HR Block (TKA Exam Prep) Questions With Correct Answers

HR Block (TKA Exam Prep) Questions With
Correct Answers


IRC - CORRECT ANSWER✔✔-Internal Revenue Code
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Standard Deduction - CORRECT ANSWER✔✔-Set by statute. Included in
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calculating the Below-the-Line deductions (for Taxable Income).
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Alternative is Itemized Deduction
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Itemized Deduction - CORRECT ANSWER✔✔-Sum of allowable
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deductions in calculating the Below-the-Line deductions (for Taxable
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Income). Alternative is Standard Deduction
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Tax Rate (Individuals) - Ordinary Income - CORRECT ANSWER✔✔-10% -
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37%


Tax Rate (Individuals) - Net Gains / Qualified Dividends - CORRECT
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ANSWER✔✔-0% - 20% (sometimes) 20% - 28% (usually)
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Alternative Minimum Tax Rate - CORRECT ANSWER✔✔-26% - 28%
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, Capital Gains - CORRECT ANSWER✔✔-Profit (or Loss) from the sale of
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property or investments (preferential tax rate compared to Ordinary
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Income)


Adjusted Gross Income (AGI) - CORRECT ANSWER✔✔-Gross Income -
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Deductions


Taxable Income - CORRECT ANSWER✔✔-AGI - (Larger of Standard or
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Itemized Deduction) |




Tentative Tax - CORRECT ANSWER✔✔-Taxable Income (x) Tax Rate
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Taxes Due (+) or Refund (-) - CORRECT ANSWER✔✔-Tentative Tax -
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Credits


Refundable Tax Credit - CORRECT ANSWER✔✔-Taxpayer can receive
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money through a refund
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Nonrefundable Tax Credit - CORRECT ANSWER✔✔-Tax is lowered to a
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possible $0. But no refund.
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Title 26 (US. Code) - CORRECT ANSWER✔✔-The statutory bas of all
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federal tax law.
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