H&R Block Midterm Review UPDATED
Exam Questions and CORRECT Answers
Some types of income do not need to be reported anywhere on a federal tax return. This includes
all of the following EXCEPT:
A.) Most medical insurance proceeds
B.) Worker's compensation paid to an employee who was injured on the job.
C.) Welfare benefits
D.) Unemployment compensation - CORRECT ANSWER - D.) Unemployment
compensation
Which of the following is considered earned income?
A.) Interest from a bank account.
B.) Unemployment compensation
C.) Income from farming
D.) Gambling Winnings - CORRECT ANSWER - C.) Income from farming
Which of the following shows these numbers rounded correctly: $31.43, $143.57, $369.22,
$1,547.88?
A.) $32. $142. $368. $1,547
B.) $31. $144. $369. $1,548
C.) $31. $142. $369. $1,547.
D.) $32. $144. $368. $1,547 - CORRECT ANSWER - B.) $31. $144. $369. $1,548
The tax on income that comes entirely from wages under $100,000 is determined according to
the?
A.) Tax tables
B.) Tax computation worksheet
C.) Qualified dividends and capital gains worksheet
,D.) schedule D tax worksheet - CORRECT ANSWER - A.) Tax tables
Which form is used by employers to report wages earned by their employees?
A.) Form W-2
B.) Form W-4
C.) Form 1098-T
D.) Form 1099-R - CORRECT ANSWER - A.) Form W-2
Nathan Bayer is a single taxpayer. His 2018 taxable income was $57,474. What is Nathan's 2018
federal income tax?
A.) $5,749
B.) $6898
C.) $8584
D.) $12,644 - CORRECT ANSWER - C.) $8584
Which of the following three factors determine the filing requirement for nondependents?
A.) Marital status, age, and residency.
B.) Marital status, age, and gross income
C.) Marital status, age, and taxable income
D.) Marital status, age, and total deductions. - CORRECT ANSWER - B.) Marital status,
age, and gross income
The standard deduction on an income tax return is determined by:
A.) Citizenship
B.) Residency
C.) Filing Status
D.) Gross Income - CORRECT ANSWER - C.) Filing Status
, The head of household filing status requires that a taxpayer maintain a household for?
A.) A qualifying child, qualifying relative, or a parent claimed as a dependent on the taxpayer's
return
B.) At least one other person
C.) A beloved family pet
D.) Maintaining a household for another person is not a requirement of the head of household
filing status. - CORRECT ANSWER - A.) A qualifying child, qualifying relative, or a
parent claimed as a dependent on the taxpayer's return
For tax purposes, when is a person's marital status determined?
A.) On the first day of the tax year
B.) On the taxpayer's birthday
C.) On the day the person files their tax return
D.) On the last day of the tax year. - CORRECT ANSWER - D.) On the last day of the tax
year.
Under what circumstances might a taxpayer, who does not meet the federal filing requirement,
want to file a federal return anyway?
A.) They are entitled to one or more refundable credits
B.) They are entitled to one or more nonrefundable credits
C.) To claim the itemized deductions
D.) If there was any state tax withheld. - CORRECT ANSWER - A.) They are entitled to
one or more refundable credits
Which of the following is not one of the four requirements to claim a dependent?
A.) The dependent must be a qualifying child or qualifying relative
B.) The dependent must be a U.S. citizen or a resident of the United States, Canada, or Mexico.
C.) IF the dependent is married, they cannot be claimed as a dependent if they file a joint return
with their spouse (unless they are only filing to claim a refund of withholding).
Exam Questions and CORRECT Answers
Some types of income do not need to be reported anywhere on a federal tax return. This includes
all of the following EXCEPT:
A.) Most medical insurance proceeds
B.) Worker's compensation paid to an employee who was injured on the job.
C.) Welfare benefits
D.) Unemployment compensation - CORRECT ANSWER - D.) Unemployment
compensation
Which of the following is considered earned income?
A.) Interest from a bank account.
B.) Unemployment compensation
C.) Income from farming
D.) Gambling Winnings - CORRECT ANSWER - C.) Income from farming
Which of the following shows these numbers rounded correctly: $31.43, $143.57, $369.22,
$1,547.88?
A.) $32. $142. $368. $1,547
B.) $31. $144. $369. $1,548
C.) $31. $142. $369. $1,547.
D.) $32. $144. $368. $1,547 - CORRECT ANSWER - B.) $31. $144. $369. $1,548
The tax on income that comes entirely from wages under $100,000 is determined according to
the?
A.) Tax tables
B.) Tax computation worksheet
C.) Qualified dividends and capital gains worksheet
,D.) schedule D tax worksheet - CORRECT ANSWER - A.) Tax tables
Which form is used by employers to report wages earned by their employees?
A.) Form W-2
B.) Form W-4
C.) Form 1098-T
D.) Form 1099-R - CORRECT ANSWER - A.) Form W-2
Nathan Bayer is a single taxpayer. His 2018 taxable income was $57,474. What is Nathan's 2018
federal income tax?
A.) $5,749
B.) $6898
C.) $8584
D.) $12,644 - CORRECT ANSWER - C.) $8584
Which of the following three factors determine the filing requirement for nondependents?
A.) Marital status, age, and residency.
B.) Marital status, age, and gross income
C.) Marital status, age, and taxable income
D.) Marital status, age, and total deductions. - CORRECT ANSWER - B.) Marital status,
age, and gross income
The standard deduction on an income tax return is determined by:
A.) Citizenship
B.) Residency
C.) Filing Status
D.) Gross Income - CORRECT ANSWER - C.) Filing Status
, The head of household filing status requires that a taxpayer maintain a household for?
A.) A qualifying child, qualifying relative, or a parent claimed as a dependent on the taxpayer's
return
B.) At least one other person
C.) A beloved family pet
D.) Maintaining a household for another person is not a requirement of the head of household
filing status. - CORRECT ANSWER - A.) A qualifying child, qualifying relative, or a
parent claimed as a dependent on the taxpayer's return
For tax purposes, when is a person's marital status determined?
A.) On the first day of the tax year
B.) On the taxpayer's birthday
C.) On the day the person files their tax return
D.) On the last day of the tax year. - CORRECT ANSWER - D.) On the last day of the tax
year.
Under what circumstances might a taxpayer, who does not meet the federal filing requirement,
want to file a federal return anyway?
A.) They are entitled to one or more refundable credits
B.) They are entitled to one or more nonrefundable credits
C.) To claim the itemized deductions
D.) If there was any state tax withheld. - CORRECT ANSWER - A.) They are entitled to
one or more refundable credits
Which of the following is not one of the four requirements to claim a dependent?
A.) The dependent must be a qualifying child or qualifying relative
B.) The dependent must be a U.S. citizen or a resident of the United States, Canada, or Mexico.
C.) IF the dependent is married, they cannot be claimed as a dependent if they file a joint return
with their spouse (unless they are only filing to claim a refund of withholding).
