H&R Block Tax Prep Ch 1 Actual 2025/2026 Questions And 100% Correct Answers

H&R BLOCK TAX PREP CH 1 ACTUAL 2025/2026 QUESTIONS AND 100% CORRECT ANSWERS Adjusted Gross Income (AGI) - Answer -gross income less reductions that are allowable, regardless of whether personal deductions are itemized Deductions - Answer -Amounts that may be subtracted from income that is otherwise taxable Earned Income - Answer -Income from personal services as distinguished from income generated by property or other sources. Earned income includes all amounts received as wages, tips, bonuses, other employee compensation, and self-employment income, whether in the form of money, services, or property Federal Income Tax Withheld - Answer -The amount taken out of income by the payer and submitted to the IRS as an advance payment of the taxpayer's federal income tax Gross Income - Answer -Total worldwide income received in the form of money, property, or services that is subject to tax Medicare Part A - Answer -Medicare insurance for qualifying individuals who are age 65 or older or disabled. Medicare Part A covers hospital expenses, care in a skilled nursing facility, hospice care, and somehealth care. Most participants do not pay a monthly premium for this coverage if they or their spouse paid medicare taxes while working Nonrefundable Credits - Answer -A credit which cannot exceed the taxpayer's tax liability Social Security Tax Withheld - Answer -The employee's share of social security tax that was taken out of the employee's pay and submitted along with the employer's share to the IRS by the employer. The employee pays 6.2% and the employer pays 6.2% of the first $132,900 of the employee's gross wages (for 2019). Social Security Wages - Answer -Total wages paid to an employee tha