H&R BLOCK INCOME TAX EXAM 2025 | ALL QUESTIONS AND
CORRECT ANSWERS | ALREADY GRADED A+ |LATEST EXAM |
VERIFIED ANSWERS
Terms in this set (307)
Due Diligence Requirements that tax professionals must follow when preparing income
tax returns.
The amount of tax a taxpayer expects to owe for the year after
Estimated Tax
subtracting expected amounts withheld and certain refundable
credits.
A statement by an individual of (1) the amount of income tax he estimates he
will
Estimated Tax Voucher incur during the current taxable year on income that is not
subject to withholding, (2) the excess amount over that withheld
on income which is subject to withholding, and
(3) his estimated self-employment tax.
Status claimed on Form W-4 directing the employer not to
Exemption from Withholding
withhold federal income taxes from the employee.
If a taxpayer did not pay enough tax on a timely basis during the
Underpayment Penalty
year, he may be required to pay an underpayment penalty.
Two Ways to Pay as You Go Withholding and Estimated Tax Payments
Form W-4 Employee's Withholding Allowance Certificate
Form 4868 Application for Automatic Extension of Time To File U.S. Individual Income
Tax Return
Amended Return A tax return filed on Form 1040X after the original return has been filed.
Closed Year A tax year for which the statute of limitations has expired.
Open Year A taxable year for which the statute of limitations has not yet expired.
Generally 5% for each month or part of a month the return is
Failure-to-File Penalty
late, but not more than 25% of the tax not paid.
Failure to File Taxpayer fails to file the return by the due date, and there is a balance due.
, Form 1040X Amended U.S. Individual Income Tax Return
Within three years of the date the original return was filed, or
When can an amended return be
filed? within two years of the date the tax was paid, whichever is
later.
Can the 1040X be e-filed? No.
Those from such sources as dividends, interest, capital gains
Portfolio Income and Losses
and losses, and royalties.
Schedule E Supplemental Income and Loss
Payments received for the right to extract natural resources from
Royalty
the taxpayer's property or to use a taxpayer's literary, musical,
or artistic creation.
A series of payments under a contract made at regular intervals
Annuity
over a period of more than one year.
The owner or recipient of funds in an account, such as an IRA, or
Beneficiary
from an insurance policy or will.
Contribution When a person puts money into a retirement plan.
An employee benefit plan that provides determinable benefits
Defined Benefit Plan
not based on employer profits.
An employee benefit plan that provides a separate account for each
Defined Contribution Plan
person covered and pays benefits based on account earnings.
A taxable pension from an employer-funded disability plan or
Disability Pension
a disability provision of a retirement plan.
Distribution When a person takes or receives money from a retirement plan.
Generally a series of definitely determinable payments made to a
Pension
taxpayer after retirement from work.
A qualified transfer of funds from one tax-favored account to
Rollover
another, usually of the same type.
A type of individual retirement arrangement in which
Roth IRA
contributions are not tax deductible, earnings grow tax deferred,
and qualified withdrawals are tax free.
An individual retirement arrangement, contributions to which may or may
Traditional IRA not be
deductible depending on the taxpayer's AGI and whether or not
he is covered under an employer-sponsored retirement plan.
For workers born before 1938, it is 65. For those born after it is
What is the full retirement age?
gradually being increased to 67.
CORRECT ANSWERS | ALREADY GRADED A+ |LATEST EXAM |
VERIFIED ANSWERS
Terms in this set (307)
Due Diligence Requirements that tax professionals must follow when preparing income
tax returns.
The amount of tax a taxpayer expects to owe for the year after
Estimated Tax
subtracting expected amounts withheld and certain refundable
credits.
A statement by an individual of (1) the amount of income tax he estimates he
will
Estimated Tax Voucher incur during the current taxable year on income that is not
subject to withholding, (2) the excess amount over that withheld
on income which is subject to withholding, and
(3) his estimated self-employment tax.
Status claimed on Form W-4 directing the employer not to
Exemption from Withholding
withhold federal income taxes from the employee.
If a taxpayer did not pay enough tax on a timely basis during the
Underpayment Penalty
year, he may be required to pay an underpayment penalty.
Two Ways to Pay as You Go Withholding and Estimated Tax Payments
Form W-4 Employee's Withholding Allowance Certificate
Form 4868 Application for Automatic Extension of Time To File U.S. Individual Income
Tax Return
Amended Return A tax return filed on Form 1040X after the original return has been filed.
Closed Year A tax year for which the statute of limitations has expired.
Open Year A taxable year for which the statute of limitations has not yet expired.
Generally 5% for each month or part of a month the return is
Failure-to-File Penalty
late, but not more than 25% of the tax not paid.
Failure to File Taxpayer fails to file the return by the due date, and there is a balance due.
, Form 1040X Amended U.S. Individual Income Tax Return
Within three years of the date the original return was filed, or
When can an amended return be
filed? within two years of the date the tax was paid, whichever is
later.
Can the 1040X be e-filed? No.
Those from such sources as dividends, interest, capital gains
Portfolio Income and Losses
and losses, and royalties.
Schedule E Supplemental Income and Loss
Payments received for the right to extract natural resources from
Royalty
the taxpayer's property or to use a taxpayer's literary, musical,
or artistic creation.
A series of payments under a contract made at regular intervals
Annuity
over a period of more than one year.
The owner or recipient of funds in an account, such as an IRA, or
Beneficiary
from an insurance policy or will.
Contribution When a person puts money into a retirement plan.
An employee benefit plan that provides determinable benefits
Defined Benefit Plan
not based on employer profits.
An employee benefit plan that provides a separate account for each
Defined Contribution Plan
person covered and pays benefits based on account earnings.
A taxable pension from an employer-funded disability plan or
Disability Pension
a disability provision of a retirement plan.
Distribution When a person takes or receives money from a retirement plan.
Generally a series of definitely determinable payments made to a
Pension
taxpayer after retirement from work.
A qualified transfer of funds from one tax-favored account to
Rollover
another, usually of the same type.
A type of individual retirement arrangement in which
Roth IRA
contributions are not tax deductible, earnings grow tax deferred,
and qualified withdrawals are tax free.
An individual retirement arrangement, contributions to which may or may
Traditional IRA not be
deductible depending on the taxpayer's AGI and whether or not
he is covered under an employer-sponsored retirement plan.
For workers born before 1938, it is 65. For those born after it is
What is the full retirement age?
gradually being increased to 67.
