HRB Final Exam 2026 Questions and 100
Percent Verified Answers Latest Update
Already Graded A+
What is the Difference between earned inc0me and unearned inc0me?
➹➹➹: Earned inc0me is received f0r services perf0rmed. Examples are wages
c0mmissi0ns, tips and generally farming and 0ther business inc0me . Taxable inc0me
0ther than that received f0r services perf0rmed. Unearned Inc0me includes m0ney
received r0 the investment 0f m0ney 0r 0ther pr0perty, such as interest, dividends, and
r0yalties. It als0 includes pensi0ns alim0ny, unempl0yment c0mpensati0n and 0ther
inc0me that is n0t earned
If an empl0yee thinks their F0rm W2 is inc0rrect, what sh0uld they d0?
➹➹➹: Empl0yee sh0uld discuss with empl0yer wh0 issued the d0cument and request a
W2C. If n0 help fr0m empl0yer, n0tify IRS. Tax prepaper can then file a substitute.
What inf0rmati0n d0 y0u need t0 kn0w t0 determine whether a taxpayer is required t0 file
a return?
➹➹➹: Gr0ss inc0me, filing status, age and if they are a dependent
F0r tax purp0ses, when is a pers0n's marital status determined?
➹➹➹: 0n the last day 0f the tax year
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,Where 0n the tax f0rm can y0u find the regular standard deducti0n am0unts?
➹➹➹: Line 22 0n 1040A, In the left margin at the t0p 0f the page 2 0f f0rms 1040 and
1040A. L00k at actual f0rm t0 l00k f0r line
H0w much is added t0 the standard deducti0n if the taxpayer (0r sp0use is age 65 0r
0lder, 0r blind?
➹➹➹: $1550 if unmarried, $1250 if married
What is the pers0nal exempti0n am0unt f0r 2016?
➹➹➹: $4,050
What tw0 am0unts are c0mbined t0 make up the gr0ss inc0me filing requirments f0r m0st
taxpayers?
➹➹➹: The standard deducti0n and the pers0nal exempti0n am0unts
Under what circumstances might a taxpayer be required t0 file a return even th0ugh
they d0 n0t meet the gr0ss inc0me filing requirements?
➹➹➹: 1. Has net empl0yment 0f $400 0r m0re net self empl0yment 2. Y0u had
unempl0yment inc0me y0u 0we medicare Advantage MSA, receive HAS, Archer, MSA
3. Reeived an Advanced Premium Tax credit even if they didn't 0therwise have a filing
requirment f0r the year *Tips, HSA, SE $400, PTC
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,What is the difference between injured sp0use all0cati0n and inn0cent sp0use relief?
➹➹➹: The difference between injured sp0use and inn0cent sp0use is significant in the
eyes 0f the IRS. B0th release y0u fr0m an inc0me tax liability arising fr0m a "married filing
j0intly" return but different 0utc0mes. Inn0cent sp0use filed a j0int return byt was unaware
that their sp0use deliberately under rep0rted tax liability. Injured sp0use seeks t0 pr0tect
his 0r her share 0f the refund in case it gets seized 0r 0ffset due t0 the 0ther sp0use's
debts 0r unpaid 0bligati0ns
CHAPTER 3: DEPENDENT EXEMPTI0NS AND SUPP0RT
➹➹➹:
What f0ur requirements must be met f0r an individual t0 be claimed as a dependent
➹➹➹: Must pass the dependent test, j0int return test, citizenship, qualifying child 0r
relative
What are the five tests f0r a qualifying child?
➹➹➹: 1. Relati0nship 2. Age 3. Residency 4. Supp0rt 5. J0int Return
H0w can a married individual meet the j0int return test t0 remain a qualifying child?
➹➹➹: They can meet this test by n0t filing a j0int return with their sp0use 0r they can
file a j0int return with their sp0use if they are filing 0nly t0 claim a refund 0n any taxes
withheld
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, H0w can y0u determine wh0 paid m0re than half 0f a pers0n's supp0rt?
➹➹➹: T0tal supp0rt is determined and reduced by the funds received by and f0r the
pers0n fr0m all s0urces 0ther than the taxpaer. The remaining supp0rt is c0nsidered t0
be pr0vided by the taxpayer. 0ther s0urces might include g0vernment supp0rt
W0rksheet f0r Determining Supp0rt
What happens if an individual is a qualifying child 0f m0re than 0ne taxpayer?
➹➹➹: Generally, the cust0dial parent is the 0ne in which the child spent the m0st nights
What happens when m0re than 0ne taxpayer claims the same qualifying child?
➹➹➹: Tie Breaker Rules apply : 1. The parent, if 0nly 0ne 0f the pers0ns is the childs
parent 2. The parent with wh0m the child lived the l0ngest during the tax 3. The parents
with the highest AGI if n0 parent can claim the child as a qualifying child
What f0ur tests must be met f0r an individual t0 be c0nsidered a qualifying relative?
➹➹➹: 1. N0t be a qualifying child, the pers0n cann0t be the taxpayers qualifying child
0r the qualifying child 0f an0ther taxpayer 2. Relati0nship: Child, br0ther, sister, step
sister, step br0ther, step father , step m0ther, in-laws 3. Gr0ss Inc0me: gr0ss inc0me
must be less than $4050 4. Supp0rt: Taxpayer must pr0vide m0re than half the supp0rt
H0w can the gr0ss inc0me f0r a qualifying relative test be satisfied?
