H&R Block Income Tax Course Exam CURRENTLY MOST TESTED Questions
With 100% Correct Answers UPDATED 2026 (GRADED A+)
Due Diligence - VERIFIED ANSWER✅ Requirements that tax professionals must follow when
preparing income tax returns.
Estimated Tax - VERIFIED ANSWER✅ The amount of tax a taxpayer expects to owe for the
year after subtracting expected amounts withheld and certain refundable credits.
Estimated Tax Voucher - VERIFIED ANSWER✅ A statement by an individual of (1) the amount
of income tax he estimates he will incur during the current taxable year on income that is
not subject to withholding, (2) the excess amount over that withheld on income which is
subject to withholding, and (3) his estimated self-employment tax.
Exemption from Withholding - VERIFIED ANSWER✅ Status claimed on Form W-4 directing
the employer not to withhold federal income taxes from the employee.
Underpayment Penalty - VERIFIED ANSWER✅ If a taxpayer did not pay enough tax on a
timely basis during the year, he may be required to pay an underpayment penalty.
Two Ways to Pay as You Go - VERIFIED ANSWER✅ Withholding and Estimated Tax Payments
Form W-4 - VERIFIED ANSWER✅ Employee's Withholding Allowance Certificate
,Form 4868 - VERIFIED ANSWER✅ Application for Automatic Extension of Time To File U.S.
Individual Income Tax Return
Amended Return - VERIFIED ANSWER✅ A tax return filed on Form 1040X after the original
return has been filed.
Closed Year - VERIFIED ANSWER✅ A tax year for which the statute of limitations has
expired.
Open Year - VERIFIED ANSWER✅ A taxable year for which the statute of limitations has not
yet expired.
Failure-to-File Penalty - VERIFIED ANSWER✅ Generally 5% for each month or part of a
month the return is late, but not more than 25% of the tax not paid.
Failure to File - VERIFIED ANSWER✅ Taxpayer fails to file the return by the due date, and
there is a balance due.
Form 1040X - VERIFIED ANSWER✅ Amended U.S. Individual Income Tax Return
When can an amended return be filed? - VERIFIED ANSWER✅ Within three years of the date
the original return was filed, or within two years of the date the tax was paid, whichever is
later.
,Can the 1040X be e-filed? - VERIFIED ANSWER✅ No.
Portfolio Income and Losses - VERIFIED ANSWER✅ Those from such sources as dividends,
interest, capital gains and losses, and royalties.
Schedule E - VERIFIED ANSWER✅ Supplemental Income and Loss
Royalty - VERIFIED ANSWER✅ Payments received for the right to extract natural
resources from the taxpayer's property or to use a taxpayer's literary, musical, or artistic
creation.
Annuity - VERIFIED ANSWER✅ A series of payments under a contract made at regular
intervals over a period of more than one year.
Beneficiary - VERIFIED ANSWER✅ The owner or recipient of funds in an account, such as
an IRA, or from an insurance policy or will.
Contribution - VERIFIED ANSWER✅ When a person puts money into a retirement plan.
Defined Benefit Plan - VERIFIED ANSWER✅ An employee benefit plan that provides
determinable benefits not based on employer profits.
Defined Contribution Plan - VERIFIED ANSWER✅ An employee benefit plan that provides a
separate account for each person covered and pays benefits based on account earnings.
, Disability Pension - VERIFIED ANSWER✅ A taxable pension from an employer-funded
disability plan or a disability provision of a retirement plan.
Distribution - VERIFIED ANSWER✅ When a person takes or receives money from a
retirement plan.
Pension - VERIFIED ANSWER✅ Generally a series of definitely determinable payments
made to a taxpayer after retirement from work.
Rollover - VERIFIED ANSWER✅ A qualified transfer of funds from one tax-favored account
to another, usually of the same type.
Roth IRA - VERIFIED ANSWER✅ A type of individual retirement arrangement in which
contributions are not tax deductible, earnings grow tax deferred, and qualified withdrawals
are tax free.
Traditional IRA - VERIFIED ANSWER✅ An individual retirement arrangement, contributions
to which may or may not be deductible depending on the taxpayer's AGI and whether or not
he is covered under an employer-sponsored retirement plan.
