HR BLOCK INCOME TAX COURSE
COMPREHENSIVE SCRIPT 2026 ACCURATE
ANSWERS GRADED A+
⩥ Deductions. Answer: Amounts that may be subtracted from income
that is otherwise taxable.
⩥ Earned Income. Answer: Income from personal services as
distinguished from income generated by property or other sources.
Earned income includes all amounts received as wages, tips, bonuses,
other employee compensation, and self-employment income, whether in
the form of money, services, or property.
⩥ Federal Income Tax Withheld. Answer: The amount taken out of
income by the payer and submitted to the IRS as an advance payment of
the taxpayer's federal income tax.
⩥ Gross Income. Answer: Total worldwide income received in the form
of money, property, or services that is subject to tax.
⩥ Medicare Part A. Answer: Medicare insurance for qualifying
individuals who are age 65 or older or disabled. Medicare Part A covers
hospital expenses, care in a skilled nursing facility, hospice care, and
some health care. Most participants do not pay a monthly premium for
this coverage if they or their spouse paid medicare taxes while working.
, ⩥ Nonrefundable Credit. Answer: A credit which cannot exceed the
taxpayer's tax liability
⩥ Excess Social Security Tax Withheld. Answer: The employee's share
of social security tax that was taken out of the employee's pay and
submitted along with the employer's share to the IRS by the employer.
The employee pays 6.2% and the employer pays 6.2% of the first
$132,900 of the employee's gross wages (for 2019).
⩥ Social Security Wages. Answer: Total wages paid to an employee that
are subject to this tax. This amount does not include tips. Wages are also
subject to medicare tax.
⩥ Tax Liability. Answer: The amount of total tax due to the IRS after
any credits and before taking into account any advance payments
(withholding, estimated payments, etc.) made by the taxpayer.
⩥ Taxable Income. Answer: Adjusted gross income, less itemized
deductions or the standard deduction, less the qualified business income
deduction, if applicable. This term is also used to refer to income that is
not exempt or excluded from taxation. For example, wages are taxable
income, but gifts are not.
⩥ Unearned Income. Answer: Taxable income other than that received
for services performed (earned income). Unearned income includes
COMPREHENSIVE SCRIPT 2026 ACCURATE
ANSWERS GRADED A+
⩥ Deductions. Answer: Amounts that may be subtracted from income
that is otherwise taxable.
⩥ Earned Income. Answer: Income from personal services as
distinguished from income generated by property or other sources.
Earned income includes all amounts received as wages, tips, bonuses,
other employee compensation, and self-employment income, whether in
the form of money, services, or property.
⩥ Federal Income Tax Withheld. Answer: The amount taken out of
income by the payer and submitted to the IRS as an advance payment of
the taxpayer's federal income tax.
⩥ Gross Income. Answer: Total worldwide income received in the form
of money, property, or services that is subject to tax.
⩥ Medicare Part A. Answer: Medicare insurance for qualifying
individuals who are age 65 or older or disabled. Medicare Part A covers
hospital expenses, care in a skilled nursing facility, hospice care, and
some health care. Most participants do not pay a monthly premium for
this coverage if they or their spouse paid medicare taxes while working.
, ⩥ Nonrefundable Credit. Answer: A credit which cannot exceed the
taxpayer's tax liability
⩥ Excess Social Security Tax Withheld. Answer: The employee's share
of social security tax that was taken out of the employee's pay and
submitted along with the employer's share to the IRS by the employer.
The employee pays 6.2% and the employer pays 6.2% of the first
$132,900 of the employee's gross wages (for 2019).
⩥ Social Security Wages. Answer: Total wages paid to an employee that
are subject to this tax. This amount does not include tips. Wages are also
subject to medicare tax.
⩥ Tax Liability. Answer: The amount of total tax due to the IRS after
any credits and before taking into account any advance payments
(withholding, estimated payments, etc.) made by the taxpayer.
⩥ Taxable Income. Answer: Adjusted gross income, less itemized
deductions or the standard deduction, less the qualified business income
deduction, if applicable. This term is also used to refer to income that is
not exempt or excluded from taxation. For example, wages are taxable
income, but gifts are not.
⩥ Unearned Income. Answer: Taxable income other than that received
for services performed (earned income). Unearned income includes
