HR BLOCK EXAM STUDY GUIDE
2026/2027 ACCURATE QUESTIONS
WITH CORRECT DETAILED
SOLUTIONS ||
100% GUARANTEED PASS
<NEWEST VERSION>
1. List 4 Due Diligence Req's - ANSWER ✔ 1) Complete (forms)
2) Keep
3) Knowledge
4) Document
2. Earned income - ANSWER ✔ Wages, tips, commissions, farming & other
business income. $ for services
3. Unearned income - ANSWER ✔ Taxable income including investment
money, dividends, rents, royalties, pensions, alimony, unemployment (not
performing services)
4. Single filing requirements - ANSWER ✔ < 65 10,350
➢ 65 11,900
5. MFJ filing requirements - ANSWER ✔ <65. 20,700
>65. 21,950 (1 spouse)
>65. 23200 (2 spouses)
6. MFS Filing requirement - ANSWER ✔ 4050
7. Dependent filing requirement - ANSWER ✔ $1050 unearned income
8. HOH FILING REQUIREMENT - ANSWER ✔ <65 13,350
,>65 14900
9. When is marital status determined? - ANSWER ✔ Last day of tax year.
Or
Date of death if one spouse died
10.How much is added Ro standard deduction if taxpayer is 65+ or blind? -
ANSWER ✔ 1250 Married & QW
1550 Single & HOH
11.Personal exemption amount? - ANSWER ✔ 4050
12.2amounts added to decide gross income filing requirements - ANSWER ✔
Standard Deduction + Personal exemption
13.Taxpayers may begin depreicating qualifying assets on which of the
following dates? - ANSWER ✔ B. dates the asset is placed in serivce.
14.When preparing a tax return for a self-employed person, which fof the
followign forms would typically not be used? - ANSWER ✔ c. form W-2.
15.Estimated texes are computed and paid: - ANSWER ✔ b. Quartely.
16.Which statement about amended returns is true? - ANSWER ✔ C. An
amended return should ne supported with any additional or corrected form
that shows a change to the taxpyer's withholding
17.all of the followign are reasons to file an amended return except: -
ANSWER ✔ A. the taxpayer receives a notice from the IRS. the disagre
with the notice and beileve their orginial return was filed correctly
18.Which taxpayer is subject to the faliure-ro-file penalty for not filing their
2019 federal income tax return by the due date? - ANSWER ✔ C. Olivia,
who has a $175 balance due. She requested an extension and paid $2,500 on
April 12,2020. She filed her return on October 1, 2020.
,19.A taxpayer who underpays their tax due to negligence or disregard of the
rules to subject to a penalty of. - ANSWER ✔ d. 20 % of the
underpayment.
20.Which taxpayer should file an amended return? - ANSWER ✔ B. Deleah.
After she timely filed her 2019 return, she discovered that she had neglected
to report $980 in income from a job she only held for two weeks that year.
21.Which type of their children's income can a parent elect to include on their
own return?> - ANSWER ✔ B. Interest and divdends less than $11,000
22.Which of the follwing taxpayers is not required to file a tax return? a single
taxpayer with: - ANSWER ✔ B. Wages of $10,000 and withholding of
$100.
23.Which of the following is not considered gross income? - ANSWER ✔ D.
Gifty.
24.The standard deduction for the single filing status is allowed to be increased
by how much for blindness? - ANSWER ✔ D. $1,1650.
25.What types of income are nonpassive income? - ANSWER ✔ Examples
include: portfolio income, income from personal services, state and local tax
refunds, income from intangible property where the taxpayer contributed to
creating the property, Alaska Permanent Fund dividends, income or gain
from investments of working capital, hobby income, and gambling income.
26.What are the loss limitations for taxpayers who actively participate in rental
activities? - ANSWER ✔ Taxpayers who actively participate in rental real
estate activities may deduct up to $25,000 of net losses. The deduction is
lower for taxpayers using the MFS filing status. Other limitations apply.
Taxpayers whose modifed AGI is $150,000 ($75,000 if MFS) or more may
not claim the deduction, and the deduction begins to phase out if the
taxpayer's modified AGI exceeds $100,000 ($50,000 if MFS).
