Tax Associate HRB Exam Questions and
Complete Solutions Graded A+
A taxpayer may exclude which of the following from their gross income?
An allocation of income from a business structured as a partnership, based on the taxpayer's percentage
of ownership.
Dividend income from a mutual fund investment.
Gain from the sale of rental property.
Life insurance, if paid by reason of death of the insured. - Answer: Life insurance, if paid by reason of
death of the insured.
Which of the following is included in an individual taxpayer's federal gross income?
Certain income from the discharge of indebtedness.
Disaster relief payments.
A federal income tax refund.
Interest on state and local municipal bonds. - Answer: -- Interest on state and local municipal bonds
Which of the following is taxable income?
Alimony received in accordance with a divorce decree signed on or before December 31, 2018. No
changes have been made to the agreement.
Child support payments received in accordance with a divorce decree signed on or before December 31,
2018. No changes have been made to the agreement.
A noncash property settlement paid by a former spouse.
Payments made to maintain the taxpayer's primary residence, made by a former spouse who still owns
the property.
Mark for follow up - Answer: Alimony received in accordance with a divorce decree signed on or before
December 31, 2018. No changes have been made to the agreement.
Taylor and Lucy were divorced on September 24, 2021. Neither has any dependents. Neither has
remarried. The correct filing status they should each use is:
Single.
,Married filing jointly.
Married filing separately.
Head of household. - Answer: Single
Which taxpayer(s) will be required to file a 2021 federal income tax return? None of the individuals are
blind.
Carl (66) has gross income of $13,750. He is single and has no dependents.
Cassidy (34) has gross income of $18,550. She will file as head of household with one dependent.
Maddie (27) and Calder (25) are married and have gross income of $24,900. They lived together all year
and wish to file a joint return.
Noel (66) and Deborah (63) have gross income of $26,950. They wish to file a joint return. - Answer:
Noel (66) and Deborah (63) have gross income of $26,950. They wish to file a joint return.
Which of the following is a factor that may determine whether a nondependent taxpayer is required to
file a return?
Age.
Citizenship.
Net worth.
State of residency. - Answer: Age
Choose the response that correctly completes the following sentence about the filing requirement for a
dependent taxpayer. A single dependent who is not blind and is under age 65 has a 2021 filing
requirement if their gross income is more than the greater of $1,100 or their earned income (up to
$12,200) plus:
$50
$200
$250
$350 - Answer: $350
What is the 2021 gross income filing requirement for a married couple, filing jointly, where neither is
blind, but one is age 65, and the other is age 60? They lived together all year.
$25,100
, $26,450
$26,800
$27,800 - Answer: $26,450
Which taxpayer(s) will be required to file a 2021 federal income tax return? None of the individuals are
blind.
Andrew (32) has gross income of $3,500. His filing status is married filing separately.
Bill (68) has gross income of $13,950. He is single and has no dependents.
Diego (35) has gross income of $24,100. He is a qualifying widower with one dependent.
Jeff (65) and Sarah (63) are married and have gross income of $25,750. They lived together all year and
wish to file a joint return. - Answer: Andrew (32) has gross income of $3,500. His filing status is married
filing separately.
Which taxpayer is potentially eligible to receive the Child Tax Credit? In each scenario, the child
mentioned is the taxpayer's only dependent or potential dependent, and the taxpayer provided more
than half the child's support.
Ana has a daughter, Isabella, who was 8 years old at the end of 2021. Isabella lived in Mexico for all of
2021 and is not a U.S. citizen, U.S. national, or U.S. resident alien.
Mariana has a niece, Victoria, who was 10 years old at the end of 2021. Victoria is not a citizen of the
United States. Victoria does have an Individual Taxpayer Identification Number (ITIN), and she lived in
Mexico for all of 2021.
Simon has a nephew, Tristan, who is a resident alien. Tristan was 16 years old at the end of 2021. Tristan
lived with Simon all year.
Tristan obtained a social security number valid for employment before the due date of the return.
William has a son, Oliver, who was 18 years old at the end - Answer: Simon has a nephew, Tristan, who
is a resident alien. Tristan was 16 years old at the end of 2021. Tristan lived with Simon all year.
Damion, a single dad who will use the head of household filing status, has three children, Dominic (5),
Julian (9), and Elijah (16). Damion's adjusted gross income is $72,000, and his 2021 tax liability is $6,103.
All three children have valid social security numbers, are U.S. citizens, and are his qualifying child
dependents.Damion did not receive any advance Child Tax Credit payments during the year. Neither
Damion nor the children's mother have ever signed Form 8332, Release/Revocation of Release of Claim
to Exemption for Child by Custodial Parent. What amount is Damion able to claim for the total of his
Child Tax Credit and credit for other dependents when he files his 2021 return?
