H&R BLOCK 2023 SCENARIOS EXAM WITH 100% CORRECT ANSWERS 2025/2026

H&R BLOCK 2023 SCENARIOS EXAM WITH 100% CORRECT ANSWERS 2025/2026 Carolyn earned $52,000 as a full-time employee in 2018. Due to procrastination and denial, she did not prepare her 2018 income tax return until June 23, 2019. Carolyn did not file the return until August 1, 2019. She did not request an extension of time to file. Her return showed a balance due of $1,500. What is her penalty? - answer-The IRS assesses a late filing penalty for four months. Carolyn's penalty is $300 [5% x 4 x $1,500]. Julie filed her 2018 income tax return on April 15, 2019, with a balance due of $400. Due to some unforeseen car expenses, she did not have the funds available to pay the tax due at the time she filed. She paid $200 of the tax liability on July 15, 2019, and the balance on October 15, 2019. What is her penalty? - answer-Julie's total penalty is $9: Her late penalty until July 15 is $6 [0.5% x 3 x $400 = $6]. Her late penalty from July to October 15 is $3 [0.5% x 3 x $200 = $3]. Rhonda married Jake in 2018. Jake has not been paying on his student loans and they are in default. He owes a few thousand dollars on them still. Rhonda is not legally obligated to pay his student loans. She worked all year and had income tax withheld. She wants to receive her portion of their tax refund. What should she do? - answer-Rhonda would file Form 8379 with their tax return to request her injured spouse allocation. Ron (35) and Sue (35) are married and have two children, Todd (8) and Tracy (6). Neither child has income. Stacy (13), Sue's child from a previous marriage, came to live with them on July 4, 2018. Prior to moving in with Ron and Sue, Stacy was supported by and lived with her father. Who, if anyone, can be a QC or QR for Ron and Sue? - answer-Todd and Tracy are qualifying children of Ron and Sue. Stacy is neither a qualifying child nor a qualifying relative of Ron and Sue. Because she lived with her father for more than six months, she cannot be a qualifying child for Sue (residency test) and is not a qualifying relative of Ron and Sue (qualifying child test). Dale (25) is single. His brother, Jeff (27), lived with him for all of 2018. Jeff earned $3,100, all from wages, and had no other income. Dale provided more than half of Jeff's support. Jeff is not permanentlyor totally disabled. No one else lived with Dale. Can Dale claim Jeff as a qualifying relative? - answer-Jeff meets all of the tests for a qualifying relative. Harold and Helen are married and have a son, Hank (22). Hank is a full-time student at Your City College. Hank earned $4,000, all from wages, and had no other income. Harold and Helen provided 40% of Hank's support, and his grandma also provided 40% of Hank's support. Hank lives on campus while school is in session. During the summer, Hank lives with Harold and Helen. Hank provided 20% of his own support. Is Hank QC, QR, or neither? - answer-QC. Hank meets all of the tests for a qualifying child.