HR Block Test Questions And Answers
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What is the maximum penalty for a tax return preparer who fails to meet due
diligence requirements when claiming EITC, CTC/ODC/ACTC, AOTC, and
head of household filing status on a single tax return?
Answer: $2,120
What is the limit for the deduction of state and local income taxes?
Answer: $10,000 ($5,000 for married filing separately)
What is the term for a married couple who materially participate in a jointly
owned business and elect to file separate Schedule C forms?
Answer: A qualified joint venture
How would stock owned by an individual be classified?
Answer: Intangible personal property, investment-use property
Which of the following is not deductible on Schedule A?
Answer: Federal taxes withheld
Which type of property is eligible for depreciation?
Answer: A copier purchased by a tax preparation office
How much rental loss can a taxpayer who actively participates in a rental real
estate activity deduct against other income?
Answer: $25,000
,Which form should a sole proprietor use to calculate self-employment tax?
Answer: Schedule SE
Which form does an employee use to tell their employer how much income tax
to withhold from their wages?
Answer: Form W-4
What types of penalties may the IRS assess on taxpayers?
Answer: All of the above
Which of the following best describes gross income?
Answer: All income from whatever source derived, unless excluded from taxation
by law
Which of the following describes earned income?
Answer: Income received for services performed, including wages, commissions,
tips, and generally, farming and business income
Which taxpayer is not required to file a federal tax return for 2019?
Answer: Ron (66) and Sue (64) have a gross income of $25,250 and wish to file a
joint return
How many qualifying dependents can Jennifer claim on her tax return if her
AGI is $27,800 and she supports her brother Jim (18), fiancé Steve (29), and
daughter Kim (5)?
Answer: Three
Which of the following items is included in federal gross income?
Answer: Unemployment compensation
, Which of the following items is not included in federal gross income?
Answer: Federal income tax refunds
Which taxpayer is not required to file a federal income tax return for 2019?
Answer: Elizabeth (68) with a gross income of $12,250, is single with no
dependents
What is Mike's tax liability from the 2019 Tax tables if his taxable income is
$17,405?
Answer: $1,897
What is Adrian's tax liability from the 2019 tax tables if his taxable income is
$26,100 and he is married filing separately?
Answer: $2,941
Which of the following is not one of the five qualifying child tests for a
dependent?
Answer: Gross income test
What is the most beneficial filing status for Marissa in 2019?
Answer: Head of household
When is Brian required to file a Schedule B for dividend income?
Answer: When his dividend income exceeds $1,500
Which taxpayer is not eligible for the educator expense deduction?
Answer: Gaylene, a high school substitute teacher, who worked 1,040 hours and
reimbursed her supply expenses
With Verified Solutions Already Passed
Rated A+
What is the maximum penalty for a tax return preparer who fails to meet due
diligence requirements when claiming EITC, CTC/ODC/ACTC, AOTC, and
head of household filing status on a single tax return?
Answer: $2,120
What is the limit for the deduction of state and local income taxes?
Answer: $10,000 ($5,000 for married filing separately)
What is the term for a married couple who materially participate in a jointly
owned business and elect to file separate Schedule C forms?
Answer: A qualified joint venture
How would stock owned by an individual be classified?
Answer: Intangible personal property, investment-use property
Which of the following is not deductible on Schedule A?
Answer: Federal taxes withheld
Which type of property is eligible for depreciation?
Answer: A copier purchased by a tax preparation office
How much rental loss can a taxpayer who actively participates in a rental real
estate activity deduct against other income?
Answer: $25,000
,Which form should a sole proprietor use to calculate self-employment tax?
Answer: Schedule SE
Which form does an employee use to tell their employer how much income tax
to withhold from their wages?
Answer: Form W-4
What types of penalties may the IRS assess on taxpayers?
Answer: All of the above
Which of the following best describes gross income?
Answer: All income from whatever source derived, unless excluded from taxation
by law
Which of the following describes earned income?
Answer: Income received for services performed, including wages, commissions,
tips, and generally, farming and business income
Which taxpayer is not required to file a federal tax return for 2019?
Answer: Ron (66) and Sue (64) have a gross income of $25,250 and wish to file a
joint return
How many qualifying dependents can Jennifer claim on her tax return if her
AGI is $27,800 and she supports her brother Jim (18), fiancé Steve (29), and
daughter Kim (5)?
Answer: Three
Which of the following items is included in federal gross income?
Answer: Unemployment compensation
, Which of the following items is not included in federal gross income?
Answer: Federal income tax refunds
Which taxpayer is not required to file a federal income tax return for 2019?
Answer: Elizabeth (68) with a gross income of $12,250, is single with no
dependents
What is Mike's tax liability from the 2019 Tax tables if his taxable income is
$17,405?
Answer: $1,897
What is Adrian's tax liability from the 2019 tax tables if his taxable income is
$26,100 and he is married filing separately?
Answer: $2,941
Which of the following is not one of the five qualifying child tests for a
dependent?
Answer: Gross income test
What is the most beneficial filing status for Marissa in 2019?
Answer: Head of household
When is Brian required to file a Schedule B for dividend income?
Answer: When his dividend income exceeds $1,500
Which taxpayer is not eligible for the educator expense deduction?
Answer: Gaylene, a high school substitute teacher, who worked 1,040 hours and
reimbursed her supply expenses
