H&R Block Midterm Review Practice Questions and Answers

H&R Block Midterm Review Practice Questions and Answers Which of the following is considered earned income? C - Ans:-a) Interest from a bank b) Unemployment compensation c) Income from farming d) Gambling winnings The tax on income that comes entirely from wages under $100,000 is determined according to the: A - Ans:-a) Tax Tables b) Tax Computation Worksheet c) Qualified Dividends and Capital Gain Tax Worksheet d) Schedule D Tax Worksheet Which of the following shows these numbers rounded correctly: $31.43, $143.57, $369.22, $1,547.88. B - Ans:-a) $32. $142. $368. $1,547. ©GRACEAMELIA 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER 2024 Page 2/10 b) $31. $144. $369. $1,548. c) $31. $142. $369. $1,547. d) $32. $144. $368. $1,547. Which form is used by employers to report wages earned by their employees? A - Ans:-a) Form W-2 b) Form W-4 c) Form 1040 d) Form 1040A What is the exemption amount for 2017? B - Ans:-a) $3,850 b) $4,050 c) $5,050 d) $6,050 The following three factors determine the filing requirement for nondependents: B - Ans:-a) Marital status, age, and residency b) Marital status, age, and gross income c) Marital status, age, and taxable income ©GRACEAMELIA 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER 2024 Page 3/10 d) Marital status, age, and total deductions The standard deduction on an income tax return is determined by: C - Ans:-a) Citizenship b) Residency c) Filing status d) Gross income The head of household filing status requires that a taxpayer maintain a household for: A - Ans:-a) A qualifying child, qualifying relative, or a parent whom the taxpayer is allowed to claim as an exemption on their tax return b) At least one other person c) A beloved family pet d) Maintaining a household for another person is not a requirement of the HOH filing status. For tax purposes, when is a person's marital status determined? D - Ans:-a) On the first day of the tax year. b) On the taxpayer's birthday. c) On the day the person files their tax return. ©GRACEAMELIA 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER 2024 Page 4/10 d) On the last day of the tax year. Under what circumstances might a taxpayer who does not meet the federal filing requirement want to file a return anyway? A - Ans:-a) If there was any federal tax withheld or they are entitled to any refundable credits. b) If there was any federal tax withheld or they are entitled to any nonrefundable credits. c) To claim itemized deductions. d) If there was any state tax withheld or they are entitled to any refundable credits Which of the following is not one of the four requirements to claim a dependent? D - Ans:-a) The dependent must be a qualifying child or qualifying relative. b) The dependent must be a U.S. citizen or a resident of the United States, Canada, or Mexico. c) If the dependent is married, they cannot be claimed as a dependent if they file a joint return with their spouse. d) The taxpayer must provide 100% of the dependent's support for the whole year. What are the five tests for a qualifying child? B - Ans:-a) Relationship, citizenship, age, support, and joint return. b) Relationship, residency, age, support, and joint return. ©GRACEAMELIA 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER 2024 Page 5/10 c) Marital status, residency, age, support, and joint return. d) Relationship, residency, age, support, and type of income What are the four tests for a qualifying relative? C - Ans:-a) Relationship or member of the household, gross income, support, and residency. b) Relationship or member of the household, gross income, citizenship, and not a qualifying child. c) Relationship or member of the household, gross income, support, and not a qualifying child. d) Relationship or member of the household, gross income, support