H&R Block Income Tax Course exam with
100% correct answers 2026
Estimated Tax Voucher - ANSWER-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 - ANSWER-Status claimed on Form W-4 directing the
employer not to withhold federal income taxes from the employee.
Underpayment Penalty - ANSWER-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 - ANSWER-Withholding and Estimated Tax Payments
Form W-4 - ANSWER-Employee's Withholding Allowance Certificate
Due Diligence - ANSWER-Requirements that tax professionals must follow when
preparing income tax returns.
Estimated Tax - ANSWER-The amount of tax a taxpayer expects to owe for the year
after subtracting expected amounts withheld and certain refundable credits.
Form 4868 - ANSWER-Application for Automatic Extension of Time To File U.S.
Individual Income Tax Return
Amended Return - ANSWER-A tax return filed on Form 1040X after the original return
has been filed.
Closed Year - ANSWER-A tax year for which the statute of limitations has expired.
Open Year - ANSWER-A taxable year for which the statute of limitations has not yet
expired.
Failure-to-File Penalty - ANSWER-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 - ANSWER-Taxpayer fails to file the return by the due date, and there is a
balance due.
Form 1040X - ANSWER-Amended U.S. Individual Income Tax Return
,When can an amended return be filed? - ANSWER-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? - ANSWER-No.
Portfolio Income and Losses - ANSWER-Those from such sources as dividends,
interest, capital gains and losses, and royalties.
Schedule E - ANSWER-Supplemental Income and Loss
Royalty - ANSWER-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 - ANSWER-A series of payments under a contract made at regular intervals
over a period of more than one year.
Beneficiary - ANSWER-The owner or recipient of funds in an account, such as an IRA,
or from an insurance policy or will.
Contribution - ANSWER-When a person puts money into a retirement plan.
Defined Benefit Plan - ANSWER-An employee benefit plan that provides determinable
benefits not based on employer profits.
Defined Contribution Plan - ANSWER-An employee benefit plan that provides a
separate account for each person covered and pays benefits based on account
earnings.
Disability Pension - ANSWER-A taxable pension from an employer-funded disability
plan or a disability provision of a retirement plan.
Distribution - ANSWER-When a person takes or receives money from a retirement plan.
Pension - ANSWER-Generally a series of definitely determinable payments made to a
taxpayer after retirement from work.
Rollover - ANSWER-A qualified transfer of funds from one tax-favored account to
another, usually of the same type.
Roth IRA - ANSWER-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 - ANSWER-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? - ANSWER-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?
- ANSWER-Up to 85%.
Form SSA-1099 - ANSWER-Social Security Benefits
Form RRB-1099 - ANSWER-Railroad Retirement Benefits
None of Social Security Benefits Taxable - ANSWER-Single, Head of Household,
Qualified Widow - $0-$25,000; Married Filing Jointly - $0-$32,000
Up to 50% of Social Security Benefits Taxable - ANSWER-Single, Head of Household,
Qualified Widow - $25,001-$34,000; Married Filing Jointly - $32,001-$44,000
Up to 85% of Social Security Benefits Taxable - ANSWER-Single, Head of Household,
Qualified Widow - $34,001+; Married Filing Jointly - $44,001+; Married Filing Single -
$1+
Fully Taxable Pension - ANSWER-Pensions to which the taxpayer did not make after-
tax contributions or from which all pre-tax amounts have been recovered in previous
years.
Partly Taxable Pensions - ANSWER-Those pensions funded through employer plans to
which the employee contributed some after-tax money.
Form 1099-R - ANSWER-Distributions from Pensions, Annuities, Retirement, or Profit-
Sharing Plans, IRAs, Insurance Contracts, Etc.
Exceptions to the Early Withdrawal Penalty - ANSWER-01 - The distribution was made
to an employee who separated from service during or after the year in which they
reached age 55.
02 - The distribution is part of a series of substantially equal periodic payments, made at
least annually for the life of the participant or the life expenctancy of the participant.
03 - The distribution was made due to permanent and total disability.
04 - The distribution was made due to the death of the employee.
05 - The distribution was made in a year that the taxpayer's medical expenses exceeds
7.5% of AGI.
06 - The distribution was made to an alternate payee under a qualified domestic
relations order.
