H&R Block 2018 Scenarios Latest Update 2024- 2025 Questions and 100% Verified Correct Answers Guaranteed A+
Alberto Jimenez is a degree candidate. For 2018, his tuition was $5,000, his other required course fees were $1,200, and his room and board were $2,700. Alberto received a $2,500 scholarship that does not specify the expenses to which it must be applied. How much, if any, of his scholarship income is taxable? - CORRECT ANSWER: None of Alberto's scholarship is taxable. He is a degree candidate where his $5,000 tuition expense and his other required course fees of $1,200 exceeded his $2,500 scholarship received.
Alice Keeler is divorced. Her daughter, Janet (5), lived with her all year. Alice would have been able to claim the dependency exemption for Janet except that she signed a waiver allowing her ex-husband to do so. While she was working, Alice sent her daughter to the Kiddy Care Center. Can she claim CDCC (Child and Dependent Care Credit)? - CORRECT ANSWER: Yes. Alice qualifies under the divorced parents rules to claim the Child and Dependent Care Credit, because she is the custodial parent.
Anita (42) is a married taxpayer. Her husband, Mark (43), has not lived with her since 2015 and Anita is considered unmarried for tax purposes, filing head of household.Anita's earned income and AGI was $28,478, all from wages. She had no other income.Anita has one dependent daughter, Samantha (14). Anita and Samantha lived together in 2018, and no one else lived with them. Both are U.S. citizens. Can she claim EITC?` -
CORRECT ANSWER: Yes. Anita would receive $1,893 in EITC.
Antoine Rimbald is a degree candidate. For 2018, his tuition was $8,300, his required equipment fees and books cost $1,850, and his room and board were $4,200. Antoine received a $15,000 scholarship that does not specify the expenses to which it must be applied. How much, if any, of his scholarship income is taxable? - CORRECT ANSWER: $4,850 of Antoine's scholarship is taxable. Antoine's tuition, fees, and book costs total $10,150. The portion of his scholarship money in excess of this is taxable [$15,000 - $10,150 = $4,850 taxable scholarship]. The cost of his room and board is not a qualified educational expense, and the portion of scholarship funds used to pay these expenses is generally taxable.
Barbara Bui is a part-time student and is not working toward a degree. For 2018, her tuition was $1,500, and her books cost $145. Barbara lives at home with her parents and does not have room and board expenses. Barbara received a tuition scholarship of $1,000. How much, if any, of her scholarship income is taxable? - CORRECT
ANSWER: All of Barbara's scholarship is taxable, because she is not a degree
candidate.
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Barbara is a law clerk for Your County. Which type of retirement plans would she
contribute to through her employer? - CORRECT ANSWER: 457 retirement plans are
mainly available to government employees.
Carolyn earned $52,000 as a full-time employee in 2018. Due to procrastination and denial, she did not prepare her 2018 income tax return until June 23, 2019. Carolyn did not file the return until August 1, 2019. She did not request an extension of time to file.Her return showed a balance due of $1,500. What is her penalty? - CORRECT ANSWER: The IRS assesses a late filing penalty for four months. Carolyn's penalty is $300 [5% x 4 x $1,500].
Christine Williams' husband, Henry, was disabled and unable to care for himself for the entire year. Christine hired a nurse to care for him in their home while she was at work.
They will file a joint return. Can they claim the CDCC? - CORRECT ANSWER: Yes.
Christine and Henry may claim the Child and Dependent Care Credit, because Henry is incapable of self-care.
Colin has a successful consulting business, and had a net profit of $86,394 on his
Schedule C. How much self-employment tax will he pay? - CORRECT ANSWER:
$12,207. His net profit is $86,394 × 92.35% = $79,785; $79,785 × 15.3% = $12,207.
Crystal's husband, Charlie (31), was deployed in May of 2018. Crystal (30) paid 70% of the cost of maintaining a home for their daughter, Amethyst (9). Can Crystal file as head of household? - CORRECT ANSWER: Charlie's deployment is considered a "temporary absence," and therefore they are not considered to have lived apart for the last six months of the year. Thus, Crystal does not meet the "considered unmarried" requirements.
Curtis (71) and Shirley (64) are married filing jointly with gross income of $25,370. What is their gross income filing requirement amount? - CORRECT ANSWER: $25,300 (This is the gross income filing requirement for married filing jointly taxpayers when one taxpayer is age 65 or older).
Dale (25) is single. His brother, Jeff (27), lived with him for all of 2018. Jeff earned $3,100, all from wages, and had no other income. Dale provided more than half of Jeff's support. Jeff is not permanently or totally disabled. No one else lived with Dale. Can Dale claim Jeff as a qualifying relative? - CORRECT ANSWER: Jeff meets all of the tests for a qualifying relative.
Dan paid $1,000 for a seat at a charity event held to benefit his state university. The value of this was $100. How much may he deduct on his tax return? - CORRECT ANSWER: $900. Dan may deduct up to the face value of the ticket [$1,000 - $100 =
$900).
Darrell (12) was claimed by his aunt, Felicia, and his older brother, Gerald. Darrell lived with both Felicia and Gerald for four months. He lived with Felicia for five months
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