H&R Block Income Tax Course
questions with 100% correct answers
2025/2026
Due Diligence
Requirements That Tax Professionals Must Follow When Preparing Income Tax Returns.
Estimated Tax
The Amount Of Tax A Taxpayer Expects To Owe For The Year After Subtracting Expected Amounts
Withheld And Certain Refundable Credits.
Estimated Tax Voucher
A Statement By An Individual Of (1) The Amount Of Income Tax He Estimates He Will Incur During
The Current Taxable Year On Income That Is Not Subject To Withholding, (2) The Excess Amount
Over That Withheld On Income Which Is Subject To Withholding, And (3) His Estimated Self-
Employment Tax.
Exemption From Withholding
Status Claimed On Form W-4 Directing The Employer Not To Withhold Federal Income Taxes From
The Employee.
Underpayment Penalty
If A Taxpayer Did Not Pay Enough Tax On A Timely Basis During The Year, He May Be Required To Pay An
Underpayment Penalty.
Two Ways To Pay As You Go
Withholding And Estimated Tax Payments
Form W-4
Employee's Withholding Allowance Certificate
Form 4868
Application For Automatic Extension Of Time To File U.S. Individual Income Tax Return
Amended Return
A Tax Return Filed On Form 1040X After The Original Return Has Been Filed.
Closed Year
A Tax Year For Which The Statute Of Limitations Has Expired.
Open Year
,A Taxable Year For Which The Statute Of Limitations Has Not Yet Expired.
Failure-To-File Penalty
Generally 5% For Each Month Or Part Of A Month The Return Is Late, But Not More Than 25% Of The
Tax Not Paid.
Failure To File
Taxpayer Fails To File The Return By The Due Date, And There Is A Balance Due.
Form 1040X
Amended U.S. Individual Income Tax Return
When Can An Amended Return Be Filed?
Within Three Years Of The Date The Original Return Was Filed, Or Within Two Years Of The Date The
Tax Was Paid, Whichever Is Later.
Can The 1040X Be E-Filed?
No.
Portfolio Income And Losses
Those From Such Sources As Dividends, Interest, Capital Gains And Losses, And Royalties.
Schedule E
Supplemental Income And Loss
Royalty
Payments Received For The Right To Extract Natural Resources From The Taxpayer's Property Or To Use A
Taxpayer's Literary, Musical, Or Artistic Creation.
Annuity
A Series Of Payments Under A Contract Made At Regular Intervals Over A Period Of More Than One Year.
Beneficiary
The Owner Or Recipient Of Funds In An Account, Such As An IRA, Or From An Insurance Policy Or Will.
Contribution
When A Person Puts Money Into A Retirement Plan.
Defined Benefit Plan
An Employee Benefit Plan That Provides Determinable Benefits Not Based On Employer Profits.
Defined Contribution Plan
, An Employee Benefit Plan That Provides A Separate Account For Each Person Covered And Pays Benefits
Based On Account Earnings.
Disability Pension
A Taxable Pension From An Employer-Funded Disability Plan Or A Disability Provision Of A Retirement
Plan.
Distribution
When A Person Takes Or Receives Money From A Retirement Plan.
Pension
Generally A Series Of Definitely Determinable Payments Made To A Taxpayer After Retirement From
Work.
Rollover
A Qualified Transfer Of Funds From One Tax-Favored Account To Another, Usually Of The Same Type.
Roth IRA
A Type Of Individual Retirement Arrangement In Which Contributions Are Not Tax Deductible,
Earnings Grow Tax Deferred, And Qualified Withdrawals Are Tax Free.
Traditional IRA
An Individual Retirement Arrangement, Contributions To Which May Or May Not Be Deductible
Depending On The Taxpayer's AGI And Whether Or Not He Is Covered Under An Employer-Sponsored
Retirement Plan.
What Is The Full Retirement Age?
For Workers Born Before 1938, It Is 65. For Those Born After It Is Gradually Being Increased To 67.
How Much Of A Client's Social Security And Equivalent Tier 1 RR Benefits May Be Taxable?
Up To 85%.
Form SSA-1099
Social Security Benefits
Form RRB-1099
Railroad Retirement Benefits
None Of Social Security Benefits Taxable
Single, Head Of Household, Qualified Widow - $0-$25,000; Married Filing Jointly - $0-$32,000
Up To 50% Of Social Security Benefits Taxable
questions with 100% correct answers
2025/2026
Due Diligence
Requirements That Tax Professionals Must Follow When Preparing Income Tax Returns.
