HR BLOCK FINAL TEST REVIEW (ITC 2025)QUESTIONS WITH CORRECT SOLUTIONS

HR BLOCK FINAL TEST REVIEW (ITC 2025)QUESTIONS WITH CORRECT SOLUTIONS 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). - 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. - 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. - 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. 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. - answer-Investigate and verify the accuracy of information the taxpayer provides to show eligibility for EIC, AOTC, CTC/ODC/ACTC, and HOH.