HR BLOCK COMPREHENSIVE TEST BANK VERIFIED QUESTIONS AND SOLUTIONS PACK

HR BLOCK COMPREHENSIVE TEST BANK
VERIFIED QUESTIONS AND SOLUTIONS
PACK

●● Standard Deduction
Answer: Set by statute. Included in calculating the Below-the-Line
deductions (for Taxable Income). Alternative is Itemized Deduction


●● Itemized Deduction
Answer: Sum of allowable deductions in calculating the Below-the-Line
deductions (for Taxable Income). Alternative is Standard Deduction


●● Tax Rate (Individuals) - Ordinary Income
Answer: 10% - 37%


●● Tax Rate (Individuals) - Net Gains / Qualified Dividends
Answer: 0% - 20% (sometimes) 20% - 28% (usually)


●● Alternative Minimum Tax Rate
Answer: 26% - 28%


●● Capital Gains

, Answer: Profit (or Loss) from the sale of property or investments
(preferential tax rate compared to Ordinary Income)


●● Adjusted Gross Income (AGI)
Answer: Gross Income - Deductions


●● Taxable Income
Answer: AGI - (Larger of Standard or Itemized Deduction)


●● Tentative Tax
Answer: Taxable Income (x) Tax Rate


●● Taxes Due (+) or Refund (-)
Answer: Tentative Tax - Credits


●● Refundable Tax Credit
Answer: Taxpayer can receive money through a refund


●● Nonrefundable Tax Credit
Answer: Tax is lowered to a possible $0. But no refund.


●● Title 26 (US. Code)