HRB FINAL EXAM TEST WITH GUARANTEED ACCURATE ANSWERS |VERIFIED
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Course
HRB
Institution
HRB
What is the Difference between earned income and unearned income? - ACCURATE ANSWEREarned income is received for services performed. Examples are wages commissions, tips and generally farming and other business income . Taxable income other than that received for services performed. Unearned Income...
HRB FINAL EXAM TEST
HRB FINAL EXAM TEST WITH GUARANTEED ACCURATE ANSWERS |VERIFIED
What is the Difference between earned income and unearned income? -
ACCURATE ANSWER✅✅Earned income is received for services performed.
Examples are wages commissions, tips and generally farming and other business
income . Taxable income other than that received for services performed. Unearned
Income includes money received ro the investment of money or other property,
such as interest, dividends, and royalties. It also includes pensions alimony,
unemployment compensation and other income that is not earned.
If an employee thinks their Form W2 is incorrect, what should they do? -
ACCURATE ANSWER✅✅Employee should discuss with employer who issued
the document and request a W2C. If no help from employer, notify IRS. Tax
prepaper can then file a substitute.
What information do you need to know to determine whether a taxpayer is required
to file a return? - ACCURATE ANSWER✅✅Gross income, filing status, age and
if they are a dependent
,For tax purposes, when is a person's marital status determined? - ACCURATE
ANSWER✅✅On the last day of the tax year
Where on the tax form can you find the regular standard deduction amounts? -
ACCURATE ANSWER✅✅Line 22 on 1040A, In the left margin at the top of
the page 2 of forms 1040 and 1040A. Look at actual form to look for line
How much is added to the standard deduction if the taxpayer (or spouse is age 65
or older, or blind? - ACCURATE ANSWER✅✅$1550 if unmarried, $1250 if
married
What is the personal exemption amount for 2016? - ACCURATE
ANSWER✅✅$4,050
What two amounts are combined to make up the gross income filing requirments
for most taxpayers? - ACCURATE ANSWER✅✅The standard deduction and the
personal exemption amounts
Under what circumstances might a taxpayer be required to file a return even
though they do not meet the gross income filing requirements? - ACCURATE
ANSWER✅✅1. Has net employment of $400 or more net self employment 2.
You had unemployment income you owe medicare Advantage MSA, receive HAS,
Archer, MSA 3. Reeived an Advanced Premium Tax credit even if they didn't
otherwise have a filing requirment for the year *Tips, HSA, SE $400, PTC
What is the difference between injured spouse allocation and innocent spouse
relief? - ACCURATE ANSWER✅✅The difference between injured spouse and
innocent spouse is significant in the eyes of the IRS. Both release you from an
income tax liability arising from a "married filing jointly" return but different
outcomes. Innocent spouse filed a joint return byt was unaware that their spouse
deliberately under reported tax liability. Injured spouse seeks to protect his or her
,share of the refund in case it gets seized or offset due to the other spouse's debts or
unpaid obligations
CHAPTER 3: DEPENDENT EXEMPTIONS AND SUPPORT - ACCURATE
ANSWER✅✅
What four requirements must be met for an individual to be claimed as a dependent
- ACCURATE ANSWER✅✅Must pass the dependent test, joint return test,
citizenship, qualifying child or relative
What are the five tests for a qualifying child? - ACCURATE ANSWER✅✅1.
Relationship 2. Age 3. Residency 4. Support 5. Joint Return
How can a married individual meet the joint return test to remain a qualifying
child? - ACCURATE ANSWER✅✅They can meet this test by not filing a joint
return with their spouse or they can file a joint return with their spouse if they are
filing only to claim a refund on any taxes withheld
How can you determine who paid more than half of a person's support? -
ACCURATE ANSWER✅✅Total support is determined and reduced by the
funds received by and for the person from all sources other than the taxpaer. The
remaining support is considered to be provided by the taxpayer. Other sources
might include government support Worksheet for Determining Support
What happens if an individual is a qualifying child of more than one taxpayer? -
ACCURATE ANSWER✅✅Generally, the custodial parent is the one in which
the child spent the most nights
What happens when more than one taxpayer claims the same qualifying child? -
ACCURATE ANSWER✅✅Tie Breaker Rules apply : 1. The parent, if only one
, of the persons is the childs parent 2. The parent with whom the child lived the
longest during the tax 3. The parents with the highest AGI if no parent can claim
the child as a qualifying child
What four tests must be met for an individual to be considered a qualifying
relative? - ACCURATE ANSWER✅✅1. Not be a qualifying child, the person
cannot be the taxpayers qualifying child or the qualifying child of another taxpayer
2. Relationship: Child, brother, sister, step sister, step brother, step father , step
mother, in-laws 3. Gross Income: gross income must be less than $4050 4.
Support: Taxpayer must provide more than half the support
How can the gross income for a qualifying relative test be satisfied? - ACCURATE
ANSWER✅✅Gross income must be less than $4050 (Do not include tax exempt
income)
What is the purpose of Form 2120 Multiple Support Declaration? - ACCURATE
ANSWER✅✅You only need 2120 multiple support declaration if you are
claiming someone other than a qualifying child as a dependent and there are two or
more people including yourself who provide support for the dependent
How much is the child tax credit worth? - ACCURATE ANSWER✅✅$1,000
What additional requirements must be met for a taxpayer to be eligible to claim the
Child Tax Credit for the qualifying child? - ACCURATE ANSWER✅✅1.
Taxpayer 2. Child must be under17 at the end of the year 3. Qualifying child must
be claimed on tax payer returns 4. Qualifying child must be US Citizen US
National or resident of US
Is the Child Tax Credit refundable or nonrefundable - ACCURATE
ANSWER✅✅CTC is nonrefundable the The additional child tax credit is
refundable
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