H&R Block Test Sample Questions with Complete Solutions Which of the following is an example of a casualty and/or theft loss? Termite damage Misplaced property Damage or loss from a terrorist attack Property broken through ordinary use Damage or loss f

H&R Block 2024 Scenarios Questions and Answers Rated A+ Carolyn earned $52,000 as a full-time employee in 2018. Due to procrastination and denial, she did not prepare her 2018 income tax return until June 23, 2019. Carolyn did not file the return until August 1, 2019. She did not request an extension of time to file. Her return showed a balance due of $1,500. What is her penalty? The IRS assesses a late filing penalty for four months. Carolyn's penalty is $300 [5% x 4 x $1,500]. Julie filed her 2018 income tax return on April 15, 2019, with a balance due of $400. Due to some unforeseen car expenses, she did not have the funds available to pay the tax due at the time she filed. She paid $200 of the tax liability on July 15, 2019, and the balance on October 15, 2019. What is her penalty? Julie's total penalty is $9: Her late penalty until July 15 is $6 [0.5% x 3 x $400 = $6]. Her late penalty from July to October 15 is $3 [0.5% x 3 x $200 = $3]. Rhonda married Jake in 2018. Jake has not been paying on his student loans and they are in default. He owes a few thousand dollars on them still. Rhonda is not legally obligated to pay his student loans. She worked all year and had income tax withheld. She wants to receive her portion of their tax refund. What should she do? Rhonda would file Form 8379 with their tax return to request her injured spouse allocation. Ron (35) and Sue (35) are married and have two children, Todd (8) and Tracy (6). Neither child has income. Stacy (13), Sue's child from a previous marriage, came to live with them on July 4, 2018. Prior to moving in with Ron and Sue, Stacy was supported by and lived with her father. Who, if anyone, can be a QC or QR for Ron and Sue? Todd and Tracy are qualifying children of Ron and Sue. Stacy is neither a qualifying child nor a qualifying relative of Ron and Sue. Because she lived with her father for more than six months, she cannot be a qualifying child for Sue (residency test) and is not a qualifying relative of Ron and Sue (qualifying child test). Dale (25) is single. His brother, Jeff (27), lived with him for all of 2018. Jeff earned $3,100, all from wages, and had no other income. Dale provided more than half of Jeff's support. Jeff is not permanently or totally disabled. No one else lived with Dale. Can Dale claim Jeff as a qualifying relative? Jeff meets all of the tests for a qualifying relative. Harold and Helen are married and have a son, Hank (22). Hank is a full-time student at Your City College. Hank earned $4,000, all from wages, and had no other income. Harold and Helen provided 40% of Hank's support, and his grandma also provided 40% of Hank's support. Hank lives on campus while school is in session. During the summer, Hank lives with Harold and Helen. Hank provided 20% of his own support. Is Hank QC, QR, or neither? QC. Hank meets all of the tests for a qualifying child. Megan (27) is single. Her cousin, Pam (29), moved in with her in February of 2018. Pam earned $3,600, all from wages, and had no other income. Megan provided 60% of Pam's support. Pam is not permanently or totally disabled. No one else lived with Megan. Is Pam QC, QR, or neither? Neither. Pam did not live with Megan the entire year, and cousins do not meet the relationship test for qualifying child or relative. Martin is single. His mother, Agnes (61), came to live with him in August of 2018. Agnes earned $14,100, all from wages, and had no other income. Martin provided 25% of Agnes' support. Agnes is not permanently or totally disabled. No one else lived with Martin. Can Agnes be claimed as a dependent by Martin? No. Agnes did not meet the qualifying relative gross income and support tests to claim Agnes as a qualifying relative dependent on his return. Teresa is single. Her daughter, Roberta (21), lived with her for all of 2018. Roberta is not a full- time student. Roberta earned $1,800, all from wages, and had no other income. Teresa provided 75% of Roberta's support. Roberta is not permanently or totally disabled. No one else lived with Teresa. Is Roberta QC, QR, or Neither? QR. Roberta does not qualify as a qualifying child, because her age is over 18 and she is not a full-time student. She does, however, meet all of the tests for a qualifying relative. George and Amanda are married and adopted a daughter, Sue Linn (4). The adoption was finalized in February of 2018, and Sue Linn came to live with George and Amanda that same month. Sue Linn had no income and did not provide half of her own support. Is Sue Linn QC, QD, or Neither. QC. An adoptive daughter is treated the same as a birth daughter would be treated. Sue Linn meets all of the tests for a qualifying child. Mike (33) and Janet (34) are not married but lived together for all of 2018. Mike provided the total support of the home, as Janet had no income. Living with them all year were Janet's two children, Tim (12) and Sally (9). Neither child had any income. Sally's father is Mike's brother. When Mike files his return, will Sally qualify as his QC, QR, or neither? Since Sally is Mike's niece and meets all other requirements, Sally is Mike's qualifying child. Scott has a son, Jeremy, who is 17 years old at the end of 2018. Jeremy is a citizen of the United States and qualifies as a dependent on Scott's 2018 tax return. Can Scott claim CTC for Jeremy? Jeremy is not a qualifying child for the Child Tax Credit because he was not under age 17 at the end of 2018. Emanuella's daughter, Gabriela, was 8 years old at the end of 2018. Gabriela is not a citizen of the United States, has an Individual Taxpayer Identification Number (ITIN), and lived in Mexico for all of 2018. Is Gabriela a qualifying child for CTC? Gabriela is not a qualifying child for the Child Tax Credit because she was not a U.S.