H&R Block Income Tax Practice Exam

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• Which of the following is the second step to compute AGI?
• How is a dependent's standard deduction calculated?
• Can stop-smoking programs be included as a medical expense?
• What information is reported on Form 1099-R?
• What defines a full-time student for tax purposes?
• Which of the following requirements must a taxpayer meet to file as Married but Unmarried for tax purposes?
• What does Form 1098-E pertain to?
• Is an unmarried dependent who earns $4,500 from wages required to file a tax return?
• Which W-2 Box 12 code is associated with deferrals under a nonqualified deferred compensation plan?
• What qualifies as a taxable pension?
• W-2 Box 12 Code AA refers to which type of contributions?
• What form is used to request Innocent Spouse Relief?
• Which payment is classified as nontaxable income?
• What does the term "community property" refer to?
• What can affect the gross profit of a business?
• What defines the General Straight-Line Depreciation System?
• Is compensation for services, including fees, commissions, and certain fringe benefits included in gross income?
• What are tax credits designed to do?
• What does an annuity provide?
• Which of the following can be classified as a vacation home?
• Which of the following is a requirement for a qualifying child (QC) for EIC?
• What qualifies as an eligible foster child?
• How is the Straight-Line Depreciation Method calculated?
• What does the term "dependent" specifically refer to in tax contexts?
• What is included in "ordinary dividends" as defined by common types of distributions?
• Which of the following is an example of nontaxable income?
• What is a dependent in tax terms?
• In whose favor does the higher AGI impact when deciding child claims?
• Which of the following is NOT considered a nonpassive income type?
• Is social security disability income reported as wage income at any time?
• What does W-2 Box 12 Code S indicate?
• Which condition must a taxpayer meet to qualify for the homebuyer credit?
• When must Schedule B be filed?
• Which code represents income from the exercise of stock options?
• What is the Fair Rental Value of a property?
• How are gambling losses treated for tax purposes?
• What qualifies as an eligible foster child?
• What does the underpayment penalty imply?
• What type of payments are classified as alimony?
• What does the term "distribution" refer to in retirement plans?
• What qualifies as a casualty loss?
• What type of properties does Listed Property include?
• What type of gain does the Section 1202 stock pertain to?
• What defines a Nonrefundable Credit?
• Which of the following statements is true regarding special-needs children?
• What type of income does Schedule F report?
• What does the term "Capital Improvements" refer to in relation to Adjusted Basis?
• What qualifies as a 'Collectible' under tax definitions?
• Which of the following tax forms is used by individuals?
• What is Tomas's eligibility to claim Lucinda as a dependent based on her residency?
• What conditions can make a home office deductible?
• For EIC with one qualifying child, what is the maximum AGI threshold for a couple filing jointly?
• When can an amended return be filed?
• What purpose does the Health Savings Account (HSA) serve for its holders?
• Which of the following would NOT be considered portfolio income?
• Which of the following is NOT a type of unique individual income tax form?
• What are points in the context of a loan?
• In computing taxable income, what is subtracted last after determining AGI and the standard deduction?
• What is the Child and Dependent Care Credit based on?
• What are itemized deductions?
• Which of the following individuals qualifies as a Married Qualifying Child for Head of Household purposes?
• What happens if a married couple with a gross income of $3,750 files separately?
• What do the At-Risk Rules pertain to in tax regulations?
• In what scenario would a pension be considered partly taxable?
• When are capital expenditures fully deductible?
• What is the age limit for a child to be considered eligible for the adoption credit or exclusion?
• What distinguishes Form W-2 from Form 4852?
• What is one example of personal service income?
• How much can an eligible educator deduct for out-of-pocket expenses?
• What does it mean if income is classified as 'unearned'?
• What comprises "earned income" in a tax return?
• What is one requirement to claim the Child and Dependent Care Credit?
• What can affect the timeframe for filing an amended tax return?
• Which distribution code is associated with a direct rollover to a qualified retirement plan?
• What does an estimated tax voucher include?
• What does "adjusted basis" refer to in property terms?
• Which condition disqualifies someone from filing as a qualifying widow(er)?
• What type of plan provides benefits not based on employer profits?
• Is alimony included in gross income?
• What document must be provided to support a claim for casualty loss?
• What does FICA stand for in the context of income tax?
• Which of the following expenses typically qualifies for a Child Care Credit?
• What is the primary objective of the Modified Accelerated Cost Recovery System (MACRS)?
• What determining factor is crucial for a married couple filing jointly to assess their requirement to file?
• What does gross receipts include?
• What does Form 9465 specifically request from the IRS?
• Which type of income is defined as taxable income other than that received for services performed?
• What is the purpose of Form W-4?
• What is included in gross receipts?
• Which of the following best describes an Eligible Educational Institution?
• Which of the following properties is subject to depreciation restrictions?
• What is the maximum amount of the homebuyer credit available for eligible taxpayers?
• What are Section 125 Plans primarily designed for?
• How is interest generally defined?
• For a married couple filing jointly with a gross income of $19,750, is filing a return necessary?
• What does Distribution Code 1 signify on Form 1099-R?
• What is the key feature of tax-deferred earnings in retirement accounts?
• What must a taxpayer show to meet the "Support" test for a qualifying relative?
• What is the standard deduction for a head of household in 2011?
• What is Michael and Jenna's filing status if they entered into a common-law marriage but have been apart for two years?
• What best describes a pension?
• Is income from an interest in an estate or trust included in gross income?
• Is it necessary for a qualifying widow to file a tax return if their gross income is below the threshold?
