ What is the Difference between earned income and unearned income?.
Answer: Earned income is received for services performed. Examples are
wages commissions, tips and generally farming and other business income .
Taxable income other than that received for services performed. Unearned
Income includes money received ro the investment of money or other
property, such as interest, dividends, and royalties. It also includes pensions
alimony, unemployment compensation and other income that is not earned
◍ Oakes Test.
Answer: Coming out of R v Oakes (1986), a test to determine if a law or
policy that infringes on a Charter right is justified under section 1 of the
Charter. There are 4 steps: 1. Pressing and Substantial state objective 2.
Rationally connected (limitation of charter right must be rationally
connected to the state's objective) 3. Minimally impairing (the law/policy
must impair the charter right as little as possible) 4. Proportionality (the
overall benefits of achieving the state objective outweigh the negative
impacts of restricting the right)
◍ Substantive Equality.
Answer: Goes beyond formal equality by acknowledging treating everyone
the same has the potential to entrench existing inequalities. Requires
policymakers to consider the social and historical contexts of affected
individuals (acknowledges intersectionality) and adopt measures to ensure
every individual has equal access to rights, opportunities, and benefits.
Policies are outcome oriented and pre-emptively consider potential
inequalities/barriers to access
,◍ If an employee thinks their Form W2 is incorrect, what should they do?.
Answer: Employee should discuss with employer who issued the document
and request a W2C. If no help from employer, notify IRS. Tax prepaper can
then file a substitute.
◍ Human Rights Based (HRBA) Framework (Key Features).
Answer: Normative: based on international HR standards and
relatedregional standards as wellPeople-centred: human beings are
rights-holders; States and (sometimes) third parties are
duty-holdersEquality-focused: focuses on groups
experiencingdiscrimination and marginalizationRecognizes: that certain
rights (for example, education, health, access to public services such as
transit, social assistance, etc.) can only be realized
progressivelyProcess-oriented: Equal importance is given to
participatoryprocess of development
◍ What information do you need to know to determine whether a taxpayer is
required to file a return?.
Answer: Gross income, filing status, age and if they are a dependent
◍ Human Rights Based (HRBA) Framework (Definition).
Answer: A way of designing and evaluating policy that starts from rights,
not needs. Instead of asking: what do people need? It asks: What are people
legally entitled to and who has the obligation to provide it?, framing
individuals as "rights-holders" and governments as "duty-bearers"-
normatively based on international human rights standards -operationally
directed to promoting and protecting humanrights
◍ For tax purposes, when is a person's marital status determined?.
Answer: On the last day of the tax year
◍ Human Rights Based (HRBA) Framework (Core Principles).
Answer: Universality → rights apply to everyoneEquality &
non-discrimination → no group is excludedParticipation → affected
individuals must be included in decisionsAccountability → duty-bearers
, must justify actions and can be challengedIndivisibility of rights → rights
are interconnected (e.g., dignity, security, equality)
◍ Typologies and Taxonomies of Tools.
Answer: Organizational tools → Government uses institutions,
administrative structures, and procedures to directly deliver services and
organize how decisions are made and implemented (Howlett: who delivers
policy is itself a policy instrument)Information-based tools → targeted
awareness campaigns/persuasion through informationAuthoritative tools →
Binding laws/regulations that compel or prohibit behavior through state
authorityFinancial tools → Use of funding, taxes, or incentives to encourage
or discourage actions
◍ Where on the tax form can you find the regular standard deduction
amounts?.
Answer: Line 22 on 1040A, In the left margin at the top of the page 2 of
forms 1040 and 1040A. Look at actual form to look for line
◍ How much is added to the standard deduction if the taxpayer (or spouse is
age 65 or older, or blind?.
Answer: $1550 if unmarried, $1250 if married
◍ Financial/Treasury Tools.
Answer: Instruments that use public spending, incentives, or economic
disincentives to influence behaviour. They shape outcomes by altering costs
and benefits rather than mandating actions directly. Examples: subsidies,
tax incentives, grants, funding conditions, or withdrawal of government
financial support (e.g., trade or export assistance).Substantive: Grants,
subsidies & fees; taxes, royalties, tax incentives, credits, Sin taxes,
preferential procurement
◍ Organizational Tools.
