H&R BLOCK

TAX FINAL EXAM QUESTIONS AND ANSWERS

H&R Block Final Exam Material Chapters 12-15 Questions With 100% Correct Answers | Verified | Updated 2023

H&R Block Final Exam - Chapter 12-15 Questions with 100% Correct Answers | Verified | Updated

Which of the following is an example of a casualty and/or theft loss? Termite damage Misplaced property Damage or loss from a terrorist attack Property broken through ordinary use - Damage or loss from a terrorist attack The Saver's Credit may be claimed by eligible taxpayers who make a contribution to a qualified retirement fund. Which one of these savings vehicles do NOT qualify for the Saver's Credit? A mutual fund in a 401K account. A mutual fund in a Roth IRA. A nonrestricted sav...

What is Gross Income? -- Any money that you made or worked for that is subject to tax. Also, all world-wide income from whatever source derived, unless specifically excluded from taxation by law. ( Money realized in any form whether in money, property, or services.) Income - Financial gain derived from labor(work), capital (money), or a combination of the two. The financial gain derived from labor is generally referred to as "wages". What is Earned Income? - Financial gain "that is" rec...

What is the difference between earned income and unearned income? - ANSWERSEarned income is received for services performed. Some examples of earned income include wages, commissions, tips, farming, and other business income. Unearned income is taxable income that does not meet the definition of earned income. Examples of unearned income include interest income, dividends, rents and royalties, pensions, alimony, and unemployment income. If an employee thinks their Form W-2 is incorrect, what...

What is the difference between earned income and unearned income? - ANSWERSEarned income is received for services performed. Some examples of earned income include wages, commissions, tips, farming, and other business income. Unearned income is taxable income that does not meet the definition of earned income. Examples of unearned income include interest income, dividends, rents and royalties, pensions, alimony, and unemployment income. If an employee thinks their Form W-2 is incorrect, what...

Tony (28) and Adam (27) are cousins and lived in the same home throughout 2017. Adam only earned $2,500 in 2017. Tony earned $25,000 in 2017. What test does he meet? - ANSWERSAdam meets the relationship and member of household test for Tony, since Adam lived with Tony the entire year. Tony may be able to claim Adam as a qualifying relative dependent. Note: Being cousins alone will not meet the relationship test for qualifying relative, because a cousin is not listed as a specific relative...

What is the difference between earned income and unearned income? - Earned income is received for services performed. Some examples of earned income include wages, commissions, tips, farming, and other business income. Unearned income is taxable income that does not meet the definition of earned income. Examples of unearned income include interest income, dividends, rents and royalties, pensions, alimony, and unemployment income. If an employee thinks their Form W-2 is incorrect, what sho...

A deferred compensation plan available through a wide range of employers. Contributions to a 401(k) plan are tax-deferred to the employee (income tax is not charged on the amount of the contribution at the time it is made). Distributions from the plan are taxed as ordinary income to the recipient when received. - 401[K] A retirement plan available to employees of many public educational institutions and tax-exempt organizations. Also known as a tax-sheltered annuity plan. - 403[B] A ...