JACKSON HEWITT TAX PREP EXAM COMPLETE QUESTIONS AND
CORRECT ANSWERS (LATEST) 2026
SECTION 1: FILING REQUIREMENTS AND STATUS
Question 1: To determine if an independent taxpayer is required to file a tax return, what three factors
must you know?
A) Filing status, age, and gross income
B) Filing status, number of dependents, and deductions
C) Age, marital status, and employment history
D) Gross income, deductions, and credits
Correct ANSWER: A) Filing status, age, and gross income
Rationale: The IRS requires knowledge of these three key factors to determine filing requirements. Filing
status affects standard deduction amounts and tax brackets. Age determines if the taxpayer qualifies for
additional standard deduction amounts. Gross income determines if the taxpayer meets the minimum
income threshold requiring a return. Options B, C, and D include additional factors that are not primary
determinants for basic filing requirements, though they may affect other aspects of tax preparation.
Question 2: By what date is a taxpayer's age determined for tax purposes?
A) January 1st of the tax year
B) April 15th of the tax year
C) December 31st of the tax year
D) The date they file their return
,Correct ANSWER: C) December 31st of the tax year
Rationale: The IRS determines a taxpayer's age as of December 31st of the tax year for filing purposes.
This is consistent with how most age-based tax provisions are calculated. Option A is incorrect because
January 1st is the start of the tax year. Option B is incorrect as April 15th is the filing deadline. Option D
is incorrect because filing date varies by taxpayer and cannot serve as a standard determination date.
Question 3: What is the exception to the December 31st taxpayer age determination rule?
A) The taxpayer is considered 65 on December 31st if their 65th birthday is January 1st of the next year
B) The taxpayer is considered 65 on December 31st if their 65th birthday is December 31st
C) The taxpayer is considered 65 on December 31st if their 65th birthday is January 31st of the next year
D) The taxpayer is considered 65 on January 1st if their 65th birthday is December 31st
Correct ANSWER: A) The taxpayer is considered 65 on December 31st if their 65th birthday is January
1st of the next year
Rationale: This special exception allows taxpayers born on January 1st to be considered age 65 for the
previous tax year. This ensures they receive the additional standard deduction for age in the tax year
preceding their birthday. Option B is incorrect because a December 31st birthday follows the standard
rule. Option C has an incorrect date. Option D reverses the rule incorrectly.
Question 4: What is the definition of gross income for tax purposes?
A) All income received by a taxpayer, including exempt income
B) All income received that is not exempt from tax, including earned and unearned income, property,
and services
C) Only wages earned from employment
D) Only investment income and interest
Correct ANSWER: B) All income received that is not exempt from tax, including earned and unearned
income, property, and services
,Rationale: Gross income encompasses all taxable income from all sources unless specifically exempted
by law. This includes compensation for services, business income, interest, dividends, rents, royalties,
and gains from property transactions. Option A incorrectly includes exempt income. Option C is too
narrow, excluding unearned income. Option D excludes earned income.
Question 5: Which of the following would be considered earned income?
A) Interest from a bank account
B) Wages from a job and money from self-employment
C) Unemployment benefits
D) Retirement income from a pension
Correct ANSWER: B) Wages from a job and money from self-employment
Rationale: Earned income specifically refers to compensation received for personal services performed.
This includes wages, salaries, tips, and income from self-employment. Options A, C, and D all represent
unearned income sources, which are not derived from active work.
Question 6: Which of the following would be considered unearned income?
A) Wages from a full-time job
B) Self-employment income
C) Tips received from customers
D) Interest from a bank account
Correct ANSWER: D) Interest from a bank account
Rationale: Unearned income is income derived from investments, government benefits, or retirement
sources rather than from active work. Bank interest is a classic example of unearned income. Options A,
B, and C all represent earned income derived from active work.
, Question 7: All of the following are considered unearned income EXCEPT:
A) Unemployment benefits
B) Retirement income
C) Pension payments
D) Salary from employment
Correct ANSWER: D) Salary from employment
Rationale: Salary from employment is earned income because it represents compensation for personal
services. Options A, B, and C are all forms of unearned income, as they derive from government benefits
or retirement accounts rather than current active work.
Question 8: To determine if a dependent taxpayer needs to file, what factors must you know?
A) Marital status, age, blindness, and income
B) Filing status, age, and gross income
C) Marital status, number of jobs, and deductions
D) Age, income, and education level
Correct ANSWER: A) Marital status, age, blindness, and income
Rationale: For dependent taxpayers, the filing requirements consider additional factors beyond those
for independent taxpayers. Marital status affects filing thresholds, age determines additional standard
deduction eligibility, blindness affects standard deduction amounts, and income determines if the filing
threshold is met. Option B is for independent taxpayers. Options C and D include irrelevant factors.
