H&R Block Final Review Exam Questions
With Solutions
What information do you need to know to determine whether a taxpayer is required to file a
return? The taxpayer's marital status, age at the end of the tax year, gross income for the
year, and if the taxpayer is a dependent.
Where on Form 1040 can you find the regular standard deduction amounts? In the left-
hand margin on page 1 of Form 1040. They are: single and married filing separately, $12,200;
married filing jointly and qualifying widow(er), $24,400; and head of household, $18,350.
How much is added to the standard deduction if the taxpayer (or spouse) is age 65 or older, or
blind? $1,300 for married taxpayers and qualifying widow(er)s, or $1,650 for all other
unmarried taxpayers, is added for each condition.
What is the personal exemption amount for 2019? There is no personal exemption for
2019. A personal exemption was an amount previously allowed by law to reduce income that
would otherwise be taxed. The Tax Cuts and Jobs Act of 2017 repealed this deduction beginning
in 2018.
, H&R Block Final Review Exam Questions
With Solutions
How is the gross income filing requirement determined for most taxpayers? The
taxpayer's standard deduction, including the additional amounts for age and blindness. However,
for MFS, the amount is $5.
What is the difference between injured spouse allocation and innocent spouse relief? The
IRS provides an injured spouse allocation for the taxpayer to protect their portion of a refund
from a spouse's past-due federal income tax, unpaid student loans, or unpaid child and spousal
support, or state income tax.
The IRS provides innocent spouse relief to taxpayers who file a joint return and later learn that
their spouse has underestimated income (or overstated a credit or deduction) on the return.
What is a thorough interview? A thorough interview consists of asking general
information questions, then asking additional questions whenever information is incomplete or
seems inaccurate or inconsistent
What is a conflict of interest? Circular 230 states that a conflict of interest exists if the
representation of one client will be directly adverse to another client, or if there is a significant
risk that the representation of one or more clients will be materially limited by the practitioner's
responsibilities to another client, a former client, or a third person, or by a personal interest of the
practitioner.
, H&R Block Final Review Exam Questions
With Solutions
What actions can resolve a conflict of interest? A conflict of interest is resolved when it is
acknowledged, disclosed to all parties, and the parties have consented to waiving the conflict.
What taxpayer information is confidential? Any information that could potentially
identify the taxpayer is confidential. Information includes (but is not limited to) name, address
and phone number, social security number, place of employment, and any information from a tax
return.
What is a tax preparer's responsibility upon finding out that a taxpayer has not complied with one
or more tax laws? A tax preparer must only advise the taxpayer of the noncompliance and
the consequences for not correcting the situation. The taxpayer is the only individual who can
decide to make corrections to their return.
What action should a tax preparer take if a taxpayer insists on reporting information that is
inaccurate? A tax preparer may not sign a return reporting clearly inaccurate information
or otherwise assist a taxpayer in filing an inaccurate return.
, H&R Block Final Review Exam Questions
With Solutions
A tax preparer may not sign a return reporting clearly inaccurate information or otherwise assist
a taxpayer in filing an inaccurate return. The dependent must be a qualifying child or
qualifying relative; they must be a U.S. citizen or a resident of the United States, Canada, or
Mexico; they cannot file a joint return (unless solely to claim a refund of taxes paid); and the
taxpayer claiming the dependent must not be a dependent of another taxpayer.
What are the five tests for a qualifying child? Relationship test.
Age test.
Residency test.
Support test.
Joint return test.
How can a married individual meet the joint return test to remain a qualifying child? They
can meet this test by not filing a joint return with their spouse, or they can file a joint return with
their spouse if they are filing only to claim a refund of any taxes withheld.
How can you determine who paid more than half of a person's support? The amount of
total support is reduced by the funds received for the person from all sources other than the
With Solutions
What information do you need to know to determine whether a taxpayer is required to file a
return? The taxpayer's marital status, age at the end of the tax year, gross income for the
year, and if the taxpayer is a dependent.
Where on Form 1040 can you find the regular standard deduction amounts? In the left-
hand margin on page 1 of Form 1040. They are: single and married filing separately, $12,200;
married filing jointly and qualifying widow(er), $24,400; and head of household, $18,350.
How much is added to the standard deduction if the taxpayer (or spouse) is age 65 or older, or
blind? $1,300 for married taxpayers and qualifying widow(er)s, or $1,650 for all other
unmarried taxpayers, is added for each condition.
What is the personal exemption amount for 2019? There is no personal exemption for
2019. A personal exemption was an amount previously allowed by law to reduce income that
would otherwise be taxed. The Tax Cuts and Jobs Act of 2017 repealed this deduction beginning
in 2018.
, H&R Block Final Review Exam Questions
With Solutions
How is the gross income filing requirement determined for most taxpayers? The
taxpayer's standard deduction, including the additional amounts for age and blindness. However,
for MFS, the amount is $5.
What is the difference between injured spouse allocation and innocent spouse relief? The
IRS provides an injured spouse allocation for the taxpayer to protect their portion of a refund
from a spouse's past-due federal income tax, unpaid student loans, or unpaid child and spousal
support, or state income tax.
The IRS provides innocent spouse relief to taxpayers who file a joint return and later learn that
their spouse has underestimated income (or overstated a credit or deduction) on the return.
What is a thorough interview? A thorough interview consists of asking general
information questions, then asking additional questions whenever information is incomplete or
seems inaccurate or inconsistent
What is a conflict of interest? Circular 230 states that a conflict of interest exists if the
representation of one client will be directly adverse to another client, or if there is a significant
risk that the representation of one or more clients will be materially limited by the practitioner's
responsibilities to another client, a former client, or a third person, or by a personal interest of the
practitioner.
, H&R Block Final Review Exam Questions
With Solutions
What actions can resolve a conflict of interest? A conflict of interest is resolved when it is
acknowledged, disclosed to all parties, and the parties have consented to waiving the conflict.
What taxpayer information is confidential? Any information that could potentially
identify the taxpayer is confidential. Information includes (but is not limited to) name, address
and phone number, social security number, place of employment, and any information from a tax
return.
What is a tax preparer's responsibility upon finding out that a taxpayer has not complied with one
or more tax laws? A tax preparer must only advise the taxpayer of the noncompliance and
the consequences for not correcting the situation. The taxpayer is the only individual who can
decide to make corrections to their return.
What action should a tax preparer take if a taxpayer insists on reporting information that is
inaccurate? A tax preparer may not sign a return reporting clearly inaccurate information
or otherwise assist a taxpayer in filing an inaccurate return.
, H&R Block Final Review Exam Questions
With Solutions
A tax preparer may not sign a return reporting clearly inaccurate information or otherwise assist
a taxpayer in filing an inaccurate return. The dependent must be a qualifying child or
qualifying relative; they must be a U.S. citizen or a resident of the United States, Canada, or
Mexico; they cannot file a joint return (unless solely to claim a refund of taxes paid); and the
taxpayer claiming the dependent must not be a dependent of another taxpayer.
What are the five tests for a qualifying child? Relationship test.
Age test.
Residency test.
Support test.
Joint return test.
How can a married individual meet the joint return test to remain a qualifying child? They
can meet this test by not filing a joint return with their spouse, or they can file a joint return with
their spouse if they are filing only to claim a refund of any taxes withheld.
How can you determine who paid more than half of a person's support? The amount of
total support is reduced by the funds received for the person from all sources other than the
