HR BLOCK Final Test 2025
Review (ITC 2022) 112
Questions & Complete
Answers
Topics Covered
This exam evaluates a student's ability to prepare basic personal income
tax returns, with an emphasis on Form 1040 and related schedules. Key
topics typically include:
Filing requirements and statuses.
Qualifying dependents and support.
Types of income (e.g., wages, interest, dividends, self-employment
income).
Deductions and credits (e.g., education provisions, retirement
contributions).
Client interview and advice skills.
Tax theory, law, and ethics. (Ultimate Guide for YR. 2026/2027)
Quiz_________________?
Which of the following is a requirement for all taxpayers who want
to claim the EIC?
Live in the U.S. for more than half a year.
Have a valid social security number.
Have a qualifying child dependent.
Have AGI less than $21,430 ($27,380 MFJ). -
Answer☑️
Have a valid social security number.
1
, Quiz_________________?
A combined due diligence penalty of $2,180 would indicate a
penalty for which of the following?
EIC, CTC/ODC/ACTC, and head of household.
EIC, AOTC, and CTC/ODC/ACTC.
EIC, AOTC, CTC/ODC/ACTC, and head of household.
EIC, PTC, CTC/ODC/ACTC, and head of household. -
Answer☑️
EIC, AOTC, CTC/ODC/ACTC, and head of household.
Quiz_________________?
When dependent care benefits are withheld from a taxpayer's
income, where are they reported by the employer?
Form 2441.
Form 1040.
Box 10 of Form W-2.
The employer is not required to report them. -
Answer☑️
Box 10 of Form W-2.
Quiz_________________?
All of the following are due diligence requirements a tax preparer
must meet for EIC, AOTC, CTC/ODC/ACTC, and HOH, EXCEPT:
Investigate and verify the accuracy of information the taxpayer
provides to show eligibility for EIC, AOTC, CTC/ODC/ACTC, and
HOH.
2
, Complete all worksheets used to compute the credits. If the
worksheet is completed by hand, keep a copy in the taxpayer's
client file.
Maintain a copy of documents provided by the taxpayer that the
tax preparer relied on when determining credit eligibility. Then
record the date the information was obtained and the name of
who provided the information.
When information provided by the taxpayer appears to be
incorrect, inconsistent, or incomplete, the tax preparer must make
additional inquiries to determine if the taxpayer is eligible for the
benefit. Then document both the questions asked and responses
provided. -
Answer☑️
Investigate and verify the accuracy of information the taxpayer
provides to show eligibility for EIC, AOTC, CTC/ODC/ACTC, and
HOH.
Quiz_________________?
When a taxpayer receives Form 1099-R with no amount entered
in box 2a and code 7 entered in box 7, the entire distribution:
Could be partly or entirely taxable.
Is never taxable.
Is an early distribution and taxable.
Has been rolled into a traditional IRA or into another qualified
plan. -
Answer☑️
Is never taxable.
Quiz_________________?
3
, What is the maximum amount of the American Opportunity Tax
Credit a taxpayer could receive per student?
$1,650
$1,800
$2,000
$2,500 -
Answer☑️
$2,500
Quiz_________________?
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.
Quiz_________________?
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☑️
4
Review (ITC 2022) 112
Questions & Complete
Answers
Topics Covered
This exam evaluates a student's ability to prepare basic personal income
tax returns, with an emphasis on Form 1040 and related schedules. Key
topics typically include:
Filing requirements and statuses.
Qualifying dependents and support.
Types of income (e.g., wages, interest, dividends, self-employment
income).
Deductions and credits (e.g., education provisions, retirement
contributions).
Client interview and advice skills.
Tax theory, law, and ethics. (Ultimate Guide for YR. 2026/2027)
Quiz_________________?
Which of the following is a requirement for all taxpayers who want
to claim the EIC?
Live in the U.S. for more than half a year.
Have a valid social security number.
Have a qualifying child dependent.
Have AGI less than $21,430 ($27,380 MFJ). -
Answer☑️
Have a valid social security number.
1
, Quiz_________________?
A combined due diligence penalty of $2,180 would indicate a
penalty for which of the following?
EIC, CTC/ODC/ACTC, and head of household.
EIC, AOTC, and CTC/ODC/ACTC.
EIC, AOTC, CTC/ODC/ACTC, and head of household.
EIC, PTC, CTC/ODC/ACTC, and head of household. -
Answer☑️
EIC, AOTC, CTC/ODC/ACTC, and head of household.
Quiz_________________?
When dependent care benefits are withheld from a taxpayer's
income, where are they reported by the employer?
Form 2441.
Form 1040.
Box 10 of Form W-2.
The employer is not required to report them. -
Answer☑️
Box 10 of Form W-2.
Quiz_________________?
All of the following are due diligence requirements a tax preparer
must meet for EIC, AOTC, CTC/ODC/ACTC, and HOH, EXCEPT:
Investigate and verify the accuracy of information the taxpayer
provides to show eligibility for EIC, AOTC, CTC/ODC/ACTC, and
HOH.
2
, Complete all worksheets used to compute the credits. If the
worksheet is completed by hand, keep a copy in the taxpayer's
client file.
Maintain a copy of documents provided by the taxpayer that the
tax preparer relied on when determining credit eligibility. Then
record the date the information was obtained and the name of
who provided the information.
When information provided by the taxpayer appears to be
incorrect, inconsistent, or incomplete, the tax preparer must make
additional inquiries to determine if the taxpayer is eligible for the
benefit. Then document both the questions asked and responses
provided. -
Answer☑️
Investigate and verify the accuracy of information the taxpayer
provides to show eligibility for EIC, AOTC, CTC/ODC/ACTC, and
HOH.
Quiz_________________?
When a taxpayer receives Form 1099-R with no amount entered
in box 2a and code 7 entered in box 7, the entire distribution:
Could be partly or entirely taxable.
Is never taxable.
Is an early distribution and taxable.
Has been rolled into a traditional IRA or into another qualified
plan. -
Answer☑️
Is never taxable.
Quiz_________________?
3
, What is the maximum amount of the American Opportunity Tax
Credit a taxpayer could receive per student?
$1,650
$1,800
$2,000
$2,500 -
Answer☑️
$2,500
Quiz_________________?
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.
Quiz_________________?
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☑️
4
