H&R Block Midterm Review UPDATED
ACTUAL Exam Questions and CORRECT
Answers
What are the five tests for a qualifying child?
A.) Relationship, citizenship, age, support, and joint return
B.) Relationship, residency, age, support, and joint return
C.) Marital status, residency, age, support, and joint return.
D.) Relationship, residency, age, support, and type of income. - CORRECT ANSWER -
B.) Relationship, residency, age, support, and joint return
What are the four tests for a qualifying relative?
A.) Relationship or member of the household, gross income, support, and residency.
B.) Relationship or member of the household, gross income, citizenship, and not a qualifying
child
C.) Relationship or member of the household, gross income, support, and not a qualifying child
D.) Relationship or member of the household, gross income, support, and be a qualifying child. -
CORRECT ANSWER - C.) Relationship or member of the household, gross income,
support, and not a qualifying child
Which of the following is not counted as support?
A.) Life insurance premiums
B.) Lodging
C.) Clothing
D.) Entertainment - CORRECT ANSWER - A.) Life insurance premiums
How much is the Child Tax Credit worth?
A.) Up to $2000 per qualifying child
B.) $2500 per qualifying child
,C.) $3000 per qualifying child
D.) $5000 per qualifying child - CORRECT ANSWER - A.) Up to $2000 per qualifying
child
Assuming all other requirements are met, how long may an eligible surviving spouse file as a
qualifying widow(er)?
A.) One year
B.) Two Years
C.) Three years
D.) Five Years - CORRECT ANSWER - B.) Two Years
Which form is required when a custodial parent releases their right to claim their child as a
dependent to the noncustodial parent?
A.) Form 8453
B.) Form 8283
C.) Form 8867
D.) Form 8332 - CORRECT ANSWER - D.) Form 8332
To file as head of household, a taxpayer must meet all of the following requirements EXCEPT:
A.) Be unmarried, or "considered unmarried" on the last day of the tax year.
B.) Pay more than half the cost of maintaining the household for the year.
C.) Have gross income of at least $18,000
D.) Have maintained a household for either a qualifying child or a qualifying relative -
CORRECT ANSWER - C.) Have gross income of at least $18,000
*For 2021 tax returns, what is the standard deduction for taxpayers using the head of household
filing status?
A.) $0
B.) $12000
C.) $18800
, D.) $24000 - CORRECT ANSWER - C.) $18800
What happens if an individual is the qualifying child of more than one taxpayer?
A.) The IRS tiebreaker rules apply
B.) Neither taxpayer is allowed to claim the child as a dependent
C.) Each taxpayer is eligible to claim one half (50%) of the Child Tax Credit
D.) It is acceptable for both taxpayers to claim the child as a dependent on their return. -
CORRECT ANSWER - A.) The IRS tiebreaker rules apply
Taxpayers who have any financial interest in, or signature authority over, a financial account
(such as a bank account, securities account, or brokerage account) located in a foreign country
may have to report this information by filing?
A.) FinCEN Form 114
B.) Form 1116
C.) Form 6251
D.) Form 8275 - CORRECT ANSWER - A.) FinCEN Form 114
Which of the following is nontaxable on a federal income tax return?
A.) Interest income from a savings account
B.) Interest income from municipal bonds
C.) Interest income from corporate bonds
D.) Interest income from personal loans. - CORRECT ANSWER - B.) Interest income
from municipal bonds
Tax-exempt interest is?
A.) Taxable and reportable
B.) Not required to be reported
C.) Nontaxable, but reportable
D.) Nontaxable and not reportable - CORRECT ANSWER - C) Nontaxable, but reportable
ACTUAL Exam Questions and CORRECT
Answers
What are the five tests for a qualifying child?
A.) Relationship, citizenship, age, support, and joint return
B.) Relationship, residency, age, support, and joint return
C.) Marital status, residency, age, support, and joint return.
D.) Relationship, residency, age, support, and type of income. - CORRECT ANSWER -
B.) Relationship, residency, age, support, and joint return
What are the four tests for a qualifying relative?
A.) Relationship or member of the household, gross income, support, and residency.
B.) Relationship or member of the household, gross income, citizenship, and not a qualifying
child
C.) Relationship or member of the household, gross income, support, and not a qualifying child
D.) Relationship or member of the household, gross income, support, and be a qualifying child. -
CORRECT ANSWER - C.) Relationship or member of the household, gross income,
support, and not a qualifying child
Which of the following is not counted as support?
A.) Life insurance premiums
B.) Lodging
C.) Clothing
D.) Entertainment - CORRECT ANSWER - A.) Life insurance premiums
How much is the Child Tax Credit worth?
A.) Up to $2000 per qualifying child
B.) $2500 per qualifying child
,C.) $3000 per qualifying child
D.) $5000 per qualifying child - CORRECT ANSWER - A.) Up to $2000 per qualifying
child
Assuming all other requirements are met, how long may an eligible surviving spouse file as a
qualifying widow(er)?
A.) One year
B.) Two Years
C.) Three years
D.) Five Years - CORRECT ANSWER - B.) Two Years
Which form is required when a custodial parent releases their right to claim their child as a
dependent to the noncustodial parent?
A.) Form 8453
B.) Form 8283
C.) Form 8867
D.) Form 8332 - CORRECT ANSWER - D.) Form 8332
To file as head of household, a taxpayer must meet all of the following requirements EXCEPT:
A.) Be unmarried, or "considered unmarried" on the last day of the tax year.
B.) Pay more than half the cost of maintaining the household for the year.
C.) Have gross income of at least $18,000
D.) Have maintained a household for either a qualifying child or a qualifying relative -
CORRECT ANSWER - C.) Have gross income of at least $18,000
*For 2021 tax returns, what is the standard deduction for taxpayers using the head of household
filing status?
A.) $0
B.) $12000
C.) $18800
, D.) $24000 - CORRECT ANSWER - C.) $18800
What happens if an individual is the qualifying child of more than one taxpayer?
A.) The IRS tiebreaker rules apply
B.) Neither taxpayer is allowed to claim the child as a dependent
C.) Each taxpayer is eligible to claim one half (50%) of the Child Tax Credit
D.) It is acceptable for both taxpayers to claim the child as a dependent on their return. -
CORRECT ANSWER - A.) The IRS tiebreaker rules apply
Taxpayers who have any financial interest in, or signature authority over, a financial account
(such as a bank account, securities account, or brokerage account) located in a foreign country
may have to report this information by filing?
A.) FinCEN Form 114
B.) Form 1116
C.) Form 6251
D.) Form 8275 - CORRECT ANSWER - A.) FinCEN Form 114
Which of the following is nontaxable on a federal income tax return?
A.) Interest income from a savings account
B.) Interest income from municipal bonds
C.) Interest income from corporate bonds
D.) Interest income from personal loans. - CORRECT ANSWER - B.) Interest income
from municipal bonds
Tax-exempt interest is?
A.) Taxable and reportable
B.) Not required to be reported
C.) Nontaxable, but reportable
D.) Nontaxable and not reportable - CORRECT ANSWER - C) Nontaxable, but reportable