• What does the term 'basis' refer to in tax terms?
• Which term describes the location a person considers their permanent home?
• What is the tax rate for Long-Term Capital Gains?
• What is the primary purpose of Form 8867?
• Which institutions qualify as an Eligible Educational Institution?
• Which type of expense can be considered taxable income?
• What is a significant disadvantage of the Married Filing Separately tax status?
• What is considered rental income?
• Which property is NOT considered Listed Property?
• What is the purpose of Schedule SE?
• If a taxpayer can be claimed by another person, can they claim a dependent themselves?
• What are withholding allowances?
• Which statement is true regarding dependency exemptions for children?
• What does a refundable credit enable a taxpayer to do?
• What purpose does Schedule E serve in relation to personal finance?
• In the case of Camille, who is eligible to claim her dependency exemption?
• What characterizes a defined benefit plan?
• Who can claim Gina's dependency exemption according to the information provided?
• Which of the following persons can NOT claim a child as a qualifying child?
• What do the 'Expenses of Sale' include?
• Which of the following statements about gross income is correct?
• What does Business-Use Property refer to?
• What are the two primary methods for making payments towards your taxes throughout the year?
• What factor primarily determines a full-time student status for tax purposes?
• Is a qualifying widow with a gross income of $16,750 required to file a tax return?
• What type of business structure is a proprietorship?
• What is the purpose of Form 4684?
• What does MACRS stand for?
• Which of the following qualifies as a miscellaneous deduction on Schedule A?
• What is a joint return?
• When is a married couple filing jointly required to file if their gross income is $21,800?
• Is interest on state and local bonds included in gross income?
• What is a nonrefundable credit?
• What characterizes economic interest in resources?
• What does a substantial understatement refer to?
• Which of the following accounts allows contributions that are not tax-deductible?
• Which of the following is a characteristic of a nonrefundable credit?
• Why is Form 1098-E important for students?
• When can a person qualify as a head of household?
• Can Bridget claim qualifying widow(er) status after her husband's passing?
• In what situation would passive activity losses typically be limited?
• Which of the following would require the use of Schedule B?
• What happens to the basis when a property is improved?
• What defines a custodial parent?
• What portion of the cost of capital expenditures is deductible when the taxpayer owns their home?
• How many hours of services must a taxpayer perform in real property trades to meet the real estate professional requirement?
• What are the two types of gross income?
• How is fully taxable scholarship and fellowship income reported?
• What characteristic defines intangible personal property?
• What is one criteria for property to be eligible for depreciation?
• What characterizes a fully taxable pension?
• What are capital expenditures in the context of medical expenses?
• What does 'Holding Period' refer to in tax terms?
• Which of the following professionals is governed by Circular 230?
• Can you deduct damage to property that you do not own?
• Are gifts and inheritances included in gross income?
• What purpose does Form 8379 serve?
• In a Short Sale, what happens to the stock?
• Which condition allows a taxpayer to claim their spouse's personal exemption when filing separately?
• Under what condition would an unmarried dependent not be required to file a return based on their gross income?
• Are federal income tax refunds included in gross income?
• What is a requirement for the Taxpayer to claim the Homebuyer Credit?
• What type of entity is formed by filing articles of organization?
• Which of the following best describes the hybrid method of accounting?
• A taxpayer must have paid qualified education expenses to claim which of the following credits?
• What should be attached to the tax return to explain various types of income, deductions, and credits?
• What does disclosure refer to in the context of tax information?
• What does the term “trade or business activities” refer to?
• What does community income refer to?
• Which of the following is NOT a requirement for a property to be depreciable?
• What describes the Traditional IRA?
• What often must be deducted from adjusted gross income to compute taxable income?
• Which of the following is NOT typically classified as taxable income?
• What is the source of Medicare tax funding?
• What percentage of a client's social security benefits may be taxable?
• What does Form 8801 address?
• What does W-2 Box 12 Code D primarily indicate?
• How does the income level affect the taxation of Social Security benefits for Married Filers?
• What is the tax treatment of income for an S Corporation?
• Which of the following best describes a Roth IRA?
• What component is NOT included when calculating the Cost of Goods Sold?
• What are itemized deductions?
• If a taxpayer shows negligence in their filing, what type of penalty applies?
• Which tax filing status requires that both spouses report their total income on one tax return?
• Which of the following describes a partnership?
• How does a limited partner's liability differ from that of a general partner?
• Who qualifies as a dependent on someone's income tax return?
• What type of credit is the Adoption Credit?
• Which of the following expenses is generally NOT deductible when moving?
• What items are considered when determining a dependent's support?
• Which of the following describes portfolio income and losses?
• Which tax method allows businesses flexibility between cash and accrual reporting?
• Which test must be met regarding joint returns to qualify for EIC?
• How many children can Mike categorize as dependents when filing his return?
• Which of the following best describes a casualty in tax terms?
• What does W-2 Box 12 Code M pertain to?
• Which form provides credits for energy-efficient residential improvements?
• Is the Child Tax Credit refundable?
• Which relative can a taxpayer maintain a household for to qualify as Head of Household?
• What is the Kiddie Tax?
• Which of the following is true about a Roth IRA?
• What are real estate taxes levied for?
• What is a key factor that disqualifies a couple from filing jointly while one spouse itemizes?
• What does it mean when a distribution is made from a retirement plan?
• Which form is used to report an underpayment of estimated tax by individuals, estates, and trusts?
• According to the exceptions to the early withdrawal penalty, when can a distribution be made without penalty due to age?
• Which type of distribution is classified as non-taxable?
