HRB FINAL EXAM 2026 EXAM
QUESTIONS AND ANSWERS |
100% PASS
What is the Difference between earned income and unearned income? -
ANSWER ✔✔Earned income is received for services performed.
Examples are wages commissions, tips and generally farming and other
business income . Taxable income other than that received for services
performed. Unearned Income includes money received ro the
investment of money or other property, such as interest, dividends, and
royalties. It also includes pensions alimony, unemployment
compensation and other income that is not earned
If an employee thinks their Form W2 is incorrect, what should they do? -
ANSWER ✔✔Employee should discuss with employer who issued
,the document and request a W2C. If no help from employer, notify IRS.
Tax prepaper can then file a substitute.
What information do you need to know to determine whether a taxpayer
is required to file a return? - ANSWER ✔✔Gross income, filing status,
age and if they are a dependent
For tax purposes, when is a person's marital status determined? -
ANSWER ✔✔On the last day of the tax year
Where on the tax form can you find the regular standard deduction
amounts? - ANSWER ✔✔Line 22 on 1040A, In the left margin at the
top of the page 2 of forms 1040 and 1040A. Look at actual form to look
for line
How much is added to the standard deduction if the taxpayer (or spouse
is age 65 or older, or blind? - ANSWER ✔✔$1550 if unmarried,
$1250 if married
What is the personal exemption amount for 2016? - ANSWER
✔✔$4,050
What two amounts are combined to make up the gross income filing
requirments for most taxpayers? - ANSWER ✔✔The standard
deduction and the personal exemption amounts
,Under what circumstances might a taxpayer be required to file a return
even though they do not meet the gross income filing requirements? -
ANSWER ✔✔1. Has net employment of $400 or more net self
employment 2. You had unemployment income you owe medicare
Advantage MSA, receive HAS, Archer, MSA 3. Reeived an Advanced
Premium Tax credit even if they didn't otherwise have a filing requirment
for the year *Tips, HSA, SE $400, PTC
What is the difference between injured spouse allocation and innocent
spouse relief? - ANSWER ✔✔The difference between injured spouse
and innocent spouse is significant in the eyes of the IRS. Both release
you from an income tax liability arising from a "married filing jointly"
return but different outcomes. Innocent spouse filed a joint return byt
was unaware that their spouse deliberately under reported tax liability.
Injured spouse seeks to protect his or her share of the refund in case it
gets seized or offset due to the other spouse's debts or unpaid
obligations
CHAPTER 3: DEPENDENT EXEMPTIONS AND SUPPORT -
ANSWER ✔✔
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, What four requirements must be met for an individual to be claimed as a
dependent - ANSWER ✔✔Must pass the dependent test, joint return
test, citizenship, qualifying child or relative
What are the five tests for a qualifying child? - ANSWER ✔✔1.
Relationship 2. Age 3. Residency 4. Support 5. Joint Return
How can a married individual meet the joint return test to remain a
qualifying child? - ANSWER ✔✔They can meet this test by not filing a
joint return with their spouse or they can file a joint return with their
spouse if they are filing only to claim a refund on any taxes withheld
How can you determine who paid more than half of a person's support? -
ANSWER ✔✔Total support is determined and reduced by the funds
received by and for the person from all sources other than the taxpaer.
The remaining support is considered to be provided by the taxpayer.
Other sources might include government support Worksheet for
Determining Support
What happens if an individual is a qualifying child of more than one
taxpayer? - ANSWER ✔✔Generally, the custodial parent is the one in
which the child spent the most nights
What happens when more than one taxpayer claims the same qualifying
child? - ANSWER ✔✔Tie Breaker Rules apply : 1. The parent, if only
QUESTIONS AND ANSWERS |
100% PASS
What is the Difference between earned income and unearned income? -
ANSWER ✔✔Earned income is received for services performed.
Examples are wages commissions, tips and generally farming and other
business income . Taxable income other than that received for services
performed. Unearned Income includes money received ro the
investment of money or other property, such as interest, dividends, and
royalties. It also includes pensions alimony, unemployment
compensation and other income that is not earned
If an employee thinks their Form W2 is incorrect, what should they do? -
ANSWER ✔✔Employee should discuss with employer who issued
,the document and request a W2C. If no help from employer, notify IRS.
Tax prepaper can then file a substitute.
What information do you need to know to determine whether a taxpayer
is required to file a return? - ANSWER ✔✔Gross income, filing status,
age and if they are a dependent
For tax purposes, when is a person's marital status determined? -
ANSWER ✔✔On the last day of the tax year
Where on the tax form can you find the regular standard deduction
amounts? - ANSWER ✔✔Line 22 on 1040A, In the left margin at the
top of the page 2 of forms 1040 and 1040A. Look at actual form to look
for line
How much is added to the standard deduction if the taxpayer (or spouse
is age 65 or older, or blind? - ANSWER ✔✔$1550 if unmarried,
$1250 if married
What is the personal exemption amount for 2016? - ANSWER
✔✔$4,050
What two amounts are combined to make up the gross income filing
requirments for most taxpayers? - ANSWER ✔✔The standard
deduction and the personal exemption amounts
,Under what circumstances might a taxpayer be required to file a return
even though they do not meet the gross income filing requirements? -
ANSWER ✔✔1. Has net employment of $400 or more net self
employment 2. You had unemployment income you owe medicare
Advantage MSA, receive HAS, Archer, MSA 3. Reeived an Advanced
Premium Tax credit even if they didn't otherwise have a filing requirment
for the year *Tips, HSA, SE $400, PTC
What is the difference between injured spouse allocation and innocent
spouse relief? - ANSWER ✔✔The difference between injured spouse
and innocent spouse is significant in the eyes of the IRS. Both release
you from an income tax liability arising from a "married filing jointly"
return but different outcomes. Innocent spouse filed a joint return byt
was unaware that their spouse deliberately under reported tax liability.
Injured spouse seeks to protect his or her share of the refund in case it
gets seized or offset due to the other spouse's debts or unpaid
obligations
CHAPTER 3: DEPENDENT EXEMPTIONS AND SUPPORT -
ANSWER ✔✔
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, What four requirements must be met for an individual to be claimed as a
dependent - ANSWER ✔✔Must pass the dependent test, joint return
test, citizenship, qualifying child or relative
What are the five tests for a qualifying child? - ANSWER ✔✔1.
Relationship 2. Age 3. Residency 4. Support 5. Joint Return
How can a married individual meet the joint return test to remain a
qualifying child? - ANSWER ✔✔They can meet this test by not filing a
joint return with their spouse or they can file a joint return with their
spouse if they are filing only to claim a refund on any taxes withheld
How can you determine who paid more than half of a person's support? -
ANSWER ✔✔Total support is determined and reduced by the funds
received by and for the person from all sources other than the taxpaer.
The remaining support is considered to be provided by the taxpayer.
Other sources might include government support Worksheet for
Determining Support
What happens if an individual is a qualifying child of more than one
taxpayer? - ANSWER ✔✔Generally, the custodial parent is the one in
which the child spent the most nights
What happens when more than one taxpayer claims the same qualifying
child? - ANSWER ✔✔Tie Breaker Rules apply : 1. The parent, if only