27.Are all taxpayers who have rental income eligible for the qualified business
income deduction? - ANSWER ✔ No, a rental activity must rise to the
level of a trade or business before a taxpayer may claim the qualified
, business income deduction. However, determining whether a rental activity
rises to the level of a trade or business under Section 162 of the Internal
Revenue Code can be complicated, since the determination is based on the
specific facts and circumstances for each taxpayer.
28.To simplify this determination for tax preparers, the IRS has also outlined
safe harbor requirements. However, only taxpayers who meet all the safe
harbor requirements may qualify for the deduction using the safe harbor.
Remember though, a taxpayer who does not meet all of the safe harbor
requirements may still qualify for the qualified business income deduction if
the facts and circumstances clearly indicate that the activity rises to the level
of a trade or business. It is up to the tax preparer to use their expertise to
determine whether or not to use the safe harbor.
29.If a taxpayer is subject to both the failure-to-file and failure-to-pay penalty,
how is the combined penalty calculated? - ANSWER ✔ The failure-to-file
penalty for that month is reduced by the failure-to-pay penalty for that
month for a combined penalty of 5% of the unpaid taxes.
30.In what situations does the 20% accuracy penalty apply? - ANSWER ✔
The 20% penalty applies if any of the following are involved:
31.Negligence or intentional disregard of the rules and regulations.
Substantial understatement of income tax.
Substantial misstatement of valuation.
Substantial overstatement of pension liabilities.
Substantial estate or gift tax valuation understatement.
Disallowance of benefits claimed for a transaction that lacks economic
substance.
Undisclosed foreign financial assets.
Inconsistent estate basis.
32.When will the IRS pay interest on refunds? - ANSWER ✔ If the refund is
paid more than 45 days after the due date of the return or more than 45 days
from the date of filing (whichever is later).
33.If a taxpayer receives an adjustment letter from the IRS showing a balance
due, is an amended return always required? - ANSWER ✔ No. If the
taxpayer agrees with the adjustment, they may simply pay the balance due.
2026/2027 ACCURATE QUESTIONS
WITH CORRECT DETAILED
SOLUTIONS ||
100% GUARANTEED PASS
<NEWEST VERSION>
1. List 4 Due Diligence Req's - ANSWER ✔ 1) Complete (forms)
2) Keep
3) Knowledge
4) Document
2. Earned income - ANSWER ✔ Wages, tips, commissions, farming & other
business income. $ for services
3. Unearned income - ANSWER ✔ Taxable income including investment
money, dividends, rents, royalties, pensions, alimony, unemployment (not
performing services)
4. Single filing requirements - ANSWER ✔ < 65 10,350
➢ 65 11,900
5. MFJ filing requirements - ANSWER ✔ <65. 20,700
>65. 21,950 (1 spouse)
>65. 23200 (2 spouses)
6. MFS Filing requirement - ANSWER ✔ 4050
7. Dependent filing requirement - ANSWER ✔ $1050 unearned income
8. HOH FILING REQUIREMENT - ANSWER ✔ <65 13,350
,>65 14900
9. When is marital status determined? - ANSWER ✔ Last day of tax year.
Or
Date of death if one spouse died
10.How much is added Ro standard deduction if taxpayer is 65+ or blind? -
ANSWER ✔ 1250 Married & QW
1550 Single & HOH
11.Personal exemption amount? - ANSWER ✔ 4050
12.2amounts added to decide gross income filing requirements - ANSWER ✔
Standard Deduction + Personal exemption
13.Taxpayers may begin depreicating qualifying assets on which of the
following dates? - ANSWER ✔ B. dates the asset is placed in serivce.
14.When preparing a tax return for a self-employed person, which fof the
followign forms would typically not be used? - ANSWER ✔ c. form W-2.
15.Estimated texes are computed and paid: - ANSWER ✔ b. Quartely.
