H&R Block Income Tax Course Exam
Questions With Solutions
Underpayment Penalty If a taxpayer did not pay enough tax on a timely basis during the
year, he may be required to pay an underpayment penalty.
Two Ways to Pay as You Go Withholding and Estimated Tax Payments
Form W-4 Employee's Withholding Allowance Certificate
Form 4868 Application for Automatic Extension of Time To File U.S. Individual Income
Tax Return
Amended Return A tax return filed on Form 1040X after the original return has been filed.
Closed Year A tax year for which the statute of limitations has expired.
Open Year A taxable year for which the statute of limitations has not yet expired.
, H&R Block Income Tax Course Exam
Questions With Solutions
Failure-to-File Penalty Generally 5% for each month or part of a month the return is late,
but not more than 25% of the tax not paid.
Failure to File Taxpayer fails to file the return by the due date, and there is a balance due.
Form 1040X Amended U.S. Individual Income Tax Return
When can an amended return be filed? Within three years of the date the original return
was filed, or within two years of the date the tax was paid, whichever is later.
Can the 1040X be e-filed? No.
Portfolio Income and Losses Those from such sources as dividends, interest, capital gains
and losses, and royalties.
Schedule E Supplemental Income and Loss
, H&R Block Income Tax Course Exam
Questions With Solutions
Royalty Payments received for the right to extract natural resources from the taxpayer's
property or to use a taxpayer's literary, musical, or artistic creation.
Annuity A series of payments under a contract made at regular intervals over a period of
more than one year.
Beneficiary The owner or recipient of funds in an account, such as an IRA, or from an
insurance policy or will.
Contribution When a person puts money into a retirement plan.
Defined Benefit Plan An employee benefit plan that provides determinable benefits not
based on employer profits.
Defined Contribution Plan An employee benefit plan that provides a separate account for
each person covered and pays benefits based on account earnings.
, H&R Block Income Tax Course Exam
Questions With Solutions
Disability Pension A taxable pension from an employer-funded disability plan or a
disability provision of a retirement plan.
Distribution When a person takes or receives money from a retirement plan.
Pension Generally a series of definitely determinable payments made to a taxpayer after
retirement from work.
Rollover A qualified transfer of funds from one tax-favored account to another, usually of
the same type.
Roth IRA A type of individual retirement arrangement in which contributions are not tax
deductible, earnings grow tax deferred, and qualified withdrawals are tax free.
Traditional IRA An individual retirement arrangement, contributions to which may or may
not be deductible depending on the taxpayer's AGI and whether or not he is covered under an
employer-sponsored retirement plan.
Questions With Solutions
Underpayment Penalty If a taxpayer did not pay enough tax on a timely basis during the
year, he may be required to pay an underpayment penalty.
Two Ways to Pay as You Go Withholding and Estimated Tax Payments
Form W-4 Employee's Withholding Allowance Certificate
Form 4868 Application for Automatic Extension of Time To File U.S. Individual Income
Tax Return
Amended Return A tax return filed on Form 1040X after the original return has been filed.
Closed Year A tax year for which the statute of limitations has expired.
Open Year A taxable year for which the statute of limitations has not yet expired.
, H&R Block Income Tax Course Exam
Questions With Solutions
Failure-to-File Penalty Generally 5% for each month or part of a month the return is late,
but not more than 25% of the tax not paid.
Failure to File Taxpayer fails to file the return by the due date, and there is a balance due.
Form 1040X Amended U.S. Individual Income Tax Return
When can an amended return be filed? Within three years of the date the original return
was filed, or within two years of the date the tax was paid, whichever is later.
Can the 1040X be e-filed? No.
Portfolio Income and Losses Those from such sources as dividends, interest, capital gains
and losses, and royalties.
Schedule E Supplemental Income and Loss
, H&R Block Income Tax Course Exam
Questions With Solutions
Royalty Payments received for the right to extract natural resources from the taxpayer's
property or to use a taxpayer's literary, musical, or artistic creation.
Annuity A series of payments under a contract made at regular intervals over a period of
more than one year.
Beneficiary The owner or recipient of funds in an account, such as an IRA, or from an
insurance policy or will.
Contribution When a person puts money into a retirement plan.
Defined Benefit Plan An employee benefit plan that provides determinable benefits not
based on employer profits.
Defined Contribution Plan An employee benefit plan that provides a separate account for
each person covered and pays benefits based on account earnings.
, H&R Block Income Tax Course Exam
Questions With Solutions
Disability Pension A taxable pension from an employer-funded disability plan or a
disability provision of a retirement plan.
Distribution When a person takes or receives money from a retirement plan.
Pension Generally a series of definitely determinable payments made to a taxpayer after
retirement from work.
Rollover A qualified transfer of funds from one tax-favored account to another, usually of
the same type.
Roth IRA A type of individual retirement arrangement in which contributions are not tax
deductible, earnings grow tax deferred, and qualified withdrawals are tax free.
Traditional IRA An individual retirement arrangement, contributions to which may or may
not be deductible depending on the taxpayer's AGI and whether or not he is covered under an
employer-sponsored retirement plan.