• Which W-2 Box 12 Code is associated with 408(k)(6) SEP contributions?
• What does "social security tax withheld" include?
• Which of the following is an example of operating expenses?
• Are gambling winnings subject to taxation?
• What are Deductions in the context of income tax?
• What is the age limit for a child to be considered a Qualifying Child under normal circumstances?
• What type of income does the W-2 Box 12 Code C reflect?
• What must a trust do according to tax regulations?
• If a dependent has income solely from wages, what must be considered for their filing requirement?
• On which line of Schedule A are investment expenses included?
• Which of the following is required for home-office expense deductions?
• Upon calculating the adjusted basis of a property, which of the following affects the total?
• What is the American Opportunity Credit (AOC) primarily used for?
• What is indicated by W-2 Box 12 Code Z?
• What is considered inventory for income tax purposes?
• Which of the following is true regarding passive losses?
• What kind of communications does privilege protect?
• What is the significance of the gross income figure on a tax return?
• What type of income requires an unmarried dependent to file a tax return with income over $950?
• Which two aspects are essential for determining gross income?
• Which types of taxes are generally deductible for individuals?
• What type of property is classified as Business Assets?
• To claim the Child Tax Credit, what age must the qualifying child be at the end of the year?
• What does Distribution Code J signify?
• What type of income includes interest, dividends, annuities, and royalties?
• What is one exception to the early withdrawal penalty related to medical expenses?
• What types of expenses can be included on Schedule A as itemized deductions?
• What does the Business Income Limitation state regarding the 179 deduction?
• What is the depreciation period for nonresidential real property placed in service between 1986 and May 13, 1993?
• What is the maximum Adoption Credit per eligible child?
• Which of the following is NOT a qualification for the Child Tax Credit?
• What is Form 5405 used for?
• What is the filing requirement for a married couple filing separately with a gross income of $3,750?
• What is the non-deductible criterion related to insurance premiums?
• What is the minimum support requirement for claiming a qualifying relative?
• What defines indirect expenses for home office deductions?
• What is the essence of Depreciation in tax terms?
• How is nonresidential real property depreciated if placed in service after May 13, 1993?
• Which item is considered a type of personal property tax?
• What is the range of additional bonus depreciation percentage for qualified assets acquired between specific dates?
• How many classes of MACRS property are outlined based on recovery periods?
• To qualify as qualified dividends, how long must shares of common stock be held?
• What is included in the Cost of Goods Sold calculation?
• Which of the following is not considered Other Income on Form 1040 Line 21?
• What distance is required for moving expenses deduction?
• To what does the term "depreciable" property refer?
• What is the required income threshold for an unmarried dependent to file a tax return based on gross income from wages?
• How is a rollover typically handled for tax purposes?
• What is the impact of unrecaptured Section 1250 gain on taxation?
• W-2 Box 12 Code N is similar to which other code?
• What item does not relate to W-2 Box 12?
• If an unmarried dependent has $975 of income from $600 in wages and $375 in interest, is filing required?
• What is Form 2210 used for?
• What is the filing requirement for an unmarried dependent earning $975 from wages and $175 from interest?
• What benefits does a Cafeteria Plan provide to employees?
• How is the Lifetime Learning Credit calculated?
• What does noncompliance signify in tax practice?
• What is the primary purpose of scholarships and fellowships?
• William’s classification in relation to Cassandra is what?
• What defines the nature of rental income?
• What type of expenditures qualify for the Nonbusiness Energy Property Credit?
• Are meals or lodging furnished for the convenience of the employer included in gross income?
• Which of the following best describes the nature of Real Property?
• What is reported on Form 1099-R?
• Which of the following would be considered earned income?
• For which tax years was the American Opportunity Credit available?
• What tax coverage do self-employed individuals receive through their tax payments?
• What is Sue Linn's classification for tax purposes based on her living situation with George and Amanda?
• What is the purpose of a disability pension?
• What should Joseph and Megan use as their filing status if they were married on October 8, 2011?
• What age must a qualifying child be if they are a full-time student?
• Which exception applies if the distribution is made to an alternate payee under a qualified domestic relations order?
• Who is eligible to claim Mario's dependency exemption based on the details provided?
• Is income from life insurance and endowment contracts included in gross income?
• Why might it be significant that Roberta is not a full-time student when considering her dependency status?
• Is certain income from the discharge of indebtedness included in gross income?
• What activity constitutes a Necessary Expense in a business context?
• What does Form 1099-DIV report?
• What is an exemption in the context of income tax?
• For what age group is the maximum deduction for long-term care insurance premiums $340?
• What is the maximum amount that can be deducted for qualified tuition and course-related expenses?
• For married couples filing jointly, what income range makes up to 50% of Social Security benefits taxable?
• What is the penalty for negligence or intentional disregard?
• What qualifies a child as a special-needs child in terms of adoption?
• What is a qualifying child for tax purposes?
• Is mortgage interest paid on a home generally deductible?
• Which of the following best describes the requirement for a taxpayer to be considered a Qualifying Widow(er)?
• What type of winnings does Form W-2G report?
• Which of the following can be included in deductible moving expenses?
• What condition does Distribution Code T depict?
• Which of the following statements is true about the Child and Dependent Care Credit?
• Which of the following is an example of Personal Property?
• What is the primary purpose of filing Form 8857?
• What role does a beneficiary play in a financial account?
• Which of the following is NOT a qualification for the Earned Income Credit?
• What does the Unadjusted Basis refer to?
• What do personal service incomes include?
• Who qualifies as an eligible educator?
• How much student loan interest can be deducted as an adjustment to income?