16.Which statement about amended returns is true? - ANSWER ✔ C. An
amended return should ne supported with any additional or corrected form
that shows a change to the taxpyer's withholding
17.all of the followign are reasons to file an amended return except: -
ANSWER ✔ A. the taxpayer receives a notice from the IRS. the disagre
with the notice and beileve their orginial return was filed correctly
18.Which taxpayer is subject to the faliure-ro-file penalty for not filing their
2019 federal income tax return by the due date? - ANSWER ✔ C. Olivia,
who has a $175 balance due. She requested an extension and paid $2,500 on
April 12,2020. She filed her return on October 1, 2020.
,19.A taxpayer who underpays their tax due to negligence or disregard of the
rules to subject to a penalty of. - ANSWER ✔ d. 20 % of the
underpayment.
20.Which taxpayer should file an amended return? - ANSWER ✔ B. Deleah.
After she timely filed her 2019 return, she discovered that she had neglected
to report $980 in income from a job she only held for two weeks that year.
21.Which type of their children's income can a parent elect to include on their
own return?> - ANSWER ✔ B. Interest and divdends less than $11,000
22.Which of the follwing taxpayers is not required to file a tax return? a single
taxpayer with: - ANSWER ✔ B. Wages of $10,000 and withholding of
$100.
23.Which of the following is not considered gross income? - ANSWER ✔ D.
Gifty.
24.The standard deduction for the single filing status is allowed to be increased
by how much for blindness? - ANSWER ✔ D. $1,1650.
25.What types of income are nonpassive income? - ANSWER ✔ Examples
include: portfolio income, income from personal services, state and local tax
refunds, income from intangible property where the taxpayer contributed to
creating the property, Alaska Permanent Fund dividends, income or gain
from investments of working capital, hobby income, and gambling income.
26.What are the loss limitations for taxpayers who actively participate in rental
activities? - ANSWER ✔ Taxpayers who actively participate in rental real
estate activities may deduct up to $25,000 of net losses. The deduction is
lower for taxpayers using the MFS filing status. Other limitations apply.
Taxpayers whose modifed AGI is $150,000 ($75,000 if MFS) or more may
not claim the deduction, and the deduction begins to phase out if the
taxpayer's modified AGI exceeds $100,000 ($50,000 if MFS).
27.Are all taxpayers who have rental income eligible for the qualified business
income deduction? - ANSWER ✔ No, a rental activity must rise to the
level of a trade or business before a taxpayer may claim the qualified
, business income deduction. However, determining whether a rental activity
rises to the level of a trade or business under Section 162 of the Internal
Revenue Code can be complicated, since the determination is based on the
specific facts and circumstances for each taxpayer.
28.To simplify this determination for tax preparers, the IRS has also outlined
safe harbor requirements. However, only taxpayers who meet all the safe
harbor requirements may qualify for the deduction using the safe harbor.
Remember though, a taxpayer who does not meet all of the safe harbor
requirements may still qualify for the qualified business income deduction if
the facts and circumstances clearly indicate that the activity rises to the level
of a trade or business. It is up to the tax preparer to use their expertise to
determine whether or not to use the safe harbor.
29.If a taxpayer is subject to both the failure-to-file and failure-to-pay penalty,
how is the combined penalty calculated? - ANSWER ✔ The failure-to-file
penalty for that month is reduced by the failure-to-pay penalty for that
month for a combined penalty of 5% of the unpaid taxes.
30.In what situations does the 20% accuracy penalty apply? - ANSWER ✔
The 20% penalty applies if any of the following are involved:
31.Negligence or intentional disregard of the rules and regulations.
Substantial understatement of income tax.
Substantial misstatement of valuation.
Substantial overstatement of pension liabilities.
Substantial estate or gift tax valuation understatement.
Disallowance of benefits claimed for a transaction that lacks economic
substance.
Undisclosed foreign financial assets.
Inconsistent estate basis.
32.When will the IRS pay interest on refunds? - ANSWER ✔ If the refund is
paid more than 45 days after the due date of the return or more than 45 days
from the date of filing (whichever is later).
33.If a taxpayer receives an adjustment letter from the IRS showing a balance
due, is an amended return always required? - ANSWER ✔ No. If the
taxpayer agrees with the adjustment, they may simply pay the balance due.
