H&R BLOCK TAX PREP CH 1 ACTUAL 2025/2026 QUESTIONS AND 100% CORRECT ANSWERS

H&R BLOCK TAX PREP CH 1 ACTUAL 2025/2026 QUESTIONS AND 100% CORRECT ANSWERS Adjusted Gross Income (AGI) - Answer -gross income less reductions that are allowable, regardless of whether personal deductions are itemized Deductions - Answer -Amounts that may be subtracted from income that is otherwise taxable Earned Income - Answer -Income from personal services as distinguished from income generated by property or other sources. Earned income includes all amounts received as wages, tips, bonuses, other employee compensation, and self-employment income, whether in the form of money, services, or property Federal Income Tax Withheld - Answer -The amount taken out of income by the payer and submitted to the IRS as an advance payment of the taxpayer's federal income tax Gross Income - Answer -Total worldwide income received in the form of money, property, or services that is subject to tax Medicare Part A - Answer -Medicare insurance for qualifying individuals who are age 65 or older or disabled. Medicare Part A covers hospital expenses, care in a skilled nursing facility, hospice care, and somehealth care. Most participants do not pay a monthly premium for this coverage if they or their spouse paid medicare taxes while working Nonrefundable Credits - Answer -A credit which cannot exceed the taxpayer'