Complete Solutions Graded A+
A taxpayer may exclude which of the following from their gross income?
An allocation of income from a business structured as a partnership, based on the taxpayer's percentage
of ownership.
Dividend income from a mutual fund investment.
Gain from the sale of rental property.
Life insurance, if paid by reason of death of the insured. - Answer: Life insurance, if paid by reason of
death of the insured.
Which of the following is included in an individual taxpayer's federal gross income?
Certain income from the discharge of indebtedness.
Disaster relief payments.
A federal income tax refund.
Interest on state and local municipal bonds. - Answer: -- Interest on state and local municipal bonds
Which of the following is taxable income?
Alimony received in accordance with a divorce decree signed on or before December 31, 2018. No
changes have been made to the agreement.
Child support payments received in accordance with a divorce decree signed on or before December 31,
2018. No changes have been made to the agreement.
A noncash property settlement paid by a former spouse.
Payments made to maintain the taxpayer's primary residence, made by a former spouse who still owns
the property.
Mark for follow up - Answer: Alimony received in accordance with a divorce decree signed on or before
December 31, 2018. No changes have been made to the agreement.
Taylor and Lucy were divorced on September 24, 2021. Neither has any dependents. Neither has
remarried. The correct filing status they should each use is:
Single.
,Married filing jointly.
Married filing separately.
Head of household. - Answer: Single
Which taxpayer(s) will be required to file a 2021 federal income tax return? None of the individuals are
blind.
Carl (66) has gross income of $13,750. He is single and has no dependents.
Cassidy (34) has gross income of $18,550. She will file as head of household with one dependent.
Maddie (27) and Calder (25) are married and have gross income of $24,900. They lived together all year
and wish to file a joint return.
Noel (66) and Deborah (63) have gross income of $26,950. They wish to file a joint return. - Answer:
Noel (66) and Deborah (63) have gross income of $26,950. They wish to file a joint return.
Which of the following is a factor that may determine whether a nondependent taxpayer is required to
file a return?
Age.
Citizenship.
Net worth.
State of residency. - Answer: Age
Choose the response that correctly completes the following sentence about the filing requirement for a
dependent taxpayer. A single dependent who is not blind and is under age 65 has a 2021 filing
requirement if their gross income is more than the greater of $1,100 or their earned income (up to
$12,200) plus:
$50
$200
$250
$350 - Answer: $350
What is the 2021 gross income filing requirement for a married couple, filing jointly, where neither is
blind, but one is age 65, and the other is age 60? They lived together all year.
$25,100
, $26,450
$26,800
$27,800 - Answer: $26,450
Which taxpayer(s) will be required to file a 2021 federal income tax return? None of the individuals are
blind.
Andrew (32) has gross income of $3,500. His filing status is married filing separately.
Bill (68) has gross income of $13,950. He is single and has no dependents.
Diego (35) has gross income of $24,100. He is a qualifying widower with one dependent.
Jeff (65) and Sarah (63) are married and have gross income of $25,750. They lived together all year and
wish to file a joint return. - Answer: Andrew (32) has gross income of $3,500. His filing status is married
filing separately.
Which taxpayer is potentially eligible to receive the Child Tax Credit? In each scenario, the child
mentioned is the taxpayer's only dependent or potential dependent, and the taxpayer provided more
than half the child's support.
Ana has a daughter, Isabella, who was 8 years old at the end of 2021. Isabella lived in Mexico for all of
2021 and is not a U.S. citizen, U.S. national, or U.S. resident alien.
Mariana has a niece, Victoria, who was 10 years old at the end of 2021. Victoria is not a citizen of the
United States. Victoria does have an Individual Taxpayer Identification Number (ITIN), and she lived in
Mexico for all of 2021.
Simon has a nephew, Tristan, who is a resident alien. Tristan was 16 years old at the end of 2021. Tristan
lived with Simon all year.
Tristan obtained a social security number valid for employment before the due date of the return.
William has a son, Oliver, who was 18 years old at the end - Answer: Simon has a nephew, Tristan, who
is a resident alien. Tristan was 16 years old at the end of 2021. Tristan lived with Simon all year.
Damion, a single dad who will use the head of household filing status, has three children, Dominic (5),
Julian (9), and Elijah (16). Damion's adjusted gross income is $72,000, and his 2021 tax liability is $6,103.
All three children have valid social security numbers, are U.S. citizens, and are his qualifying child
dependents.Damion did not receive any advance Child Tax Credit payments during the year. Neither
Damion nor the children's mother have ever signed Form 8332, Release/Revocation of Release of Claim
to Exemption for Child by Custodial Parent. What amount is Damion able to claim for the total of his
Child Tax Credit and credit for other dependents when he files his 2021 return?
