H&R BLOCK INCOME TAX COURSE EXAM
UPDATED ACTUAL QUESTIONS AND CORRECT
ANSWERS
◉ Estimated Tax.
Answer: The amount of tax a taxpayer expects to owe for the year
after subtracting expected amounts withheld and certain refundable
credits.
◉ Estimated Tax Voucher.
Answer: A statement by an individual of (1) the amount of income
tax he estimates he will incur during the current taxable year on
income that is not subject to withholding, (2) the excess amount
over that withheld on income which is subject to withholding, and
(3) his estimated self-employment tax.
◉ Exemption from Withholding.
Answer: Status claimed on Form W-4 directing the employer not to
withhold federal income taxes from the employee.
◉ Underpayment Penalty.
,Answer: If a taxpayer did not pay enough tax on a timely basis
during the year, he may be required to pay an underpayment
penalty.
◉ Two Ways to Pay as You Go.
Answer: Withholding and Estimated Tax Payments
◉ Form W-4.
Answer: Employee's Withholding Allowance Certificate
◉ Form 4868.
Answer: Application for Automatic Extension of Time To File U.S.
Individual Income Tax Return
◉ Amended Return.
Answer: A tax return filed on Form 1040X after the original return
has been filed.
◉ Closed Year.
Answer: A tax year for which the statute of limitations has expired.
◉ Open Year.
,Answer: A taxable year for which the statute of limitations has not
yet expired.
◉ Failure-to-File Penalty.
Answer: Generally 5% for each month or part of a month the return
is late, but not more than 25% of the tax not paid.
◉ Failure to File.
Answer: Taxpayer fails to file the return by the due date, and there is
a balance due.
◉ Form 1040X.
Answer: Amended U.S. Individual Income Tax Return
◉ When can an amended return be filed?.
Answer: Within three years of the date the original return was filed,
or within two years of the date the tax was paid, whichever is later.
◉ Can the 1040X be e-filed?.
Answer: No.
◉ Portfolio Income and Losses.
, Answer: Those from such sources as dividends, interest, capital
gains and losses, and royalties.
◉ Schedule E.
Answer: Supplemental Income and Loss
◉ Royalty.
Answer: Payments received for the right to extract natural resources
from the taxpayer's property or to use a taxpayer's literary, musical,
or artistic creation.
◉ Annuity.
Answer: A series of payments under a contract made at regular
intervals over a period of more than one year.
◉ Beneficiary.
Answer: The owner or recipient of funds in an account, such as an
IRA, or from an insurance policy or will.
◉ Contribution.
Answer: When a person puts money into a retirement plan.
◉ Defined Benefit Plan.
UPDATED ACTUAL QUESTIONS AND CORRECT
ANSWERS
◉ Estimated Tax.
Answer: The amount of tax a taxpayer expects to owe for the year
after subtracting expected amounts withheld and certain refundable
credits.
◉ Estimated Tax Voucher.
Answer: A statement by an individual of (1) the amount of income
tax he estimates he will incur during the current taxable year on
income that is not subject to withholding, (2) the excess amount
over that withheld on income which is subject to withholding, and
(3) his estimated self-employment tax.
◉ Exemption from Withholding.
Answer: Status claimed on Form W-4 directing the employer not to
withhold federal income taxes from the employee.
◉ Underpayment Penalty.
,Answer: If a taxpayer did not pay enough tax on a timely basis
during the year, he may be required to pay an underpayment
penalty.
◉ Two Ways to Pay as You Go.
Answer: Withholding and Estimated Tax Payments
◉ Form W-4.
Answer: Employee's Withholding Allowance Certificate
◉ Form 4868.
Answer: Application for Automatic Extension of Time To File U.S.
Individual Income Tax Return
◉ Amended Return.
Answer: A tax return filed on Form 1040X after the original return
has been filed.
◉ Closed Year.
Answer: A tax year for which the statute of limitations has expired.
◉ Open Year.
,Answer: A taxable year for which the statute of limitations has not
yet expired.
◉ Failure-to-File Penalty.
Answer: Generally 5% for each month or part of a month the return
is late, but not more than 25% of the tax not paid.
◉ Failure to File.
Answer: Taxpayer fails to file the return by the due date, and there is
a balance due.
◉ Form 1040X.
Answer: Amended U.S. Individual Income Tax Return
◉ When can an amended return be filed?.
Answer: Within three years of the date the original return was filed,
or within two years of the date the tax was paid, whichever is later.
◉ Can the 1040X be e-filed?.
Answer: No.
◉ Portfolio Income and Losses.
, Answer: Those from such sources as dividends, interest, capital
gains and losses, and royalties.
◉ Schedule E.
Answer: Supplemental Income and Loss
◉ Royalty.
Answer: Payments received for the right to extract natural resources
from the taxpayer's property or to use a taxpayer's literary, musical,
or artistic creation.
◉ Annuity.
Answer: A series of payments under a contract made at regular
intervals over a period of more than one year.
◉ Beneficiary.
Answer: The owner or recipient of funds in an account, such as an
IRA, or from an insurance policy or will.
◉ Contribution.
Answer: When a person puts money into a retirement plan.
◉ Defined Benefit Plan.