Question 9: Where is dependent information entered on a tax return?
CORRECT ANSWERS (LATEST) 2026
SECTION 1: FILING REQUIREMENTS AND STATUS
Question 1: To determine if an independent taxpayer is required to file a tax return, what three factors
must you know?
A) Filing status, age, and gross income
B) Filing status, number of dependents, and deductions
C) Age, marital status, and employment history
D) Gross income, deductions, and credits
Correct ANSWER: A) Filing status, age, and gross income
Rationale: The IRS requires knowledge of these three key factors to determine filing requirements. Filing
status affects standard deduction amounts and tax brackets. Age determines if the taxpayer qualifies for
additional standard deduction amounts. Gross income determines if the taxpayer meets the minimum
income threshold requiring a return. Options B, C, and D include additional factors that are not primary
determinants for basic filing requirements, though they may affect other aspects of tax preparation.
Question 2: By what date is a taxpayer's age determined for tax purposes?
A) January 1st of the tax year
B) April 15th of the tax year
C) December 31st of the tax year
D) The date they file their return
,Correct ANSWER: C) December 31st of the tax year
Rationale: The IRS determines a taxpayer's age as of December 31st of the tax year for filing purposes.
This is consistent with how most age-based tax provisions are calculated. Option A is incorrect because
January 1st is the start of the tax year. Option B is incorrect as April 15th is the filing deadline. Option D
is incorrect because filing date varies by taxpayer and cannot serve as a standard determination date.
Question 3: What is the exception to the December 31st taxpayer age determination rule?
A) The taxpayer is considered 65 on December 31st if their 65th birthday is January 1st of the next year
B) The taxpayer is considered 65 on December 31st if their 65th birthday is December 31st
C) The taxpayer is considered 65 on December 31st if their 65th birthday is January 31st of the next year
D) The taxpayer is considered 65 on January 1st if their 65th birthday is December 31st
Correct ANSWER: A) The taxpayer is considered 65 on December 31st if their 65th birthday is January
1st of the next year
Rationale: This special exception allows taxpayers born on January 1st to be considered age 65 for the
previous tax year. This ensures they receive the additional standard deduction for age in the tax year
preceding their birthday. Option B is incorrect because a December 31st birthday follows the standard
rule. Option C has an incorrect date. Option D reverses the rule incorrectly.
Question 4: What is the definition of gross income for tax purposes?
A) All income received by a taxpayer, including exempt income
B) All income received that is not exempt from tax, including earned and unearned income, property,
and services
C) Only wages earned from employment
D) Only investment income and interest
Correct ANSWER: B) All income received that is not exempt from tax, including earned and unearned
income, property, and services
,Rationale: Gross income encompasses all taxable income from all sources unless specifically exempted
by law. This includes compensation for services, business income, interest, dividends, rents, royalties,
and gains from property transactions. Option A incorrectly includes exempt income. Option C is too
narrow, excluding unearned income. Option D excludes earned income.
Question 5: Which of the following would be considered earned income?
A) Interest from a bank account
B) Wages from a job and money from self-employment
C) Unemployment benefits
D) Retirement income from a pension
Correct ANSWER: B) Wages from a job and money from self-employment
Rationale: Earned income specifically refers to compensation received for personal services performed.
This includes wages, salaries, tips, and income from self-employment. Options A, C, and D all represent
unearned income sources, which are not derived from active work.
Question 6: Which of the following would be considered unearned income?
A) Wages from a full-time job
B) Self-employment income
C) Tips received from customers
D) Interest from a bank account
Correct ANSWER: D) Interest from a bank account
Rationale: Unearned income is income derived from investments, government benefits, or retirement
sources rather than from active work. Bank interest is a classic example of unearned income. Options A,
B, and C all represent earned income derived from active work.
, Question 7: All of the following are considered unearned income EXCEPT:
A) Unemployment benefits
B) Retirement income
C) Pension payments
D) Salary from employment
Correct ANSWER: D) Salary from employment
Rationale: Salary from employment is earned income because it represents compensation for personal
services. Options A, B, and C are all forms of unearned income, as they derive from government benefits
or retirement accounts rather than current active work.
Question 8: To determine if a dependent taxpayer needs to file, what factors must you know?
A) Marital status, age, blindness, and income
B) Filing status, age, and gross income
C) Marital status, number of jobs, and deductions
D) Age, income, and education level
Correct ANSWER: A) Marital status, age, blindness, and income
Rationale: For dependent taxpayers, the filing requirements consider additional factors beyond those
for independent taxpayers. Marital status affects filing thresholds, age determines additional standard
deduction eligibility, blindness affects standard deduction amounts, and income determines if the filing
threshold is met. Option B is for independent taxpayers. Options C and D include irrelevant factors.
Question 9: Where is dependent information entered on a tax return?