What is the full retirement age? - VERIFIED ANSWER✅ For workers born before 1938, it is
65. For those born after it is gradually being increased to 67.
With 100% Correct Answers UPDATED 2026 (GRADED A+)
Due Diligence - VERIFIED ANSWER✅ Requirements that tax professionals must follow when
preparing income tax returns.
Estimated Tax - VERIFIED ANSWER✅ The amount of tax a taxpayer expects to owe for the
year after subtracting expected amounts withheld and certain refundable credits.
Estimated Tax Voucher - VERIFIED ANSWER✅ A statement by an individual of (1) the amount
of income tax he estimates he will incur during the current taxable year on income that is
not subject to withholding, (2) the excess amount over that withheld on income which is
subject to withholding, and (3) his estimated self-employment tax.
Exemption from Withholding - VERIFIED ANSWER✅ Status claimed on Form W-4 directing
the employer not to withhold federal income taxes from the employee.
Underpayment Penalty - VERIFIED ANSWER✅ If a taxpayer did not pay enough tax on a
timely basis during the year, he may be required to pay an underpayment penalty.
Two Ways to Pay as You Go - VERIFIED ANSWER✅ Withholding and Estimated Tax Payments
Form W-4 - VERIFIED ANSWER✅ Employee's Withholding Allowance Certificate
,Form 4868 - VERIFIED ANSWER✅ Application for Automatic Extension of Time To File U.S.
Individual Income Tax Return
Amended Return - VERIFIED ANSWER✅ A tax return filed on Form 1040X after the original
return has been filed.
Closed Year - VERIFIED ANSWER✅ A tax year for which the statute of limitations has
expired.
Open Year - VERIFIED ANSWER✅ A taxable year for which the statute of limitations has not
yet expired.
Failure-to-File Penalty - VERIFIED ANSWER✅ Generally 5% for each month or part of a
month the return is late, but not more than 25% of the tax not paid.
Failure to File - VERIFIED ANSWER✅ Taxpayer fails to file the return by the due date, and
there is a balance due.
Form 1040X - VERIFIED ANSWER✅ Amended U.S. Individual Income Tax Return
When can an amended return be filed? - VERIFIED ANSWER✅ Within three years of the date
the original return was filed, or within two years of the date the tax was paid, whichever is
later.
,Can the 1040X be e-filed? - VERIFIED ANSWER✅ No.
Portfolio Income and Losses - VERIFIED ANSWER✅ Those from such sources as dividends,
interest, capital gains and losses, and royalties.
Schedule E - VERIFIED ANSWER✅ Supplemental Income and Loss
Royalty - VERIFIED ANSWER✅ Payments received for the right to extract natural
resources from the taxpayer's property or to use a taxpayer's literary, musical, or artistic
creation.
Annuity - VERIFIED ANSWER✅ A series of payments under a contract made at regular
intervals over a period of more than one year.
Beneficiary - VERIFIED ANSWER✅ The owner or recipient of funds in an account, such as
an IRA, or from an insurance policy or will.
Contribution - VERIFIED ANSWER✅ When a person puts money into a retirement plan.
Defined Benefit Plan - VERIFIED ANSWER✅ An employee benefit plan that provides
determinable benefits not based on employer profits.
Defined Contribution Plan - VERIFIED ANSWER✅ An employee benefit plan that provides a
separate account for each person covered and pays benefits based on account earnings.
, Disability Pension - VERIFIED ANSWER✅ A taxable pension from an employer-funded
disability plan or a disability provision of a retirement plan.
Distribution - VERIFIED ANSWER✅ When a person takes or receives money from a
retirement plan.
Pension - VERIFIED ANSWER✅ Generally a series of definitely determinable payments
made to a taxpayer after retirement from work.
Rollover - VERIFIED ANSWER✅ A qualified transfer of funds from one tax-favored account
to another, usually of the same type.
Roth IRA - VERIFIED ANSWER✅ A type of individual retirement arrangement in which
contributions are not tax deductible, earnings grow tax deferred, and qualified withdrawals
are tax free.
Traditional IRA - VERIFIED ANSWER✅ An individual retirement arrangement, contributions
to which may or may not be deductible depending on the taxpayer's AGI and whether or not
he is covered under an employer-sponsored retirement plan.
What is the full retirement age? - VERIFIED ANSWER✅ For workers born before 1938, it is
65. For those born after it is gradually being increased to 67.
