H&R Block Specialist Test| Complete Questions
with 100% Correct Answers
Sam pays his 19 yr. old son, Joshua, $550/month to maintain the lawn & garden at the family residence.
Sam is subject to what household employment tax rules for Joshua?
A. Since Joshua is not performing any child case services, the household tax rules do not apply.
B. Since Joshua is the taxpayer's child under age 21, the household employment tax rules do not apply.
C. Since no evidence is given that Joshua is a student, he is considered to be Sam's household employee.
D. Since Joshua's wages are over $2,100 for the yr., Sam is subject to the household employment tax
rules for Joshua.
Answer: B
A taxpayer should include which of the following when figuring their federal gross income?
A. Prior-year federal income tax refund.
B. Ordinary dividends.
C. Personal injury compensation.
D. Qualified disaster relief payments.
Answer: B
A taxpayer is required to file Schedule 1 (Form 1040) when claiming which of the following?
A. Retirement savings contributions credit.
B. Health savings account deduction
C. Education credit
D. Excess advance premium tax credit repayment
Answer: B
In 2018, the excise tax for excess contributions to a health savings account is _____________.
A. 0%
B. 6%
C. 10%
D. 20%
Answer: B
In 2018, the additional excise tax for non-qualified distributions from a health savings account is
____________.
A. 0%
B. 6%
C. 10%
D. 20%
Answer: D
, Cynthia works full-time as a teacher's aide at an elementary school. In 2018, she paid $250 to participate
in a professional development course, hoping to upgrade her job skills. Since she was no reimbursed for
this expense, she would like to claim the educator expense deduction. As Cynthia's Tax Pro, what advice
would you offer her?
A. She may not claim the deduction b/c she is not considered an eligible educator.
B. Since she spent the $250 on professional development rather than classroom supplies, she is not
eligible for this deduction.
C. She may claim the deduction since she is an eligible educator and the professional development
course is a qualified expense.
D. Since employee business expenses are no longer deductible on SCH A, she may not claim a deduction
for the cost of the professional development course.
Answer: C
Major Winters, a member of the Army Reserve, traveled to a location 250 miles from his home to
perform his work in the reserve in June 2018. His unreimbursed expenses consisted of $195 for lodging
and $268 for mileage. In addition, he incurred mileage expenses of $235 throughout the yr. for trips to a
location 20 miles from his home. How much is Major Winters eligible to deduct on SCH 1 (Form 1040),
line 24, as an above-the-line adjustment?
A. $0
B. $268
C. $463
D. $698
Answer: C
Kimberly originally files her 2017 return on February 19, 2018. Under ordinary circumstances, what is
the last day she can file an amended 2017 return?
A. April 15, 2021
B. February 19, 2021
C. April 15, 2020
D. April 17, 2018
Answer: A
All of the following issues may be corrected or changed by filing Form 1040X, Amended U.S. Individual
Income Tax Return, EXCEPT:
A. The amount of deductible medical expenses was reported incorrectly on the original return
B. An error that was made on a trust return needs to be corrected
C. Wages for a 2nd job were not initially reported
D. A taxpayer who filed as a non-resident qualified for U.S. resident status
Answer: B
Michelle converted her personal residence to rental property in 2018. She purchased the property in
2014 for $110,000 of which $10,000 was allocable to the land. Unfortunately, property values in her
neighborhood have declined over the past few yrs. On the date of conversion, the FMV of the property
was $98,000; $10,000 was allocated to the land. Michelle's basis for depreciation in the property is:
with 100% Correct Answers
Sam pays his 19 yr. old son, Joshua, $550/month to maintain the lawn & garden at the family residence.
Sam is subject to what household employment tax rules for Joshua?
A. Since Joshua is not performing any child case services, the household tax rules do not apply.
B. Since Joshua is the taxpayer's child under age 21, the household employment tax rules do not apply.
C. Since no evidence is given that Joshua is a student, he is considered to be Sam's household employee.
D. Since Joshua's wages are over $2,100 for the yr., Sam is subject to the household employment tax
rules for Joshua.
Answer: B
A taxpayer should include which of the following when figuring their federal gross income?
A. Prior-year federal income tax refund.
B. Ordinary dividends.
C. Personal injury compensation.
D. Qualified disaster relief payments.
Answer: B
A taxpayer is required to file Schedule 1 (Form 1040) when claiming which of the following?
A. Retirement savings contributions credit.
B. Health savings account deduction
C. Education credit
D. Excess advance premium tax credit repayment
Answer: B
In 2018, the excise tax for excess contributions to a health savings account is _____________.
A. 0%
B. 6%
C. 10%
D. 20%
Answer: B
In 2018, the additional excise tax for non-qualified distributions from a health savings account is
____________.
A. 0%
B. 6%
C. 10%
D. 20%
Answer: D
, Cynthia works full-time as a teacher's aide at an elementary school. In 2018, she paid $250 to participate
in a professional development course, hoping to upgrade her job skills. Since she was no reimbursed for
this expense, she would like to claim the educator expense deduction. As Cynthia's Tax Pro, what advice
would you offer her?
A. She may not claim the deduction b/c she is not considered an eligible educator.
B. Since she spent the $250 on professional development rather than classroom supplies, she is not
eligible for this deduction.
C. She may claim the deduction since she is an eligible educator and the professional development
course is a qualified expense.
D. Since employee business expenses are no longer deductible on SCH A, she may not claim a deduction
for the cost of the professional development course.
Answer: C
Major Winters, a member of the Army Reserve, traveled to a location 250 miles from his home to
perform his work in the reserve in June 2018. His unreimbursed expenses consisted of $195 for lodging
and $268 for mileage. In addition, he incurred mileage expenses of $235 throughout the yr. for trips to a
location 20 miles from his home. How much is Major Winters eligible to deduct on SCH 1 (Form 1040),
line 24, as an above-the-line adjustment?
A. $0
B. $268
C. $463
D. $698
Answer: C
Kimberly originally files her 2017 return on February 19, 2018. Under ordinary circumstances, what is
the last day she can file an amended 2017 return?
A. April 15, 2021
B. February 19, 2021
C. April 15, 2020
D. April 17, 2018
Answer: A
All of the following issues may be corrected or changed by filing Form 1040X, Amended U.S. Individual
Income Tax Return, EXCEPT:
A. The amount of deductible medical expenses was reported incorrectly on the original return
B. An error that was made on a trust return needs to be corrected
C. Wages for a 2nd job were not initially reported
D. A taxpayer who filed as a non-resident qualified for U.S. resident status
Answer: B
Michelle converted her personal residence to rental property in 2018. She purchased the property in
2014 for $110,000 of which $10,000 was allocable to the land. Unfortunately, property values in her
neighborhood have declined over the past few yrs. On the date of conversion, the FMV of the property
was $98,000; $10,000 was allocated to the land. Michelle's basis for depreciation in the property is:
