HR Block Test Questions with
Accurate Answers
A married couple who materially participate in the operation of a jointly owned
business may elect for each spouse to file their own Schedule C, with each
reporting their respective amounts of income, loss, and deductions. This known as
what? correct answer C. A qualified joint venture
a mountain-view lot bought for potential increase in value is an example of
correct answer A, Real, Investment-use property
A person born in 1945 reaches full retirement age at age: correct answer C. 66
A property owner lives in one unit of a duplex and has a tenant renting the other
unit. The owner will deduct 50% of which of the following expenses on Schedule
E? correct answer A. landscaping.
A property owner lives in one unity of a duplex and has a tennat renting the other
unit. The owner will deduct 50% of which of the following expenses on Schedule
E? correct answer A. Landscaping.
A sole proprietor who computes self-employment tax should be filling what form?
correct answer b. Schedule SE.
A tax returner or claim for refund requiring a paid tax return preparer to
determine eligibility for EITC, CTC/ODC/ ACTC, AOTC, and the head of household
filling status may be subject to a maximum penalty, totaling what amount for
failure to meet due diligence requirements if all four are claimed on a single tax
return? correct answer a,$2,120
,A taxpayer filed form 4868 on april 15, 2020, and submitted their $897 balance
due return to the IR on October 15, 2020. They did not submit any payment with
Form 4868 . which penalty applies? correct answer B, Failure to pay.
A taxpayer may file Form 8379 to receive the injured spouse allocation of a
married filing jointly federal tax refund that may be offset by all of the following
types of past due payments Except correct answer D. Utility payments
a taxpayer who actively participates in a rental real estate activity may, in many
cases, deduct up to what amount of rental losses against any other kind of
income? correct answer a. 25,000
a taxpayer who is required to pay all of the mortage payments, for a jointly-
owned home , if it otherwise qualifies as alimony, may deduct half of the total
payments as alimony? correct answer A. True
A taxpayer who receives income from a partnership will receive: correct answer c.
Schedule K-1
A taxpayer who recives income from a partenrship will receive: correct answer C.
schedule K-1 (form 1065).
A taxpayer who underpays their tax due to negligence or disregard of the rules to
subject to a penalty of. correct answer d. 20 % of the underpayment.
A taxpayer with a gain on the sale of a collectbile will figure their tax using the:
correct answer C. Schedule D Worksheet
,Adrian is married filing separatly, and has a taxable income of $26,100. His
amount of tax from the 2019 tax tables is correct answer c. $2,941.
Alex and jane are married and plan to file a joint return. In prior years, jan wroked
while Alex work full-time graduate student. This year, Alex graduated and began a
full-time job. Jane's salary this is sigificantly higher than Alex's. Which of the
following is the best adivce regarding their forms 4? correct answer B. Alex should
only complete Step 1, Personal information , and Step 5, his signature, on his
2020 Form W-4 . Jane should complete the Step 1 and Step 2(b) Mutliple Jobs
worksheet and Step 5, using both her and Alex's Information.
all of the followign are reasons to file an amended return except: correct answer
A. the taxpayer receives a notice from the IRS. the disagre with the notice and
beileve their orginial return was filed correctly
All of the following statements about qualified tuition programs (also called
Section 529 plans) are true Except: correct answer A. A taxpayer's ability to
contribute to these plans begins to phase out when their adjusted gross income
reaches a specified threshold amount.
An active participant with modfied AGI below the limit may deduct rental losses
up to: correct answer B. $25,000
An active participant with modified AGI below the limit may deduct rental losses
up to: correct answer b. 25,000
An employee tells their employer how much income tax to withold from their
taxable wages by completing what form? correct answer C. Form W-4.
, Barbars is law-clerk for your county. Which of the following types of retirement
plans would she contribute to through her employee? correct answer c. 457
Brian had dividened income reported on Form 1099-DIV. Brian would be required
to file a form 1040, schedule B, when his dividened income exceeds of which of
the following households? correct answer b. $1,500.
Cameron and Deleah married in 2014, and they purchased their first home for
$280,000 in 2015. it served as their primary residence until march 2018. After
being on the market for ten months, the home finally sold in Januray 2019 for
$410,000. The couple paid a $24,600 commission as an expense of sale. they will
file a joint return for 2019. their taxable income is $172,000, placing them in the
24% marginal tax bracket. correct answer a. $0.
Can the taxpayer's aunt be a qualifying relative (QR) if she did not live with the
taxpayer's at all during the year, if all other QR tests are met? correct answer B.
yes. She passess the relationships part the test
Choose the response that best completes the following sentence. A Taxpayer may
claim an exemption from withholding on their Form W-4 when they: correct
answer C. Did not have a federal income tax liability for the prior of the year and
do not expect to have any liability for the current year
Colin has a succesful consulting buisness and had a net profit of $86,394 on his
Schedule C. How much self-employment tax will he pay? correct answer C.
