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H&R Block Questions and Correct
Answers/ Latest Update / Already
Graded
Earned Income
Ans: received for services performed. some examples include wages,
commissions, tips, farming, and other business income.
Unearned Income
Ans: taxable income that does not meet the definition of earned
income. Examples of unearned income include interest income,
dividends, rents and royalties, pensions, alimony, and unemployment
income.
Is interest received on U.S. Treasury obligations taxable on state
and/or local returns?
Ans: No. Interest on U.S. Treasury obligations is exempt from state and
local tax by federal law.
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Is municipal bond interest taxable on a federal return?
Ans: No, the federal government does not tax municipal bond interest.
Some states tax municipal bond interest from outside the state, and from
their own state. Depends on the state.
How is interest income reported to the taxpayer?
Ans: Interest income is reported to the taxpayer on Form 1099-INT or a
substitute statement.
What information do you need to know to determine whether a
nondependent taxpayer is required to file a return?
Ans: The taxpayer's filing status, age at the end of the tax year, and gross
income for the year.
For tax purposes, when is a person's marital status determined?
Ans: On the last day of the tax year, or the date of death.
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How much is added to the standard deduction if the taxpayer (or
spouse) is age 65 or older, or blind?
Ans: $1,350 for married taxpayers and qualifying widow(er)s, or $1,700 for
those filing single or head of household.
What is the personal exemption amount for 2021?
Ans: There is no personal exemption for 2021. A personal exemption was
an amount previously allowed by law to reduce income that would
otherwise be taxed. The Tax Cuts and Jobs Act of 2017 repealed this
deduction beginning in 2018.
How is the gross income filing requirement determined for most
nondependent taxpayers?
Ans: The taxpayer's standard deduction, including the additional
amounts for age. However, for married filing separately, or married filing
jointly when the spouses did not live together at the end of the year, the
amount is $5.
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What is the difference between injured spouse allocation and
innocent spouse relief?
Ans: The IRS provides an injured spouse allocation for the taxpayer to
protect their portion of a refund from a spouse's past-due federal income
tax, unpaid student loans, unpaid child and spousal support, or state
income tax.
The IRS provides innocent spouse relief to taxpayers who file a joint return
and later learn that their spouse has underestimated income (or
overstated a credit or deduction) on the return.
Is unemployment compensation taxable?
Ans: Yes, unemployment compensation is fully taxable.
Are scholarships and fellowships taxable?
H&R Block Questions and Correct
Answers/ Latest Update / Already
Graded
Earned Income
Ans: received for services performed. some examples include wages,
commissions, tips, farming, and other business income.
Unearned Income
Ans: taxable income that does not meet the definition of earned
income. Examples of unearned income include interest income,
dividends, rents and royalties, pensions, alimony, and unemployment
income.
Is interest received on U.S. Treasury obligations taxable on state
and/or local returns?
Ans: No. Interest on U.S. Treasury obligations is exempt from state and
local tax by federal law.
,2 | Page
Is municipal bond interest taxable on a federal return?
Ans: No, the federal government does not tax municipal bond interest.
Some states tax municipal bond interest from outside the state, and from
their own state. Depends on the state.
How is interest income reported to the taxpayer?
Ans: Interest income is reported to the taxpayer on Form 1099-INT or a
substitute statement.
What information do you need to know to determine whether a
nondependent taxpayer is required to file a return?
Ans: The taxpayer's filing status, age at the end of the tax year, and gross
income for the year.
For tax purposes, when is a person's marital status determined?
Ans: On the last day of the tax year, or the date of death.
,3 | Page
How much is added to the standard deduction if the taxpayer (or
spouse) is age 65 or older, or blind?
Ans: $1,350 for married taxpayers and qualifying widow(er)s, or $1,700 for
those filing single or head of household.
What is the personal exemption amount for 2021?
Ans: There is no personal exemption for 2021. A personal exemption was
an amount previously allowed by law to reduce income that would
otherwise be taxed. The Tax Cuts and Jobs Act of 2017 repealed this
deduction beginning in 2018.
How is the gross income filing requirement determined for most
nondependent taxpayers?
Ans: The taxpayer's standard deduction, including the additional
amounts for age. However, for married filing separately, or married filing
jointly when the spouses did not live together at the end of the year, the
amount is $5.
, 4 | Page
What is the difference between injured spouse allocation and
innocent spouse relief?
Ans: The IRS provides an injured spouse allocation for the taxpayer to
protect their portion of a refund from a spouse's past-due federal income
tax, unpaid student loans, unpaid child and spousal support, or state
income tax.
The IRS provides innocent spouse relief to taxpayers who file a joint return
and later learn that their spouse has underestimated income (or
overstated a credit or deduction) on the return.
Is unemployment compensation taxable?
Ans: Yes, unemployment compensation is fully taxable.
Are scholarships and fellowships taxable?
