H&R Block Tax Prep Midterm Study
Review UPDATED ACTUAL Exam
Questions and CORRECT Answers
What credit do they qualify for? - CORRECT ANSWER - NO Earned Income Tax Credit
because he is p/t student.
For 2018 most US citizens are subject to the ACA. What best describes the ACA? - CORRECT
ANSWER - Must have health coverage every month of the year 2018 or either qualify for
exemption or be subject to penalties.
What is NOT a qualified contribution for an employee claiming the Retirement Savings
Contribution Credit (Savings Credit)? - CORRECT ANSWER - Employers matching
contributions do not count towards the credit.
What does NOT need to be file on a tax return? - CORRECT ANSWER - worker's
compensation
How much can the IRS penalize a tax preparer on a return? - CORRECT ANSWER -
$2080 per return
How much of the AOC is refundable? - CORRECT ANSWER - 40% up to $1000
Beverly, 18 $1,475 babysitting, $180 interest savings. She is a dependent of her parents. How
much can she contribute to a Traditional or ROTH IRS? - CORRECT ANSWER - $1,475
(wages up to $5,500)
Shirley, 33, single
3 college courses
$3,200 tuition fees
, Not a degree candidate but job related courses
Which Education Credit does she qualify for? - CORRECT ANSWER - Lifetime Learning
Credit
Benny $365 qualified teaching expenses
Theresa $254.89 qualified teaching expenses
Both have 900 hours
What is the MAX they can claim for the education expense deduction? - CORRECT
ANSWER - $500/ $250 each
Kiera, 25, taxpayer, $5,800, unmarried
Jan-June f/t student
Jaylon, 1, son, $0- contributes more than 50%
Annette, 48, mother, $25k
Kiera & Jaylon have lived with Annette for all of 2018 - CORRECT ANSWER - Single,
Child Tax Credit/Additional Child Tax Credit, Earned Income Tax Credit
Alicia, 29, taxpayer $36,450, separated
Bebe, 3 & Meme, 5, daughters
Live in Alicia's parents finished basement since 2017
Contributing more than 50% of cost of living
Husband does not contribute nor live with Alicia - CORRECT ANSWER - Head of
Household, Child Tax Credit, Earned Income Tax Credit
Trey, $52k & Sasha, $38,750 both 45, married
Kyas, 18, son, $7200
Drew, 14, son, $350
Both sons lived with parents all of 2018 and received more than 50% of financial support -
CORRECT ANSWER - Married Filing Jointly, Child Tax Credit
Review UPDATED ACTUAL Exam
Questions and CORRECT Answers
What credit do they qualify for? - CORRECT ANSWER - NO Earned Income Tax Credit
because he is p/t student.
For 2018 most US citizens are subject to the ACA. What best describes the ACA? - CORRECT
ANSWER - Must have health coverage every month of the year 2018 or either qualify for
exemption or be subject to penalties.
What is NOT a qualified contribution for an employee claiming the Retirement Savings
Contribution Credit (Savings Credit)? - CORRECT ANSWER - Employers matching
contributions do not count towards the credit.
What does NOT need to be file on a tax return? - CORRECT ANSWER - worker's
compensation
How much can the IRS penalize a tax preparer on a return? - CORRECT ANSWER -
$2080 per return
How much of the AOC is refundable? - CORRECT ANSWER - 40% up to $1000
Beverly, 18 $1,475 babysitting, $180 interest savings. She is a dependent of her parents. How
much can she contribute to a Traditional or ROTH IRS? - CORRECT ANSWER - $1,475
(wages up to $5,500)
Shirley, 33, single
3 college courses
$3,200 tuition fees
, Not a degree candidate but job related courses
Which Education Credit does she qualify for? - CORRECT ANSWER - Lifetime Learning
Credit
Benny $365 qualified teaching expenses
Theresa $254.89 qualified teaching expenses
Both have 900 hours
What is the MAX they can claim for the education expense deduction? - CORRECT
ANSWER - $500/ $250 each
Kiera, 25, taxpayer, $5,800, unmarried
Jan-June f/t student
Jaylon, 1, son, $0- contributes more than 50%
Annette, 48, mother, $25k
Kiera & Jaylon have lived with Annette for all of 2018 - CORRECT ANSWER - Single,
Child Tax Credit/Additional Child Tax Credit, Earned Income Tax Credit
Alicia, 29, taxpayer $36,450, separated
Bebe, 3 & Meme, 5, daughters
Live in Alicia's parents finished basement since 2017
Contributing more than 50% of cost of living
Husband does not contribute nor live with Alicia - CORRECT ANSWER - Head of
Household, Child Tax Credit, Earned Income Tax Credit
Trey, $52k & Sasha, $38,750 both 45, married
Kyas, 18, son, $7200
Drew, 14, son, $350
Both sons lived with parents all of 2018 and received more than 50% of financial support -
CORRECT ANSWER - Married Filing Jointly, Child Tax Credit
