H&R BLOCK FINAL REVIEW 2025
QUESTIONS AND ANSWERS
Earned Income - --Answer --income is received for services performed.
Includes wages, commissions, tips, farming, and other business income
Unearned Income - --Answer --taxable income that does not meet the
definition of earned income.
Ex: interest income, dividends, rents and royalties, pensions, alimony, and
unemployment income.
If an employee thinks their Form W-2 is incorrect, what should they do? - --
Answer --Taxpayer should notify employer and request a corrected Form
W-2 and have them update their records with Social Secutiry Adminstration.
Notify IRS if necessary.
Is interest received on U.S. Treasury Obligations taxable on state and /or local
returns? - --Answer --No. expempt by federal law
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,Is municipal bond interest taxable on a federal return? - --Answer --No.
Govt does not tax.
How is interest income reported to the taxpayer? - --Answer --Form 1099-
INT or subsitute statment.
What information do you need to know to determine whether a nondependent
taxpayer is required to file a return? - --Answer --Filing status, age at end of
tax year, and gross income for the year.
When is a person's marital status determined? - --Answer --On the last day
of the tax year or date of death.
How much is added to the standard deduction if the taxpayer (or spouse) is age 65
or older or blind? - --Answer --1,350 for married taxpayers and qualifying
window(er)s. 1,700 for single or head of household.
What is the personal expemption amount for 2021? - --Answer --None for
2021. The Tax Cuts and Jobs Act of 2017 repealed this deduction in beginning of
2018.
How is the gross income filing requirement determined for most nondependent
taxpayers? - --Answer --The taxpayer's standard deduction, including
amounts for age. But for married filed separately and married filed jointly who did
not live together at the end of the year, the amount is $5.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
,What is the difference between injured spouse alloction and innocent spouse
relief? - --Answer --- Injured spouse allocation for taxpayer to protect their
portion of a refund from a spouse's past-due federal income tax, unpaid student
loans, unpaid child and spousal support, or state income tax.
- Innocent spouse relief to taxpayers who file a joint return and later learn that
their spouse has underestimated income (or overstated a credit or deduction) on
the return.
Is unemployment compensation taxable? - --Answer --Yes, fully
Are scholarships and fellowships taxable? - --Answer --Sometimes.
Generally, scholarships and fellowships are excluded from income by degree-
seeking candidates to the extent that they are used to pay qualified education
expenses, such as tuition and course-related fees. However, if they are used to pay
for room and board or other expenses, they are taxable.
What document will the taxpayer receive from their employer reporting disability
pension payments? - --Answer --Form 1099-R
Under what circumstances can a disability pension qualify as earned income for
earned income credit (EIC)? - --Answer --Disability pension income
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
, received before the taxpayer attains minimum retirement age for their company is
reported as wage income. It is also considered earned income for purposes of EIC.
What types on income must be reported on Schedule 1 (Form 1040) and then
reported on Form 1040? - --Answer --Gambling winnings, alimony, jury
duty pay, canceled debts, and hobby income
What are the adjustments that can be claimed on Schdule 1 (Form 1040)? - --
Answer --Educator expense deduction, The health savings account (HSA)
deduction, Moving expenses for members of the military, Self-employment tax
deduction, Self-employed health insurance deduction, Penalty on early withdrawal
of savings, Alimony payments, IRA deduction, Student loan interest deduction.
How much may an eligible educator deduct for qualified classroom expenses as an
adjustment to income? - --Answer --Up to $250 per educator. Married filing
a joint return and are both elgible educators can claim $250 each, totaling $500.
Who is an eligible educator? - --Answer --Worked at least 900 hours during
school year as teacher, teacher's aide, counselor, or principal in an elementary or
secondary school.
Where is the educator expense deduction reported? - --Answer --Schedule 1,
Additional Income and Adjustments to Income, line 11.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 4
QUESTIONS AND ANSWERS
Earned Income - --Answer --income is received for services performed.
Includes wages, commissions, tips, farming, and other business income
Unearned Income - --Answer --taxable income that does not meet the
definition of earned income.
Ex: interest income, dividends, rents and royalties, pensions, alimony, and
unemployment income.
If an employee thinks their Form W-2 is incorrect, what should they do? - --
Answer --Taxpayer should notify employer and request a corrected Form
W-2 and have them update their records with Social Secutiry Adminstration.
Notify IRS if necessary.
Is interest received on U.S. Treasury Obligations taxable on state and /or local
returns? - --Answer --No. expempt by federal law
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,Is municipal bond interest taxable on a federal return? - --Answer --No.
Govt does not tax.
How is interest income reported to the taxpayer? - --Answer --Form 1099-
INT or subsitute statment.
What information do you need to know to determine whether a nondependent
taxpayer is required to file a return? - --Answer --Filing status, age at end of
tax year, and gross income for the year.
When is a person's marital status determined? - --Answer --On the last day
of the tax year or date of death.
How much is added to the standard deduction if the taxpayer (or spouse) is age 65
or older or blind? - --Answer --1,350 for married taxpayers and qualifying
window(er)s. 1,700 for single or head of household.
What is the personal expemption amount for 2021? - --Answer --None for
2021. The Tax Cuts and Jobs Act of 2017 repealed this deduction in beginning of
2018.
How is the gross income filing requirement determined for most nondependent
taxpayers? - --Answer --The taxpayer's standard deduction, including
amounts for age. But for married filed separately and married filed jointly who did
not live together at the end of the year, the amount is $5.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
,What is the difference between injured spouse alloction and innocent spouse
relief? - --Answer --- Injured spouse allocation for taxpayer to protect their
portion of a refund from a spouse's past-due federal income tax, unpaid student
loans, unpaid child and spousal support, or state income tax.
- Innocent spouse relief to taxpayers who file a joint return and later learn that
their spouse has underestimated income (or overstated a credit or deduction) on
the return.
Is unemployment compensation taxable? - --Answer --Yes, fully
Are scholarships and fellowships taxable? - --Answer --Sometimes.
Generally, scholarships and fellowships are excluded from income by degree-
seeking candidates to the extent that they are used to pay qualified education
expenses, such as tuition and course-related fees. However, if they are used to pay
for room and board or other expenses, they are taxable.
What document will the taxpayer receive from their employer reporting disability
pension payments? - --Answer --Form 1099-R
Under what circumstances can a disability pension qualify as earned income for
earned income credit (EIC)? - --Answer --Disability pension income
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
, received before the taxpayer attains minimum retirement age for their company is
reported as wage income. It is also considered earned income for purposes of EIC.
What types on income must be reported on Schedule 1 (Form 1040) and then
reported on Form 1040? - --Answer --Gambling winnings, alimony, jury
duty pay, canceled debts, and hobby income
What are the adjustments that can be claimed on Schdule 1 (Form 1040)? - --
Answer --Educator expense deduction, The health savings account (HSA)
deduction, Moving expenses for members of the military, Self-employment tax
deduction, Self-employed health insurance deduction, Penalty on early withdrawal
of savings, Alimony payments, IRA deduction, Student loan interest deduction.
How much may an eligible educator deduct for qualified classroom expenses as an
adjustment to income? - --Answer --Up to $250 per educator. Married filing
a joint return and are both elgible educators can claim $250 each, totaling $500.
Who is an eligible educator? - --Answer --Worked at least 900 hours during
school year as teacher, teacher's aide, counselor, or principal in an elementary or
secondary school.
Where is the educator expense deduction reported? - --Answer --Schedule 1,
Additional Income and Adjustments to Income, line 11.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 4
