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HR BLOCK TEST QUESTIONS AND ANSWERS
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HR BLOCK TEST QUESTIONS ANDANSWERS 2024-2025
A tax returner or refund claimant who needs a paid tax return preparer to determine
eligibility for EITC, CTC/ODC/ACTC, AOTC, and head of household filing status
may face a maximum penalty of what amount if all four are claimed on the same
tax return? - ANSWER A: $2,120
What is the cap on the deduction for state and local income taxes? - ANSWER A.
$10,000 ($5,000 for MFS).
A married pair who materially participates in the operation of a jointly owned
business may choose for each spouse to file their own Schedule C, disclosing their
own income, loss, and deductions. What is this known as? - Answer C: A qualified
joint venture.
What form of property does an individual's stock represent? - ANSWER A.
Intangible personal and investment-use property.
Which of the following is not deductible under Schedule A? - ANSWER C. Federal
taxes were withheld.
Which of the following property kinds can be depreciated? - ANSWER D. A copier
purchased by a tax preparation firm.
In many circumstances, a taxpayer who actively participates in rental real estate
activity may deduct up to what amount of rental losses from other types of income?
- ANSWER A. 25,000
What form should a sole proprietor who computes self-employment tax fill out? -
ANSWER B. Schedule SE.
,What form is used by an employee to notify their employer of how much income
tax should be withheld from their taxable wages? - ANSWER C: Form W-4.
The IRS may impose penalties on taxpayers for which of the following? -
ANSWER D. All of the above.
Which of the following accurately represents gross income? - ANSWER A. all
revenue from whatever source derived, except excluded from taxes by legislation.
Which of the following accurately characterizes earned income? - ANSWER C.
Income received for services rendered, such as salary, commissions, tips, and
ordinary farming and company income.
Which of the following taxpayers are not required to file a federal tax return in
2019? - ANSWER D. Ron (66) and Sue (64) have a gross income of $25,250. They
want to file a combined return.
Jennfier's (27) brother, Jim (18), her fiancee Steve (29), and her daughter, Kim (5),
resided with her for the entire year of 2019. Jennfier's AGI is $27,800; Jim's is
$5,050; Steve's is $4,0050; and Kim has no income. Jim and Kim did not contribute
more than 50% of Steve's assistance. Jennifer qualifies and files as head of
household in 2019. How many qualified dependents may Jennifer claim on her tax
return? - ANSWER C. Three
Which of the following are included in federal gross income? - ANSWER D.
Unemployment compensation.
Which of the following are not included in federal gross income? - ANSWER B:
Federal income tax refunds.
,Which of the following taxpayers are not required to file a federal income tax
return in 2019? - ANSWER B. Elizabeth (68) earns a gross income of $12,250. She
is unmarried, with no dependents.
Mike is single, with a taxable income of $17,405. The amount of tax he owes
according to the 2019 tax tables is - c. $1,897.
Adrian is married, filing separately, and has a taxable income of $26,100. His tax
liability under the 2019 tax tables is - ANSWER c. $2,941.
Which of the following is not one of the five qualifying kid standards that a
taxpayer must meet in order for their child to be classified dependent? - ANSWER
A. The gross income test.
Marissa and Lucius got married 18 years ago. They had one child, Matthew (13).
Luciuis passed away in 2015. Marissa did not remember. Marissa and Mathhew
lived together all year, with no one else. Matthew had no income in 2019. Marissa
paid for the whole cost of keeping their home. What is the most advantageous 2019
filing status for Marissa? - ANSWER A. Head of the household.
Brian's divided income was reported on Form 1099-DIV. When Brian's divided
income exceeds that of which of the following families, he must submit a Form
1040, Schedule B. - ANSWER B. $1,500.
Which of the following taxpayers is not eligible to deduct qualified educator
expenses? - ANSWER C. Gaylene works as a substitute teacher in her local high
school. She worked 1,040 hours in 2019. She spends $590 on home educating for
her fifth-grade daughter Jodie. She paid $230 for items used in multiple
classrooms. She reimbursed for the supplies.
What is the maximum allowable deduction for qualified student loan interest? -
ANSWER B. $2,500.
, Which of the following expenses are eligible for an education credit in 2019? -
ANSWER A. Tuition payments?The taxpayer did not receive any scholarships,
grants, or other nontaxable benefits.
Which of the following taxpayers is not eligible to claim the Child and Dependent
Care Credit? - ANSWER C. Sideny and Stella Anderson have a dependent
daughter named Andera (8). Sideny works full-time, and Stella is heavily involved
in charitable activities. They paid the Daily Child Care Center to care for Andrea
while Stella volunteered with various philanthropic organizations.
What is the maximum amount of the America Opportunity Tax Credit that a
taxpayer may receive? - ANSWER D. $2,500
What about the Child and Dependent Care Credit? - ANSWER D. Never entirely
phase out.
What is the maximum amount for the lifetime learning credit? - Answer C. $2000
per return.
Nakita was born in 1957. When would Nakita attain the full retirement age for
social security benefits, based on her birth year? - ANSWER D. 66 years and six
months.
Which of the following is not a percentage of social security benefits subject to
federal taxation up to: - ANSWER D. 100%
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