Final H & R, H & R Block Final
$0 - ✔✔Audrey is a degree candidate at her local state college. She received a scholarship for
$5,000. She applied the amount to her tuition, which totaled $10,000. How much, if any, of the
scholarship is taxable income?
$10,000 ($5,000 if MFS). - ✔✔On the Schedule A (Form 1040), Itemized Deductions, the deduction
for state and local income taxes is limited to what amoun
$14,890 - ✔✔Devan and Amber adopted a child with special needs in a domestic adoption. They
had $5,500 in qualified adoption expenses in 2022, and the adoption was finalized on December 18,
2022. Their modified adjusted gross income is $210,000. Assuming all requirements are met, what is
the maximum adoption credit they can claim in 2022?
$2,000 - ✔✔Harmony donated a car to a qualified charitable organization. She purchased the car in
2013 for $28,000. The fair market value of the car when she donated it was $3,750. The charitable
organization immediately sold the car for $2,000. They did not significantly use or make any
improvements to it. The organization provided Harmony with a Form 1098-C, Contributions of Motor
Vehicles, Boats, and Airplanes. How much can she deduct as a charitable contribution on her
Schedule A (Form 1040), Itemized Deductions?
%
$2,000 - ✔✔Marcel attends graduate school. For 2022, he received a Form 1098-T, Tuition
Statement, showing tuition paid of $14,300. What is the maximum amount of the lifetime learning
credit he can claim for 2022?
$2,500 - ✔✔George graduated from college last year and started repaying his student loans. He
received Form 1098-E, Student Loan Interest Statement, showing he paid $3,000 in interest on his
student loans for the year. His total income before adjustments is $68,500, and he meets all
requirements to be able to deduct the interest. How much, if any, will George be allowed to deduct as
an adjustment to his income?
$233,600 - ✔✔Jordyn is single. She purchased her first home for $180,000 in 2018. It served as her
primary residence until she sold it on November 1, 2022 for $440,000. She paid a $26,400
commission as an expense of sale. During the time she owned her home, she did not use it for
business or to produce rental income. What is the amount of her long-term gain that can she exclude
from income on her return?
,$250 or more. - ✔✔Choose the response that accurately completes the following sentence. Written
acknowledgment from the donee for contributions to qualified charitable organizations is required
when a taxpayer makes a single donation of:
$375,000 - ✔✔Paloma purchased a home with her husband, Neville, in January of 2021 for
$700,000. In June of 2021, Paloma and Neville separated. On December 31, 2022, they were still
legally married but did not live together all year. They do not live in a community property state.
Neville refused to file a joint return with Paloma. Paloma filed her return using the married filing
separately filing status. Paloma is living in the home and has continued to make the mortgage
payments using funds from her own account. Paloma will be itemizing her deductions. On what
portion of the acquisition debt will interest be deductible on Paloma's tax return for 2022?
$560 - ✔✔Ross filed a tax return for Allie. During the interview conducted by Ross, Allie stated that
she had made a charitable contribution of artwork in the amount of $20,000 during the tax year, when
in fact she had not made this charitable contribution. Ross did not inquire about the existence of a
qualified appraisal or complete a Form 8283, Noncash Charitable Contributions. Ross reported the
deduction on the return, signed the return as the paid preparer, and charged $500 for the tax
preparation. The IRS audited the client and Ross will face a penalty for understatement of a
taxpayer's tax liability. What is the penalty?
$683,000 - ✔✔Rhianna purchased a home for $650,000. She added a swimming pool at a cost of
%
$25,000 and a patio deck for $8,000. What is Rhianna's adjusted basis for this property?
$7,500 - ✔✔Taxpayers who acquire qualifying commercial vehicles, weighing under 14,000 pounds,
after December 31, 2022, through December 31, 2032 may qualify for the Credit for Qualified
Commercial Clean Vehicles on the 2023 tax return. What is the maximum credit per vehicle?
$750,000 - ✔✔Soledad is single. He borrowed $900,000 and purchased a new main home in March
of 2020. Soledad will be itemizing his deductions. On what portion of the acquisition debt will interest
be deductible on Soledad's tax return for 2022?
$810 not 370 - ✔✔Jamal purchased his home in 2019. In 2022, he installed energy efficient windows
that meet the Energy Star most efficient certification requirements for a total cost of $1,600. He also
installed exterior doors that meet the Energy Star requirements for a total cost of $2,100. His tax
liability is $3,900. Jamal had a Residential Energy Property Credit in a previous year in the amount of
$300. What is the amount of his Energy Efficient Home Improvement Credit?
$82,900 - ✔✔Karen and Pete are married and will file a joint return. They brought all their tax
documents to Jamal to prepare their return. The three documents are a Form W-2 for Karen
, ($55,300), a Form W-2 for Pete ($22,400), and unemployment compensation for Pete of $5,200.
What will be their total income reported on their 2022 Form 1040, line 9?
$900,000 - ✔✔Robert is single. He purchased a new main home in March of 2017 for $900,000.
Robert will be itemizing his deductions. On what portion of the acquisition debt will interest be
deductible on Robert's tax return for 2022?
1,528 - ✔✔Adela brings in receipts and verifications for the following charitable contributions she
made in 2022:
Local church, $2,000 by check.
American Red Cross, $500 through payroll deductions.
Campaign fund of a City Council candidate, $300 cash.
Habitat for Humanity, work valued at $250.
Girl Scouts drove 200 miles in her car for volunteer work.
How much will she be able to deduct for charitable contributions on Schedule A (Form 1040),
Itemized Deductions?
2,000 - ✔✔Jeff (55) and Tara (49) are filing jointly for 2022. Jeff earned $40,000, and Tara earned
$2,500. Jeff may contribute up to $7,000 to his IRA for 2022. If Jeff contributes $5,000 to his IRA, how
much can they contribute to Tara's IRA for 2022?
%
312.50 - ✔✔Pat started a new business on September 1, 2022. He is self-employed. He drove 500
business miles from September 1 - December 31, 2022. He qualifies to use the standard mileage
rate. What amount will be entered on line 9 of his Schedule C (Form 1040)?
5,000 - ✔✔Ryan's client told him that he had additional income for a side job but does not want to
report the income since he is paid under the table and he did not receive a Form 1099. Ryan filed the
return and chose not to report the income since he didn't have any documentation or proof of the
income. As a result, the client paid less tax. Ryan charged $500 for the tax preparation. The IRS
audited the client; they can assess what penalty to Ryan as a paid preparer?
6,000 - ✔✔Ellen and her husband were legally divorced in 2017. After the divorce, Ellen retained
physical custody of their children. Ellen received the following amounts from her ex-husband, on
behalf of the children or as ordered by the court through a divorce decree:
Court-ordered child support of $1,000 per month.
Court-ordered alimony of $500 per month.
How much of this income should be reported on Ellen's federal return?
62,000 - ✔✔Juan is self-employed. During the tax year, he had the following income and expenses:
Gross receipts: $80,000
