H&R BLOCK INCOME TAX SPECIALIST EXAM | ACCURATE
REAL EXAM CURRENTLY TESTING QUESTIONS AND
ANSWERS WITH GUARANTEED PASS | LATEST UPDATE
All of the following issues may be corrected or changed by filing Form 1040X, Amended U.S.
Individual Income Tax Return, EXCEPT:
A. The amount of deductible medical expenses was reported incorrectly on the original return
B. An error that was made on a trust return needs to be corrected
C. Wages for a 2nd job were not initially reported
D. A taxpayer who filed as a non-resident qualified for U.S. resident status
Answer: B
Michelle converted her personal residence to rental property in 2018. She purchased the property
in 2014 for $110,000 of which $10,000 was allocable to the land. Unfortunately, property values
in her neighborhood have declined over the past few yrs. On the date of conversion, the FMV of
the property was $98,000; $10,000 was allocated to the land. Michelle's basis for depreciation in
the property is:
A. $88,000
B. $98,000
C. $100,000
D. $110,000
Answer: A
Greg purchased a new machine for use in his business. He incurred the following costs with the
purchase; $2,000 cash paid, $10,000 financed, a $500 delivery charge, and a $200 installation
charge. Greg's basis on the machine is _____________.
A. $2,000
B. $2,700
,C. $12,000
D. $12,700
Answer: D
All of the following decrease basis; EXCEPT:
A. Casualty restoration beyond bringing the property to pre-casualty condition
B. Insurance payments for a casualty loss
C. Depreciation
D. Cancelled debt
Answer: A
Wyatt, who is employed full-time as a software engineer, sometimes uses his time and talent to
assist worthy causes. In 2018, he helped a local non-profit organization create a new website.
Although his primary object was to help the organization, the directors insisted on compensating
him. He received a Form 1099-MISC from the organization reporting non-employee
compensation of $2,800 in box 7. How should Wyatt report this on his tax return?
A. As other income on SCH 1 (Form 1040), line 21. He should deduct any applicable expenses
on SCH A
B. He should report income, less applicable expenses, as other income on SCH 1 (Form 1040),
line 21
C. He should report this as self-employment income and deduct any eligible expenses on SCH C
or SCH C-EZ
D. Wyatt does not need to report this income since he performed the work for a non-profit
organization
Answer:C
What is the max amount of lifetime learning credit that can be claimed on a tax return?
A. $2,000 in total for the return
B. $2,000 per eligible student claimed on the return
C. $10,000 in total for the return
, D. $10,000 per eligible student claimed on the return
Answer: A
Which statement about education credits is FALSE?
A. A student may qualify for the lifetime learning credit if they have a felony drug conviction
B. Only 4-yr. colleges are eligible institutions for the American Opportunity Credit
C. A taxpayer can claim the American Opportunity Credit for only 4 tax yrs.
D. A taxpayer enrolled as a part-time student is eligible for the lifetime learning credit
Answer: B
A child no longer qualifies a taxpayer for the Child Tax Credit in the yr. the child reaches
_______________
A. Age 17
B. Majority, which is 18 in most states
C. Age 19
D. Age 19, or age 24 if the child is a full-time student at least five month of the yr.
Answer: A
How much of the American Opportunity Credit (AOC) may be refundable?
A. 10%
B. 25%
C. 40%
D. 55%
Answer: C
The 2 factors that may limit the max Child Tax Credit of $2,000 per qualifying child are
________________
A. Tax liability and earned income above the phase-out threshold for 3 or more children
B. Earned income above the phase-out thresholds and taxpayer filing status
C. Tax liability and modified adjusted gross income (MAGI) above the phase-out threshold
D. Modified adjusted gross income (MAGI) above the phase-out threshold and 3 or more
REAL EXAM CURRENTLY TESTING QUESTIONS AND
ANSWERS WITH GUARANTEED PASS | LATEST UPDATE
All of the following issues may be corrected or changed by filing Form 1040X, Amended U.S.
Individual Income Tax Return, EXCEPT:
A. The amount of deductible medical expenses was reported incorrectly on the original return
B. An error that was made on a trust return needs to be corrected
C. Wages for a 2nd job were not initially reported
D. A taxpayer who filed as a non-resident qualified for U.S. resident status
Answer: B
Michelle converted her personal residence to rental property in 2018. She purchased the property
in 2014 for $110,000 of which $10,000 was allocable to the land. Unfortunately, property values
in her neighborhood have declined over the past few yrs. On the date of conversion, the FMV of
the property was $98,000; $10,000 was allocated to the land. Michelle's basis for depreciation in
the property is:
A. $88,000
B. $98,000
C. $100,000
D. $110,000
Answer: A
Greg purchased a new machine for use in his business. He incurred the following costs with the
purchase; $2,000 cash paid, $10,000 financed, a $500 delivery charge, and a $200 installation
charge. Greg's basis on the machine is _____________.
A. $2,000
B. $2,700
,C. $12,000
D. $12,700
Answer: D
All of the following decrease basis; EXCEPT:
A. Casualty restoration beyond bringing the property to pre-casualty condition
B. Insurance payments for a casualty loss
C. Depreciation
D. Cancelled debt
Answer: A
Wyatt, who is employed full-time as a software engineer, sometimes uses his time and talent to
assist worthy causes. In 2018, he helped a local non-profit organization create a new website.
Although his primary object was to help the organization, the directors insisted on compensating
him. He received a Form 1099-MISC from the organization reporting non-employee
compensation of $2,800 in box 7. How should Wyatt report this on his tax return?
A. As other income on SCH 1 (Form 1040), line 21. He should deduct any applicable expenses
on SCH A
B. He should report income, less applicable expenses, as other income on SCH 1 (Form 1040),
line 21
C. He should report this as self-employment income and deduct any eligible expenses on SCH C
or SCH C-EZ
D. Wyatt does not need to report this income since he performed the work for a non-profit
organization
Answer:C
What is the max amount of lifetime learning credit that can be claimed on a tax return?
A. $2,000 in total for the return
B. $2,000 per eligible student claimed on the return
C. $10,000 in total for the return
, D. $10,000 per eligible student claimed on the return
Answer: A
Which statement about education credits is FALSE?
A. A student may qualify for the lifetime learning credit if they have a felony drug conviction
B. Only 4-yr. colleges are eligible institutions for the American Opportunity Credit
C. A taxpayer can claim the American Opportunity Credit for only 4 tax yrs.
D. A taxpayer enrolled as a part-time student is eligible for the lifetime learning credit
Answer: B
A child no longer qualifies a taxpayer for the Child Tax Credit in the yr. the child reaches
_______________
A. Age 17
B. Majority, which is 18 in most states
C. Age 19
D. Age 19, or age 24 if the child is a full-time student at least five month of the yr.
Answer: A
How much of the American Opportunity Credit (AOC) may be refundable?
A. 10%
B. 25%
C. 40%
D. 55%
Answer: C
The 2 factors that may limit the max Child Tax Credit of $2,000 per qualifying child are
________________
A. Tax liability and earned income above the phase-out threshold for 3 or more children
B. Earned income above the phase-out thresholds and taxpayer filing status
C. Tax liability and modified adjusted gross income (MAGI) above the phase-out threshold
D. Modified adjusted gross income (MAGI) above the phase-out threshold and 3 or more
