H&R Block Income Tax Course Questions and Answers 100% Correct

H&R Block Income Tax Course exam with 100% correct
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1. Due Diligence ggG




..ANSWER>>>Requirements that tax professionals must follow when preparing income tax returns. ggG ggG ggG ggG ggG ggG ggG ggG ggG ggG




2. Estimated Tax gG




ggGgg ANSWER>>>The amount of tax a taxpayer expects to owe for the year after subtracting expected
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ggG amounts withheld and certain refundable credits.
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3. EstimatedTaxVouche G
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gg ANSWER>>>r A statement by an individual of (1) the amount of income tax he estimates he will incur
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ggG during the current taxable year on income that is not subject to withholding, (2) the excess amount
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over that withheld on income which is subject to withholding, and (3) his estimated self-employment
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ggG tax.



4. Exemption from Withholding ggG ggG




gg ANSWER>>>Status claimed on Form W-4 directing the em- ployer not to withhold federal income
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ggG taxes from the employee.
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5. Underpayment ggG Penalty gg





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,Ggg ANSWER>>>If a taxpayer did not pay enough tax on a timely basis during the year, he may be
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ggG required to pay an underpayment penalty.
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6. Two Ways to Pay asYou Go
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gg ANSWER>>>Withholding and Estimated Tax Payments ggG ggG ggG ggG




7. Form W-4 ggG




gg ANSWER>>> Employee's Withholding Allowance Certificate
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8. Form 4868 ggG




gg ANSWER>>> Application for Automatic Extension of Time To File U.S. Individual Income Tax Return
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9. Amended ggG Return

Ggg ANSWER>>>A tax return filed on Form 1040X after the original return has been filed.
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10. ClosedYear G
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gg ANSWER>>> A tax year for which the statute of limitations has expired.
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11. OpenYear G
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gg ANSWER>>>A taxable year for which the statute of limitations has not yet expired.
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12. Failure-to-File Penalty
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,gg ANSWER>>> Generally 5% for each month or part of a month the return is late, but not more
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ggG than 25% of the tax not paid.
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13. Failure ggG to File: Taxpayer fails to file the return by the due date, and there is a balance due.
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14. Form 1040X: Amended U.S. Individual Income Tax Return
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15. When ggG can an amended return be filed?: Within three years of the date the original return was
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filed, or within two years of the date the tax was paid, whichever is later.
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16. Can ggG the 1040X be e-filed?: No.
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17. Portfolio Income and Losses: Those from such sources as dividends, interest,
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ggG losses, and royalties.
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18. Schedule ggG E: Supplemental Income and Loss
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19. Royalty: Payments received for the right to extract natural resources from the
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ggG or to use a taxpayer's literary, musical, or artistic creation.
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20. Annuity: A ggG ggG series of payments under a contract made at regular intervals over a period of more
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ggG than one year.
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21. Beneficiary: The ggG ggG owner or recipient of funds in an account, such as an IRA, or from an
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ggG insurance policy or will. ggG ggG ggG




22. Contribution: When ggG ggG a person puts money into a retirement plan.
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, 23. Defined ggG Benefit Plan: An employee benefit plan that provides determinable benefits not based
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ggG on employer profits.
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24. Defined Contribution Plan: An employee benefit plan that provides a separate
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ggG person covered and pays benefits based on account earnings.
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25. Disability ggG Pension: A taxable pension from an employer-funded disability plan or a disability
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ggG provision of a retirement plan.
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26. Distribution: When ggG ggG a person takes or receives money from a retirement plan.
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27. Pension: Generally ggG ggG a series of definitely determinable payments made to a taxpayer after
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ggG retirement from work. ggG ggG




28. Rollover: A qualified transfer of funds from one tax-favored account to another,
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ggG type.

29. Roth ggG IRA: A type of individual retirement arrangement in which contributions are not tax
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ggG deductible, earnings grow tax deferred, and qualified withdrawals are tax free.
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30. Traditional ggG IRA: An individual retirement arrangement, contributions to which may or may not be
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ggG deductible depending on the taxpayer's AGI and whether or not he is covered under an employer-
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sponsored retirement plan. ggG ggG




31. What ggG is the full retirement age?: For workers born before 1938, it is 65. For those born after
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ggG it is gradually being increased to 67.
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32. How much of a client's social security and equivalent tier 1 RR benefits may be
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ggG taxable?: Up to 85%. ggG ggG ggG




33. Form ggG SSA-1099: Social Security Benefits ggG ggG ggG




34. Form ggG RRB-1099: Railroad Retirement Benefits ggG ggG ggG





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