H&R BLOCK SPECIALIST TEST
ACTUAL EXAM QUESTIONS AND
ACCURATE ANSWERS
(Read this scenario and choose the option that accurately describes the tax
household) Lisa (28) is not married. She has 2 children, John (2) and Katelyn (6),
who live with her. She has wages of $28,000. Lisa lives with her mother, Berta
(55), in the house that Berta owns. Berta has wage income of $32,000 and
provides 100% of her own support. Lisa'a brother, Leo (21), also lives in the
house. Leo has wage income of $22,000 and provides 100% of his own support.
correct answer A. Lisa, John, Katelyn, Berta, and Leo from one tax household
B. Lisa, John, and Katelyn from one tax household. Berta and Leo form a second
tax household
C. Lisa, John, and Katelyn form one tax household. Berta forms her own tax
household. Leo forms his own tax household.
D. Lisa and John form one tax household. Berta, Leo, and Katelyn form a second
tax household.
Answer: C
A child no longer qualifies a taxpayer for the Child Tax Credit in the yr. the child
reaches _______________ correct answer A. Age 17
B. Majority, which is 18 in most states
C. Age 19
D. Age 19, or age 24 if the child is a full-time student at least five month of the yr.
Answer: A
A refundable credit reduces the taxpayer's ___________________. correct
answer A. Income before determining tax liability
,B. Tax liability, and may even exceed the tax liability
C. Income before determining tax liability, and may even increase the refund
D. Tax liability, but may not exceed the tax liability
Answer: B
A Tax Pro will know a taxpayer is statutory employee if ________________.
correct answer A. Their Form W-2 has no withholding for social security or
medicare taxes
B. The statutory employee box is checked on their Form W-2, box 13
C. Their Form 1099-MISC has an amount reported as other income in box 13
D. They have a Form 1099-MISC with non employee compensation reported in
box 7
Answer: B
A taxpayer is required to file Schedule 1 (Form 1040) when claiming which of the
following? correct answer A. Retirement savings contributions credit.
B. Health savings account deduction
C. Education credit
D. Excess advance premium tax credit repayment
Answer: B
A taxpayer must meet all of the following requirements to claim a deduction for
moving expenses EXCEPT: correct answer A. A member of the Armed Forces on
active duty
B. Cannot have any expenses reimbursed
C. Due to a military order
, D. Because of a permanent change of station
Answer: B
A taxpayer should include which of the following when figuring their federal gross
income? correct answer A. Prior-year federal income tax refund.
B. Ordinary dividends.
C. Personal injury compensation.
D. Qualified disaster relief payments.
Answer: B
All of the following are reported on SCH 1, line 21 EXCEPT: correct answer A. Fees
Received for services as a juror
B. Prizes and awards
C. Self-employment income
D. Hobby income
Answer: C
All of the following decrease basis; EXCEPT: correct answer A. Casualty restoration
beyond bringing the property to pre-casualty condition
B. Insurance payments for a casualty loss
C. Depreciation
D. Cancelled debt
Answer: A
All of the following issues may be corrected or changed by filing Form 1040X,
Amended U.S. Individual Income Tax Return, EXCEPT: correct answer A. The
ACTUAL EXAM QUESTIONS AND
ACCURATE ANSWERS
(Read this scenario and choose the option that accurately describes the tax
household) Lisa (28) is not married. She has 2 children, John (2) and Katelyn (6),
who live with her. She has wages of $28,000. Lisa lives with her mother, Berta
(55), in the house that Berta owns. Berta has wage income of $32,000 and
provides 100% of her own support. Lisa'a brother, Leo (21), also lives in the
house. Leo has wage income of $22,000 and provides 100% of his own support.
correct answer A. Lisa, John, Katelyn, Berta, and Leo from one tax household
B. Lisa, John, and Katelyn from one tax household. Berta and Leo form a second
tax household
C. Lisa, John, and Katelyn form one tax household. Berta forms her own tax
household. Leo forms his own tax household.
D. Lisa and John form one tax household. Berta, Leo, and Katelyn form a second
tax household.
Answer: C
A child no longer qualifies a taxpayer for the Child Tax Credit in the yr. the child
reaches _______________ correct answer A. Age 17
B. Majority, which is 18 in most states
C. Age 19
D. Age 19, or age 24 if the child is a full-time student at least five month of the yr.
Answer: A
A refundable credit reduces the taxpayer's ___________________. correct
answer A. Income before determining tax liability
,B. Tax liability, and may even exceed the tax liability
C. Income before determining tax liability, and may even increase the refund
D. Tax liability, but may not exceed the tax liability
Answer: B
A Tax Pro will know a taxpayer is statutory employee if ________________.
correct answer A. Their Form W-2 has no withholding for social security or
medicare taxes
B. The statutory employee box is checked on their Form W-2, box 13
C. Their Form 1099-MISC has an amount reported as other income in box 13
D. They have a Form 1099-MISC with non employee compensation reported in
box 7
Answer: B
A taxpayer is required to file Schedule 1 (Form 1040) when claiming which of the
following? correct answer A. Retirement savings contributions credit.
B. Health savings account deduction
C. Education credit
D. Excess advance premium tax credit repayment
Answer: B
A taxpayer must meet all of the following requirements to claim a deduction for
moving expenses EXCEPT: correct answer A. A member of the Armed Forces on
active duty
B. Cannot have any expenses reimbursed
C. Due to a military order
, D. Because of a permanent change of station
Answer: B
A taxpayer should include which of the following when figuring their federal gross
income? correct answer A. Prior-year federal income tax refund.
B. Ordinary dividends.
C. Personal injury compensation.
D. Qualified disaster relief payments.
Answer: B
All of the following are reported on SCH 1, line 21 EXCEPT: correct answer A. Fees
Received for services as a juror
B. Prizes and awards
C. Self-employment income
D. Hobby income
Answer: C
All of the following decrease basis; EXCEPT: correct answer A. Casualty restoration
beyond bringing the property to pre-casualty condition
B. Insurance payments for a casualty loss
C. Depreciation
D. Cancelled debt
Answer: A
All of the following issues may be corrected or changed by filing Form 1040X,
Amended U.S. Individual Income Tax Return, EXCEPT: correct answer A. The
