H&R Block Income Tax Course Exam | 2026/2027
Edition Questions | Original Evaluation with
Verified Answers and Rationales
Introduction
H&R Block income tax course preparation, covering filing rules, income,
deductions, credits, tax computation, ethics, and recordkeeping.
Content Areas
• Filing requirements, status, and dependents.
• Gross income, exclusions, and adjustments to income.
• Deductions, standard/itemized rules, and business expenses.
• Tax credits, tax computations, and payments.
• Tax preparer ethics, IRS procedures, and recordkeeping.
Questions and Answers
1. Which filing status is generally available to an unmarried taxpayer
who pays more than half the cost of maintaining a home for a qualifying
child or qualifying relative?
A. Single
B. Head of Household
C. Married Filing Jointly
D. Qualifying Surviving Spouse
Answer: B. Head of Household
Rationale: Head of Household provides a more favorable tax rate than Single
and requires the taxpayer to pay more than half the cost of keeping up a home
for a qualifying person.
2. Which taxpayer is most likely required to file a federal return?
A. A dependent with no income
B. A single taxpayer whose gross income exceeds the filing threshold
,C. A taxpayer who received only nontaxable municipal bond interest
D. A child with unearned income below the standard deduction limit
Answer: B. A single taxpayer whose gross income exceeds the filing
threshold
Rationale: A return is generally required when gross income exceeds the
filing threshold for the taxpayer’s filing status and age.
3. Which of the following is generally considered gross income?
A. A gift from a parent
B. Child support received
C. Wages from employment
D. A loan you must repay
Answer: C. Wages from employment
Rationale: Wages are taxable income. Gifts, child support, and bona fide loans
are generally not included in gross income.
4. Which item is usually excluded from gross income?
A. Salary
B. Taxable interest
C. Life insurance proceeds paid because of the insured’s death
D. Self-employment earnings
Answer: C. Life insurance proceeds paid because of the insured’s death
Rationale: Death benefit proceeds from life insurance are generally excluded
from income.
5. Which is an adjustment to income?
A. Charitable contribution
B. Student loan interest deduction
C. Medical expense deduction
D. Child tax credit
Answer: B. Student loan interest deduction
Rationale: Adjustments to income reduce AGI and are taken before itemized
deductions or the standard deduction.
, 6. Why is adjusted gross income important?
A. It determines whether a taxpayer can itemize
B. It is used in many credit and deduction calculations
C. It replaces taxable income
D. It is only used for state tax returns
Answer: B. It is used in many credit and deduction calculations
Rationale: AGI affects eligibility and limits for several deductions and credits.
7. Which taxpayer generally cannot be claimed as a dependent?
A. A qualifying child who lived with the taxpayer all year
B. A qualifying relative who meets the support test
C. A married person filing a joint return with spouse unless only to claim
refund
D. A child under age 19 who lived at home and had low income
Answer: C. A married person filing a joint return with spouse unless only
to claim refund
Rationale: A person filing a joint return usually cannot be claimed as a
dependent, with limited exceptions.
8. Which test is used to determine whether a child is a qualifying child
dependent?
A. Residency, support, relationship, age
B. Gross income only
C. Tax bracket
D. Citizenship only
Answer: A. Residency, support, relationship, age
Rationale: Qualifying child rules rely on relationship, age, residency, and
support considerations.
9. A taxpayer’s standard deduction is generally:
A. The same for every taxpayer
B. Based on filing status, age, and blindness in some cases
Edition Questions | Original Evaluation with
Verified Answers and Rationales
Introduction
H&R Block income tax course preparation, covering filing rules, income,
deductions, credits, tax computation, ethics, and recordkeeping.
Content Areas
• Filing requirements, status, and dependents.
• Gross income, exclusions, and adjustments to income.
• Deductions, standard/itemized rules, and business expenses.
• Tax credits, tax computations, and payments.
• Tax preparer ethics, IRS procedures, and recordkeeping.
Questions and Answers
1. Which filing status is generally available to an unmarried taxpayer
who pays more than half the cost of maintaining a home for a qualifying
child or qualifying relative?
A. Single
B. Head of Household
C. Married Filing Jointly
D. Qualifying Surviving Spouse
Answer: B. Head of Household
Rationale: Head of Household provides a more favorable tax rate than Single
and requires the taxpayer to pay more than half the cost of keeping up a home
for a qualifying person.
2. Which taxpayer is most likely required to file a federal return?
A. A dependent with no income
B. A single taxpayer whose gross income exceeds the filing threshold
,C. A taxpayer who received only nontaxable municipal bond interest
D. A child with unearned income below the standard deduction limit
Answer: B. A single taxpayer whose gross income exceeds the filing
threshold
Rationale: A return is generally required when gross income exceeds the
filing threshold for the taxpayer’s filing status and age.
3. Which of the following is generally considered gross income?
A. A gift from a parent
B. Child support received
C. Wages from employment
D. A loan you must repay
Answer: C. Wages from employment
Rationale: Wages are taxable income. Gifts, child support, and bona fide loans
are generally not included in gross income.
4. Which item is usually excluded from gross income?
A. Salary
B. Taxable interest
C. Life insurance proceeds paid because of the insured’s death
D. Self-employment earnings
Answer: C. Life insurance proceeds paid because of the insured’s death
Rationale: Death benefit proceeds from life insurance are generally excluded
from income.
5. Which is an adjustment to income?
A. Charitable contribution
B. Student loan interest deduction
C. Medical expense deduction
D. Child tax credit
Answer: B. Student loan interest deduction
Rationale: Adjustments to income reduce AGI and are taken before itemized
deductions or the standard deduction.
, 6. Why is adjusted gross income important?
A. It determines whether a taxpayer can itemize
B. It is used in many credit and deduction calculations
C. It replaces taxable income
D. It is only used for state tax returns
Answer: B. It is used in many credit and deduction calculations
Rationale: AGI affects eligibility and limits for several deductions and credits.
7. Which taxpayer generally cannot be claimed as a dependent?
A. A qualifying child who lived with the taxpayer all year
B. A qualifying relative who meets the support test
C. A married person filing a joint return with spouse unless only to claim
refund
D. A child under age 19 who lived at home and had low income
Answer: C. A married person filing a joint return with spouse unless only
to claim refund
Rationale: A person filing a joint return usually cannot be claimed as a
dependent, with limited exceptions.
8. Which test is used to determine whether a child is a qualifying child
dependent?
A. Residency, support, relationship, age
B. Gross income only
C. Tax bracket
D. Citizenship only
Answer: A. Residency, support, relationship, age
Rationale: Qualifying child rules rely on relationship, age, residency, and
support considerations.
9. A taxpayer’s standard deduction is generally:
A. The same for every taxpayer
B. Based on filing status, age, and blindness in some cases
