H&R BLOCK INCOME TAX COURSE EXAM 2026/2027 | 100%
Correct Answers with Complete Solutions | IRS Tax Code
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Graded
Domain 1: Filing Status & Personal Exemptions (15 Questions)
Q1: Sarah, age 45, was legally married to Michael on December 31, 2026. They lived
together all year with their two children. Sarah wants to file separately to avoid being
responsible for Michael's tax liability. What is Sarah's correct filing status for 2026?
A. Single
B. Married Filing Jointly
C. Married Filing Separately [CORRECT]
D. Head of Household
Correct Answer: C
Rationale: Under IRC § 7703, marital status is determined as of the last day of the tax
year. Since Sarah was legally married on December 31, 2026, she cannot file as Single
(A is incorrect). While Married Filing Jointly (B) is generally more beneficial, Sarah has
the legal right to choose Married Filing Separately (C) to limit her liability for Michael's
taxes. Head of Household (D) is incorrect because Sarah does not meet the
requirements—she is married and living with her spouse, so she cannot be considered
unmarried for HOH purposes under IRC § 2(b). MFS status means Sarah will report only
her own income and deductions, though she may lose certain tax benefits available to
joint filers.
,Q2: David's spouse died in 2024. He has not remarried and maintains a household for
his dependent daughter, age 12. For 2026, what filing status should David use?
A. Single
B. Qualifying Widow(er) with Dependent Child [CORRECT]
C. Head of Household
D. Married Filing Jointly
Correct Answer: B
Rationale: Under IRC § 2(a), a taxpayer may file as Qualifying Widow(er) for the two
years following the year of spouse's death if they maintain a household for a dependent
child. Since David's spouse died in 2024, 2026 is the second year following death,
making him eligible for this status (B). This status provides the same tax rates and
standard deduction as Married Filing Jointly. Single (A) is incorrect because QW
provides better tax treatment. Head of Household (C) is incorrect because QW takes
precedence and offers more favorable tax brackets. Married Filing Jointly (D) is
incorrect because David's spouse is deceased and he cannot file jointly without a
deceased spouse election, which only applies in the year of death.
Q3: Lisa, age 35, is unmarried and pays more than half the cost of maintaining a home
where she lives with her mother, age 70, who has gross income of $3,500 from Social
Security and $2,000 from interest. What is Lisa's filing status?
A. Single
B. Married Filing Separately
,C. Head of Household [CORRECT]
D. Qualifying Widow(er)
Correct Answer: C
Rationale: Lisa qualifies for Head of Household status under IRC § 2(b). She is
unmarried, pays more than half the household costs, and her mother is a "qualifying
person" because she is Lisa's dependent parent (relationship test met). The mother's
gross income of $2,000 (taxable interest) is below the exemption amount, and Social
Security is not counted for the gross income test. Even if the mother is not a qualifying
dependent due to the gross income test, a parent does not need to live with the taxpayer
to qualify the taxpayer for HOH status if the taxpayer can claim the parent as a
dependent. Single (A) is incorrect because HOH provides better tax treatment. Married
Filing Separately (B) and Qualifying Widow(er) (D) are inapplicable as Lisa was never
married.
Q4: Which of the following taxpayers CANNOT file as Head of Household?
A. A single parent with a qualifying child who lives with them 365 days
B. A married person living apart from their spouse for the last 6 months of the year with
a qualifying child
C. A single taxpayer supporting a dependent cousin who lives with them all year
[CORRECT]
D. A taxpayer whose dependent parent lives in their own home, supported by the
taxpayer
Correct Answer: C
, Rationale: Under IRC § 2(b), Head of Household requires either a "qualifying child" or
"qualifying relative" who meets specific relationship tests. A cousin (C) does not meet
the relationship test for a qualifying relative under IRC § 152(d)(2)—qualifying relatives
must be either lineal ancestors/descendants, siblings (including steps/half), or in-laws.
Cousins are not listed relatives. Option A qualifies with a qualifying child. Option B
qualifies under the "abandoned spouse" rules (IRC § 7703(b))—treated as unmarried if
living apart for last 6 months. Option D qualifies because a dependent parent does not
need to live with the taxpayer. The distractor C represents a common error—taxpayers
often assume any supported relative qualifies for HOH, but the relationship test is strict.
Q5: Robert and Jennifer married on December 30, 2026. They have no dependents.
What filing status options are available to them for 2026?
A. Only Married Filing Jointly
B. Married Filing Jointly or Married Filing Separately [CORRECT]
C. Single or Married Filing Jointly
D. Single, Married Filing Jointly, or Married Filing Separately
Correct Answer: B
Rationale: Under IRC § 7703(a)(1), marital status is determined as of the last day of the
tax year. Since Robert and Jennifer were married on December 30, they are considered
married for the entire year 2026. They may choose either Married Filing Jointly or
Married Filing Separately (B). Single status (A, C, D) is never available to legally married
individuals at year-end. This is a common misconception—many taxpayers believe they
can file as single if married only a short time, but the IRS considers the entire year as
married.