• What type of income is classified as active income?
• Which W-2 Box 12 Code indicates contributions under a SIMPLE plan?
• What is meant by Holding Period in tax law?
• What is the limitation for the 179 deduction in terms of property cost during the year?
• What type of retirement plan is specifically designed for employees of non-profit organizations?
• Are tax preparation fees considered deductible expenses?
• How is Adjusted Basis defined in terms of property?
• What is a common feature of Ordinary Expenses?
• How is long-term disability income reported until the taxpayer reaches minimum retirement age?
• What are the Two Factors of Tax Consequences of Property Ownership?
• What does Form 8863 relate to?
• Who is eligible to claim Linda's dependency exemption?
• Which of the following is not considered part of nontaxable income?
• Is compensation for personal injuries included in gross income?
• When might you not need to file Form TD F 90-22.1?
• Which relationship qualifies as a way a Qualifying Child can be related to a taxpayer?
• What penalty is incurred for failing to pay taxes owed by the due date?
• What defines a household employee?
• A single individual with a gross income of $10,000 is required to file a tax return. What is the correct reason?
• Are certain foster care payments included in gross income?
• What does Form 8938 report?
• Which forms are considered individual income tax forms?
• What defines a trust in tax terms?
• Is the Additional Child Tax Credit refundable?
• Who qualifies as self-employed individuals?
• Which type of property is considered Personal Property?
• Which form relates to Railroad Retirement Benefits?
• What does W-2 Box 12 Code Y denote?
• How is a full-time student defined in tax terms?
• Is interest from an interest-bearing checking account taxable in the year it is credited to the account?
• Are funeral expenses considered deductible on a tax return?
• Which of the following events typically qualifies as a casualty loss?
• How is casualty loss determined for real property?
• What is Form 1065 used for?
• What qualifies as a Necessary Expense in relation to taxes?
• What defines a Qualified Charitable Organization?
• What is necessary for a Non-Relative Dependent to qualify a taxpayer for Head of Household status?
• What is the amount of the Child Tax Credit per qualifying child?
• Who is considered the noncustodial parent?
• Which statement best describes Deductible Alimony?
• What is Kayla's classification in relation to Michael and Darla given they lived together for all of 2011?
• What is the purpose of the Alternative Straight-Line Depreciation System?
• What defines the term 'taxpayer' in relation to dependents?
• What is the significance of a vacation home in tax terms?
• Who is identified as a noncustodial parent?
• What is a characteristic of personal property tax?
• What is the importance of determining which parent is the custodial parent?
• What is the Cost Method of Inventory Valuation?
• Are qualified scholarships and fellowships included in gross income?
• What is the main function of Form 8917?
• What is the maximum deduction for long-term care insurance premiums for individuals aged 71 and older?
• What does the Section 179 Expense Deduction allow taxpayers to do?
• What is required for a taxpayer to qualify for using the optional method with the standard mileage rate?
• What are official IRS documents used for reporting various types of income and deductions called?
• What type of education professionals are considered eligible for the Educator Expenses Deduction?
• What is Form 1040X used for?
• What does a personal property tax apply to?
• What are passive income and losses?
• For an unmarried dependent with $1,000 of unearned income, is filing required?
• What defines an amended return?
• What filing status should William and Kathleen use since they legally separated on December 15, 2011?
• What is a rollover in the context of retirement accounts?
• Which of the following filing statuses is specifically for widowed individuals?
• What is the purpose of Form 1098-T?
• Which statement is true regarding the criteria for the qualifying child?
• What characterizes a legally binding obligation for child support?
• What is the purpose of Form 4562 in tax filing?
• What defines a partly taxable pension?
• What is one of the Four Tests for a Qualifying Relative?
• What is included in the calculation of Adjusted Basis?
• What does a defined contribution plan entail?
• What does the term "casualty" refer to in tax terminology?
• What constitutes ordinary income or loss?
• What distinct feature does a partnership usually require?
• What is a contribution in terms of an IRA?
• Which of the following is NOT a requirement for filing as Head of Household?
• Which tax form must partnerships file?
• Can Julie file head of household given her living arrangement and support contributions?
• Which of the following best defines an Asset?
• Which plan is primarily available for employees of nonprofit organizations and public educational institutions?
• What purpose does Form 8332 serve in tax filing?
• Which of the following represents a significant factor when calculating capital gains?
• What does married filing separately entail?
• What is the purpose of exemptions in tax calculations?
• What is the purpose of Form 8582?
• What is an example of a deduction that is NOT allowed for casualty losses?
• What comes after determining the standard deduction in calculating taxable income?
• What implications does having multiple support agreements have on tax exemptions?
• How is Jeff classified regarding Dale's support?
• Who is defined as the custodial parent?
• What is the AGI limitation for most miscellaneous itemized deductions?
• What is meant by a "closed year" in tax terms?
• What would necessitate the use of Form 1099-R?
• What is one requirement for an individual to be considered a real estate professional for tax purposes?
• Which of the following factors is NOT required to claim the American Opportunity Credit (AOC)?
• Which of the following best describes active income?
• How is the nontaxable distributions classified in common types of distributions?
• What type of benefits does W-2 Box 12 Code Q describe?
• What types of property are eligible for the 179 Expense Deduction?
• Who is typically responsible for managing the daily operations of a partnership?
• What do contributions reported under W-2 Box 12 Code E represent?
• What are payroll taxes?
• When is the married filing jointly status appropriate?
• What is required for a property to have its basis adjusted?
• If a taxpayer’s spouse died during the two years before the current tax year, which status can the taxpayer file for?
