H&R BLOCK DIY
PRACTICE EXAM QUESTIONS WITH
CORRECT DETAILED ANSWERS |
ALREADY GRADED A+<RECENT
VERSION>
1) Which of the following individuals is an eligible educator and may deduct up to $300
of qualified educator expenses? (None of them received any reimbursements.) -
ANSWER Mr. Chang is a fourth-grade teacher. He taught full-time in a classroom
and worked more than 900 hours during the school year. He spent $750 on teaching
supplies used in his classroom
2) Kailani has a bank account at Lending Bank. She received Form 1099-INT, Interest
Income, shown below. She has no other interest or dividends to report. Where should
this income be reported on Kailani's tax return? Answer choices are below the image.
- ANSWER $410 on line 2a, $230 on line 2b of Form 1040, and $45 on line 18 of
Schedule 1 (Form 1040).
3) Ellen and her husband were legally divorced in 2017. After the divorce, Ellen retained
physical custody of their children. Ellen received the following amounts from her ex-
husband, on behalf of the children or as ordered by the court through a divorce decree:
Court-ordered child support of $1,000 per month.
Court-ordered alimony of $500 per month.
How much of this income should be reported on Ellen's federal return? -
ANSWER 6,000
4) Karen and Pete are married and will file a joint return. They brought all their tax
documents to Jamal to prepare their return. The three documents are a Form W-2 for
Karen ($55,300), a Form W-2 for Pete ($22,400), and unemployment compensation
for Pete of $5,200. What will be their total income reported on their 2022 Form 1040,
line 9? - ANSWER $82,900
,5) Brian and Joy are divorced. Their divorce settlement agreement signed on June 1,
2017, states Brian must pay Joy $1,000 per month for child support and $1,000 per
month for alimony.
Joy's child support payments are: - ANSWER Non taxable.
6) George graduated from college last year and started repaying his student loans. He
received Form 1098-E, Student Loan Interest Statement, showing he paid $3,000 in
interest on his student loans for the year. His total income before adjustments is
$68,500, and he meets all requirements to be able to deduct the interest. How much, if
any, will George be allowed to deduct as an adjustment to his income? - ANSWER
$2,500
7) Soledad is single. He borrowed $900,000 and purchased a new main home in March
of 2020. Soledad will be itemizing his deductions. On what portion of the acquisition
debt will interest be deductible on Soledad's tax return for 2022? - ANSWER
$750,000
8) Harmony donated a car to a qualified charitable organization. She purchased the car in
2013 for $28,000. The fair market value of the car when she donated it was $3,750.
The charitable organization immediately sold the car for $2,000. They did not
significantly use or make any improvements to it. The organization provided
Harmony with a Form 1098-C, Contributions of Motor Vehicles, Boats, and
Airplanes. How much can she deduct as a charitable contribution on her Schedule A
(Form 1040), Itemized Deductions? - ANSWER $2,000
9) Choose the response that accurately completes the following sentence. Written
acknowledgment from the done for contributions to qualified charitable organizations
is required when a taxpayer makes a single donation of: - ANSWER $250 or more.
10) On the Schedule A (Form 1040), Itemized Deductions, the deduction for state and
local income taxes is limited to what amount - ANSWER $10,000 ($5,000 if
MFS).
11) Robert is single. He purchased a new main home in March of 2017 for $900,000.
Robert will be itemizing his deductions. On what portion of the acquisition debt will
interest be deductible on Robert's tax return for 2022? - ANSWER $900,000
,12) Nash was reimbursed in 2022 by his insurance company for a medical expense that he
had previously deducted on his 2021 Schedule A (Form 1040), Itemized Deductions.
What is the tax treatment of the recovered medical expense, if any? - ANSWER
The recovery is includable in income in the year received up to the amount by which
the deduction or credit claimed reduced taxes in the prior year.
13) Paloma purchased a home with her husband, Neville, in January of 2021 for
$700,000. In June of 2021, Paloma and Neville separated. On December 31, 2022,
they were still legally married but did not live together all year. They do not live in a
community property state. Neville refused to file a joint return with Paloma. Paloma
filed her return using the married filing separately filing status. Paloma is living in the
home and has continued to make the mortgage payments using funds from her own
account. Paloma will be itemizing her deductions. On what portion of the acquisition
debt will interest be deductible on Paloma's tax return for 2022? - ANSWER
$375,000
14) If a taxpayer has to repay an amount they reported as income in an earlier year
(because at the time, they thought they had an unrestricted right to it), they may be
able to claim a deduction or a credit under the "claim of right" rules.Choose the
response that correctly completes the next sentence describing a taxpayer's eligibility
for a deduction or credit under these rules. The taxpayer: - ANSWER ay be able to
claim the deduction or credit if the amount they repaid is more than $3,000.
