H&R Block Income Tax Course exam
question with 100% correct verified
answers latest update 2025
FICA --- correct answer ---The law that provides for social security
and medicare benefits. This program is financed by payroll taxes
imposed equally on the employer and employee.
Schedule C --- correct answer ---Profit or Loss From Business
Schedule SE --- correct answer ---Self-Employment Tax
When are education expenses not deductible? --- correct answer ---If
the education is required to meet the minimum educational
requirements in effect when the taxpayer first obtained the job or if it
qualifies him for a new trade or business.
Are tax preparation fees deductible? --- correct answer ---Yes
Hobby --- correct answer ---An activity not entered into for profit.
What portion of hobby expenses are deductible? --- correct answer ---
The portion up to the amount of income from the hobby that is
reported on the tax return.
,Are funeral expenses deductible? --- correct answer ---No
Is homeowner's or renter's insurance deductible? --- correct answer --
-No
Are gambling losses deductible? --- correct answer ---Only to the
extent of winnings reported as income.
Itemized Deductions --- correct answer ---Certain personal
expenditures allowed as deductions from adjusted gross income.
Schedule A --- correct answer ---Itemized Deductions
Sections on Schedule A --- correct answer ---Medical and dental
expenses; taxes you paid; interest you paid; gifts to charity; casualty
and theft losses; job expenses and certain miscellaneous deductions;
other miscellaneous deductions.
What portion of medical and dental expenses is deductible? --- correct
answer ---To the extent they exceed 7.5% of the taxpayer's adjusted
gross income.
What taxes are deductible? --- correct answer ---State and local taxes
(income or general sales); real property taxes (state, local, and
foreign); personal property taxes (state and local); foreign income
taxes.
,Total Available Income --- correct answer ---Adjusted gross income
plus any nontaxable income.
Real Estate Taxes --- correct answer ---State, local, or foreign taxes
levied on real property for the general public welfare.
Personal Property Tax --- correct answer ---Similar to a real estate
tax, except that it is imposed on personal property.
Health Savings Account (HSA) --- correct answer ---A trust or
custodial account created exclusively for the purpose of paying the
qualified medical expenses of a high deductible health plan of the
account holder.
Early Withdrawal Penalty --- correct answer ---Deductible as an
adjustment to income.
Deductible Alimony --- correct answer ---Any payment that is: paid in
cash; paid under a decree of divorce or separation while the parties
are living apart; not specified to be not taxable and not deductible; to
cease upon the death of the recipient.
Qualified Student Loan --- correct answer ---Loan taken out by the
taxpayer solely to pay qualified education expenses.
, How much paid student loan interest is deductible as an adjustment to
income? --- correct answer ---Up to $2500.
Qualified Education Expenses --- correct answer ---Tuition and fees;
room and board; books, supplies, and equipment; other necessary
expenses.
Form 1098-E --- correct answer ---Student Loan Interest Statement
Form 3903 --- correct answer ---Moving Expenses
2 Requirements for Moving Expenses --- correct answer ---(1)
Distance
(2) Work time
Distance Requirement for Moving Expenses --- correct answer ---The
new job location must be at least 50 miles farther from the old
residence than the old job location was.
Work Time Requirement for Moving Expenses --- correct answer ---An
employee must work full time in the vicinity of the new job location
for at least 39 weeks during the 12 months following the move.
Deductible Moving Expenses --- correct answer ---Household goods;
personal possessions; vehicles; pets.
question with 100% correct verified
answers latest update 2025
FICA --- correct answer ---The law that provides for social security
and medicare benefits. This program is financed by payroll taxes
imposed equally on the employer and employee.
Schedule C --- correct answer ---Profit or Loss From Business
Schedule SE --- correct answer ---Self-Employment Tax
When are education expenses not deductible? --- correct answer ---If
the education is required to meet the minimum educational
requirements in effect when the taxpayer first obtained the job or if it
qualifies him for a new trade or business.
Are tax preparation fees deductible? --- correct answer ---Yes
Hobby --- correct answer ---An activity not entered into for profit.
What portion of hobby expenses are deductible? --- correct answer ---
The portion up to the amount of income from the hobby that is
reported on the tax return.
,Are funeral expenses deductible? --- correct answer ---No
Is homeowner's or renter's insurance deductible? --- correct answer --
-No
Are gambling losses deductible? --- correct answer ---Only to the
extent of winnings reported as income.
Itemized Deductions --- correct answer ---Certain personal
expenditures allowed as deductions from adjusted gross income.
Schedule A --- correct answer ---Itemized Deductions
Sections on Schedule A --- correct answer ---Medical and dental
expenses; taxes you paid; interest you paid; gifts to charity; casualty
and theft losses; job expenses and certain miscellaneous deductions;
other miscellaneous deductions.
What portion of medical and dental expenses is deductible? --- correct
answer ---To the extent they exceed 7.5% of the taxpayer's adjusted
gross income.
What taxes are deductible? --- correct answer ---State and local taxes
(income or general sales); real property taxes (state, local, and
foreign); personal property taxes (state and local); foreign income
taxes.
,Total Available Income --- correct answer ---Adjusted gross income
plus any nontaxable income.
Real Estate Taxes --- correct answer ---State, local, or foreign taxes
levied on real property for the general public welfare.
Personal Property Tax --- correct answer ---Similar to a real estate
tax, except that it is imposed on personal property.
Health Savings Account (HSA) --- correct answer ---A trust or
custodial account created exclusively for the purpose of paying the
qualified medical expenses of a high deductible health plan of the
account holder.
Early Withdrawal Penalty --- correct answer ---Deductible as an
adjustment to income.
Deductible Alimony --- correct answer ---Any payment that is: paid in
cash; paid under a decree of divorce or separation while the parties
are living apart; not specified to be not taxable and not deductible; to
cease upon the death of the recipient.
Qualified Student Loan --- correct answer ---Loan taken out by the
taxpayer solely to pay qualified education expenses.
, How much paid student loan interest is deductible as an adjustment to
income? --- correct answer ---Up to $2500.
Qualified Education Expenses --- correct answer ---Tuition and fees;
room and board; books, supplies, and equipment; other necessary
expenses.
Form 1098-E --- correct answer ---Student Loan Interest Statement
Form 3903 --- correct answer ---Moving Expenses
2 Requirements for Moving Expenses --- correct answer ---(1)
Distance
(2) Work time
Distance Requirement for Moving Expenses --- correct answer ---The
new job location must be at least 50 miles farther from the old
residence than the old job location was.
Work Time Requirement for Moving Expenses --- correct answer ---An
employee must work full time in the vicinity of the new job location
for at least 39 weeks during the 12 months following the move.
Deductible Moving Expenses --- correct answer ---Household goods;
personal possessions; vehicles; pets.