• What filing form allows parents to report their child's interest and dividends?
• Under what condition can an injured spouse file for an Injured Spouse Allocation?
• What distinguishes a qualifying relative?
• To qualify as a dependent, an individual cannot be what?
• In a partnership, what is shared among partners?
• Is damage due to termite or moth infestation deductible as a casualty loss?
• Why is a principal business or profession important for tax reporting?
• Which of the following is NOT a requirement for HSA eligibility?
• What are royalties in tax terms?
• What is the full retirement age for workers born after 1938?
• Which of the following is NOT a property that is depreciable?
• In regards to Roberta, what percentage of support did Teresa provide?
• What are ordinary dividends defined as?
• What is an exemption from withholding on Form W-4?
• Are qualified clergy housing allowances included in gross income?
• Which of the following is a requirement for claiming the 179 deduction?
• If a child's total investment income exceeds $1,900, how is some of that income taxed?
• Is certain income from the discharge of indebtedness included in gross income?
• How is prepaid interest treated for tax deductions?
• Which form is used to claim the Mortgage Interest Credit?
• Which group of taxpayers has specific rules for IRAs?
• Which type of personal property has a physical existence?
• What is the reduction dollar-for-dollar based on the $2,000,000 limitation?
• Which form is used to obtain an Employer Identification Number?
• What defines a Special-Needs Child for the adoption credit?
• What are the most common types of distributions that may be reported?
• How is casualty loss determined for personal property?
• What age group can qualify for EIC without a qualifying child?
• What is the final step in calculating Adjusted Gross Income (AGI)?
• Which of the following codes indicates contributions to a health savings account?
• What basis allows Carl and Carrie to claim Carol as a dependent?
• What is the purpose of Form 3903?
• What does Distribution Code 3 indicate on Form 1099-R?
• What does the lower of cost or market method of inventory valuation assess?
• Are weight loss programs and surgeries considered deductible medical expenses?
• What types of improvements does the Nonbusiness Energy Property Credit cover?
• What is a long-term care contract?
• What distinguishes the straight-line depreciation method?
• Which type of retirement plan maintains an individual account for each covered person?
• Which tax return forms are mentioned in reference to statements attached for various income types?
• What is the maximum deduction for long-term care insurance premiums for someone aged 45?
• Which of the following describes the main feature of credits?
• What type of contributions are indicated by W-2 Box 12 Code W?
• Which of the following types of income is included in investment income?
• Which two methods are commonly used for computing depletion?
• What is estimated tax?
• What are Qualified Child or Dependent Care Expenses meant for?
• Are dividends included in gross income?
• What does Form 3800 relate to?
• Who needs to exercise due diligence?
• What regulations govern the practice of tax professionals before the IRS?
• Under which condition can a parent report a child's income using the kiddie tax rules?
• Are gains derived from dealings in property included in gross income?
• In tax terms, a deductible casualty loss must meet which of the following conditions?
• Which factor does NOT qualify a student for educational tax credits?
• What is the purpose of Form 5695?
• Which of the following individuals can be considered a qualifying child under the relationship test?
• What is a Health Savings Account (HSA) primarily designed for?
• Is income in respect of a decedent included in gross income?
• When are education expenses not deductible?
• Which of the following forms would be necessary to report foreign financial accounts?
• What is the maximum AGI threshold for EIC with two qualifying children for a married couple filing jointly?
• Is Kaitlyn eligible to file as head of household based on her relationship with Leah?
• Is interest included in gross income?
• What does 0.5% of unpaid taxes represent in tax penalties?
• Which of the following describes child support payments?
• How is a hobby defined for tax purposes?
• In what scenario would a taxpayer need to report a collectible's sale?
• What are Expenses of Sale?
• What does the residency test for qualifying children require?
• Married couples essentially share what type of income in community property states?
• Which of the following is NOT one of the Five Tests for a Qualifying Child?
• Which of the following taxes can an injured spouse claim to receive their share of a refund?
• What is the focus of the Qualified Education Expenses definition?
• Which of the following is NOT one of the legal standards for a common-law marriage?
• Are exempt-interest dividends from a municipal bond mutual fund taxable?
• Are royalties included in gross income?
• What does W-2 Box 12 Code H denote?
• Which of the following best defines a taxpayer's place of abode?
• Does Marcus have the ability to claim Quinta as a dependent given his circumstances?
• What does a 'Capital Asset' typically include?
• Modified Adjusted Gross Income (MAGI) includes which of the following?
• Who is identified as the physical custodian of a child for tax purposes?
• Which of the following best describes Support in a tax context?
• What type of costs are included in the Cost Method of Inventory Valuation?
• What does W-2 Box 12 Code B signify?
• What is a Refundable Credit?
• Which statement defines a partnership?
• Are pensions considered as gross income?
• What are operating expenses?
• What type of income does Form 1099-INT report?
• Based on her disability status, can Jeremy and Joan's daughter Jessica be claimed as a dependent?
• Which code would you reference for amounts related to uncollected Medicare tax?
• What does the general sales tax apply to?
• A limited partner's personal liability in a limited partnership is:
• How should taxpayers view the worksheets they compile for their returns?
• How is the Child Care Credit calculated?
• If a married couple filing jointly has a gross income of $16,750, are they required to file a tax return?
• What are the consequences if the total business income cannot support the full 179 deduction?
• Who receives an ITIN?
• What is another term for Real Property?
• What is considered community property?
• What type of income does "earned income" include?
• Is net income derived from business included in gross income?
• Which of the following is NOT part of the cost basis?
