H&R Block Quiz Ch's 1-5 UPDATED
ACTUAL Exam Questions and CORRECT
Answers
What is Gross Income? - CORRECT ANSWER - - Any money that you made or worked
for that is subject to tax. Also, all world-wide income from whatever source derived, unless
specifically excluded from taxation by law.
( Money realized in any form whether in money, property, or services.)
Income - CORRECT ANSWER - Financial gain derived from labor(work), capital
(money), or a combination of the two. The financial gain derived from labor is generally referred
to as "wages".
What is Earned Income? - CORRECT ANSWER - Financial gain "that is" received for
"services performed." Some examples of this include wages, commissions, tips, and generally,
farming and other business income.
What is unearned income? - CORRECT ANSWER - - Dividends, interests, unemployment
that can still be considered taxable income. (Money received for investment of money or other
property such as interest, dividends, rents, and royalties).
Gross Income Included or Not ? ?
a. Unemployment. Inc.
b. Interests on a state or local bond- No. (Pg. 1.10 There's a Chart)
c. Salary income- Yes.
d. Federal income tax refund- No.
e. Dividind income reported on a 1099 DIV? Yes. - CORRECT ANSWER - Gross Income
Included or Not ? ?
a. Unemployment.
b. Interests on a state or local bond- (Pg. 1.10 There's a Chart)
c. Salary income-
ACTUAL Exam Questions and CORRECT
Answers
What is Gross Income? - CORRECT ANSWER - - Any money that you made or worked
for that is subject to tax. Also, all world-wide income from whatever source derived, unless
specifically excluded from taxation by law.
( Money realized in any form whether in money, property, or services.)
Income - CORRECT ANSWER - Financial gain derived from labor(work), capital
(money), or a combination of the two. The financial gain derived from labor is generally referred
to as "wages".
What is Earned Income? - CORRECT ANSWER - Financial gain "that is" received for
"services performed." Some examples of this include wages, commissions, tips, and generally,
farming and other business income.
What is unearned income? - CORRECT ANSWER - - Dividends, interests, unemployment
that can still be considered taxable income. (Money received for investment of money or other
property such as interest, dividends, rents, and royalties).
Gross Income Included or Not ? ?
a. Unemployment. Inc.
b. Interests on a state or local bond- No. (Pg. 1.10 There's a Chart)
c. Salary income- Yes.
d. Federal income tax refund- No.
e. Dividind income reported on a 1099 DIV? Yes. - CORRECT ANSWER - Gross Income
Included or Not ? ?
a. Unemployment.
b. Interests on a state or local bond- (Pg. 1.10 There's a Chart)
c. Salary income-
