HR BLOCK Final Test Review (ITC 2024) Questions & Answers.

HR BLOCK Final Test Review (ITC 2024)
Questions & Answers


Which of the following is a requirement for all taxpayers who want to claim
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the EIC?
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Live in the U.S. for more than half a year.
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Have a valid social security number.
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Have a qualifying child dependent.
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Have AGI less than $21,430 ($27,380 MFJ). - Verified ANS ✔✔ - Have a valid
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social security number.
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A combined due diligence penalty of $2,180 would indicate a penalty for which
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of the following?
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EIC, CTC/ODC/ACTC, and head of household.
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EIC, AOTC, and CTC/ODC/ACTC.
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EIC, AOTC, CTC/ODC/ACTC, and head of household.
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EIC, PTC, CTC/ODC/ACTC, and head of household. - Verified ANS ✔✔ - EIC,
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AOTC, CTC/ODC/ACTC, and head of household.
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When dependent care benefits are withheld from a taxpayer's income, where
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are they reported by the employer?
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n/

,Form 2441. n/




n/ Form 1040. n/




n/ Box 10 of Form W-2.
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n/ The employer is not required to report them. - Verified ANS ✔✔ - Box 10 of
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n/ Form W-2. n/




All of the following are due diligence requirements a tax preparer must meet
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for EIC, AOTC, CTC/ODC/ACTC, and HOH, EXCEPT:
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n/




Investigate and verify the accuracy of information the taxpayer provides to
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show eligibility for EIC, AOTC, CTC/ODC/ACTC, and HOH.
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n/




Complete all worksheets used to compute the credits. If the worksheet is
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completed by hand, keep a copy in the taxpayer's client file.
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n/




Maintain a copy of documents provided by the taxpayer that the tax preparer
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relied on when determining credit eligibility. Then record the date the
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information was obtained and the name of who provided the information.
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n/




When information provided by the taxpayer appears to be incorrect,
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inconsistent, or incomplete, the tax preparer must make additional inquiries to
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determine if the taxpayer is eligible for the benefit. Then document both the
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questions asked and responses provided. - Verified ANS ✔✔ - Investigate and
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verify the accuracy of information the taxpayer provides to show eligibility for
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EIC, AOTC, CTC/ODC/ACTC, and HOH.
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When a taxpayer receives Form 1099-R with no amount entered in box 2a and
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code 7 entered in box 7, the entire distribution:
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Could be partly or entirely taxable.n/ n/ n/ n/ n/




Is never taxable.
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Is an early distribution and taxable.
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, Has been rolled into a traditional IRA or into another qualified plan. - Verified
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ANS ✔✔ - Is never taxable.
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What is the maximum amount of the American Opportunity Tax Credit a
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taxpayer could receive per student?
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n/ $1,650
n/ $1,800
n/ $2,000
n/ $2,500 - Verified ANS ✔✔ - $2,500
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Which test for a qualifying child does NOT need to be met in order for the child
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to be a qualifying person for purposes of Earned Income Credit (EIC)?
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n/ Age.
n/ Relationship.
n/ Residency.
n/ Support. - Verified ANS ✔✔ - Support. n/ n/ n/ n/ n/ n/ n/ n/




Which of the following expenses qualifies for an education credit in 2021?
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n/ Tuition payments. The taxpayer didn't receive scholarships, grants, or other
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n/ nontaxable benefits. n/




n/ Fees for an optional student activity.
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n/ Cost of student medical fees.
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n/ Tuition payments. The taxpayer received a nontaxable grant, which covered
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n/ the entire tuition expense. - Verified ANS ✔✔ -
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Employer-provided dependent care assistance: n/ n/ n/




n/ May be used for the Child and Dependent Care Credit.
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n/ Is subtracted from the total expenses for child or dependent care on Form
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n/ 2441.
n/ Is included in wages on Form W-2.
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