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H&R BLOCK INCOME TAX SPECIALIST TEST
2025| BRAND NEW ACTUAL EXAM WITH 100%
VERIFIED QUESTIONS AND CORRECT
SOLUTIONS| GUARANTEED VALUE PACK| ACE
YOUR GRADES.
(Read this scenario and choose the option that accurately describes the tax
household) Lisa (28) is not married. She has 2 children, John (2) and
Katelyn (6), who live with her. She has wages of $28,000. Lisa lives with
her mother, Berta (55), in the house that Berta owns. Berta has wage
income of $32,000 and provides 100% of her own support. Lisa'a brother,
Leo (21), also lives in the house. Leo has wage income of $22,000 and
provides 100% of his own support. - correct answer - A. Lisa, John,
Katelyn, Berta, and Leo from one tax household
B. Lisa, John, and Katelyn from one tax household. Berta and Leo form a
second tax household
C. Lisa, John, and Katelyn form one tax household. Berta forms her own
tax household. Leo forms his own tax household.
D. Lisa and John form one tax household. Berta, Leo, and Katelyn form a
second tax household.
Answer: C
Which statement accurately describes the Affordable Care Act (ACA)
Individual Shared Responsibility penalty for 2018? - correct answer - A. It is
the greater of either: 2.5% of household income less the taxpayer's filing
threshold or $695/individual family member ($347.50/child under age 18)
without coverage up to $2,085. OR. Capped overall by the national average
bronze premium.
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B. It is the greater of either: 2% of household income less the taxpayer's
filing threshold or $325/individual family member ($162.50/child under age
18) without coverage up to $975. OR. Capped overall by the national
average bronze premium.
C. It is the lesser of either: 2.5% of household income less the taxpayer's
filing threshold or $695/individual family member ($347.50/child under age
18) without coverage up to $2,085. OR. Capped overall by the national
average bronze premium
D. It is the lesser of either: 2% of household income less the taxpayer's
filing threshold or $325/individual family member ($162.50/child under age
18) without coverage up to $975. OR. Capped overall by the national
average bronze premium.
Answer: A
Which of the following taxpayers is required to file SCH B, Interest and
Ordinary Dividends, with their return? All income is U.S.-source income,
and all the taxpayers are single U.S. citizens who may not be claimed as a
dependent on anyone else's return. - correct answer - A. John, who earned
$400 in ordinary and qualified dividends from a mutual fund investment.
B. Karen, who earned $700 in tax-exempt interest and $950 in ordinary
dividends from a stock investment
C. Mitch, who earned $800 in tax-exempt interest and $900 of interest from
a U.S. Treasury bond
D. Robin, who earned $1,550 in corporate bond interest
Answer: D
Original issues discount (OID) is treated as: - correct answer - A. Taxable
interest as it accrues over the term of the bond
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B. A taxable dividend as it accrues over the term of the bond
C. A dividend that is not taxable until the bond matures
D. Interest that is not taxable until the bond matures
Answer: A
Melina purchased a $10,000 corporate bond on July 1, 2018. The bond has
a stated interest rate of 5%, payable annually on November 1. Since Melina
purchased the bond between interest payment dates the interest income
SCH B. Interest and Ordinary Dividends will be reported as
_____________. - correct answer - A. $251, the amount of interest earned
from July 1 through December 31.
B. $332, her proportionate share of the interest as taxable income. No
further adjustment is necessary
C. $500, the full interest payment, then minus $332, the amount of accrued
interest, as an adjustment
D. $500, the entire interest payment. No further adjustment is necessary,
as the amount of accrued interest was added to Melina's basis at the time
of purchase.
Answer: C
Donald (66) and Leah (62) file MFJ. Their income for 2018 is:
Donald - $13,876 - Social Security Benefits
Leah - $15,000 - Wages
Joint - $510 - Taxable interest income
How much of Donald's social security income may be taxable? - correct
answer - A. $0
B. $6,938
H&R BLOCK INCOME TAX SPECIALIST TEST
2025| BRAND NEW ACTUAL EXAM WITH 100%
VERIFIED QUESTIONS AND CORRECT
SOLUTIONS| GUARANTEED VALUE PACK| ACE
YOUR GRADES.
