NEW UPDATED HR BLOCK FINAL TEST
REVIEW (ITC 2024
,NEW UPDATED HR BLOCK FINAL TEST
REVIEW (ITC 2024)
Does the fact that an employee is having income tax withheld from their paycheck mean their tax
liability will be covered? - CORRECT ANSWERSNot necessarily. If a taxpayer experiences a change of
circumstances with regard to their personal or financial situation, such as the loss of a dependent, or if
they have substantial income that is not subject to withholding, they may owe additional taxes at the
end of the year. Taxpayers with more than one job may also owe additional taxes
On what dates are estimated payments normally required to be made? - CORRECT ANSWERSTypically,
the estimated payments are due on April 15, June 15, September 15, and January 15 (of the following
year).
Which of the following is a requirement for all taxpayers who want to claim the EIC?
Live in the U.S. for more than half a year.
Have a valid social security number.
Have a qualifying child dependent.
Have AGI less than $21,430 ($27,380 MFJ). - CORRECT ANSWERSHave a valid social security number.
A combined due diligence penalty of $2,180 would indicate a penalty for which of the following?
EIC, CTC/ODC/ACTC, and head of household.
EIC, AOTC, and CTC/ODC/ACTC.
EIC, AOTC, CTC/ODC/ACTC, and head of household.
EIC, PTC, CTC/ODC/ACTC, and head of household. - CORRECT ANSWERSEIC, AOTC, CTC/ODC/ACTC, and
head of household.
When dependent care benefits are withheld from a taxpayer's income, where are they reported by the
employer?
, Form 2441.
Form 1040.
Box 10 of Form W-2.
The employer is not required to report them. - CORRECT ANSWERSBox 10 of Form W-2.
All of the following are due diligence requirements a tax preparer must meet for EIC, AOTC,
CTC/ODC/ACTC, and HOH, EXCEPT:
Investigate and verify the accuracy of information the taxpayer provides to show eligibility for EIC, AOTC,
CTC/ODC/ACTC, and HOH.
Complete all worksheets used to compute the credits. If the worksheet is completed by hand, keep a
copy in the taxpayer's client file.
Maintain a copy of documents provided by the taxpayer that the tax preparer relied on when
determining credit eligibility. Then record the date the information was obtained and the name of who
provided the information.
When information provided by the taxpayer appears to be incorrect, inconsistent, or incomplete, the tax
preparer must make additional inquiries to determine if the taxpayer is eligible for the benefit. Then
document both the questions asked and responses provided. - CORRECT ANSWERSInvestigate and verify
the accuracy of information the taxpayer provides to show eligibility for EIC, AOTC, CTC/ODC/ACTC, and
HOH.
When a taxpayer receives Form 1099-R with no amount entered in box 2a and code 7 entered in box 7,
the entire distribution:
Could be partly or entirely taxable.
Is never taxable.
Is an early distribution and taxable.
Has been rolled into a traditional IRA or into another qualified plan. - CORRECT ANSWERSIs never
taxable.
REVIEW (ITC 2024
,NEW UPDATED HR BLOCK FINAL TEST
REVIEW (ITC 2024)
Does the fact that an employee is having income tax withheld from their paycheck mean their tax
liability will be covered? - CORRECT ANSWERSNot necessarily. If a taxpayer experiences a change of
circumstances with regard to their personal or financial situation, such as the loss of a dependent, or if
they have substantial income that is not subject to withholding, they may owe additional taxes at the
end of the year. Taxpayers with more than one job may also owe additional taxes
On what dates are estimated payments normally required to be made? - CORRECT ANSWERSTypically,
the estimated payments are due on April 15, June 15, September 15, and January 15 (of the following
year).
Which of the following is a requirement for all taxpayers who want to claim the EIC?
Live in the U.S. for more than half a year.
Have a valid social security number.
Have a qualifying child dependent.
Have AGI less than $21,430 ($27,380 MFJ). - CORRECT ANSWERSHave a valid social security number.
A combined due diligence penalty of $2,180 would indicate a penalty for which of the following?
EIC, CTC/ODC/ACTC, and head of household.
EIC, AOTC, and CTC/ODC/ACTC.
EIC, AOTC, CTC/ODC/ACTC, and head of household.
EIC, PTC, CTC/ODC/ACTC, and head of household. - CORRECT ANSWERSEIC, AOTC, CTC/ODC/ACTC, and
head of household.
When dependent care benefits are withheld from a taxpayer's income, where are they reported by the
employer?
, Form 2441.
Form 1040.
Box 10 of Form W-2.
The employer is not required to report them. - CORRECT ANSWERSBox 10 of Form W-2.
All of the following are due diligence requirements a tax preparer must meet for EIC, AOTC,
CTC/ODC/ACTC, and HOH, EXCEPT:
Investigate and verify the accuracy of information the taxpayer provides to show eligibility for EIC, AOTC,
CTC/ODC/ACTC, and HOH.
Complete all worksheets used to compute the credits. If the worksheet is completed by hand, keep a
copy in the taxpayer's client file.
Maintain a copy of documents provided by the taxpayer that the tax preparer relied on when
determining credit eligibility. Then record the date the information was obtained and the name of who
provided the information.
When information provided by the taxpayer appears to be incorrect, inconsistent, or incomplete, the tax
preparer must make additional inquiries to determine if the taxpayer is eligible for the benefit. Then
document both the questions asked and responses provided. - CORRECT ANSWERSInvestigate and verify
the accuracy of information the taxpayer provides to show eligibility for EIC, AOTC, CTC/ODC/ACTC, and
HOH.
When a taxpayer receives Form 1099-R with no amount entered in box 2a and code 7 entered in box 7,
the entire distribution:
Could be partly or entirely taxable.
Is never taxable.
Is an early distribution and taxable.
Has been rolled into a traditional IRA or into another qualified plan. - CORRECT ANSWERSIs never
taxable.
