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HR BLOCK FINAL TEST REVIEW (ITC 2025) |
BRAND NEW ACTUAL EXAM WITH 100%
VERIFIED QUESTIONS AND CORRECT
SOLUTIONS| GUARANTEED VALUE PACK| ACE
YOUR GRADES.
How is interest income reported to the taxpayer? - correct answer - Interest
income is reported to the taxpayer on Form 1099-INT or a substitute
statement.
For tax purposes, when is a person's marital status determined? - correct
answer - On the last day of the tax year, or the date of death.
How much is added to the standard deduction if the taxpayer (or spouse) is
age 65 or older, or blind? - correct answer - $1,350 for married taxpayers
and qualifying widow(er)s, or $1,700 for those filing single or head of
household.
What is the personal exemption amount for 2021? - correct answer - There
is no personal exemption for 2021. A personal exemption was an amount
previously allowed by law to reduce income that would otherwise be taxed.
The Tax Cuts and Jobs Act of 2017 repealed this deduction beginning in
2018.
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How is the gross income filing requirement determined for most
nondependent taxpayers? - correct answer - The taxpayer's standard
deduction, including the additional amounts for age. However, for married
filing separately, or married filing jointly when the spouses did not live
together at the end of the year, the amount is $5.
What is the difference between injured spouse allocation and innocent
spouse relief? - correct answer - The IRS provides an injured spouse
allocation for the taxpayer to protect their portion of a refund from a
spouse's past-due federal income tax, unpaid student loans, unpaid child
and spousal support, or state income tax.
The IRS provides innocent spouse relief to taxpayers who file a joint return
and later learn that their spouse has underestimated income (or overstated
a credit or deduction) on the return.
What document will the taxpayer receive from their employer reporting
disability pension payments? - correct answer - The income is reported on
Form 1099-R.
What types of income must be reported on Schedule 1 (Form 1040) and
then reported on Form 1040? - correct answer - Gambling winnings,
alimony, jury duty pay, canceled debts, and hobby income are some
examples of income that must be reported on Schedule 1 (Form 1040) and
then reported on Form 1040.
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What are the adjustments that can be claimed on Schedule 1 (Form 1040)?
- correct answer - Some examples of adjustments that can be claimed on
Schedule 1 are:
Educator expense deduction.
The health savings account (HSA) deduction.
Moving expenses for members of the military.
Self-employment tax deduction.
Self-employed health insurance deduction.
Penalty on early withdrawal of savings.
Alimony payments.
IRA deduction.
Student loan interest deduction.
How much may an eligible educator deduct for qualified classroom
expenses as an adjustment to income? - correct answer - Up to $250 per
eligible educator.
Married taxpayers filing a joint return who are both eligible educators may
each claim the $250 deduction, totaling $500.
Which of the following is a requirement for all taxpayers who want to claim
the EIC?
Live in the U.S. for more than half a year.
Have a valid social security number.
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Have a qualifying child dependent.
Have AGI less than $21,430 ($27,380 MFJ). - correct answer - Have a valid
social security number.
A combined due diligence penalty of $2,180 would indicate a penalty for
which of the following?
EIC, CTC/ODC/ACTC, and head of household.
EIC, AOTC, and CTC/ODC/ACTC.
EIC, AOTC, CTC/ODC/ACTC, and head of household.
EIC, PTC, CTC/ODC/ACTC, and head of household. - correct answer -
EIC, AOTC, CTC/ODC/ACTC, and head of household.
When dependent care benefits are withheld from a taxpayer's income,
where are they reported by the employer?
Form 2441.
Form 1040.
Box 10 of Form W-2.
The employer is not required to report them. - correct answer - Box 10 of
Form W-2.
All of the following are due diligence requirements a tax preparer must
meet for EIC, AOTC, CTC/ODC/ACTC, and HOH, EXCEPT:
HR BLOCK FINAL TEST REVIEW (ITC 2025) |
BRAND NEW ACTUAL EXAM WITH 100%
VERIFIED QUESTIONS AND CORRECT
SOLUTIONS| GUARANTEED VALUE PACK| ACE
YOUR GRADES.
How is interest income reported to the taxpayer? - correct answer - Interest
income is reported to the taxpayer on Form 1099-INT or a substitute
statement.
For tax purposes, when is a person's marital status determined? - correct
answer - On the last day of the tax year, or the date of death.
How much is added to the standard deduction if the taxpayer (or spouse) is
age 65 or older, or blind? - correct answer - $1,350 for married taxpayers
and qualifying widow(er)s, or $1,700 for those filing single or head of
household.
What is the personal exemption amount for 2021? - correct answer - There
is no personal exemption for 2021. A personal exemption was an amount
previously allowed by law to reduce income that would otherwise be taxed.
The Tax Cuts and Jobs Act of 2017 repealed this deduction beginning in
2018.
, Page |2
How is the gross income filing requirement determined for most
nondependent taxpayers? - correct answer - The taxpayer's standard
deduction, including the additional amounts for age. However, for married
filing separately, or married filing jointly when the spouses did not live
together at the end of the year, the amount is $5.
What is the difference between injured spouse allocation and innocent
spouse relief? - correct answer - The IRS provides an injured spouse
allocation for the taxpayer to protect their portion of a refund from a
spouse's past-due federal income tax, unpaid student loans, unpaid child
and spousal support, or state income tax.
The IRS provides innocent spouse relief to taxpayers who file a joint return
and later learn that their spouse has underestimated income (or overstated
a credit or deduction) on the return.
What document will the taxpayer receive from their employer reporting
disability pension payments? - correct answer - The income is reported on
Form 1099-R.
What types of income must be reported on Schedule 1 (Form 1040) and
then reported on Form 1040? - correct answer - Gambling winnings,
alimony, jury duty pay, canceled debts, and hobby income are some
examples of income that must be reported on Schedule 1 (Form 1040) and
then reported on Form 1040.
, Page |3
What are the adjustments that can be claimed on Schedule 1 (Form 1040)?
- correct answer - Some examples of adjustments that can be claimed on
Schedule 1 are:
Educator expense deduction.
The health savings account (HSA) deduction.
Moving expenses for members of the military.
Self-employment tax deduction.
Self-employed health insurance deduction.
Penalty on early withdrawal of savings.
Alimony payments.
IRA deduction.
Student loan interest deduction.
How much may an eligible educator deduct for qualified classroom
expenses as an adjustment to income? - correct answer - Up to $250 per
eligible educator.
Married taxpayers filing a joint return who are both eligible educators may
each claim the $250 deduction, totaling $500.
Which of the following is a requirement for all taxpayers who want to claim
the EIC?
Live in the U.S. for more than half a year.
Have a valid social security number.
, Page |4
Have a qualifying child dependent.
Have AGI less than $21,430 ($27,380 MFJ). - correct answer - Have a valid
social security number.
A combined due diligence penalty of $2,180 would indicate a penalty for
which of the following?
EIC, CTC/ODC/ACTC, and head of household.
EIC, AOTC, and CTC/ODC/ACTC.
EIC, AOTC, CTC/ODC/ACTC, and head of household.
EIC, PTC, CTC/ODC/ACTC, and head of household. - correct answer -
EIC, AOTC, CTC/ODC/ACTC, and head of household.
When dependent care benefits are withheld from a taxpayer's income,
where are they reported by the employer?
Form 2441.
Form 1040.
Box 10 of Form W-2.
The employer is not required to report them. - correct answer - Box 10 of
Form W-2.
All of the following are due diligence requirements a tax preparer must
meet for EIC, AOTC, CTC/ODC/ACTC, and HOH, EXCEPT:
