H&R Block Comprehensive Questions
And Answers Latest upload 2024/2025 with 100% verified
Solutions
What requirements must be met for a taxpayer to qualify to file as head of household? - ANSWER-The
taxpayer must be unmarried (or qualify as unmarried for tax purposes) and must pay over half the cost
of maintaining a home, which for over half the year was the main home of the taxpayer and their
qualifying child or qualifying relative, or they paid over half the cost of maintaining their parent's home
for the entire year and claimed that parent on their return.
QList at least four costs of maintaining a home. - ANSWER-Among other things, mortgage interest and
real estate taxes (or rent), fire/casualty (or renter's) insurance, upkeep and repairs, utilities, and food
consumed in the home are all costs of maintaining a home.
What requirements must be met for a taxpayer to use the qualifying widow(er) status? - ANSWER-The
death of the taxpayer's spouse must have occurred during one of the two preceding tax years; the
taxpayer must not have remarried and must have been entitled to file a joint return for the year of
death. The taxpayer must have paid over half the cost of maintaining the home for the entire year,
which was the main home of their dependent son, daughter, stepson, or stepdaughter.
In the case of divorced or separated parents, which parent generally gets to claim the qualifying child? -
ANSWER-The custodial parent.
What is the exception to this rule? - ANSWER-If a decree of divorce or separate maintenance or written
separation agreement that became effective after October 4, 2004, and before January 1, 2009, states
that the noncustodial parent is entitled to claim the child's dependency exemption, or if the custodial
parent executes a written declaration that they will not claim the child as a dependent for that year, the
noncustodial parent may claim the qualifying child. For divorces granted after December 31, 2008, Form
8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent, must be filed
if parents are separating tax benefits.
What happens when more than one taxpayer claims the same qualifying child (QC)? - ANSWER-The IRS
will apply tiebreaker rules as follows:
,If only one of the taxpayers is the child's parent, the child is treated as the qualifying child (QC) of the
parent.
If the parents do not file a joint return together, but both parents claim the child, the IRS will treat the
child as the QC of the parent with whom the child lived and stayed over for the greater number of nights
during the year. If the child lived with each parent and stayed over the same number of nights during
the year, the IRS will treat the child as the QC of the parent with the highest AGI.
If no parent can claim the child as a QC, the child is treated as the QC of the taxpayer with the highest
AGI.
If a parent can claim the child, but no parent claims the child, the child is treated as the QC of the
taxpayer who had the highest AGI for the year, but only if that taxpayer's AGI is higher than the highest
AGI of either of the child's parents who can claim the child. If the child's parents file a joint return with
each other, this rule can be applied by dividing the parents' combined AGI equally between the two.
How is interest income reported to the taxpayer? - ANSWER-Interest income is reported to the taxpayer
on Form 1099-INT or a substitute statement.
Interest income is reported to the taxpayer on Form 1099-INT or a substitute statement. - ANSWER-
Dividends are payments to shareholders (individuals who own stock) of corporations that represent the
shareholder's portion of the corporation's profits. Dividend income may consist of ordinary dividends,
capital gain distributions, or nontaxable (return of capital) distributions. Dividend income is reported to
the taxpayer on Form 1099-DIV or a substitute statement.
At what threshold amount must interest or dividend income be reported on Schedule B? - ANSWER-
When total taxable interest or ordinary dividend income exceeds $1,500.
Is interest received on U.S. Treasury obligations taxable on state and/or local returns? - ANSWER-No.
Interest on U.S. Treasury obligations is exempt from state and local tax by federal law.
Is municipal bond interest taxable on a federal return? - ANSWER-No, the federal government does not
tax municipal bond interest.
What favorable tax treatment is received for qualified dividends and capital gain distributions? -
ANSWER-Qualified dividends and capital gain distributions receive more favorable tax treatment
because they are treated as long-term capital gains. They are taxed at lower rates than ordinary income
and short-term capital gains.
, For 2019, the maximum rate of tax on qualified dividends is:
0% on taxable income less than $78,750 MFJ/QW, $52,750 HH, and $39,375 S/MFS that otherwise
would be taxed at higher tax rates.
15% on taxable income greater than the amounts listed above and below $488,850 MFJ/QW, $461,700
HH, $434,550 S, and $244,425 MFS.
20% on any amount above the maximum 15% rate amount.
Which taxpayers will use the Qualified Dividends and Capital Gain Tax Worksheet? - ANSWER-Taxpayers
will use the Qualified Dividend and Capital Gain Tax Worksheet to compute their tax when they receive
qualified dividends (shown in box 1b of Form 1099-DIV) and/or "normal" capital gain distributions
(shown in box 2a of Form 1099-DIV) from mutual funds or regulated investment companies.
Who may qualify for the Additional Child Tax Credit (ACTC)? - ANSWER-Taxpayers who qualify for the
Child Tax Credit and have earned income in excess of $2,500 for 2019, or those with three or more
qualifying children for Child Tax Credit purposes whose Child Tax Credit was limited by their tax liability.
What is the second due diligence requirement for the EITC, CTC/ODC/ACTC, and AOTC, and how does a
paid preparer meet this requirement for EITC and CTC/ACTC? - ANSWER-Complete and keep all
worksheets used to compute any of these four credits.
The CTC has a worksheet that needs to be completed, and the ACTC is calculated using Schedule 8812.
The EITC has several worksheets that need to be completed that tie to Schedule EITC.
Complete and keep all worksheets used to compute any of these four credits.
The CTC has a worksheet that needs to be completed, and the ACTC is calculated using Schedule 8812.
The EITC has several worksheets that need to be completed that tie to Schedule EITC. - ANSWER-The
five qualifications are:
Be at least 25 years old, but younger than age 65, on January 1, 2020.
Not be able to be claimed as a dependent on another taxpayer's return.
Not be a qualifying child of another person.
Live in the United States more than half the year.
Have earned income and AGI of less than $15,570 ($21,370 if married filing jointly).
And Answers Latest upload 2024/2025 with 100% verified
Solutions
What requirements must be met for a taxpayer to qualify to file as head of household? - ANSWER-The
taxpayer must be unmarried (or qualify as unmarried for tax purposes) and must pay over half the cost
of maintaining a home, which for over half the year was the main home of the taxpayer and their
qualifying child or qualifying relative, or they paid over half the cost of maintaining their parent's home
for the entire year and claimed that parent on their return.
QList at least four costs of maintaining a home. - ANSWER-Among other things, mortgage interest and
real estate taxes (or rent), fire/casualty (or renter's) insurance, upkeep and repairs, utilities, and food
consumed in the home are all costs of maintaining a home.
What requirements must be met for a taxpayer to use the qualifying widow(er) status? - ANSWER-The
death of the taxpayer's spouse must have occurred during one of the two preceding tax years; the
taxpayer must not have remarried and must have been entitled to file a joint return for the year of
death. The taxpayer must have paid over half the cost of maintaining the home for the entire year,
which was the main home of their dependent son, daughter, stepson, or stepdaughter.
In the case of divorced or separated parents, which parent generally gets to claim the qualifying child? -
ANSWER-The custodial parent.
What is the exception to this rule? - ANSWER-If a decree of divorce or separate maintenance or written
separation agreement that became effective after October 4, 2004, and before January 1, 2009, states
that the noncustodial parent is entitled to claim the child's dependency exemption, or if the custodial
parent executes a written declaration that they will not claim the child as a dependent for that year, the
noncustodial parent may claim the qualifying child. For divorces granted after December 31, 2008, Form
8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent, must be filed
if parents are separating tax benefits.
What happens when more than one taxpayer claims the same qualifying child (QC)? - ANSWER-The IRS
will apply tiebreaker rules as follows:
,If only one of the taxpayers is the child's parent, the child is treated as the qualifying child (QC) of the
parent.
If the parents do not file a joint return together, but both parents claim the child, the IRS will treat the
child as the QC of the parent with whom the child lived and stayed over for the greater number of nights
during the year. If the child lived with each parent and stayed over the same number of nights during
the year, the IRS will treat the child as the QC of the parent with the highest AGI.
If no parent can claim the child as a QC, the child is treated as the QC of the taxpayer with the highest
AGI.
If a parent can claim the child, but no parent claims the child, the child is treated as the QC of the
taxpayer who had the highest AGI for the year, but only if that taxpayer's AGI is higher than the highest
AGI of either of the child's parents who can claim the child. If the child's parents file a joint return with
each other, this rule can be applied by dividing the parents' combined AGI equally between the two.
How is interest income reported to the taxpayer? - ANSWER-Interest income is reported to the taxpayer
on Form 1099-INT or a substitute statement.
Interest income is reported to the taxpayer on Form 1099-INT or a substitute statement. - ANSWER-
Dividends are payments to shareholders (individuals who own stock) of corporations that represent the
shareholder's portion of the corporation's profits. Dividend income may consist of ordinary dividends,
capital gain distributions, or nontaxable (return of capital) distributions. Dividend income is reported to
the taxpayer on Form 1099-DIV or a substitute statement.
At what threshold amount must interest or dividend income be reported on Schedule B? - ANSWER-
When total taxable interest or ordinary dividend income exceeds $1,500.
Is interest received on U.S. Treasury obligations taxable on state and/or local returns? - ANSWER-No.
Interest on U.S. Treasury obligations is exempt from state and local tax by federal law.
Is municipal bond interest taxable on a federal return? - ANSWER-No, the federal government does not
tax municipal bond interest.
What favorable tax treatment is received for qualified dividends and capital gain distributions? -
ANSWER-Qualified dividends and capital gain distributions receive more favorable tax treatment
because they are treated as long-term capital gains. They are taxed at lower rates than ordinary income
and short-term capital gains.
, For 2019, the maximum rate of tax on qualified dividends is:
0% on taxable income less than $78,750 MFJ/QW, $52,750 HH, and $39,375 S/MFS that otherwise
would be taxed at higher tax rates.
15% on taxable income greater than the amounts listed above and below $488,850 MFJ/QW, $461,700
HH, $434,550 S, and $244,425 MFS.
20% on any amount above the maximum 15% rate amount.
Which taxpayers will use the Qualified Dividends and Capital Gain Tax Worksheet? - ANSWER-Taxpayers
will use the Qualified Dividend and Capital Gain Tax Worksheet to compute their tax when they receive
qualified dividends (shown in box 1b of Form 1099-DIV) and/or "normal" capital gain distributions
(shown in box 2a of Form 1099-DIV) from mutual funds or regulated investment companies.
Who may qualify for the Additional Child Tax Credit (ACTC)? - ANSWER-Taxpayers who qualify for the
Child Tax Credit and have earned income in excess of $2,500 for 2019, or those with three or more
qualifying children for Child Tax Credit purposes whose Child Tax Credit was limited by their tax liability.
What is the second due diligence requirement for the EITC, CTC/ODC/ACTC, and AOTC, and how does a
paid preparer meet this requirement for EITC and CTC/ACTC? - ANSWER-Complete and keep all
worksheets used to compute any of these four credits.
The CTC has a worksheet that needs to be completed, and the ACTC is calculated using Schedule 8812.
The EITC has several worksheets that need to be completed that tie to Schedule EITC.
Complete and keep all worksheets used to compute any of these four credits.
The CTC has a worksheet that needs to be completed, and the ACTC is calculated using Schedule 8812.
The EITC has several worksheets that need to be completed that tie to Schedule EITC. - ANSWER-The
five qualifications are:
Be at least 25 years old, but younger than age 65, on January 1, 2020.
Not be able to be claimed as a dependent on another taxpayer's return.
Not be a qualifying child of another person.
Live in the United States more than half the year.
Have earned income and AGI of less than $15,570 ($21,370 if married filing jointly).
