Bestsolutions1 2025
Hr Block Final Test Review (Itc
2025) Questions And Answers 2025
Which Of The Following Is A Requirement For All Taxpayers Who Want To Claim
The Eic?
Live In The U.S. For More Than Half A Year.
Have A Valid Social Security Number.
Have A Qualifying Child Dependent.
Have Agi Less Than $21,430 ($27,380 Mfj). - Correct Answer-Have A Valid Social
Security Number.
A Combined Due Diligence Penalty Of $2,180 Would Indicate A Penalty For Which
Of The Following?
Eic, Ctc/Odc/Actc, And Head Of Household.
Eic, Aotc, And Ctc/Odc/Actc.
Eic, Aotc, Ctc/Odc/Actc, And Head Of Household.
Eic, Ptc, Ctc/Odc/Actc, And Head Of Household. - C orrect Answer-Eic, Aotc,
Ctc/Odc/Actc, And Head Of Household.
When Dependent Care Benefits Are Withheld From A Taxpayer's Income, Where
Are They Reported By The Employer?
Form 2441.
Form 1040.
Box 10 Of Form W-2.
The Employer Is Not Required To Report Them. - C orrect Answer-Box 10 Of Form
W-2.
All Of The Following Are Due Diligence Requirements A Tax Preparer Must Meet
For Eic, Aotc, Ctc/Odc/Actc, And Hoh, Except:
Investigate And Verify The Accuracy Of Information The Taxpayer Provides To
Show Eligibility For Eic, Aotc, Ctc/Odc/Actc, And Hoh.
, Bestsolutions1 2025
Complete All Worksheets Used To Compute The Credits. If The Worksheet Is
Completed By Hand, Keep A Copy In The Taxpayer's Client File.
Maintain A Copy Of Documents Provided By The Taxpayer That The Tax Preparer
Relied On When Determining Credit Eligibility. Then Record The Date The
Information Was Obtained And The Name Of Who Provided The Information.
When Information Provided By The Taxpayer Appears To Be Incorrect,
Inconsistent, Or Incomplete, The Tax Preparer Must Make Additional Inquiries To
Determine If The Taxpayer Is Eligible For The Benefit. Then Document Both The
Questions Asked And Responses Provided. - Correct Answer-Investigate And Verify
The Accuracy Of Information The Taxpayer Provides To Show Eligibility For Eic,
Aotc, Ctc/Odc/Actc, And Hoh.
When A Taxpayer Receives Form 1099-R With No Amount Entered In Box 2a And
Code 7 Entered In Box 7, The Entire Distribution:
Could Be Partly Or Entirely Taxable.
Is Never Taxable.
Is An Early Distribution And Taxable.
Has Been Rolled Into A Traditional Ira Or Into Another Qualified Plan. - C orrect
Answer-Is Never Taxable.
What Is The Maximum Amount Of The American Opportunity Tax Credit A
Taxpayer Could Receive Per Student?
$1,650
$1,800
$2,000
$2,500 - C orrect Answer-$2,500
Which Test For A Qualifying Child Does Not Need To Be Met In Order For The
Child To Be A Qualifying Person For Purposes Of Earned Income Credit (Eic)?
Age.
Relationship.
Residency.
Support. - C orrect Answer-Support.
Which Of The Following Expenses Qualifies For An Education Credit In 2021?
Tuition Payments. The Taxpayer Didn't Receive Scholarships, Grants, Or Other
Nontaxable Benefits.
, Bestsolutions1 2025
Fees For An Optional Student Activity.
Cost Of Student Medical Fees.
Tuition Payments. The Taxpayer Received A Nontaxable Grant, Which Covered
The Entire Tuition Expense. - C orrect Answer-
Employer-Provided Dependent Care Assistance:
May Be Used For The Child And Dependent Care Credit.
Is Subtracted From The Total Expenses For Child Or Dependent Care On Form
2441.
Is Included In Wages On Form W-2.
Is Not Reported To The Irs. - C orrect Answer-
Which Of The Following Is Not A Percentage Of Social Security Benefits Subject To
Federal Tax? Up To __________.
0%
50%
85%
100% - C orrect Answer-100%
What Is The Maximum Amount Of The Lifetime Learning Credit?
$1,100 Per Return.
$1,650 Per Return.
$2,000 Per Return.
$2,500 Per Return. - Correct Answer- $2,000 Per Return.
Employer-Provided Dependent Care Assistance:
It May Be Used For The Child And Dependent Care Credit.
It Is Subtracted From The Total Expenses For The Child Or Dependent Care On
Form 2441.
It Is Included In Wages On Form W-2.
It Is Not Reported To The Irs. - C orrect Answer-
Earned Income - C orrect Answer-Any Income (Wages/Salary) That Is Generated By
Working
Unearned Income - C orrect Answer- Include Interest Income, Dividends, Rents And
Royalties, Pensions, Alimony, And Unemployment Income.