Answer: Instruments that involve the creation or use of institutions,
agencies, or administrative bodies to implement policy goals. These bodies
may coordinate, monitor, or advise, but do not necessarily have binding
powers. Examples: regulatory agencies, human rights commissions, and
, CORE (Canadian Ombudsperson for Responsible Enterprise).Substantive
(service delivery): direct government provisions, Line departments and
central services, state owned enterprise, Crown corps, GONGOs,
PPPProcedural: (how policy decisions are made/shape processes and
participation): advisory bodies, tribunals, PCO (tribunals, statutory
commissions), Royal commissions, legislative oversight bodies
◍ What is the personal exemption amount for 2016?.
Answer: $4,050
◍ Authoritative Tools.
Answer: Instruments that are legally binding tools that require or prohibit
behavior through formal rules backed by the state's coercive power. They
include laws, regulations, and binding directives, and are enforced through
penalties or sanctions. Examples: Criminal Code provisions, human rights
legislation, court orders, mandatory due diligence laws.Substantive: -
Laws/statutes and subsidiary regulation- Rule-making powers in some
agencies with bindingauthority- Independent regulatory
commissions/boards- Court and tribunal decisions- Delegated professional
regulation- Might also include voluntary or incentive regulation (e.g.CSR)-
Soft law e.g. policy standards, guidelines (are NOTregulations)Procedural: -
"selective activation of policy actors" (Howlett) - some are given access to
policy processes and others are not- criteria for participation in policy
development- e.g.: advisory councils, ad hoc task forces,
commissions,consultations, and consensus conferences
◍ Information-based Tools.
Answer: Instruments that seek to influence behavior by providing
information, guidance, or persuasion, rather than coercion. They rely on
awareness, norms, and reputational pressure to shape decision-making.
Examples: public reports, guidelines, CSR frameworks, UN Global
Compact, "naming and shaming" strategies.Substantive: - Exhortation and
moral suasion-Information campaigns-Nudges- Information-based choice
architecture (e.g. default opt-insfor organ donation on drivers)Procedural:-
QUESTIONS WITH CORRECT
ANSWERS GRADED A+
◍ What is the Difference between earned income and unearned income?.
Answer: Earned income is received for services performed. Examples are
wages commissions, tips and generally farming and other business income .
Taxable income other than that received for services performed. Unearned
Income includes money received ro the investment of money or other
property, such as interest, dividends, and royalties. It also includes pensions
alimony, unemployment compensation and other income that is not earned
◍ Oakes Test.
Answer: Coming out of R v Oakes (1986), a test to determine if a law or
policy that infringes on a Charter right is justified under section 1 of the
Charter. There are 4 steps: 1. Pressing and Substantial state objective 2.
Rationally connected (limitation of charter right must be rationally
connected to the state's objective) 3. Minimally impairing (the law/policy
must impair the charter right as little as possible) 4. Proportionality (the
overall benefits of achieving the state objective outweigh the negative
impacts of restricting the right)
◍ Substantive Equality.
Answer: Goes beyond formal equality by acknowledging treating everyone
the same has the potential to entrench existing inequalities. Requires
policymakers to consider the social and historical contexts of affected
individuals (acknowledges intersectionality) and adopt measures to ensure
every individual has equal access to rights, opportunities, and benefits.
Policies are outcome oriented and pre-emptively consider potential
inequalities/barriers to access
,◍ If an employee thinks their Form W2 is incorrect, what should they do?.
Answer: Employee should discuss with employer who issued the document
and request a W2C. If no help from employer, notify IRS. Tax prepaper can
then file a substitute.
◍ Human Rights Based (HRBA) Framework (Key Features).
Answer: Normative: based on international HR standards and
relatedregional standards as wellPeople-centred: human beings are
rights-holders; States and (sometimes) third parties are
duty-holdersEquality-focused: focuses on groups
experiencingdiscrimination and marginalizationRecognizes: that certain
rights (for example, education, health, access to public services such as
transit, social assistance, etc.) can only be realized
progressivelyProcess-oriented: Equal importance is given to
participatoryprocess of development
◍ What information do you need to know to determine whether a taxpayer is
required to file a return?.
