HR BLOCK FINAL TEST (ITC 2025) 2 VERSIONS ACTUAL EXAM 200
QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONLES
(VERIFIED ANSWERS) | ASSURED SUCCESS
Terms in this set (111)
A combined due diligence penalty EIC, AOTC, CTC/ODC/ACTC, and head of household.
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.
When dependent care benefits are Box 10 of Form W-2.
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.
,All of the following are due Investigate and verify the accuracy of information the taxpayer
diligence provides to show eligibility for EIC, AOTC,
requirements a tax preparer must CTC/ODC/ACTC, and HOH.
meet for EIC, AOTC,
CTC/ODC/ACTC, and HOH,
EXCEPT:
Investigate and verify the accuracy
of
information the taxpayer
provides to show eligibility for
EIC, AOTC,
CTC/ODC/ACTC, and HOH.
Complete all worksheets used to
compute the credits. If the
worksheet is completed by hand,
keep a copy in the taxpayer's
client file.
Maintain a copy of documents
provided by the taxpayer that the
tax preparer relied on when
determining credit eligibility.
Then
record the date the information was
obtained and the name of who
provided the information.
When information provided by
the taxpayer appears to be
incorrect, inconsistent, or
incomplete, the tax
preparer must make additional
inquiries to determine if the
taxpayer is eligible for the
benefit. Then document both the
questions asked and responses
provided.
When a taxpayer receives Form Is never taxable.
, 1099-R with no amount entered
in box 2a and code 7
entered in box 7, the entire
distribution:
Could be partly or entirely
taxable. Is never taxable.
Is an early distribution and taxable.
Has been rolled into a
traditional IRA or into another
qualified plan.
What is the maximum amount $2,500
of the American Opportunity
Tax Credit a taxpayer could
receive per student?
$1,650
$1,800
$2,000
$2,500
Which test for a qualifying Support.
child does NOT need to be met
in order for the child to be a
qualifying person for purposes of
Earned Income Credit (EIC)?
Age.
Relationship.
Residency.
Support.
QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONLES
(VERIFIED ANSWERS) | ASSURED SUCCESS
Terms in this set (111)
A combined due diligence penalty EIC, AOTC, CTC/ODC/ACTC, and head of household.
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.
When dependent care benefits are Box 10 of Form W-2.
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.
,All of the following are due Investigate and verify the accuracy of information the taxpayer
diligence provides to show eligibility for EIC, AOTC,
requirements a tax preparer must CTC/ODC/ACTC, and HOH.
meet for EIC, AOTC,
CTC/ODC/ACTC, and HOH,
EXCEPT:
Investigate and verify the accuracy
of
information the taxpayer
provides to show eligibility for
EIC, AOTC,
CTC/ODC/ACTC, and HOH.
Complete all worksheets used to
compute the credits. If the
worksheet is completed by hand,
keep a copy in the taxpayer's
client file.
Maintain a copy of documents
provided by the taxpayer that the
tax preparer relied on when
determining credit eligibility.
Then
record the date the information was
obtained and the name of who
provided the information.
When information provided by
the taxpayer appears to be
incorrect, inconsistent, or
incomplete, the tax
preparer must make additional
inquiries to determine if the
taxpayer is eligible for the
benefit. Then document both the
questions asked and responses
provided.
When a taxpayer receives Form Is never taxable.
, 1099-R with no amount entered
in box 2a and code 7
entered in box 7, the entire
distribution:
Could be partly or entirely
taxable. Is never taxable.
Is an early distribution and taxable.
Has been rolled into a
traditional IRA or into another
qualified plan.
What is the maximum amount $2,500
of the American Opportunity
Tax Credit a taxpayer could
receive per student?
$1,650
$1,800
$2,000
$2,500
Which test for a qualifying Support.
child does NOT need to be met
in order for the child to be a
qualifying person for purposes of
Earned Income Credit (EIC)?
Age.
Relationship.
Residency.
Support.