Hr Block Final Test Review (Itc
2025) Questions And Answers 2025
Which Of The Following Is A Requirement For All Taxpayers Who Want To Claim
The Eic?
Live In The U.S. For More Than Half A Year.
Have A Valid Social Security Number.
Have A Qualifying Child Dependent.
Have Agi Less Than $21,430 ($27,380 Mfj). - Correct Answer-Have A Valid Social
Security Number.
A Combined Due Diligence Penalty Of $2,180 Would Indicate A Penalty For Which
Of The Following?
Eic, Ctc/Odc/Actc, And Head Of Household.
Eic, Aotc, And Ctc/Odc/Actc.
Eic, Aotc, Ctc/Odc/Actc, And Head Of Household.
Eic, Ptc, Ctc/Odc/Actc, And Head Of Household. - C orrect Answer-Eic, Aotc,
Ctc/Odc/Actc, And Head Of Household.
When Dependent Care Benefits Are Withheld From A Taxpayer's Income, Where
Are They Reported By The Employer?
Form 2441.
Form 1040.
Box 10 Of Form W-2.
The Employer Is Not Required To Report Them. - C orrect Answer-Box 10 Of Form
W-2.
All Of The Following Are Due Diligence Requirements A Tax Preparer Must Meet
For Eic, Aotc, Ctc/Odc/Actc, And Hoh, Except:
Investigate And Verify The Accuracy Of Information The Taxpayer Provides To
Show Eligibility For Eic, Aotc, Ctc/Odc/Actc, And Hoh.
, Bestsolutions1 2025
Complete All Worksheets Used To Compute The Credits. If The Worksheet Is
Completed By Hand, Keep A Copy In The Taxpayer's Client File.
Maintain A Copy Of Documents Provided By The Taxpayer That The Tax Preparer
Relied On When Determining Credit Eligibility. Then Record The Date The
Information Was Obtained And The Name Of Who Provided The Information.
When Information Provided By The Taxpayer Appears To Be Incorrect,
Inconsistent, Or Incomplete, The Tax Preparer Must Make Additional Inquiries To
Determine If The Taxpayer Is Eligible For The Benefit. Then Document Both The
Questions Asked And Responses Provided. - Correct Answer-Investigate And Verify
The Accuracy Of Information The Taxpayer Provides To Show Eligibility For Eic,
Aotc, Ctc/Odc/Actc, And Hoh.
When A Taxpayer Receives Form 1099-R With No Amount Entered In Box 2a And
Code 7 Entered In Box 7, The Entire Distribution:
Could Be Partly Or Entirely Taxable.
Is Never Taxable.
Is An Early Distribution And Taxable.
Has Been Rolled Into A Traditional Ira Or Into Another Qualified Plan. - C orrect
Answer-Is Never Taxable.
What Is The Maximum Amount Of The American Opportunity Tax Credit A
Taxpayer Could Receive Per Student?
$1,650
$1,800
$2,000
$2,500 - C orrect Answer-$2,500
Which Test For A Qualifying Child Does Not Need To Be Met In Order For The
Child To Be A Qualifying Person For Purposes Of Earned Income Credit (Eic)?
Age.
Relationship.
Residency.
Support. - C orrect Answer-Support.
Which Of The Following Expenses Qualifies For An Education Credit In 2021?
Tuition Payments. The Taxpayer Didn't Receive Scholarships, Grants, Or Other
Nontaxable Benefits.
, Bestsolutions1 2025
Fees For An Optional Student Activity.
Cost Of Student Medical Fees.
Tuition Payments. The Taxpayer Received A Nontaxable Grant, Which Covered
The Entire Tuition Expense. - C orrect Answer-
Employer-Provided Dependent Care Assistance:
May Be Used For The Child And Dependent Care Credit.
Is Subtracted From The Total Expenses For Child Or Dependent Care On Form
2441.
Is Included In Wages On Form W-2.
Is Not Reported To The Irs. - C orrect Answer-
Which Of The Following Is Not A Percentage Of Social Security Benefits Subject To
Federal Tax? Up To __________.
0%
50%
85%
100% - C orrect Answer-100%
What Is The Maximum Amount Of The Lifetime Learning Credit?
$1,100 Per Return.
$1,650 Per Return.
$2,000 Per Return.
$2,500 Per Return. - Correct Answer- $2,000 Per Return.
Employer-Provided Dependent Care Assistance:
It May Be Used For The Child And Dependent Care Credit.
It Is Subtracted From The Total Expenses For The Child Or Dependent Care On
Form 2441.
It Is Included In Wages On Form W-2.
It Is Not Reported To The Irs. - C orrect Answer-
Earned Income - C orrect Answer-Any Income (Wages/Salary) That Is Generated By
Working
Unearned Income - C orrect Answer- Include Interest Income, Dividends, Rents And
Royalties, Pensions, Alimony, And Unemployment Income.
