2024 LATEST HR Block 2024 Test Questions And Answers

List 4 Due Diligence Req's - ANSWER- 1) Complete (forms) 2) Keep 3) Knowledge 4) Document Earned income - ANSWER- Wages, tips, commissions, farming & other business income. $ for services Unearned income - ANSWER- Taxable income including investment money, dividends, rents, royalties, pensions, alimony, unemployment (not performing services) Single filing requirements - ANSWER- 65 10,350 65 11,900 MFJ filing requirements - ANSWER- 65. 20,700 65. 21,950 (1 spouse) 65. 23200 (2 spouses) MFS Filing requirement - ANSWER- 4050 Dependent filing requirement - ANSWER- $1050 unearned income HOH FILING REQUIREMENT - ANSWER- 65 13,350 65 14900 When is marital status determined? - ANSWER- Last day of tax year. Or Date of death if one spouse died How much is added Ro standard deduction if taxpayer is 65+ or blind? - ANSWER- 1250 Married & QW 1550 Single & HOH Personal exemption amount? - ANSWER- 4050 2amounts added to decide gross income filing requirements - ANSWER- Standard Deduction + Personal exemption 5 tests for a Qualifying Child - ANSWER- 1) Relationship 2)Age 3) Residency 4) Support 5) Joint Return (Child not filing joint return) What are the tie-breaker rules? - ANSWER- 1)Parent 2)Parent child slept at house most 3) Parent with highest AGI 4) Person with highest AGI 4 tests for Qualifying Relative - ANSWER- 1) Relationship or member of household 2)Gross Income (4050) 3)Support (must provide + 1/2 their Support) 4) Nit a QC Child tax credit is worth - ANSWER- 1000 Requirements to claim CTC - ANSWER- 1) must have a QC 2) QC must be 17 3) QC must be claimed on return 4) Cituzen, resident or national Penalty if preparer fails to meet CTC due diligence requirements - ANSWER- $510 for each credit for each return What filing status can you not use for credits ever? - ANSWER- MFS How can you qualify for HOH? - ANSWER- 1) unmarried or considered unmarried on last day of tax year 2) QC or QR 3) Taxpayer maintains household for QC/QR or patent that they can claim Costs of maintaining home? - ANSWER- Rent Mort interest RE taxes INS - rent or homeowners Repairs Utilities Food Requirements for Qualifying Widower - ANSWER- 1) taxpayers spouse died in either of the 2 years prior to the current tax year. 2) taxpayer paid 1/2 cost of maintaining home of kids etc.. What firm would a custodial Parent use to relinquish rights for that year to claim child so that other parent can claim that child? - ANSWER- 8332 When do you use a schedule B? - ANSWER- When interest or dividends exceed $1500 Is interest received on US treasury obligations taxable on state/local returns ? - ANSWER- NEVER Is a municipal bond taxed on a federal return ? - ANSWER- No Limitations to medical deductions - ANSWER- 10% of your AGI or 7 1/2% of your AGI if you or spouse is over 65 Types of taxes that are deductible: - ANSWER- 1) state and local taxes 2) Real property tax 3) personal property tax 4) Foreign income tax No Children: How does this taxpayer qualify for EITC? - ANSWER- 1) age 25- 65 on 1/1 of year taxes are filed (so you file 2016 taxes in 2017) (or at least one spouse fills age requirement) 2) not be ABLE to be claimed by anyone else 3) Not be a QC if another 4) live in US 1/2 year 5) Earned income & AGI 14880S/20430 M Taxpayer has 1+ child. What are 4 qualifications to receive EITC - ANSWER- 1) Have a QC 2) QC not claimed by another taxpayer 3) Have earned income & AGI less than 39,296 (44,846)...... 1 QC MFJ 44,648 (50,198)...... 2 QC MFJ 47,955 (53,505)....... 3 QC MFJ 6 qualifications for taxpayer to be eligible for EITC - ANSWER- 1) Valid SS# 2) NO MFS 3) Citizen, resident alien ALLLL YEAR 4) Investment income 3400 5) Earned income of $1 6) Not file firm 2555 (foreign stuff) Is unemployment income taxable? - ANSWER- YES If employer is providing disability pension payments what form will taxpayer receive? - ANSWER- 1099R Disability pension payments are entered on line ... - ANSWER- 7, as a taxable wage