15) Joshua purchased a qualified plug-in electric motor vehicle on June 2, 2022. He
qualifies for the Qualified Plug-in Electric Drive Motor Vehicle Credit. Joshua may
qualify for a credit of what amount? - ANSWER The credit ranges from $2,500 to
$7,500, depending on battery capacity and other factors.
16) To claim the Clean Vehicle Credit, the qualifying electric vehicle must have been
assembled in North America after which date? - ANSWER To claim the Clean
Vehicle Credit, the qualifying electric vehicle must have been assembled in North
America after which date?
17) The Premium Tax Credit is a credit that helps pay the cost of health care coverage
through the Health Insurance Marketplace. All the following are true, EXCEPT: -
ANSWER The tax household includes the taxpayer, spouse, and anyone who is
claimed as a dependent on the tax return.
, 18) Jamal purchased his home in 2019. In 2022, he installed energy efficient windows that
meet the Energy Star most efficient certification requirements for a total cost of
$1,600. He also installed exterior doors that meet the Energy Star requirements for a
total cost of $2,100. His tax liability is $3,900. Jamal had a Residential Energy
Property Credit in a previous year in the amount of $300. What is the amount of his
Energy Efficient Home Improvement Credit? - ANSWER $200
19) Taxpayers who acquire qualifying commercial vehicles, weighing under 14,000
pounds, after December 31, 2022, through December 31, 2032 may qualify for the
Credit for Qualified Commercial Clean Vehicles on the 2023 tax return. What is the
maximum credit per vehicle? - ANSWER $7,500
20) Devan and Amber adopted a child with special needs in a domestic adoption. They
had $5,500 in qualified adoption expenses in 2022, and the adoption was finalized on
December 18, 2022. Their modified adjusted gross income is $210,000. Assuming all
requirements are met, what is the maximum adoption credit they can claim in 2022? -
ANSWER $14,890
21) Stanley holds foreign investments in foreign stocks and bonds. The issuing foreign
country withheld taxes on his investment income. To avoid double taxation on the
income earned from these investments, Stanley may be eligible to claim which credit?
- ANSWER Foreign Tax Credit.
22) On July 15, 2008, Michael and his wife Julie purchased a new home. They received
the First-time Homebuyer Credit in the amount of $7,000. What tax form is used to
repay their tax credit? - ANSWER Form 5405.
23) _________ and ________ make up your overall class score. - ANSWER Midterm
and Final test score
24) To pass this class you must earn a ________ % overall average on your tests. -
ANSWER 80%
25) ___________ is the tool used for contact management. - ANSWER Salesforce
PRACTICE EXAM QUESTIONS WITH
CORRECT DETAILED ANSWERS |
ALREADY GRADED A+<RECENT
VERSION>
1) Which of the following individuals is an eligible educator and may deduct up to $300
of qualified educator expenses? (None of them received any reimbursements.) -
ANSWER Mr. Chang is a fourth-grade teacher. He taught full-time in a classroom
and worked more than 900 hours during the school year. He spent $750 on teaching
supplies used in his classroom
2) Kailani has a bank account at Lending Bank. She received Form 1099-INT, Interest
Income, shown below. She has no other interest or dividends to report. Where should
this income be reported on Kailani's tax return? Answer choices are below the image.
- ANSWER $410 on line 2a, $230 on line 2b of Form 1040, and $45 on line 18 of
Schedule 1 (Form 1040).
3) Ellen and her husband were legally divorced in 2017. After the divorce, Ellen retained
physical custody of their children. Ellen received the following amounts from her ex-
husband, on behalf of the children or as ordered by the court through a divorce decree:
Court-ordered child support of $1,000 per month.
Court-ordered alimony of $500 per month.
How much of this income should be reported on Ellen's federal return? -
ANSWER 6,000
4) Karen and Pete are married and will file a joint return. They brought all their tax
documents to Jamal to prepare their return. The three documents are a Form W-2 for
Karen ($55,300), a Form W-2 for Pete ($22,400), and unemployment compensation
for Pete of $5,200. What will be their total income reported on their 2022 Form 1040,
line 9? - ANSWER $82,900
,5) Brian and Joy are divorced. Their divorce settlement agreement signed on June 1,
2017, states Brian must pay Joy $1,000 per month for child support and $1,000 per
month for alimony.
Joy's child support payments are: - ANSWER Non taxable.
6) George graduated from college last year and started repaying his student loans. He
received Form 1098-E, Student Loan Interest Statement, showing he paid $3,000 in
interest on his student loans for the year. His total income before adjustments is
$68,500, and he meets all requirements to be able to deduct the interest. How much, if
any, will George be allowed to deduct as an adjustment to his income? - ANSWER
$2,500
7) Soledad is single. He borrowed $900,000 and purchased a new main home in March
of 2020. Soledad will be itemizing his deductions. On what portion of the acquisition
debt will interest be deductible on Soledad's tax return for 2022? - ANSWER
$750,000
8) Harmony donated a car to a qualified charitable organization. She purchased the car in
2013 for $28,000. The fair market value of the car when she donated it was $3,750.
