H&R BLOCK SPECIALIST TEST 2026
PRACTICE QUESTIONS AND CORRECT
ANSWERS WITH DETAILED
EXPLANATIONS TAX SPECIALIST STUDY
GUIDE
Melina purchased a $10,000 corporate bond on July 1, 2018. The bond has
a stated interest rate of 5%, payable annually on November 1. Since Melina
purchased the bond between interest payment dates the interest income
SCH B. Interest and Ordinary Dividends will be reported as
_____________. - CORRECT ANSWER-A. $251, the amount of interest
earned from July 1 through December 31.
B. $332, her proportionate share of the interest as taxable income. No
further adjustment is necessary
C. $500, the full interest payment, then minus $332, the amount of accrued
interest, as an adjustment
D. $500, the entire interest payment. No further adjustment is necessary,
as the amount of accrued interest was added to Melina's basis at the time of
purchase.
Answer: C
Donald (66) and Leah (62) file MFJ. Their income for 2018 is:
Donald - $13,876 - Social Security Benefits
Leah - $15,000 - Wages
Joint - $510 - Taxable interest income
,How much of Donald's social security income may be taxable? - CORRECT
ANSWER-A. $0
B. $6,938
C. $13,876
D. $22,448
Answer: A
In June 2017, Bill, a single taxpayer, purchased a home for $187,000. Later
that year, he added a new room at a cost of $28,400.
In May 2018, he sold the house for $473,000. The home served as his
primary residence for the entire time that he owned it. Bill's taxable gain on
the sale is ________________. - CORRECT ANSWER-A. $0
B. $7,600
C. $257,600
D. $286,000
Answer: C
Samuel (28), single taxpayer has earned income of $13,690. He lived in
Kansas City, MO all year. He cannot be claimed as a dependent on someone
else's 2018 tax return. What is the max amount Samuel may claim for the
Earned Income Tax Credit (EITC)? - CORRECT ANSWER-A. $0
B. $122
C. $126
D. $160
Answer: B
, In 2018,Raj. a self-employed consultant, spent $4,500 for qualifying health
coverage that he purchased directly from an insurance company. He is not
eligible to be covered under any other insurance plan. His net profit from
his business and the amount used to figure his SE tax, was $68,000. He
had no other earned income. How much can Raj deduct as an adjustment
for SE health insurance? - CORRECT ANSWER-A. $0
B. $2,250
C. $3,750
D. $4,500
Answer: D
All of the following are reported on SCH 1, line 21 EXCEPT: - CORRECT
ANSWER-A. Fees Received for services as a juror
B. Prizes and awards
C. Self-employment income
D. Hobby income
Answer: C
Janelle (32) is single and has self-only coverage. Assuming she meets all
requirements, what is the most she can contribute to a health savings
account for 2018? - CORRECT ANSWER-A. $2,600
B. $3,450
C. $4,450
D. $6,900
Answer: B
PRACTICE QUESTIONS AND CORRECT
ANSWERS WITH DETAILED
EXPLANATIONS TAX SPECIALIST STUDY
GUIDE
Melina purchased a $10,000 corporate bond on July 1, 2018. The bond has
a stated interest rate of 5%, payable annually on November 1. Since Melina
purchased the bond between interest payment dates the interest income
SCH B. Interest and Ordinary Dividends will be reported as
_____________. - CORRECT ANSWER-A. $251, the amount of interest
earned from July 1 through December 31.
B. $332, her proportionate share of the interest as taxable income. No
further adjustment is necessary
C. $500, the full interest payment, then minus $332, the amount of accrued
interest, as an adjustment
D. $500, the entire interest payment. No further adjustment is necessary,
as the amount of accrued interest was added to Melina's basis at the time of
purchase.
Answer: C
Donald (66) and Leah (62) file MFJ. Their income for 2018 is:
Donald - $13,876 - Social Security Benefits
Leah - $15,000 - Wages
Joint - $510 - Taxable interest income
,How much of Donald's social security income may be taxable? - CORRECT
ANSWER-A. $0
B. $6,938
C. $13,876
D. $22,448
Answer: A
In June 2017, Bill, a single taxpayer, purchased a home for $187,000. Later
that year, he added a new room at a cost of $28,400.
In May 2018, he sold the house for $473,000. The home served as his
primary residence for the entire time that he owned it. Bill's taxable gain on
the sale is ________________. - CORRECT ANSWER-A. $0
B. $7,600
C. $257,600
D. $286,000
Answer: C
Samuel (28), single taxpayer has earned income of $13,690. He lived in
Kansas City, MO all year. He cannot be claimed as a dependent on someone
else's 2018 tax return. What is the max amount Samuel may claim for the
Earned Income Tax Credit (EITC)? - CORRECT ANSWER-A. $0
B. $122
C. $126
D. $160
Answer: B
, In 2018,Raj. a self-employed consultant, spent $4,500 for qualifying health
coverage that he purchased directly from an insurance company. He is not
eligible to be covered under any other insurance plan. His net profit from
his business and the amount used to figure his SE tax, was $68,000. He
had no other earned income. How much can Raj deduct as an adjustment
for SE health insurance? - CORRECT ANSWER-A. $0
B. $2,250
C. $3,750
D. $4,500
Answer: D
All of the following are reported on SCH 1, line 21 EXCEPT: - CORRECT
ANSWER-A. Fees Received for services as a juror
B. Prizes and awards
C. Self-employment income
D. Hobby income
Answer: C
Janelle (32) is single and has self-only coverage. Assuming she meets all
requirements, what is the most she can contribute to a health savings
account for 2018? - CORRECT ANSWER-A. $2,600
B. $3,450
C. $4,450
D. $6,900
Answer: B
