HR BLOCK Final Test Review Exam
Questions and Answers (Latest 2026)
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). - Correct
Answers ✅Have a valid social security number.
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. - Correct
Answers ✅EIC, AOTC, CTC/ODC/ACTC, and head of
household.
When dependent care benefits are withheld from a taxpayer's
income, where are they reported by the employer?
Form 2441.
Form 1040.
,HR BLOCK Final Test Review Exam
Questions and Answers (Latest 2026)
Box 10 of Form W-2.
The employer is not required to report them. - Correct
Answers ✅Box 10 of Form W-2.
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.
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. - Correct Answers
✅Investigate and verify the accuracy of information the
,HR BLOCK Final Test Review Exam
Questions and Answers (Latest 2026)
taxpayer provides to show eligibility for EIC, AOTC,
CTC/ODC/ACTC, and HOH.
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. - Correct Answers ✅Is never taxable.
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 - Correct Answers ✅$2,500
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.
, HR BLOCK Final Test Review Exam
Questions and Answers (Latest 2026)
Residency.
Support. - Correct Answers ✅Support.
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. - Correct Answers
✅
Employer-provided dependent care assistance:
May be used for the Child and Dependent Care Credit.
Is subtracted from the total expenses for child or dependent
care on Form 2441.
Is included in wages on Form W-2.
Is not reported to the IRS. - Correct Answers ✅
Which of the following is NOT a percentage of social security
benefits subject to federal tax? Up to __________.
0%
50%
Questions and Answers (Latest 2026)
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). - Correct
Answers ✅Have a valid social security number.
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. - Correct
Answers ✅EIC, AOTC, CTC/ODC/ACTC, and head of
household.
When dependent care benefits are withheld from a taxpayer's
income, where are they reported by the employer?
Form 2441.
Form 1040.
,HR BLOCK Final Test Review Exam
Questions and Answers (Latest 2026)
Box 10 of Form W-2.
The employer is not required to report them. - Correct
Answers ✅Box 10 of Form W-2.
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.
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. - Correct Answers
✅Investigate and verify the accuracy of information the
,HR BLOCK Final Test Review Exam
Questions and Answers (Latest 2026)
taxpayer provides to show eligibility for EIC, AOTC,
CTC/ODC/ACTC, and HOH.
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. - Correct Answers ✅Is never taxable.
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 - Correct Answers ✅$2,500
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.
, HR BLOCK Final Test Review Exam
Questions and Answers (Latest 2026)
Residency.
Support. - Correct Answers ✅Support.
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. - Correct Answers
✅
Employer-provided dependent care assistance:
May be used for the Child and Dependent Care Credit.
Is subtracted from the total expenses for child or dependent
care on Form 2441.
Is included in wages on Form W-2.
Is not reported to the IRS. - Correct Answers ✅
Which of the following is NOT a percentage of social security
benefits subject to federal tax? Up to __________.
0%
50%
