HR Block UPDATED Exam Questions and
CORRECT Answers
A tax returner or claim for refund requiring a paid tax return preparer to determine eligibility for
EITC, CTC/ODC/ ACTC, AOTC, and the head of household filling status may be subject to a
maximum penalty, totaling what amount for failure to meet due diligence requirements if all four
are claimed on a single tax return? - CORRECT ANSWER - a,$2,120
the deduction for state and local income taxes is limited to what amount? - CORRECT
ANSWER - a. $10,000 ($5,000 if MFS).
A married couple who materially participate in the operation of a jointly owned business may
elect for each spouse to file their own Schedule C, with each reporting their respective amounts
of income, loss, and deductions. This known as what? - CORRECT ANSWER - C. A
qualified joint venture
Stock owned by an individual would be classified as what type of property? - CORRECT
ANSWER - a. Intangible personal, investment -use property
Which of the following is not deductible on Schedule A? - CORRECT ANSWER - C.
Federal taxes withheld.
Which of the following types of property may be depreciated? - CORRECT ANSWER - d.
a copier purchased by a tax preparation office.
a taxpayer who actively participates in a rental real estate activity may, in many cases, deduct up
to what amount of rental losses against any other kind of income? - CORRECT
ANSWER - a. 25,000
A sole proprietor who computes self-employment tax should be filling what form? - CORRECT
ANSWER - b. Schedule SE.
,An employee tells their employer how much income tax to withold from their taxable wages by
completing what form? - CORRECT ANSWER - C. Form W-4.
The IRS may assess penalties on taxpayers for which of the folllowing? - CORRECT
ANSWER - d. All of the Above
Which of the following best describes gross income? - CORRECT ANSWER - a. all
income from whatever source derived, unless excluded from taxation by law
Which of the following best describes earned income? - CORRECT ANSWER - c. Income
received for services, performed, including wages, commissions, tips, and generally, farming and
other business income.
Which of the following taxpayers is not required to file a federal tax return for 2019? -
CORRECT ANSWER - d. Ron (66) and sue (64) have gross income of $ 25,250. they
wish to file a joint return
In 2019, Jennfier's (27) brother, jim (18), her fiancee Steve(29) and her daughter, Kim (5) lived
with her for the entire year. Jennfier's AGI is $27,800, Jim's AGI is $5,050, Steve AGI is
$4,0050, and Kim had no icome. Jim and Kim did not provide over 50% of steve's support.
Jennifer quailties and files as head of household in 2019. How many qualifying dependents can
jennfier claim on her return? - CORRECT ANSWER - c. Three
Which of the following items is included in federal gross income? - CORRECT
ANSWER - d. Unemployment compensation.
Which of the following items is not included in federal gross income? - CORRECT
ANSWER - B. Federal income tax refunds
Which of the following taxpayers is not required to file a federal income tax return for 2019? -
CORRECT ANSWER - b. Elizabeth (68) has gross income of $12,250. she is single and
has no dependents
, Mike is single and has a taxable income of $17,405. His amount of tax from the 2019 Tax tables
is - CORRECT ANSWER - c. $1,897.
Adrian is married filing separatly, and has a taxable income of $26,100. His amount of tax from
the 2019 tax tables is - CORRECT ANSWER - c. $2,941.
Which of the following is not one of the five quailfying child tests a taxpayer must meet their
child to be considered their dependent? - CORRECT ANSWER - a. Gross income test.
Marissa and lucius were married 18 years ago. They had one child, Matthew (13.) luciuis pased
away in 2015. Marissa did not remary. Marissa and mathhew lived together all year long, and no
one else lived with them. Matthew had no income in 2019. Marissa paid 100% of the cost of the
maintaining their home. What is the most benefical 2019 filing status for Marissa? - CORRECT
ANSWER - a. Head of household.
Brian had dividened income reported on Form 1099-DIV. Brian would be required to file a form
1040, schedule B, when his dividened income exceeds of which of the following households? -
CORRECT ANSWER - b. $1,500.
Which of the following taxpayers is not required does not quailfy to deduct qualified educator
expenses? - CORRECT ANSWER - C. Gaylene is a high school substitute teacher in her
local school district. She worked 1,040 hours in 2019. She speny $590 home schooling, her fifth-
grade daughter jodie. She spent $230 on supplies used in various classrooms. she reimbursed for
the supplies.
What is the maximum deduction allowed for quailifed student loan interest? - CORRECT
ANSWER - b. $2,500.
