H&R Block Income Tax Exam Questions And Correct Answers | Latest Update 2026/2027 | 100% Guaranteed Pass | Graded A+.

H&R BLOCK INCOME TAX SPECIALIST EXAM QUESTIONS AND CORRECT ANSWERS | LATEST UPDATE 2026/2027 | 100% GUARANTEED PASS | GRADED A+. Which statement accurately describes the Affordable Care Act (ACA) Individual Shared Responsibility penalty for 2018? - correct answer - A. It is the greater of either: 2.5% of household income less the taxpayer's filing threshold or $695/individual family member ($347.50/child under age 18) without coverage up to $2,085. OR. Capped overall by the national average bronze premium. B. It is the greater of either: 2% of household income less the taxpayer's filing threshold or $325/individual family member ($162.50/child under age 18) without coverage up to $975. OR. Capped overall by the national average bronze premium. C. It is the lesser of either: 2.5% of household income less the taxpayer's filing threshold or $695/individual family member ($347.50/child under age 18) without coverage up to $2,085. OR. Capped overall by the national average bronze premium D. It is the lesser of either: 2% of household income less the taxpayer's filing threshold or $325/individual family member ($162.50/child under age 18) without coverage up to $975. OR. Capped overall by the national average bronze premium. Answer: A Which of the following taxpayers is required to file SCH B, Interest and Ordinary Dividends, with their return? All income is U.S.-source income, and all the taxpayers are single U.S. citizens who may not be claimed as a dependent on anyone else's return. - correct answer - A. John, who earned $400 in ordinary and qualified dividends from a mutual fund investment. B. Karen, who earned $700 in tax-exempt interest and $950 in ordinary dividends from a stock investment P a g e | 2 C. Mitch, who earned $800 in tax-exempt interest and $900 of interest from a U.S. Treasury bond D. Robin, who earned $1,550 in corporate bond interest Answer: D (Read this scenario and choose the option that accurately describes the tax household) Lisa (28) is not married. She has 2 children, John (2) and Katelyn (6), who live with her. She has wages of $28,000. Lisa lives with her mother, Berta (55), in the house that Berta owns. Berta has wage income of $32,000 and provides 100% of her own support. Lisa'a brother, Leo (21), also lives in the house. Leo has wage income of $22,000 and provides 100% of his own support. - correct answer - A. Lisa, John, Katelyn, Berta, and Leo from one tax household B. Lisa, John, and Katelyn from one tax household. Berta and Leo form a second tax household C. Lisa, John, and Katelyn form one tax household. Berta forms her own tax household. Leo forms his own tax household. D. Lisa and John form one tax household. Berta, Leo, and Katelyn form a second tax household. Answer: C Original issues discount (OID) is treated as: - correct answer - A. Taxable interest as it accrues over the term of the bond B. A taxable dividend as it accrues over the term of the bond C. A dividend that is not taxable until the bond matures D. Interest that is not taxable until the bond matures Answer: A P a g e | 3 Melina purchased a $10,000 corporate bond on July 1, 2018. The bond has a stated interest rate of 5%, payable annually on November 1. Since Melina purchased the bond between interest payment dates the interest income SCH B. Interest and Ordinary Dividends will be reported as _____________. - correct answer - A. $251, the amount of interest earned from July 1 through December 31. B. $332, her proportionate share of the interest as taxable income. No further adjustment is necessary C. $500, the full interest payment, then minus $332, the amount of accrued interest, as an adjustment D. $500, the entire interest payment. No further adjustment is necessary, as the amount of accrued interest was added to Melina's basis at the time of purchase. Answer: C In June 2017, Bill, a single taxpayer, purchased a home for $187,000. Later that year, he added a new room at a cost of $28,400. In May 2018, he sold the house for $473,000. The home served as his primary residence for the entire time that he owned it. Bill's taxable gain on the sale is ________________. - correct answer - A. $0 B. $7,600 C. $257,600 D. $286,000 Answer: C P a g e | 4 Samuel (28), single taxpayer has earned income of $13,690. He lived in Kansas City, MO all year. He cannot be claimed as a dependent on someone else's 2018 tax return. What is the max amount Samuel may claim for the Earned Income Tax Credit (EITC)? - correct answer - A. $0 B. $122 C. $126 D. $160 Answer: B In 2018,Raj. a self-employed consultant, spent $4,500 for qualifying health coverage that he purchased directly from an insurance company. He is not eligible to be covered under any other insurance plan. His net profit from his business and the amount used to figure his SE tax, was $68,000. He had no other earned income. How much can Raj deduct as an adjustment for SE health insurance? - correct answer - A. $0