$12,207.
Accurate Answers
A married couple who materially participate in the operation of a jointly owned
business may elect for each spouse to file their own Schedule C, with each
reporting their respective amounts of income, loss, and deductions. This known as
what? correct answer C. A qualified joint venture
a mountain-view lot bought for potential increase in value is an example of
correct answer A, Real, Investment-use property
A person born in 1945 reaches full retirement age at age: correct answer C. 66
A property owner lives in one unit of a duplex and has a tenant renting the other
unit. The owner will deduct 50% of which of the following expenses on Schedule
E? correct answer A. landscaping.
A property owner lives in one unity of a duplex and has a tennat renting the other
unit. The owner will deduct 50% of which of the following expenses on Schedule
E? correct answer A. Landscaping.
A sole proprietor who computes self-employment tax should be filling what form?
correct answer b. Schedule SE.
A tax returner or claim for refund requiring a paid tax return preparer to
determine eligibility for EITC, CTC/ODC/ ACTC, AOTC, and the head of household
filling status may be subject to a maximum penalty, totaling what amount for
failure to meet due diligence requirements if all four are claimed on a single tax
return? correct answer a,$2,120
,A taxpayer filed form 4868 on april 15, 2020, and submitted their $897 balance
due return to the IR on October 15, 2020. They did not submit any payment with
Form 4868 . which penalty applies? correct answer B, Failure to pay.
A taxpayer may file Form 8379 to receive the injured spouse allocation of a
married filing jointly federal tax refund that may be offset by all of the following
types of past due payments Except correct answer D. Utility payments
a taxpayer who actively participates in a rental real estate activity may, in many
cases, deduct up to what amount of rental losses against any other kind of
income? correct answer a. 25,000
a taxpayer who is required to pay all of the mortage payments, for a jointly-
owned home , if it otherwise qualifies as alimony, may deduct half of the total
payments as alimony? correct answer A. True
A taxpayer who receives income from a partnership will receive: correct answer c.
Schedule K-1
A taxpayer who recives income from a partenrship will receive: correct answer C.
schedule K-1 (form 1065).
A taxpayer who underpays their tax due to negligence or disregard of the rules to
subject to a penalty of. correct answer d. 20 % of the underpayment.
A taxpayer with a gain on the sale of a collectbile will figure their tax using the:
correct answer C. Schedule D Worksheet
,Adrian is married filing separatly, and has a taxable income of $26,100. His
amount of tax from the 2019 tax tables is correct answer c. $2,941.
Alex and jane are married and plan to file a joint return. In prior years, jan wroked
while Alex work full-time graduate student. This year, Alex graduated and began a
full-time job. Jane's salary this is sigificantly higher than Alex's. Which of the
following is the best adivce regarding their forms 4? correct answer B. Alex should
only complete Step 1, Personal information , and Step 5, his signature, on his
2020 Form W-4 . Jane should complete the Step 1 and Step 2(b) Mutliple Jobs
worksheet and Step 5, using both her and Alex's Information.
all of the followign are reasons to file an amended return except: correct answer
A. the taxpayer receives a notice from the IRS. the disagre with the notice and
beileve their orginial return was filed correctly
All of the following statements about qualified tuition programs (also called
Section 529 plans) are true Except: correct answer A. A taxpayer's ability to
contribute to these plans begins to phase out when their adjusted gross income
reaches a specified threshold amount.
An active participant with modfied AGI below the limit may deduct rental losses
up to: correct answer B. $25,000
An active participant with modified AGI below the limit may deduct rental losses
up to: correct answer b. 25,000
An employee tells their employer how much income tax to withold from their
taxable wages by completing what form? correct answer C. Form W-4.
, Barbars is law-clerk for your county. Which of the following types of retirement
plans would she contribute to through her employee? correct answer c. 457
Brian had dividened income reported on Form 1099-DIV. Brian would be required
to file a form 1040, schedule B, when his dividened income exceeds of which of
the following households? correct answer b. $1,500.
Cameron and Deleah married in 2014, and they purchased their first home for
$280,000 in 2015. it served as their primary residence until march 2018. After
being on the market for ten months, the home finally sold in Januray 2019 for
$410,000. The couple paid a $24,600 commission as an expense of sale. they will
file a joint return for 2019. their taxable income is $172,000, placing them in the
24% marginal tax bracket. correct answer a. $0.
Can the taxpayer's aunt be a qualifying relative (QR) if she did not live with the
taxpayer's at all during the year, if all other QR tests are met? correct answer B.
yes. She passess the relationships part the test
Choose the response that best completes the following sentence. A Taxpayer may
claim an exemption from withholding on their Form W-4 when they: correct
answer C. Did not have a federal income tax liability for the prior of the year and
do not expect to have any liability for the current year
Colin has a succesful consulting buisness and had a net profit of $86,394 on his
Schedule C. How much self-employment tax will he pay? correct answer C.
$12,207.