The charitable organization immediately sold the car for $2,000. They did not
significantly use or make any improvements to it. The organization provided
Harmony with a Form 1098-C, Contributions of Motor Vehicles, Boats, and
Airplanes. How much can she deduct as a charitable contribution on her Schedule A
(Form 1040), Itemized Deductions? - ANSWER $2,000
9) Choose the response that accurately completes the following sentence. Written
acknowledgment from the done for contributions to qualified charitable organizations
is required when a taxpayer makes a single donation of: - ANSWER $250 or more.
10) On the Schedule A (Form 1040), Itemized Deductions, the deduction for state and
local income taxes is limited to what amount - ANSWER $10,000 ($5,000 if
MFS).
11) Robert is single. He purchased a new main home in March of 2017 for $900,000.
Robert will be itemizing his deductions. On what portion of the acquisition debt will
interest be deductible on Robert's tax return for 2022? - ANSWER $900,000
,12) Nash was reimbursed in 2022 by his insurance company for a medical expense that he
had previously deducted on his 2021 Schedule A (Form 1040), Itemized Deductions.
What is the tax treatment of the recovered medical expense, if any? - ANSWER
The recovery is includable in income in the year received up to the amount by which
the deduction or credit claimed reduced taxes in the prior year.
13) Paloma purchased a home with her husband, Neville, in January of 2021 for
$700,000. In June of 2021, Paloma and Neville separated. On December 31, 2022,
they were still legally married but did not live together all year. They do not live in a
community property state. Neville refused to file a joint return with Paloma. Paloma
filed her return using the married filing separately filing status. Paloma is living in the
home and has continued to make the mortgage payments using funds from her own
account. Paloma will be itemizing her deductions. On what portion of the acquisition
debt will interest be deductible on Paloma's tax return for 2022? - ANSWER
$375,000
14) If a taxpayer has to repay an amount they reported as income in an earlier year
(because at the time, they thought they had an unrestricted right to it), they may be
able to claim a deduction or a credit under the "claim of right" rules.Choose the
response that correctly completes the next sentence describing a taxpayer's eligibility
for a deduction or credit under these rules. The taxpayer: - ANSWER ay be able to
claim the deduction or credit if the amount they repaid is more than $3,000.
15) Joshua purchased a qualified plug-in electric motor vehicle on June 2, 2022. He
qualifies for the Qualified Plug-in Electric Drive Motor Vehicle Credit. Joshua may
qualify for a credit of what amount? - ANSWER The credit ranges from $2,500 to
$7,500, depending on battery capacity and other factors.
16) To claim the Clean Vehicle Credit, the qualifying electric vehicle must have been
assembled in North America after which date? - ANSWER To claim the Clean
Vehicle Credit, the qualifying electric vehicle must have been assembled in North
America after which date?
17) The Premium Tax Credit is a credit that helps pay the cost of health care coverage
through the Health Insurance Marketplace. All the following are true, EXCEPT: -
ANSWER The tax household includes the taxpayer, spouse, and anyone who is
claimed as a dependent on the tax return.
, 18) Jamal purchased his home in 2019. In 2022, he installed energy efficient windows that
meet the Energy Star most efficient certification requirements for a total cost of
$1,600. He also installed exterior doors that meet the Energy Star requirements for a
total cost of $2,100. His tax liability is $3,900. Jamal had a Residential Energy
Property Credit in a previous year in the amount of $300. What is the amount of his
Energy Efficient Home Improvement Credit? - ANSWER $200
19) Taxpayers who acquire qualifying commercial vehicles, weighing under 14,000
pounds, after December 31, 2022, through December 31, 2032 may qualify for the
Credit for Qualified Commercial Clean Vehicles on the 2023 tax return. What is the
maximum credit per vehicle? - ANSWER $7,500
20) Devan and Amber adopted a child with special needs in a domestic adoption. They
had $5,500 in qualified adoption expenses in 2022, and the adoption was finalized on
December 18, 2022. Their modified adjusted gross income is $210,000. Assuming all
requirements are met, what is the maximum adoption credit they can claim in 2022? -
ANSWER $14,890
21) Stanley holds foreign investments in foreign stocks and bonds. The issuing foreign
country withheld taxes on his investment income. To avoid double taxation on the
income earned from these investments, Stanley may be eligible to claim which credit?
- ANSWER Foreign Tax Credit.
22) On July 15, 2008, Michael and his wife Julie purchased a new home. They received
the First-time Homebuyer Credit in the amount of $7,000. What tax form is used to
repay their tax credit? - ANSWER Form 5405.
23) _________ and ________ make up your overall class score. - ANSWER Midterm
and Final test score
24) To pass this class you must earn a ________ % overall average on your tests. -
ANSWER 80%
25) ___________ is the tool used for contact management. - ANSWER Salesforce
