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HRB 1-6 EXAM QUESTIONS AND VERIFIED ANSWERS
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HRB 1-6 EXAM QUESTIONS AND VERIFIED ANSWERS...
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A taxpayer should include which of the following when figuring their federalgross income? - ANSWER Gifts and inheritances.
Life insurance payments, if paid by reason of the death of the insured.
Meals and lodging provided for the convenience of the employer
Prizes and awards.
Tax return preparers are required to adhere to rules related to PTINs or face
potential penalties. Which one of the following statements is CORRECT with
respect to PTINs? - ANSWER A)Any tax return preparer who prepares (or
assists in preparing) any federal tax return for compensation is required to
obtain a PTIN semi-annually.
B)If a tax return preparer does not have a PTIN, he or she can still prepare tax
returns for compensation.
C) For those taxpayers who are victims of identity theft, the IRS may grant a
PTIN.
D) A tax return must have the tax preparer's PTIN entered in the appropriate
box.
Tax Preparer Information
Tucker is a single 29-year-old taxpayer. Presented below is Tucker's income for
the year:
Wages $44,500
Interest from bank savings account 50
Unemployment compensation 7,000
Gift from his father 3,000
,For Tucker, what amount of the preceding income is earned income? -
ANSWER A) $44,500
B) $44,550
C) $51,500
D) $54,550
Lucca has a financial interest in a financial account in a foreign country. Where
does this need to be reported on his tax return? - ANSWER Part I of the
Schedule B (Form 1040).
Part II of the Schedule B (Form 1040).
Part III of the Schedule B (Form 1040).
Part II of Schedule 1 (Form 1040).
Omari (47) is single. He had wages of $45,950. In 2022, he opened an interest-
bearing savings account and received Form 1099-INT, Interest Income,
showing he had earned $16 of interest income for the year. What amount of
interest must be reported on his Form 1040? - ANSWER $0
$8
$10
$16
Vanida was injured at work and received workers' compensation. Which of the
following is the proper tax treatment if Vanida files a tax return for workers'
compensation income received? - ANSWER Fully taxable.
Nontaxable.
Partially taxable.
Taxable at discretion of employer.
, SKY Problem Ricky and his wife, Sarah, are filing their tax return. Which one
of the following statements is NOT true about signing the return? - ANSWER
A joint return must be signed by both the taxpayer and the spouse.
Every taxpayer must sign their own return.
When a tax return is filed electronically, there are no signature requirements for
the taxpayer.
When the taxpayer signs their tax return, they are declaring under penalties of
perjury that they have examined the return and accompanying schedules and
statements, and to the best of their knowledge and belief, they are true, correct
and complete.
When tax returns are filed electronically, what is one way a taxpayer can sign
the return? - ANSWER Taxpayers may only use a handwritten signature to
sign the return.
The IRS will issue an Identity Protection Personal Identification Number (IP
PIN) that is to be used to sign the return.
A taxpayer is not required to provide a signature on a return when a return is
electronically filed
This can be accomplished through the use of a personal identification number
(PIN).
Which one of the following should a taxpayer include in calculating their
federal gross income? - ANSWER Compensation received for personal injury
and sickness.
First $5,250 of educational assistance from an employer's qualified educational
assistance program.
Qualified scholarships and fellowships.
Unemployment compensation.
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