• When are points typically deductible as interest?
• What is the primary depreciation method used for assets placed in service after 1986?
• What is a rollover as it pertains to HSAs?
• Is the labor of the owner deductible for rental property expenses?
• Is Timothy able to file as a qualifying widow(er) after Francine's death?
• How many qualifying children are required to claim the Additional Child Tax Credit?
• What does a multiple support agreement entail?
• What does Distribution Code A indicate?
• How is depreciation treated in calculating adjusted basis?
• What is a capital asset?
• When is marital status determined for tax purposes?
• What is the first step in computing taxable income?
• Is Social Security disability income classified as earned income?
• Which of the following is a requirement for deducting moving expenses?
• Who is eligible to claim Darrell's dependency exemption?
• Which of the following best describes a mutual fund?
• When determining the basis for a rental property, what is typically subtracted?
• Can Laura file head of household based on her living situation and financial contribution?
• W-2 Box 12 Code L represents which type of reimbursements?
• What is a general sales tax?
• What does the term Disposition relate to in asset management?
• What function does Form 8888 serve in relation to tax refunds?
• What method does the General Depreciation System primarily use for personal property depreciation?
• What category does Hank fall under relative to his parents, given his situation?
• Which W-2 Box 12 code represents employer contributions made to a HSAs?
• How many conditions must be met to qualify for Head of Household status?
• What does "federal income tax withheld" represent?
• What does W-2 Box 12 Code L represent?
• What qualifies an individual as a Nonresident Alien?
• Which of the following is NOT a qualification for the Child Tax Credit?
• In terms of home office deductions, what does it mean if an office is used solely for business?
• What is the maximum penalty for failure-to-file?
• What is the required depreciation method for residential real property placed in service after 1986?
• Is Lawrence eligible to file as a qualifying widow(er) after Helena died?
• W-2 Box 12 Code G indicates contributions to which type of plan?
• Form 8815 is specifically used for what tax-related purpose?
• Which of the following taxes is a form of personal property tax?
• What does a rollover refer to in the context of IRAs?
• What is indicated by W-2 Box 12 Code K?
• What must you subtract from AGI to compute taxable income?
• What does Form 1098 indicate?
• Which form must be filled out to receive an automatic extension of time to file a U.S. individual income tax return?
• Are worksheets required to be sent to the IRS with the return?
• What does an annual personal property tax depend on?
• What is the benefit of participation in a Cafeteria Plan for employees?
• What is the standard deduction for a single filer in 2011?
• Can Carl and Carrie claim Carol as a dependent given her marital status?
• What is a key characteristic of Rental Income?
• Are rents considered part of gross income?
• How are the proceeds from gambling winnings typically reported?
• What type of corporation is defined as an S Corporation?
• What does a taxpayer have to do to qualify for the First-Time Homebuyer Credit?
• What type of income includes capital gains?
• How does the penalty for failure-to-pay accumulate each month?
• What is the purpose of Form TD F 90-22.1?
• What is the condition for a taxpayer to be considered “unmarried” for Head of Household status?
• What characterizes a stock dividend?
• What do W-2 Box 12 Code EE contributions pertain to?
• W-2 Box 12 Code K may result in a penalty for which type of payment?
• What does it mean for someone to be a dependent?
• Who is eligible for a 403(b) Plan?
• What type of mutual fund typically invests in a diversified group of corporations?
• What constitutes gross income?
• If a head of household has a gross income of $11,750, are they required to file?
• Which of the following describes a "dwelling unit"?
• What constitutes a failure to file?
• What are worksheets used for during the tax filing process?
• For how long must a qualifying relative live with a taxpayer to meet requirements for Head of Household filing status?
• What happens to the Early Withdrawal Penalty in terms of tax deductibility?
• Which type of compensation plan allows tax-deferred contributions to the employee?
• What relationship is needed to claim someone as your qualifying relative?
• What defines Estimated (Useful) Life of an asset?
• What was the exemption amount for taxpayers in 2011?
• What percentage of the underpayment is assessed as a substantial understatement penalty?
• If an asset has an unlimited life, what happens to its depreciation?
• How many Types of Property are generally recognized in tax terms?
• What is a key requirement for a taxpayer to claim a Child Tax Credit?
• What type of tax return does Form 1040X represent?
• At what income level does up to 85% of Social Security benefits become taxable for a Single filer?
• What is one qualification for the Additional Child Tax Credit?
• Which of the following is included in investment income?
• What defines a passive activity for tax purposes?
• Which of the following is not considered a medical expense for deduction purposes?
• What does Form 8839 address?
• What is included in real property?
• What is required for a child to maintain dependency status as a full-time student?
• Which filing status would typically result in the highest tax liability?
• Can the 1040X form be e-filed?
• In which scenario are moving expenses generally NOT deductible?
• What is the purpose of Form W-2?
• In the scenario where Scott is single and paying over 50% of the home costs for his daughter, can he file as Head of Household?
• Which type of expenditures are generally deductible under IRS Code 174?
• What must an individual do to qualify for HSA contributions?
• For a "Qualified Widow" filer, which income range leads to their Social Security benefits being completely non-taxable?
• In Tameka's case, what defines Victoria's status regarding dependency?
• What is the threshold for investment income to qualify for the Earned Income Credit?
• What type of transactions does Form 1099-S pertain to?
• Which of the following is NOT a use of property?
• What occurs during a Stock Split?
• Which of the following is NOT a key point to determine if home-office expenses are deductible?
• Which characteristic of a pension is primarily based on employment duration?
