H&R Block HRB-27 2026 | Final Exam Q&A Pack |
Complete Prep | 100% Guaranteed Pass
1. Which of the following statements is correct with respect to Section 179
deductions?
All of these are correct statements.
It allows the firm to expense the asset immediately in the year of
purchase.
It was designed to help small businesses.
Most businesses can expense up to $108,000 of property placed in
service during each year.
2. What is the maximum time limit for filing an amended tax return after the
original filing date?
Five years from the original filing date
One year from the date of payment
Two years from the date of examination
Three years from the original filing date
3. Describe how the standard deduction is adjusted for taxpayers who are 65 or
older or blind.
The standard deduction is increased by $1,700 for taxpayers who
are 65 or older or blind.
The standard deduction remains the same regardless of age or
blindness.
The standard deduction is increased by $2,000 for taxpayers who are
65 or older or blind.
, The standard deduction is decreased for taxpayers who are 65 or
older or blind.
4. Describe the conditions under which a non-custodial parent can claim a
qualifying child for tax purposes.
A non-custodial parent can claim a qualifying child if the custodial
parent agrees and signs a form allowing the non-custodial parent to
do so.
A non-custodial parent can claim a child if they are the child's
biological parent.
A non-custodial parent can claim a child if the child lives with them for
at least six months.
A non-custodial parent can claim a child only if they provide financial
support for the child.
5. When a divorced taxpayer pays over half the cost of maintaining a home
where she and a dependent child lived for over half the year, she qualifies for
which filing status?
Qualifying widower
Single
Married filing separately
Head of household
6. Abed spent 1,000 hours during the year doing management tasks for a
partnership he's a part owner of. The tasks mainly included personnel
decisions, strategic planning, and project management. The partnership also
has a professional management team who each work 2,000 hours or more
during the year. Which of the following is TRUE for Abed based on the
material participation rule?
, Since others participate more than Abed he's deemed to be a passive
participant.
The material participation test doesn't apply, this is a portfolio asset
Since Abed spent more than 500 hours he's considered to materially
participate.
Since Abed is an owner he's automatically a passive participant
7. What is the definition of returns and allowances in the context of accounting?
Returns and allowances are the expenses incurred in the production
of goods.
Returns and allowances are additional charges applied to customers
for late payments.
Returns and allowances refer to reductions in sales revenue due to
returned goods or discounts given.
Returns and allowances are the total sales made by a business in a
given period.
8. Describe the purpose of Form 4868 in the context of tax filing.
Form 4868 is a form for reporting capital gains.
Form 4868 is a form for reporting self-employment income.
Form 4868 is used to request an automatic six-month extension to
file individual income tax returns.
Form 4868 is used to apply for tax credits.
9. What is the maximum amount an eligible educator can deduct for qualified
classroom expenses?
$1,000
, $250
$100
$500
10. An independent contractor receives which tax form from the contracting
party for income over $600?
Schedule C
Schedule K1
1099
W-2
11. For filing status purposes, the taxpayer's marital status is determined at what
point during the year?
The beginning of the year.
The end of the year.
The middle of the year.
None of the choices are correct.
12. What is the primary tax advantage of a Roth IRA compared to a traditional
IRA?
Tax-free withdrawals in retirement
Mandatory withdrawals at age 72
Higher contribution limits
Tax deductions on contributions
Complete Prep | 100% Guaranteed Pass
1. Which of the following statements is correct with respect to Section 179
deductions?
All of these are correct statements.
It allows the firm to expense the asset immediately in the year of
purchase.
It was designed to help small businesses.
Most businesses can expense up to $108,000 of property placed in
service during each year.
2. What is the maximum time limit for filing an amended tax return after the
original filing date?
Five years from the original filing date
One year from the date of payment
Two years from the date of examination
Three years from the original filing date
3. Describe how the standard deduction is adjusted for taxpayers who are 65 or
older or blind.
The standard deduction is increased by $1,700 for taxpayers who
are 65 or older or blind.
The standard deduction remains the same regardless of age or
blindness.
The standard deduction is increased by $2,000 for taxpayers who are
65 or older or blind.
, The standard deduction is decreased for taxpayers who are 65 or
older or blind.
4. Describe the conditions under which a non-custodial parent can claim a
qualifying child for tax purposes.
A non-custodial parent can claim a qualifying child if the custodial
parent agrees and signs a form allowing the non-custodial parent to
do so.
A non-custodial parent can claim a child if they are the child's
biological parent.
A non-custodial parent can claim a child if the child lives with them for
at least six months.
A non-custodial parent can claim a child only if they provide financial
support for the child.
5. When a divorced taxpayer pays over half the cost of maintaining a home
where she and a dependent child lived for over half the year, she qualifies for
which filing status?
Qualifying widower
Single
Married filing separately
Head of household
6. Abed spent 1,000 hours during the year doing management tasks for a
partnership he's a part owner of. The tasks mainly included personnel
decisions, strategic planning, and project management. The partnership also
has a professional management team who each work 2,000 hours or more
during the year. Which of the following is TRUE for Abed based on the
material participation rule?
, Since others participate more than Abed he's deemed to be a passive
participant.
The material participation test doesn't apply, this is a portfolio asset
Since Abed spent more than 500 hours he's considered to materially
participate.
Since Abed is an owner he's automatically a passive participant
7. What is the definition of returns and allowances in the context of accounting?
Returns and allowances are the expenses incurred in the production
of goods.
Returns and allowances are additional charges applied to customers
for late payments.
Returns and allowances refer to reductions in sales revenue due to
returned goods or discounts given.
Returns and allowances are the total sales made by a business in a
given period.
8. Describe the purpose of Form 4868 in the context of tax filing.
Form 4868 is a form for reporting capital gains.
Form 4868 is a form for reporting self-employment income.
Form 4868 is used to request an automatic six-month extension to
file individual income tax returns.
Form 4868 is used to apply for tax credits.
9. What is the maximum amount an eligible educator can deduct for qualified
classroom expenses?
$1,000
, $250
$100
$500
10. An independent contractor receives which tax form from the contracting
party for income over $600?
Schedule C
Schedule K1
1099
W-2
11. For filing status purposes, the taxpayer's marital status is determined at what
point during the year?
The beginning of the year.
The end of the year.
The middle of the year.
None of the choices are correct.
12. What is the primary tax advantage of a Roth IRA compared to a traditional
IRA?
Tax-free withdrawals in retirement
Mandatory withdrawals at age 72
Higher contribution limits
Tax deductions on contributions
