H&R Block Tax Assessment Specialist Test
Exam Complete Practice Questions &
Verified Answers Guide
Question 1
Judy is a retired school teacher who spends most of her time as a volunteer. She
itemizes deductions and brought in a list of her charitable contributions. Which of her
contributions is NOT deductible?
A. Tuition she paid as a scholarship for her hairdresser's child to attend band camp.
B. The cost of parking in a parking garage near the downtown public library where
she reads to children once a week
C. A car in poor condition that she donated to an organization which provided her
with a Form 1098-C
D. Cash given to her local Girl Scouts group collected to support the local children's
science museum
Answer: A
Question 2
Wyatt, who is employed full-time as a software engineer, sometimes uses his time
and talent to assist worthy causes. In 2018, he helped a local non-profit organization
create a new website. Although his primary object was to help the organization, the
directors insisted on compensating him. He received a Form 1099-MISC from the
organization reporting non-employee compensation of $2,800 in box 7. How should
Wyatt report this on his tax return?
Correct Answer
A. As other income on SCH 1 (Form 1040), line 21. He should deduct any applicable
expenses on SCH A
B. He should report income, less applicable expenses, as other income on SCH 1
(Form 1040), line 21
C. He should report this as self-employment income and deduct any eligible
expenses on SCH C or SCH C-EZ
D. Wyatt does not need to report this income since he performed the work for a
non-profit organization
Answer:C
Page 1 of 24
,Question 3
When married spouses choose to use the MFS filing status and one spouse itemizes
deductions, the standard deduction of the other spouse is ______________.
Correct Answer
A. $0
B. $12,000
C. $18,000
D. $24,000
Answer: A
Question 4
Melina purchased a $10,000 corporate bond on July 1, 2018. The bond has a stated
interest rate of 5%, payable annually on November 1. Since Melina purchased the
bond between interest payment dates the interest income SCH B. Interest and
Ordinary Dividends will be reported as _____________.
Correct Answer
A. $251, the amount of interest earned from July 1 through December 31.
B. $332, her proportionate share of the interest as taxable income. No further
adjustment is necessary
C. $500, the full interest payment, then minus $332, the amount of accrued interest,
as an adjustment
D. $500, the entire interest payment. No further adjustment is necessary, as the
amount of accrued interest was added to Melina's basis at the time of purchase.
Answer: C
Question 5
Which statement about education credits is FALSE?
Correct Answer
A. A student may qualify for the lifetime learning credit if they have a felony drug
conviction
B. Only 4-yr. colleges are eligible institutions for the American Opportunity Credit
C. A taxpayer can claim the American Opportunity Credit for only 4 tax yrs.
D. A taxpayer enrolled as a part-time student is eligible for the lifetime learning
credit
Answer: B
Page 2 of 24
, Question 6
Exercising due diligence is a requirement for paid preparers when preparing a
taxpayer's return claiming the Earned Income Credit, the Child Tax Credit/Additional
Child Tax Credit/Credit for Other Dependents, the American Opportunity Tax Credit,
and Head of Household (HOH) icing Status. All of the following are due diligence
requirements; EXCEPT:
Correct Answer
A. Completion of eligibility checklist
B. Knowledge
C. Record retention
D. Verification of employment
Answer: D
Question 7
How much of the American Opportunity Credit (AOC) may be refundable?
Correct Answer
A. 10%
B. 25%
C. 40%
D. 55%
Answer: C
Question 8
Asking more questions is not enough to meet the due diligence requirements when
preparing a return for a taxpayer claiming the Earned Income Credit, the Child Tax
Credit/Additional Child Tax Credit/Credit for Other Dependents, the American
Opportunity Tax Credit, and Head of Household (HOH) Filing Status. Tax Pros must
also _______________.
