H&R Block Midterm Review

H&R BLOCK INCOME TAX COURSE


DueloDiligencelo-loans--
✔✔Requirementslothatlotaxloprofessionalslomustlofollowlowhenlopreparingloincomelotaxloret
urns.

EstimatedloTaxlo-loans--
✔✔Theloamountlooflotaxloalotaxpayerloexpectslotolooweloforlotheloyearloafterlosubtractingloe
xpectedloamountslowithheldloandlocertainlorefundablelocredits.

EstimatedloTaxloVoucherlo-loans--
✔✔Alostatementlobyloanloindividuallooflo(1)lotheloamountloofloincomelotaxloheloestimateslohe
lowillloincurloduringlothelocurrentlotaxableloyearloonloincomelothatloislonotlosubjectlotolowithho
lding,lo(2)lotheloexcessloamountlooverlothatlowithheldloonloincomelowhichloislosubjectlotolowit
hholding,loandlo(3)lohisloestimatedloself-employmentlotax.

ExemptionlofromloWithholdinglo-loans--✔✔StatusloclaimedloonloFormloW-
4lodirectinglotheloemployerlonotlotolowithholdlofederalloincomelotaxeslofromlotheloemployee.

UnderpaymentloPenaltylo-loans--
✔✔Ifloalotaxpayerlodidlonotlopayloenoughlotaxloonloalotimelylobasisloduringlotheloyear,lohelom
aylobelorequiredlotolopayloanlounderpaymentlopenalty.

TwoloWayslotoloPayloasloYouloGolo-loans--
✔✔WithholdingloandloEstimatedloTaxloPayments

FormloW-4lo-loans--✔✔Employee'sloWithholdingloAllowanceloCertificate

Formlo4868lo-loans--
✔✔ApplicationloforloAutomaticloExtensionloofloTimeloToloFileloU.S.loIndividualloIncomeloTa
xloReturn

AmendedloReturnlo-loans--
✔✔AlotaxloreturnlofiledloonloFormlo1040Xloafterlothelooriginalloreturnlohaslobeenlofiled.

ClosedloYearlo-loans--✔✔Alotaxloyearloforlowhichlothelostatutelooflolimitationslohasloexpired.

OpenloYearlo-loans--
✔✔Alotaxableloyearloforlowhichlothelostatutelooflolimitationslohaslonotloyetloexpired.

,Failure-to-FileloPenaltylo-loans--
✔✔Generallylo5%loforloeachlomonthloorlopartloofloalomonthlotheloreturnloislolate,lobutlonotlom
orelothanlo25%looflothelotaxlonotlopaid.

FailurelotoloFilelo-loans--
✔✔Taxpayerlofailslotolofilelotheloreturnlobylotheloduelodate,loandlothereloisloalobalancelodue.

Formlo1040Xlo-loans--✔✔AmendedloU.S.loIndividualloIncomeloTaxloReturn

Whenlocanloanloamendedloreturnlobelofiled?lo-loans--
✔✔Withinlothreeloyearslooflothelodatelothelooriginalloreturnlowaslofiled,loorlowithinlotwoloyear
slooflothelodatelothelotaxlowaslopaid,lowhicheverloislolater.

Canlothelo1040Xlobeloe-filed?lo-loans--✔✔No.

PortfolioloIncomeloandloLosseslo-loans--
✔✔Thoselofromlosuchlosourcesloaslodividends,lointerest,locapitallogainsloandlolosses,loandl
oroyalties.


ScheduleloElo-loans--✔✔SupplementalloIncomeloandloLoss

Royaltylo-loans--
✔✔Paymentsloreceivedloforlothelorightlotoloextractlonaturalloresourceslofromlothelotaxpayer'
slopropertyloorlotolouseloalotaxpayer'sloliterary,lomusical,loorloartisticlocreation.

Annuitylo-loans--
✔✔Aloserieslooflopaymentslounderloalocontractlomadeloatloregularlointervalslooverloaloperiod
looflomorelothanlooneloyear.


Beneficiarylo-loans--
✔✔Theloownerloorlorecipientlooflofundsloinloanloaccount,losuchloasloanloIRA,loorlofromloanloin
surancelopolicyloorlowill.

Contributionlo-loans--✔✔Whenloalopersonloputslomoneylointoloaloretirementloplan.

DefinedloBenefitloPlanlo-loans--
✔✔Anloemployeelobenefitloplanlothatloprovideslodeterminablelobenefitslonotlobasedloonloe
mployerloprofits.

DefinedloContributionloPlanlo-loans--
✔✔Anloemployeelobenefitloplanlothatloprovidesloaloseparateloaccountloforloeachlopersonloc
overedloandlopayslobenefitslobasedloonloaccountloearnings.

, DisabilityloPensionlo-loans--✔✔Alotaxablelopensionlofromloanloemployer-
fundedlodisabilityloplanloorloalodisabilityloprovisionloofloaloretirementloplan.

Distributionlo-loans--
✔✔Whenloalopersonlotakesloorloreceiveslomoneylofromloaloretirementloplan.

Pensionlo-loans--
✔✔Generallyloaloserieslooflodefinitelylodeterminablelopaymentslomadelotoloalotaxpayerloaft
erloretirementlofromlowork.

Rolloverlo-loans--✔✔Aloqualifiedlotransferlooflofundslofromloonelotax-
favoredloaccountlotoloanother,lousuallylooflothelosamelotype.

RothloIRAlo-loans--
✔✔Alotypeloofloindividualloretirementloarrangementloinlowhichlocontributionsloarelonotlotaxlo
deductible,loearningslogrowlotaxlodeferred,loandloqualifiedlowithdrawalsloarelotaxlofree.

TraditionalloIRAlo-loans--
✔✔Anloindividualloretirementloarrangement,locontributionslotolowhichlomayloorlomaylonotlob
elodeductiblelodependingloonlothelotaxpayer'sloAGIloandlowhetherloorlonotloheloislocoveredlo
underloanloemployer-sponsoredloretirementloplan.

Whatloislothelofullloretirementloage?lo-loans--
✔✔Forloworkerslobornlobeforelo1938,loitloislo65.loForlothoselobornloafterloitloislograduallylobei
ngloincreasedlotolo67.

Howlomuchloofloaloclient'slosociallosecurityloandloequivalentlotierlo1loRRlobenefitslomaylobelo
taxable?lo-loans--✔✔Uplotolo85%.

FormloSSA-1099lo-loans--✔✔SocialloSecurityloBenefits

FormloRRB-1099lo-loans--✔✔RailroadloRetirementloBenefits

NoneloofloSocialloSecurityloBenefitsloTaxablelo-loans--
✔✔Single,loHeadloofloHousehold,loQualifiedloWidowlo-lo$0-
$25,000;loMarriedloFilingloJointlylo-lo$0-$32,000

Uplotolo50%loofloSocialloSecurityloBenefitsloTaxablelo-loans--
✔✔Single,loHeadloofloHousehold,loQualifiedloWidowlo-lo$25,001-
$34,000;loMarriedloFilingloJointlylo-lo$32,001-$44,000

Uplotolo85%loofloSocialloSecurityloBenefitsloTaxablelo-loans--
✔✔Single,loHeadloofloHousehold,loQualifiedloWidowlo-
lo$34,001+;loMarriedloFilingloJointlylo-lo$44,001+;loMarriedloFilingloSinglelo-lo$1+