Answer: Gross income, filing status, age and if they are a dependent
◍ Human Rights Based (HRBA) Framework (Definition).
Answer: A way of designing and evaluating policy that starts from rights,
not needs. Instead of asking: what do people need? It asks: What are people
legally entitled to and who has the obligation to provide it?, framing
individuals as "rights-holders" and governments as "duty-bearers"-
normatively based on international human rights standards -operationally
directed to promoting and protecting humanrights
◍ For tax purposes, when is a person's marital status determined?.
Answer: On the last day of the tax year
◍ Human Rights Based (HRBA) Framework (Core Principles).
Answer: Universality → rights apply to everyoneEquality &
non-discrimination → no group is excludedParticipation → affected
individuals must be included in decisionsAccountability → duty-bearers
, must justify actions and can be challengedIndivisibility of rights → rights
are interconnected (e.g., dignity, security, equality)
◍ Typologies and Taxonomies of Tools.
Answer: Organizational tools → Government uses institutions,
administrative structures, and procedures to directly deliver services and
organize how decisions are made and implemented (Howlett: who delivers
policy is itself a policy instrument)Information-based tools → targeted
awareness campaigns/persuasion through informationAuthoritative tools →
Binding laws/regulations that compel or prohibit behavior through state
authorityFinancial tools → Use of funding, taxes, or incentives to encourage
or discourage actions
◍ Where on the tax form can you find the regular standard deduction
amounts?.
Answer: Line 22 on 1040A, In the left margin at the top of the page 2 of
forms 1040 and 1040A. Look at actual form to look for line
◍ How much is added to the standard deduction if the taxpayer (or spouse is
age 65 or older, or blind?.
Answer: $1550 if unmarried, $1250 if married
◍ Financial/Treasury Tools.
Answer: Instruments that use public spending, incentives, or economic
disincentives to influence behaviour. They shape outcomes by altering costs
and benefits rather than mandating actions directly. Examples: subsidies,
tax incentives, grants, funding conditions, or withdrawal of government
financial support (e.g., trade or export assistance).Substantive: Grants,
subsidies & fees; taxes, royalties, tax incentives, credits, Sin taxes,
preferential procurement
◍ Organizational Tools.
Answer: Instruments that involve the creation or use of institutions,
agencies, or administrative bodies to implement policy goals. These bodies
may coordinate, monitor, or advise, but do not necessarily have binding
powers. Examples: regulatory agencies, human rights commissions, and
, CORE (Canadian Ombudsperson for Responsible Enterprise).Substantive
(service delivery): direct government provisions, Line departments and
central services, state owned enterprise, Crown corps, GONGOs,
PPPProcedural: (how policy decisions are made/shape processes and
participation): advisory bodies, tribunals, PCO (tribunals, statutory
commissions), Royal commissions, legislative oversight bodies
◍ What is the personal exemption amount for 2016?.
Answer: $4,050
◍ Authoritative Tools.
Answer: Instruments that are legally binding tools that require or prohibit
behavior through formal rules backed by the state's coercive power. They
include laws, regulations, and binding directives, and are enforced through
penalties or sanctions. Examples: Criminal Code provisions, human rights
legislation, court orders, mandatory due diligence laws.Substantive: -
Laws/statutes and subsidiary regulation- Rule-making powers in some
agencies with bindingauthority- Independent regulatory
commissions/boards- Court and tribunal decisions- Delegated professional
regulation- Might also include voluntary or incentive regulation (e.g.CSR)-
Soft law e.g. policy standards, guidelines (are NOTregulations)Procedural: -
"selective activation of policy actors" (Howlett) - some are given access to
policy processes and others are not- criteria for participation in policy
development- e.g.: advisory councils, ad hoc task forces,
commissions,consultations, and consensus conferences
◍ Information-based Tools.
Answer: Instruments that seek to influence behavior by providing
information, guidance, or persuasion, rather than coercion. They rely on
awareness, norms, and reputational pressure to shape decision-making.
Examples: public reports, guidelines, CSR frameworks, UN Global
Compact, "naming and shaming" strategies.Substantive: - Exhortation and
moral suasion-Information campaigns-Nudges- Information-based choice
architecture (e.g. default opt-insfor organ donation on drivers)Procedural:-