Correct Answer
A. Ask taxpayers for 2 references to verify the information
B. Audit the return
C. Contemporaneously document the questions asked and the taxpayer's responses
D. Perform employment verification checks on all taxpayers claiming one of these
credits
Answers: C
Page 3 of 24
Exam Complete Practice Questions &
Verified Answers Guide
Question 1
Judy is a retired school teacher who spends most of her time as a volunteer. She
itemizes deductions and brought in a list of her charitable contributions. Which of her
contributions is NOT deductible?
A. Tuition she paid as a scholarship for her hairdresser's child to attend band camp.
B. The cost of parking in a parking garage near the downtown public library where
she reads to children once a week
C. A car in poor condition that she donated to an organization which provided her
with a Form 1098-C
D. Cash given to her local Girl Scouts group collected to support the local children's
science museum
Answer: A
Question 2
Wyatt, who is employed full-time as a software engineer, sometimes uses his time
and talent to assist worthy causes. In 2018, he helped a local non-profit organization
create a new website. Although his primary object was to help the organization, the
directors insisted on compensating him. He received a Form 1099-MISC from the
organization reporting non-employee compensation of $2,800 in box 7. How should
Wyatt report this on his tax return?
Correct Answer
A. As other income on SCH 1 (Form 1040), line 21. He should deduct any applicable
expenses on SCH A
B. He should report income, less applicable expenses, as other income on SCH 1
(Form 1040), line 21
C. He should report this as self-employment income and deduct any eligible
expenses on SCH C or SCH C-EZ
D. Wyatt does not need to report this income since he performed the work for a
non-profit organization
Answer:C
Page 1 of 24
,Question 3
When married spouses choose to use the MFS filing status and one spouse itemizes
deductions, the standard deduction of the other spouse is ______________.
Correct Answer
A. $0
B. $12,000
C. $18,000
D. $24,000
Answer: A
Question 4
Melina purchased a $10,000 corporate bond on July 1, 2018. The bond has a stated
interest rate of 5%, payable annually on November 1. Since Melina purchased the
bond between interest payment dates the interest income SCH B. Interest and
Ordinary Dividends will be reported as _____________.
Correct Answer
A. $251, the amount of interest earned from July 1 through December 31.
B. $332, her proportionate share of the interest as taxable income. No further
adjustment is necessary
C. $500, the full interest payment, then minus $332, the amount of accrued interest,
as an adjustment
D. $500, the entire interest payment. No further adjustment is necessary, as the
amount of accrued interest was added to Melina's basis at the time of purchase.
Answer: C
Question 5
Which statement about education credits is FALSE?
Correct Answer
A. A student may qualify for the lifetime learning credit if they have a felony drug
conviction
B. Only 4-yr. colleges are eligible institutions for the American Opportunity Credit
C. A taxpayer can claim the American Opportunity Credit for only 4 tax yrs.
D. A taxpayer enrolled as a part-time student is eligible for the lifetime learning
credit
Answer: B
Page 2 of 24
, Question 6
Exercising due diligence is a requirement for paid preparers when preparing a
taxpayer's return claiming the Earned Income Credit, the Child Tax Credit/Additional
Child Tax Credit/Credit for Other Dependents, the American Opportunity Tax Credit,
and Head of Household (HOH) icing Status. All of the following are due diligence
requirements; EXCEPT:
Correct Answer
A. Completion of eligibility checklist
B. Knowledge
C. Record retention
D. Verification of employment
Answer: D
Question 7
How much of the American Opportunity Credit (AOC) may be refundable?
Correct Answer
A. 10%
B. 25%
C. 40%
D. 55%
Answer: C
Question 8
Asking more questions is not enough to meet the due diligence requirements when
preparing a return for a taxpayer claiming the Earned Income Credit, the Child Tax
Credit/Additional Child Tax Credit/Credit for Other Dependents, the American
Opportunity Tax Credit, and Head of Household (HOH) Filing Status. Tax Pros must
also _______________.
Correct Answer
A. Ask taxpayers for 2 references to verify the information
B. Audit the return
C. Contemporaneously document the questions asked and the taxpayer's responses
D. Perform employment verification checks on all taxpayers claiming one of these
credits
Answers: C
Page 3 of 24
