H&R BLOCK INCOME TAX EXAMPREP
REVIEW SHEET TESTED QUESTIONS AND
ACCURATE ANSWERS
●● Estimated Tax
Answer: The amount of tax a taxpayer expects to owe for the year after
subtracting expected amounts withheld and certain refundable credits.
●● 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
●● 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.
REVIEW SHEET TESTED QUESTIONS AND
ACCURATE ANSWERS
●● Estimated Tax
Answer: The amount of tax a taxpayer expects to owe for the year after
subtracting expected amounts withheld and certain refundable credits.
●● 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
●● 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.
