H&R BLOCK QUESTIONS AND ANSWERS ALREADY PASSED

H&R BLOCK QUESTIONS AND ANSWERS ALREADY PASSED Where should unemployment compensation be reported on Form 1040? Schedule 1, line 7 What form is used to report long-term disability benefits to the taxpayer? 1099-R Which of the following nondependent taxpayers is NOT eligible to claim the student loan interest deduction? A taxpayer filing married filing separately Which qualifying child requirement does Morris fail? Morris, the potential dependent, is a single 20-year-old man. He is a full-time student at the local university. He lives on campus and returns home on most weekends, holidays and summer break. He is the son of Susie and Toby, who are planning to claim him as a dependent. They are not dependents of another taxpayer. Everyone is a U.S. citizen. His total support was $8,000 for the year. He had a student loan for $4,000. He provided $1,500 towards his support, and his parents provided $2,500 of his support. Morris was the only one responsible for the student loan. Support Which qualifying child requirement does Jack fail? Jack,19, is the nephew of Angie. He moved in with Angie June 15, 2021. He worked part-time during the year and netted $5,600. He spent it all on himself during the year. His total support for the year was $12,000. His aunt paid $4,000 and his parents paid $2,400. Jack is single. No one can claim Angie as a dependent, and they are both U.S. citizens. Age Which qualifying relative dependent requirement does Guadalupe fail? Guadalupe, 66, is Mario's father. Guadalupe lives in Mexico. Guadalupe earns $5,000 in wages and spends it all on his support. Mario paid his father's medical bills and rent. Mario spent a total of $8,100 on his father. Gross income Which person would have to live with the taxpayer the entire year to pass the Relationship/Member of Household requirement of a qualifying relative? Brandon, the first cousin of Kevin Which type of dependent is Sally, and for what credit does she qualify? Sally, 18, is the single daughter of Laverne and Spencer. They all lived together in the same home which included Sally's sister, Sheila. They are all U.S. citizens. No one can claim Laverne or Spencer as dependents. Sally worked part-time and spent all of her income on her personal needs and entertainment. She spent a total of $1,300. Her parents provided the remainder of her support, which totaled $12,500. Qualifying Child and Other Dependent Credit Which of the following dependents, who are claimed as qualifying relatives and lived with the taxpayer all year, do NOT qualify an unmarried taxpayer for the head of household filing status? Cousin Which of the following qualifying relatives does NOT have to live with the unmarried taxpayer to qualify them for the head of household filing status? Parent Which of the following is NOT included in the cost of maintaining a household? Rental value of a home owned by the taxpayer The IRS defines the custodial parent as the parent with whom the child spent more what? Nights Which of the following tax benefits will travel to the noncustodial parent when using the rules for divorced or separated parents? Other Dependent Credit In 2021, Armando incurred several medical expenses. These are the items he paid: After-tax annual premiums for hospitalization ($905) After-tax annual medical insurance premiums ($625) Pre-tax annual health insurance premiums ($7,890) Cancer policy which pays out a guaranteed amount for each day (or week) during any time he is hospitalized for sickness or injury ($300). Prescription drug ($257) he takes for allergies. This is the amount he paid after reimbursement. A weight loss program ($895) he started in November 2021 in support of his girlfriend. How much of Armando's medical expenses qualify to be deductible on his 2021 tax return? $1,787 Tina won $2,200 from an instant lottery ticket and another $1,800 at the local casino playing slot machines and table poker. She had $4,500 in gambling losses. She has documentation to support these losses. If Tina's 2021 adjusted gross income was $40,000, how much may she deduct in gambling losses on her Schedule A? $4,000 Jasmine donated a stove that she purchased for $1,950. Fair market value (FMV) at the time of her donation was $475. What is her deduction? $475 Which of the following is a requirement for all taxpayers wanting to claim the Earned Income Credit (EIC)? Have a valid social security number Which statement is true? If a taxpayer claiming the Earned Income Credit (EIC) has investment income, that investment income must be: $10,000 or less Which statement is true for claiming the 2021 Earned Income Credit (EIC)? The taxpayer may use the 2019 earned income if it is: Higher than the 2021 earned income Which of the following is a requirement for a taxpayer to claim the 2021 Child Tax Credit (CTC)? The qualifying child must have a social security number (SSN) valid for employment in the U.S. and issued before the due date of the 2021 tax return (including extensions). Which statement is true about the due diligence penalty for a tax preparer concerning due diligence failure with the Earned Income Credit (EIC) and the Child Tax Credit (CTC)? A tax preparer may be penalized: $545 for each failure to meet the Child Tax Credit and Earned Income Credit due diligence requirements for a total of $1,090 per tax return. Refundable credits are more valuable than nonrefundable credits. True or False True The Credit for the Elderly or the Disabled is a credit used quite often. True or False False Which of the following tax benefits will never travel to the noncustodial parent? The Child and Dependent Care Credit Where are the Dependent Care Benefits reported to an employee on their Form W-2? Box 10 Which of the following items is considered earned income for the Child and Dependent Care Credit? Strike benefits reported as wages Dwayne (20) is a full-time student eligible to be claimed as a dependent on his father's return. This year, Dwayne incurred $1,600 in education expenses for his tuition. If Dwayne's father chooses not to claim Dwayne as a dependent on his return, which of the following is TRUE regarding Dwayne's return? Dwayne may be able to claim an education credit To qualify for the American Opportunity Tax Credit, the student must be enrolled: At least half-time for one academic period for the year. Which is true concerning the lifetime learning credit? The lifetime learning credit is available for any postsecondary education including courses taken to acquire or improve job skills. Which of the following terms is the same for the AOTC and lifetime learning credit? Eligible educational institution Which of the following is NOT an EIC due diligence requirement? Verification of employment To ensure an accurate return, tax preparers must do all of the following EXCEPT: Audit the return In the event of a conflict of interest, tax preparers subject to Circular 230 may still represent the clients under certain circumstances. All of the following apply, EXCEPT: The tax preparer reasonably believes they can provide competent and diligent representation to each affected client. IRS approval.