Which of the following expenses quailifies for an education credit in 2019? - CORRECT
ANSWER - a. tutition payments?, the taxpayer didn't receive scholarships, grants, or other
nontaxable benefiets
CORRECT Answers
A tax returner or claim for refund requiring a paid tax return preparer to determine eligibility for
EITC, CTC/ODC/ ACTC, AOTC, and the head of household filling status may be subject to a
maximum penalty, totaling what amount for failure to meet due diligence requirements if all four
are claimed on a single tax return? - CORRECT ANSWER - a,$2,120
the deduction for state and local income taxes is limited to what amount? - CORRECT
ANSWER - a. $10,000 ($5,000 if MFS).
A married couple who materially participate in the operation of a jointly owned business may
elect for each spouse to file their own Schedule C, with each reporting their respective amounts
of income, loss, and deductions. This known as what? - CORRECT ANSWER - C. A
qualified joint venture
Stock owned by an individual would be classified as what type of property? - CORRECT
ANSWER - a. Intangible personal, investment -use property
Which of the following is not deductible on Schedule A? - CORRECT ANSWER - C.
Federal taxes withheld.
Which of the following types of property may be depreciated? - CORRECT ANSWER - d.
a copier purchased by a tax preparation office.
a taxpayer who actively participates in a rental real estate activity may, in many cases, deduct up
to what amount of rental losses against any other kind of income? - CORRECT
ANSWER - a. 25,000
A sole proprietor who computes self-employment tax should be filling what form? - CORRECT
ANSWER - b. Schedule SE.
,An employee tells their employer how much income tax to withold from their taxable wages by
completing what form? - CORRECT ANSWER - C. Form W-4.
The IRS may assess penalties on taxpayers for which of the folllowing? - CORRECT
ANSWER - d. All of the Above
Which of the following best describes gross income? - CORRECT ANSWER - a. all
income from whatever source derived, unless excluded from taxation by law
Which of the following best describes earned income? - CORRECT ANSWER - c. Income
received for services, performed, including wages, commissions, tips, and generally, farming and
other business income.
Which of the following taxpayers is not required to file a federal tax return for 2019? -
CORRECT ANSWER - d. Ron (66) and sue (64) have gross income of $ 25,250. they
wish to file a joint return
In 2019, Jennfier's (27) brother, jim (18), her fiancee Steve(29) and her daughter, Kim (5) lived
with her for the entire year. Jennfier's AGI is $27,800, Jim's AGI is $5,050, Steve AGI is
$4,0050, and Kim had no icome. Jim and Kim did not provide over 50% of steve's support.
Jennifer quailties and files as head of household in 2019. How many qualifying dependents can
jennfier claim on her return? - CORRECT ANSWER - c. Three
Which of the following items is included in federal gross income? - CORRECT
ANSWER - d. Unemployment compensation.
Which of the following items is not included in federal gross income? - CORRECT
ANSWER - B. Federal income tax refunds
Which of the following taxpayers is not required to file a federal income tax return for 2019? -
CORRECT ANSWER - b. Elizabeth (68) has gross income of $12,250. she is single and
has no dependents
, Mike is single and has a taxable income of $17,405. His amount of tax from the 2019 Tax tables
is - CORRECT ANSWER - c. $1,897.
Adrian is married filing separatly, and has a taxable income of $26,100. His amount of tax from
the 2019 tax tables is - CORRECT ANSWER - c. $2,941.
Which of the following is not one of the five quailfying child tests a taxpayer must meet their
child to be considered their dependent? - CORRECT ANSWER - a. Gross income test.
Marissa and lucius were married 18 years ago. They had one child, Matthew (13.) luciuis pased
away in 2015. Marissa did not remary. Marissa and mathhew lived together all year long, and no
one else lived with them. Matthew had no income in 2019. Marissa paid 100% of the cost of the
maintaining their home. What is the most benefical 2019 filing status for Marissa? - CORRECT
ANSWER - a. Head of household.
Brian had dividened income reported on Form 1099-DIV. Brian would be required to file a form
1040, schedule B, when his dividened income exceeds of which of the following households? -
CORRECT ANSWER - b. $1,500.
Which of the following taxpayers is not required does not quailfy to deduct qualified educator
expenses? - CORRECT ANSWER - C. Gaylene is a high school substitute teacher in her
local school district. She worked 1,040 hours in 2019. She speny $590 home schooling, her fifth-
grade daughter jodie. She spent $230 on supplies used in various classrooms. she reimbursed for
the supplies.
What is the maximum deduction allowed for quailifed student loan interest? - CORRECT
ANSWER - b. $2,500.
Which of the following expenses quailifies for an education credit in 2019? - CORRECT
ANSWER - a. tutition payments?, the taxpayer didn't receive scholarships, grants, or other
nontaxable benefiets