100% correct answers 2026
Estimated Tax Voucher - ANSWER-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 - ANSWER-Status claimed on Form W-4 directing the
employer not to withhold federal income taxes from the employee.
Underpayment Penalty - ANSWER-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 - ANSWER-Withholding and Estimated Tax Payments
Form W-4 - ANSWER-Employee's Withholding Allowance Certificate
Due Diligence - ANSWER-Requirements that tax professionals must follow when
preparing income tax returns.
Estimated Tax - ANSWER-The amount of tax a taxpayer expects to owe for the year
after subtracting expected amounts withheld and certain refundable credits.
Form 4868 - ANSWER-Application for Automatic Extension of Time To File U.S.
Individual Income Tax Return
Amended Return - ANSWER-A tax return filed on Form 1040X after the original return
has been filed.
Closed Year - ANSWER-A tax year for which the statute of limitations has expired.
Open Year - ANSWER-A taxable year for which the statute of limitations has not yet
expired.
Failure-to-File Penalty - ANSWER-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 - ANSWER-Taxpayer fails to file the return by the due date, and there is a
balance due.
Form 1040X - ANSWER-Amended U.S. Individual Income Tax Return
,When can an amended return be filed? - ANSWER-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? - ANSWER-No.
Portfolio Income and Losses - ANSWER-Those from such sources as dividends,
interest, capital gains and losses, and royalties.
Schedule E - ANSWER-Supplemental Income and Loss
Royalty - ANSWER-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 - ANSWER-A series of payments under a contract made at regular intervals
over a period of more than one year.
Beneficiary - ANSWER-The owner or recipient of funds in an account, such as an IRA,
or from an insurance policy or will.
Contribution - ANSWER-When a person puts money into a retirement plan.
Defined Benefit Plan - ANSWER-An employee benefit plan that provides determinable
benefits not based on employer profits.
Defined Contribution Plan - ANSWER-An employee benefit plan that provides a
separate account for each person covered and pays benefits based on account
earnings.
Disability Pension - ANSWER-A taxable pension from an employer-funded disability
plan or a disability provision of a retirement plan.
Distribution - ANSWER-When a person takes or receives money from a retirement plan.
Pension - ANSWER-Generally a series of definitely determinable payments made to a
taxpayer after retirement from work.
Rollover - ANSWER-A qualified transfer of funds from one tax-favored account to
another, usually of the same type.
Roth IRA - ANSWER-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 - ANSWER-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? - ANSWER-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?
- ANSWER-Up to 85%.
Form SSA-1099 - ANSWER-Social Security Benefits
Form RRB-1099 - ANSWER-Railroad Retirement Benefits
None of Social Security Benefits Taxable - ANSWER-Single, Head of Household,
Qualified Widow - $0-$25,000; Married Filing Jointly - $0-$32,000
Up to 50% of Social Security Benefits Taxable - ANSWER-Single, Head of Household,
Qualified Widow - $25,001-$34,000; Married Filing Jointly - $32,001-$44,000
Up to 85% of Social Security Benefits Taxable - ANSWER-Single, Head of Household,
Qualified Widow - $34,001+; Married Filing Jointly - $44,001+; Married Filing Single -
$1+
Fully Taxable Pension - ANSWER-Pensions to which the taxpayer did not make after-
tax contributions or from which all pre-tax amounts have been recovered in previous
years.
Partly Taxable Pensions - ANSWER-Those pensions funded through employer plans to
which the employee contributed some after-tax money.
Form 1099-R - ANSWER-Distributions from Pensions, Annuities, Retirement, or Profit-
Sharing Plans, IRAs, Insurance Contracts, Etc.
Exceptions to the Early Withdrawal Penalty - ANSWER-01 - The distribution was made
to an employee who separated from service during or after the year in which they
reached age 55.
02 - The distribution is part of a series of substantially equal periodic payments, made at
least annually for the life of the participant or the life expenctancy of the participant.
03 - The distribution was made due to permanent and total disability.
04 - The distribution was made due to the death of the employee.
05 - The distribution was made in a year that the taxpayer's medical expenses exceeds
7.5% of AGI.
06 - The distribution was made to an alternate payee under a qualified domestic
relations order.
