H&R Block IncomeTax Course
QuestionsAnd AnswersWith Verified Solutions
Latest Updated 2025
Q: Whatdoes"DueDiligence"referto in tax preparation?
A: It refersto thestandardsand procedurestax professionalsmustfollowwhen preparing
income tax returns to ensure accuracy and compliance.
Q: Whatis "EstimatedTax"?
A: The amountof tax a taxpayerexpectsto oweduring theyear,afteraccounting for any
tax already withheld and applicable refundable credits.
Q: Whatis an "EstimatedTax Voucher"?
A: A statement where an individual estimates their tax liability on income not subject
to
withholding,plus any excesstax withheldfrom theirpaycheckor self- employment tax.
Q: Whatdoes"Exemptionfrom Withholding"mean?
A: It’s thestatusclaimedon Form W-4 thatdirectsan employernot to withhold federal
income tax from the employee’s wages.
Q: Whatis an "UnderpaymentPenalty"?
A: A penaltyimposedwhena taxpayerfails to pay enoughtax during theyear.
Q: Whatarethetwoprimarywaysto maketax paymentsthroughouttheyear?
,A: Through withholdingor making estimatedtax payments.
Q: Whatis Form W-4 usedfor?
A: It is usedby employeesto determinehowmuch federalincometax shouldbe withheld
from their paycheck.
,Q: Whatis Form 4868usedfor?
A: It is an applicationfor an automaticextensionof timeto file a U.S. individual income
tax return.
Q: Whatis an "AmendedReturn"?
A: A tax returnfiled to correcterrorsor omissionsfrom theoriginal return, typically filed
using Form 1040X.
Q: Whencan an amendedreturnbe filed?
A: It can be filed within threeyearsof theoriginal returnfiling date,or within two years
of the tax payment date, whichever is later.
Q: Can a 1040X be filed electronically?No,
A:
Form 1040X mustbefiled on paper.
Q: Whatdoes"PortfolioIncomeand Losses"referto?
A: Incomeand lossesderivedfrom investmentssuch as dividends,interest,and capital
gains or losses.
Q: Whatis ScheduleE usedfor?
A: It is usedto reportsupplementalincomeor loss,such as rentalincomeor royalties.
Q: Whatis a "Royalty"?
, A: Paymentsreceivedfor theuseof intellectualpropertyor naturalresourcesfrom a
taxpayer's property.
QuestionsAnd AnswersWith Verified Solutions
Latest Updated 2025
Q: Whatdoes"DueDiligence"referto in tax preparation?
A: It refersto thestandardsand procedurestax professionalsmustfollowwhen preparing
income tax returns to ensure accuracy and compliance.
Q: Whatis "EstimatedTax"?
A: The amountof tax a taxpayerexpectsto oweduring theyear,afteraccounting for any
tax already withheld and applicable refundable credits.
Q: Whatis an "EstimatedTax Voucher"?
A: A statement where an individual estimates their tax liability on income not subject
to
withholding,plus any excesstax withheldfrom theirpaycheckor self- employment tax.
Q: Whatdoes"Exemptionfrom Withholding"mean?
A: It’s thestatusclaimedon Form W-4 thatdirectsan employernot to withhold federal
income tax from the employee’s wages.
Q: Whatis an "UnderpaymentPenalty"?
A: A penaltyimposedwhena taxpayerfails to pay enoughtax during theyear.
Q: Whatarethetwoprimarywaysto maketax paymentsthroughouttheyear?
,A: Through withholdingor making estimatedtax payments.
Q: Whatis Form W-4 usedfor?
A: It is usedby employeesto determinehowmuch federalincometax shouldbe withheld
from their paycheck.
,Q: Whatis Form 4868usedfor?
A: It is an applicationfor an automaticextensionof timeto file a U.S. individual income
tax return.
Q: Whatis an "AmendedReturn"?
A: A tax returnfiled to correcterrorsor omissionsfrom theoriginal return, typically filed
using Form 1040X.
Q: Whencan an amendedreturnbe filed?
A: It can be filed within threeyearsof theoriginal returnfiling date,or within two years
of the tax payment date, whichever is later.
Q: Can a 1040X be filed electronically?No,
A:
Form 1040X mustbefiled on paper.
Q: Whatdoes"PortfolioIncomeand Losses"referto?
A: Incomeand lossesderivedfrom investmentssuch as dividends,interest,and capital
gains or losses.
Q: Whatis ScheduleE usedfor?
A: It is usedto reportsupplementalincomeor loss,such as rentalincomeor royalties.
Q: Whatis a "Royalty"?
, A: Paymentsreceivedfor theuseof intellectualpropertyor naturalresourcesfrom a
taxpayer's property.
