HR BLOCK TEST EXAM 2026 PRACTICE TEST
PAPER TAX FILING PROCEDURES REVIEW
SHEET FULL SOLUTIONS
◉ Which test for a qualifying 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. Answer: Support.
◉ Which of the following expenses qualifies for an education credit
in 2021?
Tuition payments. The taxpayer didn't receive scholarships, grants,
or other nontaxable benefits.
Fees for an optional student activity.
Cost of student medical fees.
Tuition payments. The taxpayer received a nontaxable grant, which
covered the entire tuition expense. Answer:
◉ Employer-provided dependent care assistance:
,May be used for the Child and Dependent Care Credit.
Is subtracted from the total expenses for child or dependent care on
Form 2441.
Is included in wages on Form W-2.
Is not reported to the IRS. Answer:
◉ Which of the following is NOT a percentage of social security
benefits subject to federal tax? Up to __________.
0%
50%
85%
100% Answer: 100%
◉ What is the maximum amount of the lifetime learning credit?
$1,100 per return.
$1,650 per return.
$2,000 per return.
$2,500 per return. Answer: $2,000 per return.
◉ Employer-provided dependent care assistance:
It may be used for the Child and Dependent Care Credit.
, It is subtracted from the total expenses for the child or dependent
care on Form 2441.
It is included in wages on Form W-2.
It is not reported to the IRS. Answer:
◉ Earned Income Answer: Any income (wages/salary) that is
generated by working
◉ Unearned Income Answer: include interest income, dividends,
rents and royalties, pensions, alimony, and unemployment income.
◉ If an employee thinks their Form W-2 is incorrect, what should
they do? Answer: If the taxpayer's name, social security number,
earnings, or withholdings are incorrect, the taxpayer should notify
their employer and request a corrected Form W-2. The employee
should request that the employer update their records and verify
that the earnings were properly credited with the Social Security
Administration. However, the taxpayer is still responsible for filing a
timely tax return. If the employee's attempts to obtain a corrected
Form W-2 from their employer are not successful, the taxpayer
should notify the IRS. It may be necessary to prepare a substitute
Form W-2.
◉ Is interest received on U.S. Treasury obligations taxable on state
and/or local returns? Answer: No. Interest on U.S. Treasury
obligations is exempt from state and local tax by federal law.
PAPER TAX FILING PROCEDURES REVIEW
SHEET FULL SOLUTIONS
◉ Which test for a qualifying 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. Answer: Support.
◉ Which of the following expenses qualifies for an education credit
in 2021?
Tuition payments. The taxpayer didn't receive scholarships, grants,
or other nontaxable benefits.
Fees for an optional student activity.
Cost of student medical fees.
Tuition payments. The taxpayer received a nontaxable grant, which
covered the entire tuition expense. Answer:
◉ Employer-provided dependent care assistance:
,May be used for the Child and Dependent Care Credit.
Is subtracted from the total expenses for child or dependent care on
Form 2441.
Is included in wages on Form W-2.
Is not reported to the IRS. Answer:
◉ Which of the following is NOT a percentage of social security
benefits subject to federal tax? Up to __________.
0%
50%
85%
100% Answer: 100%
◉ What is the maximum amount of the lifetime learning credit?
$1,100 per return.
$1,650 per return.
$2,000 per return.
$2,500 per return. Answer: $2,000 per return.
◉ Employer-provided dependent care assistance:
It may be used for the Child and Dependent Care Credit.
, It is subtracted from the total expenses for the child or dependent
care on Form 2441.
It is included in wages on Form W-2.
It is not reported to the IRS. Answer:
◉ Earned Income Answer: Any income (wages/salary) that is
generated by working
◉ Unearned Income Answer: include interest income, dividends,
rents and royalties, pensions, alimony, and unemployment income.
◉ If an employee thinks their Form W-2 is incorrect, what should
they do? Answer: If the taxpayer's name, social security number,
earnings, or withholdings are incorrect, the taxpayer should notify
their employer and request a corrected Form W-2. The employee
should request that the employer update their records and verify
that the earnings were properly credited with the Social Security
Administration. However, the taxpayer is still responsible for filing a
timely tax return. If the employee's attempts to obtain a corrected
Form W-2 from their employer are not successful, the taxpayer
should notify the IRS. It may be necessary to prepare a substitute
Form W-2.
◉ Is interest received on U.S. Treasury obligations taxable on state
and/or local returns? Answer: No. Interest on U.S. Treasury
obligations is exempt from state and local tax by federal law.
