H & R Block Midterm Review
Questions with Accurate Answers
*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
A taxpayer eligible to claim the lifetime learning credit may receive up to $2,000
for this credit. All of the following are considered qualified expenses for this credit
EXCEPT:
A.) Tuition and fees paid to acquire a degree from an accredited university.
B.) Tuition and fees paid to a local community college for a class that will improve
the taxpayer's job skills.
C.) Books that must be purchased from the educational institution as a condition
for enrollment.
D.) Room and board. correct answer D.) Room and board.
A taxpayer's spouse died in 2018, and the taxpayer did not remarry. Assuming the
taxpayer has a qualifying child, what is the taxpayer's most favorable and correct
filing status for 2018?
A.) Single
B.) Head of household
C.) Married filing separate
D.) Married filing jointly correct answer D.) Married filing jointly
,After suffering a debilitating injury, Ahmad (47) retired on disability after teaching
high-school math for several years. He had not yet reached the minimum
retirement age for the district where he taught. If Ahmad's employer paid the
premiums on his disability insurance policy using pre-tax dollars, how does he
report the disability benefits reported to him on Form 1099-R?
A.) As taxable wage income reported on Form 1040, line 1.
B.) As nontaxable wage income reported on Form 1040, line 1.
C.) As taxable pension income reported on Form 1040, line 4.
D.) As nontaxable pension income reported on Form 1040, line 4. correct answer
A.) As taxable wage income reported on Form 1040, line 1.
All of the following are generally considered qualified expenses for the student
loan interest deduction EXCEPT:
A.) Graduate school tuition.
B.) Transportation expenses incurred for a nondependent grandchild attending
college in another state.
C.) Room and board at a dormitory owned and operated by the educational
institution.
D.) Books and supplies. correct answer B.) Transportation expenses incurred for a
nondependent grandchild attending college in another state.
All of the following are qualified health care coverage except:
A.) Employer-sponsored coverage
B.) Stand alone disability coverage
C.) Marketplace coverage
, D.) Government programs coverage correct answer B.) Stand alone disability
coverage
All of the following are types of retirement plans self-employed taxpayers may
establish for themselves and their employees EXCEPT
A.) A 401(k) plan
B.) Simplified employee pensions (SEPs)
C.) SIMPLE IRAs
D.) Spousal IRAs correct answer D.) Spousal IRAs
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
Choose the response that best completes the following sentence. Under the
special rules for children of divorced or separated parents, the noncustodial
parent may be entitled to:
A.) Claim a higher standard deduction
B.) Claim the Child Tax Credit
C.) Claim the Earned Income Credit
D.) File as head of household correct answer B.) Claim the Child Tax Credit
Questions with Accurate Answers
*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
A taxpayer eligible to claim the lifetime learning credit may receive up to $2,000
for this credit. All of the following are considered qualified expenses for this credit
EXCEPT:
A.) Tuition and fees paid to acquire a degree from an accredited university.
B.) Tuition and fees paid to a local community college for a class that will improve
the taxpayer's job skills.
C.) Books that must be purchased from the educational institution as a condition
for enrollment.
D.) Room and board. correct answer D.) Room and board.
A taxpayer's spouse died in 2018, and the taxpayer did not remarry. Assuming the
taxpayer has a qualifying child, what is the taxpayer's most favorable and correct
filing status for 2018?
A.) Single
B.) Head of household
C.) Married filing separate
D.) Married filing jointly correct answer D.) Married filing jointly
,After suffering a debilitating injury, Ahmad (47) retired on disability after teaching
high-school math for several years. He had not yet reached the minimum
retirement age for the district where he taught. If Ahmad's employer paid the
premiums on his disability insurance policy using pre-tax dollars, how does he
report the disability benefits reported to him on Form 1099-R?
A.) As taxable wage income reported on Form 1040, line 1.
B.) As nontaxable wage income reported on Form 1040, line 1.
C.) As taxable pension income reported on Form 1040, line 4.
D.) As nontaxable pension income reported on Form 1040, line 4. correct answer
A.) As taxable wage income reported on Form 1040, line 1.
All of the following are generally considered qualified expenses for the student
loan interest deduction EXCEPT:
A.) Graduate school tuition.
B.) Transportation expenses incurred for a nondependent grandchild attending
college in another state.
C.) Room and board at a dormitory owned and operated by the educational
institution.
D.) Books and supplies. correct answer B.) Transportation expenses incurred for a
nondependent grandchild attending college in another state.
All of the following are qualified health care coverage except:
A.) Employer-sponsored coverage
B.) Stand alone disability coverage
C.) Marketplace coverage
, D.) Government programs coverage correct answer B.) Stand alone disability
coverage
All of the following are types of retirement plans self-employed taxpayers may
establish for themselves and their employees EXCEPT
A.) A 401(k) plan
B.) Simplified employee pensions (SEPs)
C.) SIMPLE IRAs
D.) Spousal IRAs correct answer D.) Spousal IRAs
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
Choose the response that best completes the following sentence. Under the
special rules for children of divorced or separated parents, the noncustodial
parent may be entitled to:
A.) Claim a higher standard deduction
B.) Claim the Child Tax Credit
C.) Claim the Earned Income Credit
D.) File as head of household correct answer B.) Claim the Child Tax Credit
