H&R Block Income Tax Course questions with 100%
correct answers 2024
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.
Disability Pension - CORRECT ANSWER A taxable pension from an employer-funded
disability plan or a disability provision of a retirement plan.
Distribution - CORRECT ANSWER When a person takes or receives money from a
retirement plan.
Pension - CORRECT ANSWER Generally a series of definitely determinable payments
made to a taxpayer after retirement from work.
Rollover - CORRECT ANSWER A qualified transfer of funds from one tax-favored
account to another, usually of the same type.
, Roth IRA - CORRECT ANSWER A type of individual retirement arrangement in which
contributions are not tax deductible, earnings grow tax deferred, and qualified
withdrawals are tax free.
Traditional IRA - CORRECT ANSWER An individual retirement arrangement,
contributions to which may or may not be deductible depending on the taxpayer's AGI
and whether or not he is covered under an employer-sponsored retirement plan.
What is the full retirement age? - CORRECT ANSWER For workers born before 1938,
it is 65. For those born after it is gradually being increased to 67.
How much of a client's social security and equivalent tier 1 RR benefits may be taxable?
- CORRECT ANSWER Up to 85%.
Form SSA-1099 - CORRECT ANSWER Social Security Benefits
Form RRB-1099 - CORRECT ANSWER Railroad Retirement Benefits
None of Social Security Benefits Taxable - CORRECT ANSWER Single, Head of
Household, Qualified Widow - $0-$25,000; Married Filing Jointly - $0-$32,000
Up to 50% of Social Security Benefits Taxable - CORRECT ANSWER Single, Head of
Household, Qualified Widow - $25,001-$34,000; Married Filing Jointly - $32,001-
$44,000
Up to 85% of Social Security Benefits Taxable - CORRECT ANSWER Single, Head of
Household, Qualified Widow - $34,001+; Married Filing Jointly - $44,001+; Married
Filing Single - $1+
Fully Taxable Pension - CORRECT ANSWER Pensions to which the taxpayer did not
make after-tax contributions or from which all pre-tax amounts have been recovered in
previous years.
Partly Taxable Pensions - CORRECT ANSWER Those pensions funded through
employer plans to which the employee contributed some after-tax money.
Form 1099-R - CORRECT ANSWER Distributions from Pensions, Annuities,
Retirement, or Profit-Sharing Plans, IRAs, Insurance Contracts, Etc.
Exceptions to the Early Withdrawal Penalty - CORRECT ANSWER 01 - The distribution
was made to an employee who separated from service during or after the year in which
they reached age 55.
02 - The distribution is part of a series of substantially equal periodic payments, made at
least annually for the life of the participant or the life expenctancy of the participant.
03 - The distribution was made due to permanent and total disability.
04 - The distribution was made due to the death of the employee.
correct answers 2024
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.
Disability Pension - CORRECT ANSWER A taxable pension from an employer-funded
disability plan or a disability provision of a retirement plan.
Distribution - CORRECT ANSWER When a person takes or receives money from a
retirement plan.
Pension - CORRECT ANSWER Generally a series of definitely determinable payments
made to a taxpayer after retirement from work.
Rollover - CORRECT ANSWER A qualified transfer of funds from one tax-favored
account to another, usually of the same type.
, Roth IRA - CORRECT ANSWER A type of individual retirement arrangement in which
contributions are not tax deductible, earnings grow tax deferred, and qualified
withdrawals are tax free.
Traditional IRA - CORRECT ANSWER An individual retirement arrangement,
contributions to which may or may not be deductible depending on the taxpayer's AGI
and whether or not he is covered under an employer-sponsored retirement plan.
What is the full retirement age? - CORRECT ANSWER For workers born before 1938,
it is 65. For those born after it is gradually being increased to 67.
How much of a client's social security and equivalent tier 1 RR benefits may be taxable?
- CORRECT ANSWER Up to 85%.
Form SSA-1099 - CORRECT ANSWER Social Security Benefits
Form RRB-1099 - CORRECT ANSWER Railroad Retirement Benefits
None of Social Security Benefits Taxable - CORRECT ANSWER Single, Head of
Household, Qualified Widow - $0-$25,000; Married Filing Jointly - $0-$32,000
Up to 50% of Social Security Benefits Taxable - CORRECT ANSWER Single, Head of
Household, Qualified Widow - $25,001-$34,000; Married Filing Jointly - $32,001-
$44,000
Up to 85% of Social Security Benefits Taxable - CORRECT ANSWER Single, Head of
Household, Qualified Widow - $34,001+; Married Filing Jointly - $44,001+; Married
Filing Single - $1+
Fully Taxable Pension - CORRECT ANSWER Pensions to which the taxpayer did not
make after-tax contributions or from which all pre-tax amounts have been recovered in
previous years.
Partly Taxable Pensions - CORRECT ANSWER Those pensions funded through
employer plans to which the employee contributed some after-tax money.
Form 1099-R - CORRECT ANSWER Distributions from Pensions, Annuities,
Retirement, or Profit-Sharing Plans, IRAs, Insurance Contracts, Etc.
Exceptions to the Early Withdrawal Penalty - CORRECT ANSWER 01 - The distribution
was made to an employee who separated from service during or after the year in which
they reached age 55.
02 - The distribution is part of a series of substantially equal periodic payments, made at
least annually for the life of the participant or the life expenctancy of the participant.
03 - The distribution was made due to permanent and total disability.
04 - The distribution was made due to the death of the employee.
