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 EIC, AOTC, CTC/ODC/ACTC, and head of household.
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.
When dependent care Box 10 of Form W-2.
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.
,All of the following are due Investigate and verify the accuracy of information the
diligence taxpayer provides to show eligibility for EIC, AOTC,
requirements a tax preparer
CTC/ODC/ACTC, and HOH.
must 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 Is never taxable.
Form 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 $2,500
amount of the American
Opportunity Tax Credit a
taxpayer could receive per
student?
$1,650
QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONLES
(VERIFIED ANSWERS) | ASSURED SUCCESS
Terms in this set (111)
A combined due diligence EIC, AOTC, CTC/ODC/ACTC, and head of household.
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.
When dependent care Box 10 of Form W-2.
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.
,All of the following are due Investigate and verify the accuracy of information the
diligence taxpayer provides to show eligibility for EIC, AOTC,
requirements a tax preparer
CTC/ODC/ACTC, and HOH.
must 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 Is never taxable.
Form 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 $2,500
amount of the American
Opportunity Tax Credit a
taxpayer could receive per
student?
$1,650
