Page 1 of 35
HR BLOCK FINAL TEST - ITC (2 VERSIONS) NEWEST
2026 ACTUAL EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) ALL
ANSWERED {110 Q & A} ALREADY GRADED A+ |
BRAND NEW! | 100% GUARANTEED PASS
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 Answer > $2,500
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 Answer > Is never taxable.
,Page 2 of 35
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.
Residency.
Support. - ✔✔✔ Correct Answer > 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 Answer >
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 Answer >
,Page 3 of 35
Which of the following is NOT a percentage of social security
benefits subject to federal tax? Up to __________.
0%
50%
85%
100% - ✔✔✔ Correct Answer > 100%
What is the maximum amount of the lifetime learning credit?
$1,100 per return.
$1,650 per return.
$2,000 per return.
$2,500 per return. - ✔✔✔ Correct Answer > $2,000 per return.
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
Answer > EIC, AOTC, CTC/ODC/ACTC, and head of household.
, Page 4 of 35
When dependent care benefits are withheld from a taxpayer's
income, where are they reported by the employer?
Form 2441.
Form 1040.
Box 10 of Form W-2.
The employer is not required to report them. - ✔✔✔ Correct Answer >
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
HR BLOCK FINAL TEST - ITC (2 VERSIONS) NEWEST
2026 ACTUAL EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) ALL
ANSWERED {110 Q & A} ALREADY GRADED A+ |
BRAND NEW! | 100% GUARANTEED PASS
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 Answer > $2,500
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 Answer > Is never taxable.
,Page 2 of 35
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.
Residency.
Support. - ✔✔✔ Correct Answer > 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 Answer >
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 Answer >
,Page 3 of 35
Which of the following is NOT a percentage of social security
benefits subject to federal tax? Up to __________.
0%
50%
85%
100% - ✔✔✔ Correct Answer > 100%
What is the maximum amount of the lifetime learning credit?
$1,100 per return.
$1,650 per return.
$2,000 per return.
$2,500 per return. - ✔✔✔ Correct Answer > $2,000 per return.
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
Answer > EIC, AOTC, CTC/ODC/ACTC, and head of household.
, Page 4 of 35
When dependent care benefits are withheld from a taxpayer's
income, where are they reported by the employer?
Form 2441.
Form 1040.
Box 10 of Form W-2.
The employer is not required to report them. - ✔✔✔ Correct Answer >
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
