H&R Block Income Tax Course Questions
And Answers With Verified Solutions Already
Passed!!!
Due Diligence- ANSWER Requirementsthattax professionalsmustfollowwhen
preparing income tax returns.
Estimated Tax- ANSWER The amount of tax a taxpayer expects to owe for the year
aftersubtractingexpectedamountswithheldand certainrefundablecredits.
Estimated Tax Voucher- ANSWER A statement by an individual of (1) the amount
of incometax he estimateshe will incur during thecurrenttaxableyear on income that
is not subject to withholding, (2) the excess amount over that withheld on income
which is subject to withholding, and (3) his estimated- employment
self tax.
Exemption from Withholding- ANSWER Statusclaimedon Form W-4 directing
the employer not to withhold federal income taxes from the employee.
Underpayment Penalty - ANSWER If a taxpayerdid not pay enoughtax on a
timely basis during the year, he may be required to pay an underpayment
penalty.
Two Ways to Pay as You Go- ANSWER Withholdingand EstimatedTax
Payments
Form W-4 - ANSWER Employee'sWithholdingAllowanceCertificate
,Form 4868- ANSWER Applicationfor AutomaticExtensionof Time To File U.S.
Individual Income Tax Return
Amended Return- ANSWER A tax returnfiled on Form 1040X aftertheoriginal
return has been filed.
Closed Year- ANSWER A tax yearfor which thestatuteof limitationshas
expired.
Open Year- ANSWER A taxableyearfor which thestatuteof limitationshas not yet
expired.
Failure-to-File Penalty- ANSWER Generally5% for eachmonthor partof a
month the return is late, but not more than 25% of the tax not paid.
Failure to File- ANSWER Taxpayerfails to file thereturnby theduedate,and there
is a balance due.
Form 1040X - ANSWER AmendedU.S. Individual IncomeTax Return
When can an amended return be filed? - ANSWER Within threeyearsof the
date the original return was filed, or within two years of the date the tax was paid,
whichever is later.
Can the1040X be e-filed?- ANSWER No.
,Portfolio Income and Losses - ANSWER Those from such sourcesas dividends,
interest, capital gains and losses, and royalties.
ScheduleE - ANSWER SupplementalIncomeand Loss
Royalty- ANSWER Paymentsreceivedfor theright to extractnaturalresources from
the taxpayer's property or to use a taxpayer's literary, musical, or artistic
creation.
Annuity - ANSWER A seriesof paymentsundera contractmadeat regular
intervals over a period of more than one year.
Beneficiary- ANSWER The owneror recipientof fundsin an account,such as an IRA,
or from an insurance policy or will.
Contribution- ANSWER When a personputsmoneyinto a retirementplan.
Defined Benefit Plan- ANSWER An employeebenefitplan thatprovides
determinable benefits not based on employer profits.
Defined Contribution Plan- ANSWER An employeebenefitplan thatprovidesa
separate account for each person covered and pays benefits based on account
earnings.
Disability Pension- ANSWER A taxablepensionfrom an employer-funded
disability plan or a disability provision of a retirement plan.
, Distribution- ANSWER When a persontakesor receivesmoneyfrom a
retirement plan.
Pension- ANSWER Generallya seriesof definitelydeterminablepayments
made to a taxpayer after retirement from work.
Rollover- ANSWER A qualifiedtransferof fundsfrom onetax-favoredaccount to
another, usually of the same type.
Roth IRA - ANSWER A type of individual retirement arrangement in which
contributionsarenot tax deductible,earningsgrowtax deferred,and qualified
withdrawals are tax free.
Traditional IRA - ANSWER An individualretirementarrangement,contributions to
which may or may not be deductible depending on the taxpayer's AGI and whether or
not he is covered under an employer
-sponsored retirement plan.
What is thefull retirementage?- ANSWER For workersborn before1938,it is
65. For thoseborn afterit is graduallybeingincreasedto 67.
How much of a client'ssocialsecurityand equivalenttier 1 RR benefitsmay be
taxable?- ANSWER Up to 85%.
Form SSA-1099- ANSWER Social SecurityBenefits
Form RRB-1099- ANSWER RailroadRetirementBenefits
And Answers With Verified Solutions Already
Passed!!!
