H & R Block Final UPDATED ACTUAL
Exam Questions and CORRECT Answers
Taxpayers who acquire qualifying commercial vehicles, weighing under 14,000 pounds, after
December 31, 2022, through December 31, 2032 may qualify for the Credit for Qualified
Commercial Clean Vehicles on the 2023 tax return. What is the maximum credit per vehicle? -
CORRECT ANSWER - $7,500
Devan and Amber adopted a child with special needs in a domestic adoption. They had $5,500 in
qualified adoption expenses in 2022, and the adoption was finalized on December 18, 2022.
Their modified adjusted gross income is $210,000. Assuming all requirements are met, what is
the maximum adoption credit they can claim in 2022? - CORRECT ANSWER - $14,890
Stanley holds foreign investments in foreign stocks and bonds. The issuing foreign country
withheld taxes on his investment income. To avoid double taxation on the income earned from
these investments, Stanley may be eligible to claim which credit? - CORRECT
ANSWER - Foreign Tax Credit.
On July 15, 2008, Michael and his wife Julie purchased a new home. They received the First-
time Homebuyer Credit in the amount of $7,000. What tax form is used to repay their tax credit?
- CORRECT ANSWER - Form 5405.
Marcel attends graduate school. For 2022, he received a Form 1098-T, Tuition Statement,
showing tuition paid of $14,300. What is the maximum amount of the lifetime learning credit he
can claim for 2022? - CORRECT ANSWER - $2,000
Tuition payments. - CORRECT ANSWER - Which of the following expenses is allowed
for the American Opportunity Tax Credit?
What is the maximum amount of tax years a student may claim the lifetime learning credit? -
CORRECT ANSWER - Four years.
, Audrey is a degree candidate at her local state college. She received a scholarship for $5,000.
She applied the amount to her tuition, which totaled $10,000. How much, if any, of the
scholarship is taxable income? - CORRECT ANSWER - $0
Which of the following statements is TRUE regarding nontaxable employer-provided tuition
reimbursements? Nontaxable employer-provided tuition reimbursements: - CORRECT
ANSWER - Are tax-free and cannot be used to claim any education credit.
If a taxpayer files their return claiming an education credit for the full amount of a student's
qualified education expenses and later receives a refund from the institution, what advice will
you give to the taxpayer? - CORRECT ANSWER - They will have to recapture (pay back)
some of the credit claimed.
Rhianna purchased a home for $650,000. She added a swimming pool at a cost of $25,000 and a
patio deck for $8,000. What is Rhianna's adjusted basis for this property? - CORRECT
ANSWER - $683,000
Christine wants to sell some property but needs to determine the basis first. Which of the
following items increase her original basis? - CORRECT ANSWER - The cost of capital
improvements.
On October 1, 2021, Sara purchased 80 shares of JEP stock for $2,000. On September 30, 2022,
she sold the 80 shares for $1,500. What is Sara's gain or loss? - CORRECT ANSWER -A
short-term loss of $500.
Jordyn is single. She purchased her first home for $180,000 in 2018. It served as her primary
residence until she sold it on November 1, 2022 for $440,000. She paid a $26,400 commission as
an expense of sale. During the time she owned her home, she did not use it for business or to
produce rental income. What is the amount of her long-term gain that can she exclude from
income on her return? - CORRECT ANSWER - $233,600
Owen received the following Form 1099-B reporting the sale of 100 shares of stock. How should
the sale of this property be reported on his tax return? - CORRECT ANSWER - Long-term
capital loss of $1,660.
Exam Questions and CORRECT Answers
Taxpayers who acquire qualifying commercial vehicles, weighing under 14,000 pounds, after
December 31, 2022, through December 31, 2032 may qualify for the Credit for Qualified
Commercial Clean Vehicles on the 2023 tax return. What is the maximum credit per vehicle? -
CORRECT ANSWER - $7,500
Devan and Amber adopted a child with special needs in a domestic adoption. They had $5,500 in
qualified adoption expenses in 2022, and the adoption was finalized on December 18, 2022.
Their modified adjusted gross income is $210,000. Assuming all requirements are met, what is
the maximum adoption credit they can claim in 2022? - CORRECT ANSWER - $14,890
Stanley holds foreign investments in foreign stocks and bonds. The issuing foreign country
withheld taxes on his investment income. To avoid double taxation on the income earned from
these investments, Stanley may be eligible to claim which credit? - CORRECT
ANSWER - Foreign Tax Credit.
On July 15, 2008, Michael and his wife Julie purchased a new home. They received the First-
time Homebuyer Credit in the amount of $7,000. What tax form is used to repay their tax credit?
- CORRECT ANSWER - Form 5405.
Marcel attends graduate school. For 2022, he received a Form 1098-T, Tuition Statement,
showing tuition paid of $14,300. What is the maximum amount of the lifetime learning credit he
can claim for 2022? - CORRECT ANSWER - $2,000
Tuition payments. - CORRECT ANSWER - Which of the following expenses is allowed
for the American Opportunity Tax Credit?
What is the maximum amount of tax years a student may claim the lifetime learning credit? -
CORRECT ANSWER - Four years.
, Audrey is a degree candidate at her local state college. She received a scholarship for $5,000.
She applied the amount to her tuition, which totaled $10,000. How much, if any, of the
scholarship is taxable income? - CORRECT ANSWER - $0
Which of the following statements is TRUE regarding nontaxable employer-provided tuition
reimbursements? Nontaxable employer-provided tuition reimbursements: - CORRECT
ANSWER - Are tax-free and cannot be used to claim any education credit.
If a taxpayer files their return claiming an education credit for the full amount of a student's
qualified education expenses and later receives a refund from the institution, what advice will
you give to the taxpayer? - CORRECT ANSWER - They will have to recapture (pay back)
some of the credit claimed.
Rhianna purchased a home for $650,000. She added a swimming pool at a cost of $25,000 and a
patio deck for $8,000. What is Rhianna's adjusted basis for this property? - CORRECT
ANSWER - $683,000
Christine wants to sell some property but needs to determine the basis first. Which of the
following items increase her original basis? - CORRECT ANSWER - The cost of capital
improvements.
On October 1, 2021, Sara purchased 80 shares of JEP stock for $2,000. On September 30, 2022,
she sold the 80 shares for $1,500. What is Sara's gain or loss? - CORRECT ANSWER -A
short-term loss of $500.
Jordyn is single. She purchased her first home for $180,000 in 2018. It served as her primary
residence until she sold it on November 1, 2022 for $440,000. She paid a $26,400 commission as
an expense of sale. During the time she owned her home, she did not use it for business or to
produce rental income. What is the amount of her long-term gain that can she exclude from
income on her return? - CORRECT ANSWER - $233,600
Owen received the following Form 1099-B reporting the sale of 100 shares of stock. How should
the sale of this property be reported on his tax return? - CORRECT ANSWER - Long-term
capital loss of $1,660.