Estimated Tax
The Amount Of Tax A Taxpayer Expects To Owe For The Year After Subtracting Expected Amounts
Withheld And Certain Refundable Credits.
Estimated Tax Voucher
A Statement By An Individual Of (1) The Amount Of Income Tax He Estimates He Will Incur During
The Current Taxable Year On Income That Is Not Subject To Withholding, (2) The Excess Amount
Over That Withheld On Income Which Is Subject To Withholding, And (3) His Estimated Self-
Employment Tax.
Exemption From Withholding
Status Claimed On Form W-4 Directing The Employer Not To Withhold Federal Income Taxes From
The Employee.
Underpayment Penalty
If A Taxpayer Did Not Pay Enough Tax On A Timely Basis During The Year, He May Be Required To Pay An
Underpayment Penalty.
Two Ways To Pay As You Go
Withholding And Estimated Tax Payments
Form W-4
Employee's Withholding Allowance Certificate
Form 4868
Application For Automatic Extension Of Time To File U.S. Individual Income Tax Return
Amended Return
A Tax Return Filed On Form 1040X After The Original Return Has Been Filed.
Closed Year
A Tax Year For Which The Statute Of Limitations Has Expired.
Open Year
,A Taxable Year For Which The Statute Of Limitations Has Not Yet Expired.
Failure-To-File Penalty
Generally 5% For Each Month Or Part Of A Month The Return Is Late, But Not More Than 25% Of The
Tax Not Paid.
Failure To File
Taxpayer Fails To File The Return By The Due Date, And There Is A Balance Due.
Form 1040X
Amended U.S. Individual Income Tax Return
When Can An Amended Return Be Filed?
Within Three Years Of The Date The Original Return Was Filed, Or Within Two Years Of The Date The
Tax Was Paid, Whichever Is Later.
Can The 1040X Be E-Filed?
No.
Portfolio Income And Losses
Those From Such Sources As Dividends, Interest, Capital Gains And Losses, And Royalties.
Schedule E
Supplemental Income And Loss
Royalty
Payments Received For The Right To Extract Natural Resources From The Taxpayer's Property Or To Use A
Taxpayer's Literary, Musical, Or Artistic Creation.
Annuity
A Series Of Payments Under A Contract Made At Regular Intervals Over A Period Of More Than One Year.
Beneficiary
The Owner Or Recipient Of Funds In An Account, Such As An IRA, Or From An Insurance Policy Or Will.
Contribution
When A Person Puts Money Into A Retirement Plan.
Defined Benefit Plan
An Employee Benefit Plan That Provides Determinable Benefits Not Based On Employer Profits.
Defined Contribution Plan
, An Employee Benefit Plan That Provides A Separate Account For Each Person Covered And Pays Benefits
Based On Account Earnings.
Disability Pension
A Taxable Pension From An Employer-Funded Disability Plan Or A Disability Provision Of A Retirement
Plan.
Distribution
When A Person Takes Or Receives Money From A Retirement Plan.
Pension
Generally A Series Of Definitely Determinable Payments Made To A Taxpayer After Retirement From
Work.
Rollover
A Qualified Transfer Of Funds From One Tax-Favored Account To Another, Usually Of The Same Type.
Roth IRA
A Type Of Individual Retirement Arrangement In Which Contributions Are Not Tax Deductible,
Earnings Grow Tax Deferred, And Qualified Withdrawals Are Tax Free.
Traditional IRA
An Individual Retirement Arrangement, Contributions To Which May Or May Not Be Deductible
Depending On The Taxpayer's AGI And Whether Or Not He Is Covered Under An Employer-Sponsored
Retirement Plan.
What Is The Full Retirement Age?
For Workers Born Before 1938, It Is 65. For Those Born After It Is Gradually Being Increased To 67.
How Much Of A Client's Social Security And Equivalent Tier 1 RR Benefits May Be Taxable?
Up To 85%.
Form SSA-1099
Social Security Benefits
Form RRB-1099
Railroad Retirement Benefits
None Of Social Security Benefits Taxable
Single, Head Of Household, Qualified Widow - $0-$25,000; Married Filing Jointly - $0-$32,000
Up To 50% Of Social Security Benefits Taxable