• Which distribution code signifies a qualified distribution from a Roth IRA?
• What happens if listed property is used 50% or less for business purposes?
• What does Form 4852 serve as?
• What is the work time requirement for moving expenses reimbursement?
• What is the standard deduction?
• What does tax liability refer to?
• How is Total Available Income calculated?
• When does the reporting of long-term disability payments change to pension income?
• What defines a Permanent and Total Disability for tax purposes?
• What are bad debts in a business context?
• What are the criteria for a payment to be classified as Deductible Alimony?
• How many businesses can be reported on each Schedule C?
• Do partnerships pay income taxes directly?
• What is required if a business has any employees?
• What is the primary purpose of state and local taxes?
• What defines a Qualified Student Loan?
• What is the penalty for failing to file a tax return on time?
• An eligible student for educational tax credits must have NOT done which of the following?
• What does Form 8829 allow the taxpayer to claim?
• According to tie-breaker rules, which condition will determine the qualifying child if both parents claim the same child?
• What is the penalty for a substantial understatement?
• Which of the following best describes adjusted basis?
• What is a requirement for HSA eligibility?
• How much of employment-related child care expenses can be credited?
• Agnes's classification in relation to Martin is what?
• The Lifetime Learning Credit is equal to what percentage of the first $10,000 of qualified expenses?
• How is rent categorized in terms of income types?
• What is classified as acquisition debt?
• What is the relationship between gross income and qualifying relative status?
• For a business to classify as a proprietorship, how many owners must there be?
• Which of the following adds to the adjusted basis of a property?
• What items can be deducted from the adjusted basis?
• Which code relates to contributions made by government employees to tax-deferred retirement savings?
• What does the term "adjusted gross income" refer to?
• What does Medicare Part A provide coverage for?
• Which distribution code refers to a normal distribution?
• What was the Accelerated Cost Recovery System (ACRS) used for?
• What are the total wages paid to an employee that are subject to Social Security tax called?
• Which form is associated with claiming the Foreign Tax Credit?
• Which of the following situations would allow for filing as head of household?
• What does W-2 Box 12 Code A indicate?
• What does W-2 Box 12 Code P indicate?
• Which tables are used to compute MACRS depreciation deductions?
• What is a royalty in the context of income?
• What is included in the definition of 'support' for tax purposes?
• What does W-2 Box 12 Code T refer to?
• Can Mai claim Lee as a dependent?
• What is represented by W-2 Box 12 Code DD?
• Which of the following is NOT a type of relief from joint responsibility of penalties?
• Which of the following describes how medical and dental expenses are deductible?
• How is taxable income calculated?
• What is the status of Sally as a qualifying child for Mike and Janet when Mike files his return?
• Which of the following correctly defines a stock dividend?
• What exemption amount was allowed in 2011?
• When can a taxpayer deduct a casualty loss?
• Which type of assistance might a fellowship provide?
• What is the purpose of the Foreign Tax Credit?
• What key factor must be met to avoid penalties for a Roth IRA distribution due to death?
• What is the primary purpose of injured spouse allocation?
• What term refers to the business or professional activity that provides the principal source of income?
• Which of the following is NOT a community property state?
• Under what circumstances must taxpayers utilize the Schedule D Tax Worksheet?
• What is the effect of the Educator Expenses Deduction on taxable income?
• Which of the following is a due diligence requirement for EIC?
• Which form is used to report transactions with foreign trusts?
• What constitutes gross income for a taxpayer?
• What is due diligence in the context of preparing income tax returns?
• What are included as Qualified Education Expenses?
• What does Schedule C report?
• What does ITIN stand for in a tax context?
• Is a distributive share of partnership gross income included in gross income?
• What does Form 8889 relate to?
• What is unique about the AOC?
• Are the earnings from a city municipal bond taxable?
• Which of the following best defines Business Assets?
• What types of passenger vehicles qualify as listed property under tax regulations?
• How can a taxpayer demonstrate their residency under the Five Tests for a Qualifying Child?
• What is the first step in computing Adjusted Gross Income (AGI)?
• What type of account is indicated by W-2 Box 12 Code R?
• Are disaster relief payments included in gross income?
• Which of the following best defines nonpassive income?
• Which of the following statements about the Tuition and Fees Deduction is true?
• What tax form is required for estates and trusts to file?
• What constitutes the 'Amount Realized' from a sale?
• Which of the following best defines a Nonrefundable Credit?
• Which income categorized is generally excluded from being ordinary income?
• Which of the following accounts for the Adoption Credit limit?
• Qualified educational expenses for tax credits must be reduced by which of the following?
• Which of the following is a situation where premiums are not deductible?
• What is the enrollment requirement to be considered an Eligible Student?
• What is meant by refundable credit?
• A single taxpayer with a gross income of $9,000 is required to file a tax return. Is this statement true or false?
• What can the Educator Expenses Deduction be used for?
• What type of credit allows a taxpayer to receive a refund for any amount exceeding their tax liability?
• What does it mean for a dwelling unit to be used as a residence?
• What form is used for reporting unreimbursed employee business expenses?
• In which filing status may a taxpayer claim a higher standard deduction if they qualify?
• What is the threshold income for Social Security benefits to be partially taxable for a Single, Head of Household, or Qualified Widow filer?
• What is the maximum Educator Expenses Deduction available?
• Can Orville and Marsha claim Kevin as a dependent despite the possibility of Marsha being claimed by her father?
• What is Form 2441 used for?
• What is the purpose of Form 6251?
• What does Form 8283 relate to?
• What characterizes an Ordinary Expense?
