1
H&R BLOCK INCOME TAX SPECIALIST
Exam Questions with Correct Answers New
Modified Graded A+ Tested and Approved
2026 Latest
Cynthia works full-time as a teacher's aide at an elementary school. In 2018, she
paid $250 to participate in a professional development course, hoping to
upgrade her job skills. Since she was no reimbursed for this expense, she would
like to claim the educator expense deduction. As Cynthia's Tax Pro, what advice
would you offer her?
A. She may not claim the deduction b/c she is not considered an eligible
educator.
B. Since she spent the $250 on professional development rather than classroom
supplies, she is not eligible for this deduction.
C. She may claim the deduction since she is an eligible educator and the
professional development course is a qualified expense.
D. Since employee business expenses are no longer deductible on SCH A, she
may not claim a deduction for the cost of the professional development course.
<<Correct Answers>>C
Major Winters, a member of the Army Reserve, traveled to a location 250 miles
from his home to perform his work in the reserve in June 2018. His
unreimbursed expenses consisted of $195 for lodging and $268 for mileage. In
,2
addition, he incurred mileage expenses of $235 throughout the yr. for trips to a
location 20 miles from his home. How much is Major Winters eligible to deduct
on SCH 1 (Form 1040), line 24, as an above-the-line adjustment?
A. $0
B. $268
C. $463
D. $698
<<Correct Answers>>C
Kimberly originally files her 2017 return on February 19, 2018. Under ordinary
circumstances, what is the last day she can file an amended 2017 return?
A. April 15, 2021
B. February 19, 2021
C. April 15, 2020
D. April 17, 2018
<<Correct Answers>>A
All of the following issues may be corrected or changed by filing Form 1040X,
Amended U.S. Individual Income Tax Return, EXCEPT:
A. The amount of deductible medical expenses was reported incorrectly on the
original return
B. An error that was made on a trust return needs to be corrected
C. Wages for a 2nd job were not initially reported
,3
D. A taxpayer who filed as a non-resident qualified for U.S. resident status
<<Correct Answers>>B
Michelle converted her personal residence to rental property in 2018. She
purchased the property in 2014 for $110,000 of which $10,000 was allocable to
the land. Unfortunately, property values in her neighborhood have declined over
the past few yrs. On the date of conversion, the FMV of the property was
$98,000; $10,000 was allocated to the land. Michelle's basis for depreciation in
the property is:
A. $88,000
B. $98,000
C. $100,000
D. $110,000
<<Correct Answers>>A
Greg purchased a new machine for use in his business. He incurred the
following costs with the purchase; $2,000 cash paid, $10,000 financed, a $500
delivery charge, and a $200 installation charge. Greg's basis on the machine is
.
A. $2,000
B. $2,700
C. $12,000
D. $12,700
<<Correct Answers>>D
, 4
All of the following decrease basis; EXCEPT:
A. Casualty restoration beyond bringing the property to pre-casualty condition
B. Insurance payments for a casualty loss
C. Depreciation
D. Cancelled debt
<<Correct
Answers>>A
Wyatt, who is employed full-time as a software engineer, sometimes uses his
time and talent to assist worthy causes. In 2018, he helped a local non-profit
organization create a new website. Although his primary object was to help the
organization, the directors insisted on compensating him. He received a Form
1099-MISC from the organization reporting non-employee compensation of
$2,800 in box 7. How should Wyatt report this on his tax return?
A. As other income on SCH 1 (Form 1040), line 21. He should deduct any
applicable expenses on SCH A
B. He should report income, less applicable expenses, as other income on SCH
1 (Form 1040), line 21
C. He should report this as self-employment income and deduct any eligible
expenses on SCH C or SCH C-EZ
D. Wyatt does not need to report this income since he performed the work for a
non-profit organization
Answer:C
H&R BLOCK INCOME TAX SPECIALIST
Exam Questions with Correct Answers New
Modified Graded A+ Tested and Approved
2026 Latest
Cynthia works full-time as a teacher's aide at an elementary school. In 2018, she
paid $250 to participate in a professional development course, hoping to
upgrade her job skills. Since she was no reimbursed for this expense, she would
like to claim the educator expense deduction. As Cynthia's Tax Pro, what advice
would you offer her?
A. She may not claim the deduction b/c she is not considered an eligible
educator.
B. Since she spent the $250 on professional development rather than classroom
supplies, she is not eligible for this deduction.
C. She may claim the deduction since she is an eligible educator and the
professional development course is a qualified expense.
D. Since employee business expenses are no longer deductible on SCH A, she
may not claim a deduction for the cost of the professional development course.
<<Correct Answers>>C
Major Winters, a member of the Army Reserve, traveled to a location 250 miles
from his home to perform his work in the reserve in June 2018. His
unreimbursed expenses consisted of $195 for lodging and $268 for mileage. In
,2
addition, he incurred mileage expenses of $235 throughout the yr. for trips to a
location 20 miles from his home. How much is Major Winters eligible to deduct
on SCH 1 (Form 1040), line 24, as an above-the-line adjustment?
A. $0
B. $268
C. $463
D. $698
<<Correct Answers>>C
Kimberly originally files her 2017 return on February 19, 2018. Under ordinary
circumstances, what is the last day she can file an amended 2017 return?
A. April 15, 2021
B. February 19, 2021
C. April 15, 2020
D. April 17, 2018
<<Correct Answers>>A
All of the following issues may be corrected or changed by filing Form 1040X,
Amended U.S. Individual Income Tax Return, EXCEPT:
A. The amount of deductible medical expenses was reported incorrectly on the
original return
B. An error that was made on a trust return needs to be corrected
C. Wages for a 2nd job were not initially reported
,3
D. A taxpayer who filed as a non-resident qualified for U.S. resident status
<<Correct Answers>>B
Michelle converted her personal residence to rental property in 2018. She
purchased the property in 2014 for $110,000 of which $10,000 was allocable to
the land. Unfortunately, property values in her neighborhood have declined over
the past few yrs. On the date of conversion, the FMV of the property was
$98,000; $10,000 was allocated to the land. Michelle's basis for depreciation in
the property is:
A. $88,000
B. $98,000
C. $100,000
D. $110,000
<<Correct Answers>>A
Greg purchased a new machine for use in his business. He incurred the
following costs with the purchase; $2,000 cash paid, $10,000 financed, a $500
delivery charge, and a $200 installation charge. Greg's basis on the machine is
.
A. $2,000
B. $2,700
C. $12,000
D. $12,700
<<Correct Answers>>D
, 4
All of the following decrease basis; EXCEPT:
A. Casualty restoration beyond bringing the property to pre-casualty condition
B. Insurance payments for a casualty loss
C. Depreciation
D. Cancelled debt
<<Correct
Answers>>A
Wyatt, who is employed full-time as a software engineer, sometimes uses his
time and talent to assist worthy causes. In 2018, he helped a local non-profit
organization create a new website. Although his primary object was to help the
organization, the directors insisted on compensating him. He received a Form
1099-MISC from the organization reporting non-employee compensation of
$2,800 in box 7. How should Wyatt report this on his tax return?
A. As other income on SCH 1 (Form 1040), line 21. He should deduct any
applicable expenses on SCH A
B. He should report income, less applicable expenses, as other income on SCH
1 (Form 1040), line 21
C. He should report this as self-employment income and deduct any eligible
expenses on SCH C or SCH C-EZ
D. Wyatt does not need to report this income since he performed the work for a
non-profit organization
Answer:C
