HRB 1-6 quiz & Answers 100%
Accurate!!
A taxpayer should include which of the following when figuring their federal gross income? -
ANSWERSGifts and inheritances.
Life insurance payments, if paid by reason of the death of the insured.
Meals and lodging provided for the convenience of the employer
Prizes and awards.
To avoid the risk of penalties, tax preparers must abide by rules regarding preparer tax identification
numbers (PTINs). Which of the following statements is TRUE regarding PTINs? - ANSWERSA)A PTIN is
required semi-annually for anyone who prepares or assists in preparing federal tax returns for
compensation.
B)If a tax preparer does not have a PTIN, they can still prepare tax returns for compensation.
C)The IRS may provide a PTIN to taxpayers who are victims of identity theft.
D)The preparer must enter their PTIN on the tax return in the space provided.
Tucker is an unmarried, 29-year-old taxpayer. He received the following income for the year:
Wages: $44,500.
Interest from a bank savings account: $50.
Unemployment compensation: $7,000.
Gift from his father: $3,000.
How much of Tucker's income is considered earned income? - ANSWERSA)$44,500
B)$44,550
C)$51,500
D)$54,550
Lucca has a financial interest in a financial account in a foreign country. Where should this be reported
on his tax return? - ANSWERSPart I of the Schedule B (Form 1040).
, Part II of the Schedule B (Form 1040).
Part III of the Schedule B (Form 1040).
Part II of Schedule 1 (Form 1040).
Omari (47) is single. He had wages of $45,950. In 2022, he opened an interest-bearing savings account
and received Form 1099-INT, Interest Income, showing he had earned $16 of interest income for the
year. What amount of interest must be reported on his Form 1040? - ANSWERS$0
$8
$10
$16
Vanida received workers' compensation due to an injury on the job. When Vanida files her tax return,
her workers' compensation income will be: - ANSWERSFully taxable.
Nontaxable.
Partially taxable.
Taxable at the discretion of the employer.
Ricky and his wife, Sarah, are filing their tax return. Which of the following statements regarding signing
the return is NOT correct? - ANSWERSA joint return must be signed by both the taxpayer and the spouse.
Every taxpayer must sign their own return.
When a tax return is filed electronically, there are no signature requirements for the taxpayer.
When a taxpayer signs their tax return, they declare, under penalties of perjury, that they have examined
the return and accompanying schedules and statements, and to the best of their knowledge and belief,
they are true, correct, and complete.
The IRS requires paid tax preparers to keep a completed copy of returns or claim for refund; or retain
some type of record, or list, which includes the taxpayer's name, identification number, and tax year.
How long must these records be retained and available for inspection? - ANSWERSTwo years following
the close of the tax return period in which the claim for refund was requested.
Three years following the close of the tax return period in which the claim for refund was requested.
Seven years following the close of the tax return period in which the claim for refund was requested.
Accurate!!
A taxpayer should include which of the following when figuring their federal gross income? -
ANSWERSGifts and inheritances.
Life insurance payments, if paid by reason of the death of the insured.
Meals and lodging provided for the convenience of the employer
Prizes and awards.
To avoid the risk of penalties, tax preparers must abide by rules regarding preparer tax identification
numbers (PTINs). Which of the following statements is TRUE regarding PTINs? - ANSWERSA)A PTIN is
required semi-annually for anyone who prepares or assists in preparing federal tax returns for
compensation.
B)If a tax preparer does not have a PTIN, they can still prepare tax returns for compensation.
C)The IRS may provide a PTIN to taxpayers who are victims of identity theft.
D)The preparer must enter their PTIN on the tax return in the space provided.
Tucker is an unmarried, 29-year-old taxpayer. He received the following income for the year:
Wages: $44,500.
Interest from a bank savings account: $50.
Unemployment compensation: $7,000.
Gift from his father: $3,000.
How much of Tucker's income is considered earned income? - ANSWERSA)$44,500
B)$44,550
C)$51,500
D)$54,550
Lucca has a financial interest in a financial account in a foreign country. Where should this be reported
on his tax return? - ANSWERSPart I of the Schedule B (Form 1040).
, Part II of the Schedule B (Form 1040).
Part III of the Schedule B (Form 1040).
Part II of Schedule 1 (Form 1040).
Omari (47) is single. He had wages of $45,950. In 2022, he opened an interest-bearing savings account
and received Form 1099-INT, Interest Income, showing he had earned $16 of interest income for the
year. What amount of interest must be reported on his Form 1040? - ANSWERS$0
$8
$10
$16
Vanida received workers' compensation due to an injury on the job. When Vanida files her tax return,
her workers' compensation income will be: - ANSWERSFully taxable.
Nontaxable.
Partially taxable.
Taxable at the discretion of the employer.
Ricky and his wife, Sarah, are filing their tax return. Which of the following statements regarding signing
the return is NOT correct? - ANSWERSA joint return must be signed by both the taxpayer and the spouse.
Every taxpayer must sign their own return.
When a tax return is filed electronically, there are no signature requirements for the taxpayer.
When a taxpayer signs their tax return, they declare, under penalties of perjury, that they have examined
the return and accompanying schedules and statements, and to the best of their knowledge and belief,
they are true, correct, and complete.
The IRS requires paid tax preparers to keep a completed copy of returns or claim for refund; or retain
some type of record, or list, which includes the taxpayer's name, identification number, and tax year.
How long must these records be retained and available for inspection? - ANSWERSTwo years following
the close of the tax return period in which the claim for refund was requested.
Three years following the close of the tax return period in which the claim for refund was requested.
Seven years following the close of the tax return period in which the claim for refund was requested.
