HRB CERTIFICATION EVALUATION TEST
PAPER QUESTIONS AND SOLUTIONS
VERIFIED COMPLETE
●● To avoid the risk of penalties, tax preparers must abide by rules
regarding preparer tax identification numbers (PTINs). Which of the
following statements is TRUE regarding PTINs?
Answer: A)A PTIN is required semi-annually for anyone who prepares
or assists in preparing federal tax returns for compensation.
B)If a tax preparer does not have a PTIN, they can still prepare tax
returns for compensation.
C)The IRS may provide a PTIN to taxpayers who are victims of identity
theft.
D)The preparer must enter their PTIN on the tax return in the space
provided.
●● Tucker is an unmarried, 29-year-old taxpayer. He received the
following income for the year:
Wages: $44,500.
Interest from a bank savings account: $50.
Unemployment compensation: $7,000.
Gift from his father: $3,000.
How much of Tucker's income is considered earned income?
,Answer: A)$44,500
B)$44,550
C)$51,500
D)$54,550
●● Lucca has a financial interest in a financial account in a foreign
country. Where should this be reported on his tax return?
Answer: Part I of the Schedule B (Form 1040).
Part II of the Schedule B (Form 1040).
Part III of the Schedule B (Form 1040).
Part II of Schedule 1 (Form 1040).
●● Omari (47) is single. He had wages of $45,950. In 2022, he opened
an interest-bearing savings account and received Form 1099-INT,
Interest Income, showing he had earned $16 of interest income for the
year. What amount of interest must be reported on his Form 1040?
Answer: $0
$8
$10
$16
●● Vanida received workers' compensation due to an injury on the job.
When Vanida files her tax return, her workers' compensation income will
be:
, Answer: Fully taxable.
Nontaxable.
Partially taxable.
Taxable at the discretion of the employer.
●● Ricky and his wife, Sarah, are filing their tax return. Which of the
following statements regarding signing the return is NOT correct?
Answer: A joint return must be signed by both the taxpayer and the
spouse.
Every taxpayer must sign their own return.
When a tax return is filed electronically, there are no signature
requirements for the taxpayer.
When a taxpayer signs their tax return, they declare, under penalties of
perjury, that they have examined the return and accompanying schedules
and statements, and to the best of their knowledge and belief, they are
true, correct, and complete.
●● When tax returns are filed electronically, what is one way a taxpayer
can sign the return?
Answer: Taxpayers may only use a handwritten signature to sign the
return.
The IRS will provide an Identity Protection Personal Identification
Number (IP PIN) used to sign the return.
There is no taxpayer signature requirement when a tax return is filed
electronically.
PAPER QUESTIONS AND SOLUTIONS
VERIFIED COMPLETE
●● To avoid the risk of penalties, tax preparers must abide by rules
regarding preparer tax identification numbers (PTINs). Which of the
following statements is TRUE regarding PTINs?
Answer: A)A PTIN is required semi-annually for anyone who prepares
or assists in preparing federal tax returns for compensation.
B)If a tax preparer does not have a PTIN, they can still prepare tax
returns for compensation.
C)The IRS may provide a PTIN to taxpayers who are victims of identity
theft.
D)The preparer must enter their PTIN on the tax return in the space
provided.
●● Tucker is an unmarried, 29-year-old taxpayer. He received the
following income for the year:
Wages: $44,500.
Interest from a bank savings account: $50.
Unemployment compensation: $7,000.
Gift from his father: $3,000.
How much of Tucker's income is considered earned income?
,Answer: A)$44,500
B)$44,550
C)$51,500
D)$54,550
●● Lucca has a financial interest in a financial account in a foreign
country. Where should this be reported on his tax return?
Answer: Part I of the Schedule B (Form 1040).
Part II of the Schedule B (Form 1040).
Part III of the Schedule B (Form 1040).
Part II of Schedule 1 (Form 1040).
●● Omari (47) is single. He had wages of $45,950. In 2022, he opened
an interest-bearing savings account and received Form 1099-INT,
Interest Income, showing he had earned $16 of interest income for the
year. What amount of interest must be reported on his Form 1040?
Answer: $0
$8
$10
$16
●● Vanida received workers' compensation due to an injury on the job.
When Vanida files her tax return, her workers' compensation income will
be:
, Answer: Fully taxable.
Nontaxable.
Partially taxable.
Taxable at the discretion of the employer.
●● Ricky and his wife, Sarah, are filing their tax return. Which of the
following statements regarding signing the return is NOT correct?
Answer: A joint return must be signed by both the taxpayer and the
spouse.
Every taxpayer must sign their own return.
When a tax return is filed electronically, there are no signature
requirements for the taxpayer.
When a taxpayer signs their tax return, they declare, under penalties of
perjury, that they have examined the return and accompanying schedules
and statements, and to the best of their knowledge and belief, they are
true, correct, and complete.
●● When tax returns are filed electronically, what is one way a taxpayer
can sign the return?
Answer: Taxpayers may only use a handwritten signature to sign the
return.
The IRS will provide an Identity Protection Personal Identification
Number (IP PIN) used to sign the return.
There is no taxpayer signature requirement when a tax return is filed
electronically.