(Read this scenario and choose the option that accurately describes the tax
household) Lisa (28) is not married. She has 2 children, John (2) and
Katelyn (6), who live with her. She has wages of $28,000. Lisa lives with
her mother, Berta (55), in the house that Berta owns. Berta has wage
income of $32,000 and provides 100% of her own support. Lisa'a brother,
Leo (21), also lives in the house. Leo has wage income of $22,000 and
provides 100% of his own support. - correct answer - A. Lisa, John,
Katelyn, Berta, and Leo from one tax household
B. Lisa, John, and Katelyn from one tax household. Berta and Leo form a
second tax household
C. Lisa, John, and Katelyn form one tax household. Berta forms her own
tax household. Leo forms his own tax household.
D. Lisa and John form one tax household. Berta, Leo, and Katelyn form a
second tax household.
Answer: C
Which statement accurately describes the Affordable Care Act (ACA)
Individual Shared Responsibility penalty for 2018? - correct answer - A. It is
the greater of either: 2.5% of household income less the taxpayer's filing
threshold or $695/individual family member ($347.50/child under age 18)
without coverage up to $2,085. OR. Capped overall by the national average
bronze premium.
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B. It is the greater of either: 2% of household income less the taxpayer's
filing threshold or $325/individual family member ($162.50/child under age
18) without coverage up to $975. OR. Capped overall by the national
average bronze premium.
C. It is the lesser of either: 2.5% of household income less the taxpayer's
filing threshold or $695/individual family member ($347.50/child under age
18) without coverage up to $2,085. OR. Capped overall by the national
average bronze premium
D. It is the lesser of either: 2% of household income less the taxpayer's
filing threshold or $325/individual family member ($162.50/child under age
18) without coverage up to $975. OR. Capped overall by the national
average bronze premium.
Answer: A
Which of the following taxpayers is required to file SCH B, Interest and
Ordinary Dividends, with their return? All income is U.S.-source income,
and all the taxpayers are single U.S. citizens who may not be claimed as a
dependent on anyone else's return. - correct answer - A. John, who earned
$400 in ordinary and qualified dividends from a mutual fund investment.
B. Karen, who earned $700 in tax-exempt interest and $950 in ordinary
dividends from a stock investment
C. Mitch, who earned $800 in tax-exempt interest and $900 of interest from
a U.S. Treasury bond
D. Robin, who earned $1,550 in corporate bond interest
Answer: D
Original issues discount (OID) is treated as: - correct answer - A. Taxable
interest as it accrues over the term of the bond
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B. A taxable dividend as it accrues over the term of the bond
C. A dividend that is not taxable until the bond matures
D. Interest that is not taxable until the bond matures
Answer: A
Melina purchased a $10,000 corporate bond on July 1, 2018. The bond has
a stated interest rate of 5%, payable annually on November 1. Since Melina
purchased the bond between interest payment dates the interest income
SCH B. Interest and Ordinary Dividends will be reported as
_____________. - correct answer - A. $251, the amount of interest earned
from July 1 through December 31.
B. $332, her proportionate share of the interest as taxable income. No
further adjustment is necessary
C. $500, the full interest payment, then minus $332, the amount of accrued
interest, as an adjustment
D. $500, the entire interest payment. No further adjustment is necessary,
as the amount of accrued interest was added to Melina's basis at the time
of purchase.
Answer: C
Donald (66) and Leah (62) file MFJ. Their income for 2018 is:
Donald - $13,876 - Social Security Benefits
Leah - $15,000 - Wages
Joint - $510 - Taxable interest income
How much of Donald's social security income may be taxable? - correct
answer - A. $0
B. $6,938
