H&R Block Income Tax Course Exam
Questions With Solutions
Exemption from Withholding Status claimed on Form W-4 directing the employer not to
withhold federal income taxes from the employee.
Underpayment Penalty If a taxpayer did not pay enough tax on a timely basis during the
year, he may be required to pay an underpayment penalty.
Withholding Allowances An increase by which income tax withholding on certain income
is reduced.
Two Ways to Pay as You Go Withholding and Estimated Tax Payments
Form W-4 Employee's Withholding Allowance Certificate
Form 8815 Exclusion of Interest From Series EE and I U.S. Savings Bonds Issued After
1989
Form 2210 Underpayment of Estimated Tax by Individuals, Estates, and Trusts
, H&R Block Income Tax Course Exam
Questions With Solutions
Form 4868 Application for Automatic Extension of Time To File U.S. Individual Income
Tax Return
Form 8888 Allocation of Refund
Form 9465 Installment Agreement Request
Amended Return A tax return filed on Form 1040X after the original return has been filed.
Closed Year A tax year for which the statute of limitations has expired.
Open Year A taxable year for which the statute of limitations has not yet expired.
Failure-to-File Penalty Generally 5% for each month or part of a month the return is late,
but not more than 25% of the tax not paid.
, H&R Block Income Tax Course Exam
Questions With Solutions
Failure to File Taxpayer fails to file the return by the due date, and there is a balance due.
Failure to Pay Taxpayer fails to pay the tax owed by the due date.
Failure-to-Pay Penalty 0.5% of the unpaid taxes for each month or part of a month after
the due date, but not more than 25%.
Negligence or Intentional Disregard Taxpayer shows negligence or disregard of the rules
or regulations causing an underpayment.
Negligence-or-Intentional-Disregard Penalty 20% of the underpayment.
Substantial Understatment Taxpayer understates their tax by the larger of $5,000 or 10%
of the correct tax.
Substantial-Understatement Penalty 20% of the underpayment.
Form 1040X Amended U.S. Individual Income Tax Return
, H&R Block Income Tax Course Exam
Questions With Solutions
When can an amended return be filed? 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? No.
Household Employee An individual who performs nonbusiness services in a taxpayer's
home.
Active Income and Losses Those for which a taxpayer performs services.
Partnership A form of business in which two or more persons join their money and skills
in conducting the business as co-owners.
Passive Income and Losses Those from business activities in which the taxpayer does not
materially participate, and all rental activities.
Questions With Solutions
Exemption from Withholding Status claimed on Form W-4 directing the employer not to
withhold federal income taxes from the employee.
Underpayment Penalty If a taxpayer did not pay enough tax on a timely basis during the
year, he may be required to pay an underpayment penalty.
Withholding Allowances An increase by which income tax withholding on certain income
is reduced.
Two Ways to Pay as You Go Withholding and Estimated Tax Payments
Form W-4 Employee's Withholding Allowance Certificate
Form 8815 Exclusion of Interest From Series EE and I U.S. Savings Bonds Issued After
1989
Form 2210 Underpayment of Estimated Tax by Individuals, Estates, and Trusts
, H&R Block Income Tax Course Exam
Questions With Solutions
Form 4868 Application for Automatic Extension of Time To File U.S. Individual Income
Tax Return
Form 8888 Allocation of Refund
Form 9465 Installment Agreement Request
Amended Return A tax return filed on Form 1040X after the original return has been filed.
Closed Year A tax year for which the statute of limitations has expired.
Open Year A taxable year for which the statute of limitations has not yet expired.
Failure-to-File Penalty Generally 5% for each month or part of a month the return is late,
but not more than 25% of the tax not paid.
, H&R Block Income Tax Course Exam
Questions With Solutions
Failure to File Taxpayer fails to file the return by the due date, and there is a balance due.
Failure to Pay Taxpayer fails to pay the tax owed by the due date.
Failure-to-Pay Penalty 0.5% of the unpaid taxes for each month or part of a month after
the due date, but not more than 25%.
Negligence or Intentional Disregard Taxpayer shows negligence or disregard of the rules
or regulations causing an underpayment.
Negligence-or-Intentional-Disregard Penalty 20% of the underpayment.
Substantial Understatment Taxpayer understates their tax by the larger of $5,000 or 10%
of the correct tax.
Substantial-Understatement Penalty 20% of the underpayment.
Form 1040X Amended U.S. Individual Income Tax Return
, H&R Block Income Tax Course Exam
Questions With Solutions
When can an amended return be filed? 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? No.
Household Employee An individual who performs nonbusiness services in a taxpayer's
home.
Active Income and Losses Those for which a taxpayer performs services.
Partnership A form of business in which two or more persons join their money and skills
in conducting the business as co-owners.
Passive Income and Losses Those from business activities in which the taxpayer does not
materially participate, and all rental activities.