Due Diligence- ANSWER Requirementsthattax professionalsmustfollowwhen
preparing income tax returns.
Estimated Tax- ANSWER The amount of tax a taxpayer expects to owe for the year
aftersubtractingexpectedamountswithheldand certainrefundablecredits.
Estimated Tax Voucher- ANSWER A statement by an individual of (1) the amount
of incometax he estimateshe will incur during thecurrenttaxableyear on income that
is not subject to withholding, (2) the excess amount over that withheld on income
which is subject to withholding, and (3) his estimated- employment
self tax.
Exemption from Withholding- ANSWER Statusclaimedon Form W-4 directing
the employer not to withhold federal income taxes from the employee.
Underpayment Penalty - ANSWER If a taxpayerdid not pay enoughtax on a
timely basis during the year, he may be required to pay an underpayment
penalty.
Two Ways to Pay as You Go- ANSWER Withholdingand EstimatedTax
Payments
Form W-4 - ANSWER Employee'sWithholdingAllowanceCertificate
,Form 4868- ANSWER Applicationfor AutomaticExtensionof Time To File U.S.
Individual Income Tax Return
Amended Return- ANSWER A tax returnfiled on Form 1040X aftertheoriginal
return has been filed.
Closed Year- ANSWER A tax yearfor which thestatuteof limitationshas
expired.
Open Year- ANSWER A taxableyearfor which thestatuteof limitationshas not yet
expired.
Failure-to-File Penalty- ANSWER Generally5% for eachmonthor partof a
month the return is late, but not more than 25% of the tax not paid.
Failure to File- ANSWER Taxpayerfails to file thereturnby theduedate,and there
is a balance due.
Form 1040X - ANSWER AmendedU.S. Individual IncomeTax Return
When can an amended return be filed? - ANSWER Within threeyearsof the
date the original return was filed, or within two years of the date the tax was paid,
whichever is later.
Can the1040X be e-filed?- ANSWER No.
,Portfolio Income and Losses - ANSWER Those from such sourcesas dividends,
interest, capital gains and losses, and royalties.
ScheduleE - ANSWER SupplementalIncomeand Loss
Royalty- ANSWER Paymentsreceivedfor theright to extractnaturalresources from
the taxpayer's property or to use a taxpayer's literary, musical, or artistic
creation.
Annuity - ANSWER A seriesof paymentsundera contractmadeat regular
intervals over a period of more than one year.
Beneficiary- ANSWER The owneror recipientof fundsin an account,such as an IRA,
or from an insurance policy or will.
Contribution- ANSWER When a personputsmoneyinto a retirementplan.
Defined Benefit Plan- ANSWER An employeebenefitplan thatprovides
determinable benefits not based on employer profits.
Defined Contribution Plan- ANSWER An employeebenefitplan thatprovidesa
separate account for each person covered and pays benefits based on account
earnings.
Disability Pension- ANSWER A taxablepensionfrom an employer-funded
disability plan or a disability provision of a retirement plan.
, Distribution- ANSWER When a persontakesor receivesmoneyfrom a
retirement plan.
Pension- ANSWER Generallya seriesof definitelydeterminablepayments
made to a taxpayer after retirement from work.
Rollover- ANSWER A qualifiedtransferof fundsfrom onetax-favoredaccount to
another, usually of the same type.
Roth IRA - ANSWER A type of individual retirement arrangement in which
contributionsarenot tax deductible,earningsgrowtax deferred,and qualified
withdrawals are tax free.
Traditional IRA - ANSWER An individualretirementarrangement,contributions to
which may or may not be deductible depending on the taxpayer's AGI and whether or
not he is covered under an employer
-sponsored retirement plan.
What is thefull retirementage?- ANSWER For workersborn before1938,it is
65. For thoseborn afterit is graduallybeingincreasedto 67.
How much of a client'ssocialsecurityand equivalenttier 1 RR benefitsmay be
taxable?- ANSWER Up to 85%.
Form SSA-1099- ANSWER Social SecurityBenefits
Form RRB-1099- ANSWER RailroadRetirementBenefits