• Can Leslie claim Jack as a dependent based on their relationship?
• What is the filing status for Sean and Cynthia as they divorced on September 21, 2011?
• What distinguishes a Nonqualified Plan?
• What is the maximum tax rate that applies to certain long-term capital gains?
• What is a return of capital typically classified as?
• Is Jillian eligible to file as a qualifying widow(er) based on her documentation?
• Are life insurance payments, if paid by reason of the death of the insured, included in gross income?
• Which of the following is NOT a common method of valuing inventory?
• What is defined as negligence or intentional disregard in tax terms?
• What is the primary purpose of the benefit provided under Section 125 Plans?
• Wanda wants to file as Head of Household but her mother lives in her own home. What does Wanda need to do to qualify?
• What is the purpose of Form 8949?
• What is the maximum amount a taxpayer can claim for the American Opportunity Credit (AOC) from their qualified education expenses?
• What defines a Permanent and Total Disability?
• What purpose does Form 9465 serve?
• What does Form 8888 facilitate for taxpayers?
• What is the maximum Earned Income Credit (EIC) amount one can earn?
• Which distribution code applies when the account holder has passed away?
• What is generally true about the amount represented by W-2 Box 12 Code T?
• Are gambling winnings subject to taxation?
• Megan's cousin, Pam, is classified as what in relation to Megan?
• Which category does Real Property fall under as defined by tax principles?
• What does Form 1099-B report?
• How is "income" defined for tax purposes?
• What is the purpose of the W-2 Box 12 codes?
• What is the standard deduction?
• Code BB on a W-2 form indicates what type of contributions?
• Is a corporate bond considered taxable income?
• Which support ratio is necessary for a qualifying relative?
• Which asset class has the shortest recovery period under MACRS?
• Can Misty file as a qualifying widow(er) after Darren's death?
• Form 4868 serves what function for taxpayers?
• What does W-2 Box 12 Code Q represent?
• What characterizes deductible maintenance and repairs on property?
• What form is used for reporting additional taxes on qualified plans and other tax-favored accounts?
• What is the Principal Place of Abode?
• In tax terms, what does Depreciation represent?
• If a taxpayer receives a distribution under an exception to penalty, which distribution code would be used?
• What is an additional deduction offered as Bonus Depreciation?
• When both parents are eligible to claim a child and they file separately, what will determine who can claim the child as a qualifying child?
• Which distribution type allows an employee to receive payments based on life expectancy?
• What is the primary characteristic of a sole proprietorship?
• How does a person determine if their home office is the principal place of business?
• What is a requirement for claiming a personal exemption for a spouse?
• What does W-2 Box 12 Code C refer to?
• What does a contribution refer to in a retirement plan context?
• What does Form SSA-1099 report?
• Is homeowner's or renter's insurance deductible for tax purposes?
• What is an example of a payment that could be considered a royalty?
• What is the income phaseout level for the Child Tax Credit for a single taxpayer?
• If a taxpayer is unmarried at the end of the tax year, what additional requirement must they meet to file as Head of Household?
• What does stock-in-trade refer to?
• Who can claim Julie Ann's dependency exemption based on her financial support?
• If Lynette wants to file a return after David's death on March 2, 2011, what is her filing status?
• To claim a Non-Relative Dependent as qualifying for tax purposes, what condition must be met?
• What are the three factors that determine the filing requirement for nondependents?
• Which statement about dividends is true?
• What does Form 8801 relate to in terms of taxation?
• What is the privilege in tax context?
• Why might a taxpayer file for estimated tax payments?
• How is the deductible portion of casualty and theft loss computed?
• Which statement is true about a Traditional IRA?
• What is a characteristic of a general partner?
• What must married taxpayers do to claim the Child and Dependent Care Credit?
• What type of funds are typically involved in capital gain distributions?
• What are direct expenses in relation to home office deductions?
• Which of the following is considered a nonrefundable credit?
• What is the main purpose of Form 8615?
• What happens if a 1988 US Series EE Bond is cashed in without reporting interest annually?
• What is one of the main benefits of proper asset depreciation?
• What is the maximum amount that can be expensed under the 179 Expense Deduction?
• What are returns and allowances?
• Which filing status option is NOT available for an individual?
• What type of relief allows for a separation of liability for tax owed?
• Which of the following can be identified as a source of passive income?
• Which of the following statements about a Qualifying Child's age is NOT true?
• What relationship does Roberta have with Teresa that qualifies her as a dependent?
• Which of the following steps is not part of computing AGI?
• What limit is set on the maximum qualified expenses for one qualifying individual when computing the Child Care Credit?
• What characterizes an "open year" for tax purposes?
• What does W-2 Box 12 Code CC represent?
• The distributions made for health insurance premiums may qualify for an exception to early withdrawal penalty if which condition is met?
• What is a requirement for an individual to claim participation in real property trades?
• What does Form 1099-G report?
• W-2 Box 12 Code J refers to what amount with respect to sick pay plans?
• What type of plan is a 457 Plan?
• Which of the following is not a requirement to claim the Child and Dependent Care Credit?
• Who can qualify as a Qualifying Widow(er)?
• Which type of property is NOT considered listed property?
• Which method computes allowable transportation expenses based on actual costs incurred?
• In a Traditional IRA, what happens to nondeductible contributions upon withdrawal?
• What do tax credits effectively do for taxpayers?
• What characterizes a Qualified Plan?
• To qualify for EIC without a qualifying child, what is the maximum AGI threshold for a single taxpayer?
• What portion of hobby expenses can be deducted?
• How is the depreciable basis for rental property calculated?