©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
HR BLOCK Final Test Review (ITC 2024)
Practice Questions and Answers
Which of the following is a requirement for all taxpayers who want to claim the EIC?
Live in the U.S. for more than half a year.
Have a valid social security number.
Have a qualifying child dependent.
Have AGI less than $21,430 ($27,380 MFJ). - ANSWER✔✔-Have a valid social security number.
A combined due diligence penalty of $2,180 would indicate a penalty for which of the following?
EIC, CTC/ODC/ACTC, and head of household.
EIC, AOTC, and CTC/ODC/ACTC.
EIC, AOTC, CTC/ODC/ACTC, and head of household.
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, ©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
EIC, PTC, CTC/ODC/ACTC, and head of household. - ANSWER✔✔-EIC, AOTC, CTC/ODC/ACTC, and head of
household.
When dependent care benefits are withheld from a taxpayer's income, where are they reported by the
employer?
Form 2441.
Form 1040.
Box 10 of Form W-2.
The employer is not required to report them. - ANSWER✔✔-Box 10 of Form W-2.
All of the following are due diligence requirements a tax preparer must meet for EIC, AOTC,
CTC/ODC/ACTC, and HOH, EXCEPT:
Investigate and verify the accuracy of information the taxpayer provides to show eligibility for EIC, AOTC,
CTC/ODC/ACTC, and HOH.
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, ©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
Complete all worksheets used to compute the credits. If the worksheet is completed by hand, keep a
copy in the taxpayer's client file.
Maintain a copy of documents provided by the taxpayer that the tax preparer relied on when
determining credit eligibility. Then record the date the information was obtained and the name of who
provided the information.
When information provided by the taxpayer appears to be incorrect, inconsistent, or incomplete, the tax
preparer must make additional inquiries to determine if the taxpayer is eligible for the benefit. Then
document both the questions asked and responses provided. - ANSWER✔✔-Investigate and verify the
accuracy of information the taxpayer provides to show eligibility for EIC, AOTC, CTC/ODC/ACTC, and
HOH.
When a taxpayer receives Form 1099-R with no amount entered in box 2a and code 7 entered in box 7,
the entire distribution:
Could be partly or entirely taxable.
Is never taxable.
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, ©EMILLECT 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED
FIRST PUBLISH OCTOBER 2024
Is an early distribution and taxable.
Has been rolled into a traditional IRA or into another qualified plan. - ANSWER✔✔-Is never taxable.
What is the maximum amount of the American Opportunity Tax Credit a taxpayer could receive per
student?
$1,650
$1,800
$2,000
$2,500 - ANSWER✔✔-$2,500
Which test for a qualifying child does NOT need to be met in order for the child to be a qualifying person
for purposes of Earned Income Credit (EIC)?
Age.
Relationship.
Residency.
Support. - ANSWER✔✔-Support.
Which of the following expenses qualifies for an education credit in 2021?
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