H&R Block Midterm Review question n answers graded A+ 2023

H&R Block Midterm ReviewWhich of the following is considered earned income? C a) Interest from a bank b) Unemployment compensation c) Income from farming d) Gambling winnings The tax on income that comes entirely from wages under $100,000 is determined according to the: A a) Tax Tables b) Tax Computation Worksheet c) Qualified Dividends and Capital Gain Tax Worksheet d) Schedule D Tax Worksheet Which of the following shows these numbers rounded correctly: $31.43, $143.57, $369.22, $1,547.88. B a) $32. $142. $368. $1,547. b) $31. $144. $369. $1,548. c) $31. $142. $369. $1,547. d) $32. $144. $368. $1,547. Which form is used by employers to report wages earned by their employees? A a) Form W-2 b) Form W-4 c) Form 1040 d) Form 1040A What is the exemption amount for 2017? B a) $3,850 b) $4,050 c) $5,050 d) $6,050 The following three factors determine the filing requirement for nondependents: B a) Marital status, age, and residency b) Marital status, age, and gross income c) Marital status, age, and taxable income d) Marital status, age, and total deductions The standard deduction on an income tax return is determined by: C a) Citizenship b) Residency c) Filing status d) Gross income The head of household filing status requires that a taxpayer maintain a household for: A a) A qualifying child, qualifying relative, or a parent whom the taxpayer is allowed to claim as an exemption on their tax return b) At least one other person c) A beloved family pet d) Maintaining a household for another person is not a requirement of the HOH filing status. For tax purposes, when is a person's marital status determined? D a) On the first day of the tax year. b) On the taxpayer's birthday. c) On the day the person files their tax return. d) On the last day of the tax year. Under what circumstances might a taxpayer who does not meet the federal filing requirement want to file a return anyway? A a) If there was any federal tax withheld or they are entitled to any refundable credits. b) If there was any federal tax withheld or they are entitled to any nonrefundable credits. c) To claim itemized deductions. d) If there was any state tax withheld or they are entitled to any refundable credits Which of the following is not one of the four requirements to claim a dependent? D a) The dependent must be a qualifying child or qualifying relative. b) The dependent must be a U.S. citizen or a resident of the United States, Canada, or Mexico. c) If the dependent is married, they cannot be claimed as a dependent if they file a joint return with their spouse. d) The taxpayer must provide 100% of the dependent's support for the whole year. What are the five tests for a qualifying child? B a) Relationship, citizenship, age, support, and joint return. b) Relationship, residency, age, support, and joint return. c) Marital status, residency, age, support, and joint return. d) Relationship, residency, age, support, and type of income What are the four tests for a qualifying relative? C a) Relationship or member of the household, gross income, support, and residency. b) Relationship or member of the household, gross income, citizenship, and not a qualifying child. c) Relationship or member of the household, gross income, support, and not a qualifying child. d) Relationship or member of the household, gross income, support, and be a qualifying child. Which of the following is not counted as support? A a) Life insurance premiums. b) Lodging. c) Clothing. d) Entertainment. How much is the Child Tax Credit worth? A a) $1,000 per qualifying child. b) $3,000 per qualifying child. c) $4,050 per qualifying child. d) $5,000 per qualifying child. Assuming all other requirements are met, how long may an eligible surviving spouse file as a qualifying widow(er)? B a) One year. b) Two years. c) Three years. d) Five years. Which form is required when a custodial parent releases their claim to the qualifying child exemption to a noncustodial parent? D a) Form 8453. b) Form 8283. c) Form 8867. d) Form 8332 For 2017, what is the exemption amount for each qualifying child? C a) $1,000 b) $3,050 c) $4,050 d) $6,350 For 2017, what is the standard deduction for the head of household filing status? C a) $4,050 b) $6,350 c) $9,350 d) $12,700 What happens if more than one taxpayer submits a tax return claiming the same qualifying child? A a) The IRS will apply the tie-breaker rules. b) The IRS will delete the exemption from both tax returns. c) The IRS will split the exemption between the two taxpayers. d) Nothing. This is an allowed practice Taxpayers who have any financial interest in, or signature authority over, a financial account (such as a bank account, securities account, or brokerage account) located in a foreign country may have to file: A a) FinCEN Form 114 b) Form 1116. c) Form 6251. d) Form 8275. Which of the following is nontaxable on a federal income tax return? B a) Interest income from a savings account. b) Interest income from municipal bonds. c) Interest from corporate bonds. d) Interest from personal loans Tax-exempt interest is: C a) Taxable and reportable. b) Not required to be reported. c) Nontaxable, but reportable. d) Nontaxable and not reportable. Schedule B is required when interest income exceeds which of the following thresholds? B a) $1,000 b) $1,500 c) Schedule B is always required. d) Schedule B is never required. Taxpayers who receive Form 1099-DIV showing that they received qualified dividends must complete which of the following forms to compute their tax? D a) Schedule J. b) Schedule B. c) Schedule D Tax Worksheet. d) Qualified Dividends and Capital Gain Tax Worksheet For 2017, how much is the standard deduction for a single taxpayer? B a) $4,050 b) $6,350 c) $9,350 d) $12,700