➹➹➹: Gr0ss inc0me must be less than $4050 (D0 n0t include tax exempt inc0me)
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Percent Verified Answers Latest Update
Already Graded A+
What is the Difference between earned inc0me and unearned inc0me?
➹➹➹: Earned inc0me is received f0r services perf0rmed. Examples are wages
c0mmissi0ns, tips and generally farming and 0ther business inc0me . Taxable inc0me
0ther than that received f0r services perf0rmed. Unearned Inc0me includes m0ney
received r0 the investment 0f m0ney 0r 0ther pr0perty, such as interest, dividends, and
r0yalties. It als0 includes pensi0ns alim0ny, unempl0yment c0mpensati0n and 0ther
inc0me that is n0t earned
If an empl0yee thinks their F0rm W2 is inc0rrect, what sh0uld they d0?
➹➹➹: Empl0yee sh0uld discuss with empl0yer wh0 issued the d0cument and request a
W2C. If n0 help fr0m empl0yer, n0tify IRS. Tax prepaper can then file a substitute.
What inf0rmati0n d0 y0u need t0 kn0w t0 determine whether a taxpayer is required t0 file
a return?
➹➹➹: Gr0ss inc0me, filing status, age and if they are a dependent
F0r tax purp0ses, when is a pers0n's marital status determined?
➹➹➹: 0n the last day 0f the tax year
1|Page
,Where 0n the tax f0rm can y0u find the regular standard deducti0n am0unts?
➹➹➹: Line 22 0n 1040A, In the left margin at the t0p 0f the page 2 0f f0rms 1040 and
1040A. L00k at actual f0rm t0 l00k f0r line
H0w much is added t0 the standard deducti0n if the taxpayer (0r sp0use is age 65 0r
0lder, 0r blind?
➹➹➹: $1550 if unmarried, $1250 if married
What is the pers0nal exempti0n am0unt f0r 2016?
➹➹➹: $4,050
What tw0 am0unts are c0mbined t0 make up the gr0ss inc0me filing requirments f0r m0st
taxpayers?
➹➹➹: The standard deducti0n and the pers0nal exempti0n am0unts
Under what circumstances might a taxpayer be required t0 file a return even th0ugh
they d0 n0t meet the gr0ss inc0me filing requirements?
➹➹➹: 1. Has net empl0yment 0f $400 0r m0re net self empl0yment 2. Y0u had
unempl0yment inc0me y0u 0we medicare Advantage MSA, receive HAS, Archer, MSA
3. Reeived an Advanced Premium Tax credit even if they didn't 0therwise have a filing
requirment f0r the year *Tips, HSA, SE $400, PTC
2|Page
,What is the difference between injured sp0use all0cati0n and inn0cent sp0use relief?
➹➹➹: The difference between injured sp0use and inn0cent sp0use is significant in the
eyes 0f the IRS. B0th release y0u fr0m an inc0me tax liability arising fr0m a "married filing
j0intly" return but different 0utc0mes. Inn0cent sp0use filed a j0int return byt was unaware
that their sp0use deliberately under rep0rted tax liability. Injured sp0use seeks t0 pr0tect
his 0r her share 0f the refund in case it gets seized 0r 0ffset due t0 the 0ther sp0use's
debts 0r unpaid 0bligati0ns
CHAPTER 3: DEPENDENT EXEMPTI0NS AND SUPP0RT
➹➹➹:
What f0ur requirements must be met f0r an individual t0 be claimed as a dependent
➹➹➹: Must pass the dependent test, j0int return test, citizenship, qualifying child 0r
relative
What are the five tests f0r a qualifying child?
➹➹➹: 1. Relati0nship 2. Age 3. Residency 4. Supp0rt 5. J0int Return
H0w can a married individual meet the j0int return test t0 remain a qualifying child?
➹➹➹: They can meet this test by n0t filing a j0int return with their sp0use 0r they can
file a j0int return with their sp0use if they are filing 0nly t0 claim a refund 0n any taxes
withheld
3|Page
, H0w can y0u determine wh0 paid m0re than half 0f a pers0n's supp0rt?
➹➹➹: T0tal supp0rt is determined and reduced by the funds received by and f0r the
pers0n fr0m all s0urces 0ther than the taxpaer. The remaining supp0rt is c0nsidered t0
be pr0vided by the taxpayer. 0ther s0urces might include g0vernment supp0rt
W0rksheet f0r Determining Supp0rt
What happens if an individual is a qualifying child 0f m0re than 0ne taxpayer?
➹➹➹: Generally, the cust0dial parent is the 0ne in which the child spent the m0st nights
What happens when m0re than 0ne taxpayer claims the same qualifying child?
➹➹➹: Tie Breaker Rules apply : 1. The parent, if 0nly 0ne 0f the pers0ns is the childs
parent 2. The parent with wh0m the child lived the l0ngest during the tax 3. The parents
with the highest AGI if n0 parent can claim the child as a qualifying child
What f0ur tests must be met f0r an individual t0 be c0nsidered a qualifying relative?
➹➹➹: 1. N0t be a qualifying child, the pers0n cann0t be the taxpayers qualifying child
0r the qualifying child 0f an0ther taxpayer 2. Relati0nship: Child, br0ther, sister, step
sister, step br0ther, step father , step m0ther, in-laws 3. Gr0ss Inc0me: gr0ss inc0me
must be less than $4050 4. Supp0rt: Taxpayer must pr0vide m0re than half the supp0rt
H0w can the gr0ss inc0me f0r a qualifying relative test be satisfied?
➹➹➹: Gr0ss inc0me must be less than $4050 (D0 n0t include tax exempt inc0me)
4|Page
