H&R Block Mid Term Review UPDATED
ACTUAL Exam Questions and CORRECT
Answers
Taxpayers filing as single who are 65 or older and/or blind are entitled to what increased
standard deduction. - CORRECT ANSWER - $1550 (per condition)
Taxpayers filing as head of household who are 65 or older and/or blind are entitled to what
increased standard deduction. - CORRECT ANSWER - $1550 (per condition)
Taxpayers filing as married who are 65 or older and/or blind are entitled to what increased
standard deduction. - CORRECT ANSWER - $1200 (per condition)
Taxpayers filing as qualifying widow who are 65 or older and/or blind are entitled to what
increased standard deduction. - CORRECT ANSWER - $1200 (per condition)
When may a taxpayer filing married but separate claim a spouse's personal exemption? -
CORRECT ANSWER - When the spouse:
1. has no gross income
2. is not filing a return
3. is not a dependent of another person
When may a taxpayer with a nonresident alien spouse claim the spouse's personal exemption? -
CORRECT ANSWER - When the spouse:
1. has no gross income
2. is not filing a return
3. is not a dependent of another person
How do you determine if a dependent taxpayer is required to file? - CORRECT
ANSWER - 1. Is their unearned income greater than $1000? If so, they must file.
, 2. Does their earned income exceed a specific threshold amount based on their marital status,
age, or blind? If so, then they must file.
3. Is their spouse filing MFS and itemizing deductions?
AND
Does the dependent taxpayer have at least $5 of gross income? If so, then they must file.
4. Does their gross income exceed a specific threshold amount based on their marital status, age,
or blind? If so, then they must file.
When a married taxpayer wishes to file a MFS return and their spouse itemizes deductions on
their return, what should the taxpayer do? - CORRECT ANSWER - The taxpayer should
itemize deductions on their return as well because their standard deduction is reduced to $0.
Is blindness a determining factor for gross income filing requirements for nondependents? -
CORRECT ANSWER - NO
Is blindness a determining factor for gross income filing requirements for dependents? -
CORRECT ANSWER - Yes
When can a parent elect to include their child's income on their tax return? - CORRECT
ANSWER - IF:
1. the child in under the age of 19 or under the age of 24 and a full time student at the end of the
tax year.
2. the child had income from only from interest and dividends
3. The child's gross income was less than $10,000
4. The child is required to file a return, unless the parent makes this election
5. The child does not file a joint return for the year
6. No federal income tax was withheld from the child's current year income, no current year
estimated tax payments were made by or for the child, or no previous year over payments were
applied against the child's current year tax liability.
What is the penalty for failure to file? - CORRECT ANSWER - Generally 5% for each
month that the return is late but not more than 25%
ACTUAL Exam Questions and CORRECT
Answers
Taxpayers filing as single who are 65 or older and/or blind are entitled to what increased
standard deduction. - CORRECT ANSWER - $1550 (per condition)
Taxpayers filing as head of household who are 65 or older and/or blind are entitled to what
increased standard deduction. - CORRECT ANSWER - $1550 (per condition)
Taxpayers filing as married who are 65 or older and/or blind are entitled to what increased
standard deduction. - CORRECT ANSWER - $1200 (per condition)
Taxpayers filing as qualifying widow who are 65 or older and/or blind are entitled to what
increased standard deduction. - CORRECT ANSWER - $1200 (per condition)
When may a taxpayer filing married but separate claim a spouse's personal exemption? -
CORRECT ANSWER - When the spouse:
1. has no gross income
2. is not filing a return
3. is not a dependent of another person
When may a taxpayer with a nonresident alien spouse claim the spouse's personal exemption? -
CORRECT ANSWER - When the spouse:
1. has no gross income
2. is not filing a return
3. is not a dependent of another person
How do you determine if a dependent taxpayer is required to file? - CORRECT
ANSWER - 1. Is their unearned income greater than $1000? If so, they must file.
, 2. Does their earned income exceed a specific threshold amount based on their marital status,
age, or blind? If so, then they must file.
3. Is their spouse filing MFS and itemizing deductions?
AND
Does the dependent taxpayer have at least $5 of gross income? If so, then they must file.
4. Does their gross income exceed a specific threshold amount based on their marital status, age,
or blind? If so, then they must file.
When a married taxpayer wishes to file a MFS return and their spouse itemizes deductions on
their return, what should the taxpayer do? - CORRECT ANSWER - The taxpayer should
itemize deductions on their return as well because their standard deduction is reduced to $0.
Is blindness a determining factor for gross income filing requirements for nondependents? -
CORRECT ANSWER - NO
Is blindness a determining factor for gross income filing requirements for dependents? -
CORRECT ANSWER - Yes
When can a parent elect to include their child's income on their tax return? - CORRECT
ANSWER - IF:
1. the child in under the age of 19 or under the age of 24 and a full time student at the end of the
tax year.
2. the child had income from only from interest and dividends
3. The child's gross income was less than $10,000
4. The child is required to file a return, unless the parent makes this election
5. The child does not file a joint return for the year
6. No federal income tax was withheld from the child's current year income, no current year
estimated tax payments were made by or for the child, or no previous year over payments were
applied against the child's current year tax liability.
What is the penalty for failure to file? - CORRECT ANSWER - Generally 5% for each
month that the return is late but not more than 25%
