HRB FINAL EXAM 2024|2025 WITH GUARANTEED ACCURATE ANSWERS
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HRB
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HRB
What is the Difference between earned income and unearned income? - ACCURATE ANSWERS Earned income is received for services performed. Examples are wages commissions, tips and generally farming and other business income . Taxable income other than that received for services performed. Unearned Inco...
HRB FINAL EXAM 2024|2025 WITH
GUARANTEED ACCURATE
ANSWERS
What is the Difference between earned income and unearned income? -
ACCURATE ANSWERS✔✔ Earned income is received for services
performed. Examples are wages commissions, tips and generally
farming and other business income . Taxable income other than that
received for services performed. Unearned Income includes money
received ro the investment of money or other property, such as interest,
dividends, and royalties. It also includes pensions alimony,
unemployment compensation and other income that is not earned
If an employee thinks their Form W2 is incorrect, what should they do? -
ACCURATE ANSWERS✔✔ Employee should discuss with employer
who issued the document and request a W2C. If no help from employer,
notify IRS. Tax prepaper can then file a substitute.
What information do you need to know to determine whether a taxpayer
is required to file a return? - ACCURATE ANSWERS✔✔ Gross
income, filing status, age and if they are a dependent
For tax purposes, when is a person's marital status determined? -
ACCURATE ANSWERS✔✔ On the last day of the tax year
Where on the tax form can you find the regular standard deduction
amounts? - ACCURATE ANSWERS✔✔ Line 22 on 1040A, In the left
,margin at the top of the page 2 of forms 1040 and 1040A. Look at actual
form to look for line
How much is added to the standard deduction if the taxpayer (or spouse
is age 65 or older, or blind? - ACCURATE ANSWERS✔✔ $1550 if
unmarried, $1250 if married
What is the personal exemption amount for 2016? - ACCURATE
ANSWERS✔✔ $4,050
What two amounts are combined to make up the gross income filing
requirments for most taxpayers? - ACCURATE ANSWERS✔✔ The
standard deduction and the personal exemption amounts
Under what circumstances might a taxpayer be required to file a return
even though they do not meet the gross income filing requirements? -
ACCURATE ANSWERS✔✔ 1. Has net employment of $400 or more
net self employment 2. You had unemployment income you owe
medicare Advantage MSA, receive HAS, Archer, MSA 3. Reeived an
Advanced Premium Tax credit even if they didn't otherwise have a filing
requirment for the year *Tips, HSA, SE $400, PTC
What is the difference between injured spouse allocation and innocent
spouse relief? - ACCURATE ANSWERS✔✔ The difference between
injured spouse and innocent spouse is significant in the eyes of the IRS.
Both release you from an income tax liability arising from a "married
filing jointly" return but different outcomes. Innocent spouse filed a joint
return byt was unaware that their spouse deliberately under reported tax
,liability. Injured spouse seeks to protect his or her share of the refund in
case it gets seized or offset due to the other spouse's debts or unpaid
obligations
CHAPTER 3: DEPENDENT EXEMPTIONS AND SUPPORT -
ACCURATE ANSWERS✔✔
What four requirements must be met for an individual to be claimed as a
dependent - ACCURATE ANSWERS✔✔ Must pass the dependent test,
joint return test, citizenship, qualifying child or relative
What are the five tests for a qualifying child? - ACCURATE
ANSWERS✔✔ 1. Relationship 2. Age 3. Residency 4. Support 5. Joint
Return
How can a married individual meet the joint return test to remain a
qualifying child? - ACCURATE ANSWERS✔✔ They can meet this test
by not filing a joint return with their spouse or they can file a joint return
with their spouse if they are filing only to claim a refund on any taxes
withheld
How can you determine who paid more than half of a person's support? -
ACCURATE ANSWERS✔✔ Total support is determined and reduced
by the funds received by and for the person from all sources other than
the taxpaer. The remaining support is considered to be provided by the
taxpayer. Other sources might include government support Worksheet
for Determining Support
, What happens if an individual is a qualifying child of more than one
taxpayer? - ACCURATE ANSWERS✔✔ Generally, the custodial parent
is the one in which the child spent the most nights
What happens when more than one taxpayer claims the same qualifying
child? - ACCURATE ANSWERS✔✔ Tie Breaker Rules apply : 1. The
parent, if only one of the persons is the childs parent 2. The parent with
whom the child lived the longest during the tax 3. The parents with the
highest AGI if no parent can claim the child as a qualifying child
What four tests must be met for an individual to be considered a
qualifying relative? - ACCURATE ANSWERS✔✔ 1. Not be a
qualifying child, the person cannot be the taxpayers qualifying child or
the qualifying child of another taxpayer 2. Relationship: Child, brother,
sister, step sister, step brother, step father , step mother, in-laws 3. Gross
Income: gross income must be less than $4050 4. Support: Taxpayer
must provide more than half the support
How can the gross income for a qualifying relative test be satisfied? -
ACCURATE ANSWERS✔✔ Gross income must be less than $4050
(Do not include tax exempt income)
What is the purpose of Form 2120 Multiple Support Declaration? -
ACCURATE ANSWERS✔✔ You only need 2120 multiple support
declaration if you are claiming someone other than a qualifying child as
a dependent and there are two or more people including yourself who
provide support for the dependent
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