Correct Answers with Complete Solutions | IRS Tax Code
Aligned | Federal Income Tax Prep | Pass Guaranteed - A+
Graded
Domain 1: Filing Status & Personal Exemptions (15 Questions)
Q1: Sarah, age 45, was legally married to Michael on December 31, 2026. They lived
together all year with their two children. Sarah wants to file separately to avoid being
responsible for Michael's tax liability. What is Sarah's correct filing status for 2026?
A. Single
B. Married Filing Jointly
C. Married Filing Separately [CORRECT]
D. Head of Household
Correct Answer: C
Rationale: Under IRC § 7703, marital status is determined as of the last day of the tax
year. Since Sarah was legally married on December 31, 2026, she cannot file as Single
(A is incorrect). While Married Filing Jointly (B) is generally more beneficial, Sarah has
the legal right to choose Married Filing Separately (C) to limit her liability for Michael's
taxes. Head of Household (D) is incorrect because Sarah does not meet the
requirements—she is married and living with her spouse, so she cannot be considered
unmarried for HOH purposes under IRC § 2(b). MFS status means Sarah will report only
her own income and deductions, though she may lose certain tax benefits available to
joint filers.
,Q2: David's spouse died in 2024. He has not remarried and maintains a household for
his dependent daughter, age 12. For 2026, what filing status should David use?
A. Single
B. Qualifying Widow(er) with Dependent Child [CORRECT]
C. Head of Household
D. Married Filing Jointly
Correct Answer: B
Rationale: Under IRC § 2(a), a taxpayer may file as Qualifying Widow(er) for the two
years following the year of spouse's death if they maintain a household for a dependent
child. Since David's spouse died in 2024, 2026 is the second year following death,
making him eligible for this status (B). This status provides the same tax rates and
standard deduction as Married Filing Jointly. Single (A) is incorrect because QW
provides better tax treatment. Head of Household (C) is incorrect because QW takes
precedence and offers more favorable tax brackets. Married Filing Jointly (D) is
incorrect because David's spouse is deceased and he cannot file jointly without a
deceased spouse election, which only applies in the year of death.
Q3: Lisa, age 35, is unmarried and pays more than half the cost of maintaining a home
where she lives with her mother, age 70, who has gross income of $3,500 from Social
Security and $2,000 from interest. What is Lisa's filing status?
A. Single
B. Married Filing Separately
,C. Head of Household [CORRECT]
D. Qualifying Widow(er)
Correct Answer: C
Rationale: Lisa qualifies for Head of Household status under IRC § 2(b). She is
unmarried, pays more than half the household costs, and her mother is a "qualifying
person" because she is Lisa's dependent parent (relationship test met). The mother's
gross income of $2,000 (taxable interest) is below the exemption amount, and Social
Security is not counted for the gross income test. Even if the mother is not a qualifying
dependent due to the gross income test, a parent does not need to live with the taxpayer
to qualify the taxpayer for HOH status if the taxpayer can claim the parent as a
dependent. Single (A) is incorrect because HOH provides better tax treatment. Married
Filing Separately (B) and Qualifying Widow(er) (D) are inapplicable as Lisa was never
married.
Q4: Which of the following taxpayers CANNOT file as Head of Household?
A. A single parent with a qualifying child who lives with them 365 days
B. A married person living apart from their spouse for the last 6 months of the year with
a qualifying child
C. A single taxpayer supporting a dependent cousin who lives with them all year
[CORRECT]
D. A taxpayer whose dependent parent lives in their own home, supported by the
taxpayer
Correct Answer: C
, Rationale: Under IRC § 2(b), Head of Household requires either a "qualifying child" or
"qualifying relative" who meets specific relationship tests. A cousin (C) does not meet
the relationship test for a qualifying relative under IRC § 152(d)(2)—qualifying relatives
must be either lineal ancestors/descendants, siblings (including steps/half), or in-laws.
Cousins are not listed relatives. Option A qualifies with a qualifying child. Option B
qualifies under the "abandoned spouse" rules (IRC § 7703(b))—treated as unmarried if
living apart for last 6 months. Option D qualifies because a dependent parent does not
need to live with the taxpayer. The distractor C represents a common error—taxpayers
often assume any supported relative qualifies for HOH, but the relationship test is strict.
Q5: Robert and Jennifer married on December 30, 2026. They have no dependents.
What filing status options are available to them for 2026?
A. Only Married Filing Jointly
B. Married Filing Jointly or Married Filing Separately [CORRECT]
C. Single or Married Filing Jointly
D. Single, Married Filing Jointly, or Married Filing Separately
Correct Answer: B
Rationale: Under IRC § 7703(a)(1), marital status is determined as of the last day of the
tax year. Since Robert and Jennifer were married on December 30, they are considered
married for the entire year 2026. They may choose either Married Filing Jointly or
Married Filing Separately (B). Single status (A, C, D) is never available to legally married
individuals at year-end. This is a common misconception—many taxpayers believe they
can file as single if married only a short time, but the IRS considers the entire year as
married.
