hr block income tax course 1-6 Latest Update 2024-2025 350 Questions and 100% Verified Correct Answers Guaranteed A+
British common law - CORRECT ANSWER: Most states regarding the ownership and
property are based on British common law, these are known as separate property states. in separate property states, income received belongs to the spouse who earned it or who owns the property that produced the income.
Community property based on Spanish Civil law - CORRECT ANSWER: income
received for services performed is considered to belong half to the spouse and half to the other spouse.
employment compensation - CORRECT ANSWER: wages, salaries, commission,
bonuses, gifts or more than minimal value received from and wmployer, tips, back pay, severance pay, and vacation pay
Firm 1095B - CORRECT ANSWER: Provided by the insurance provider to the taxpayer
Firm 1095C - CORRECT ANSWER: Provide by the employer with 50 or more
applicable full time employees to the taxpayer
Five filing status standard deductions - CORRECT ANSWER: single - 6300
married filing jointly 12600 married filing separately 6300 qualifying widower 12600 head of household 9300
Five filing statuses - CORRECT ANSWER: single, married filing jointly, married filing separate, head of household, and qualifying widower
Form 1099- G - CORRECT ANSWER: Form for unemployment compensation
Form 4852 - CORRECT ANSWER: Substitute for w-2 and tax statement l, or 1099-R
Gross Income - CORRECT ANSWER: Total worldwide income subject to tax
Medicare tax rate - CORRECT ANSWER: 1.45% or 1.45% + 0.9% if the income is over
200,000
social Security tax withheld - CORRECT ANSWER: 6.2% up to 118,500 or 7347.00
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Three factors determine the filing requirements for nindependents - CORRECT
ANSWER: Filing status, age, gross income
Are certain alimony and separate maintenance payments included in gross income? -
CORRECT ANSWER: Yes
Are certain foster care payments included in gross income? - CORRECT ANSWER: No
Are disability retirement benefits earned income? - CORRECT ANSWER: qualify as
earned income until the taxpayer reaches minimum retirement age. Minimum retirement age is the earliest age the taxpayer could have received a pension from their employer or an annuity if they did not have the disability. Social security disability payments, Social Security Disability Insurance (SSDI) payments, and military disability pension payments are not considered earned income.
Are gifts and inheritances included in gross income? - CORRECT ANSWER: No
Are royalties included in gross income? - CORRECT ANSWER: Yes
Are Social Security benefits taxable income? - CORRECT ANSWER: may be included
in taxable income. Benefits are included in the taxable income (to the extent they are taxable) of the person who has the legal right to receive the benefits. You will learn more about social security benefits when you read about retirement distributions.
Earned Income - CORRECT ANSWER: is received for services performed. Some
examples are wages, commissions, tips, and generally farming and other business income.
Gross Income - CORRECT ANSWER: means all worldwide income from whatever
source derived, unless specifically excluded from taxation by law. Gross income includes income realized in any form, whether in money, property, or services.
How many supporting schedules are there for Form 1040? - CORRECT ANSWER: 3
Schedules - Schedule 1, Additional Income and Adjustments to Income.Schedule 2, Additional Taxes.Schedule 3, Additional Credits and Payments.
In box 12 of the Form W-2, what code should be entered? - CORRECT ANSWER: DD -
Cost of employer-sponsored health coverage.
Income - CORRECT ANSWER: is financial gain derived from labor (work), capital
(money), or a combination of the two. The financial gain derived from labor is generally referred to as wages. Unless specifically exempt or excluded by law, all income is subject to income tax and is reported on a tax return.
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Is distributive share of partnership gross income included in gross income? - CORRECT
ANSWER: Yes
Is income from life insurance and endowment contracts included in gross income? -
CORRECT ANSWER: Yes
Is income in respect of a decedent include in gross income? - CORRECT ANSWER:
Yes
Mary Moore earned $95,000 as vice president of a local bank. Mary also earned $750 of interest from a certificate of deposit from the same bank where she worked. How
much is Mary's gross income? - CORRECT ANSWER: $95,750
Mary Moore earned $95,000 as vice president of a local bank. Mary also earned $750 of interest from a certificate of deposit from the same bank where she worked. How
much is Mary's unearned income? - CORRECT ANSWER: $750
Unearned Income - CORRECT ANSWER: is taxable income that does not meet the
definition of earned income. It includes money received for the investment of money or other property, such as interest, dividends, rents, and royalties. It also includes pensions, alimony, unemployment compensation, and other income that is not from performing services.
What are fringe benefits? - CORRECT ANSWER: include sick leave, vacation pay,
company cars, pension plans, and health plans that provide additional compensation to employees beyond base wages. Cafeteria-style fringe benefits plans let employees choose the benefits they want, up to a certain dollar amount. They are not taxable.
What are statements? - CORRECT ANSWER: may or may not be official IRS forms.
They are attached to the return to explain various types of income, deductions, and credits reported either on a schedule or form, or directly on Form 1040.
What does code DD refer to? - CORRECT ANSWER: relates to the Affordable Care
Act, which is covered later. It is important that you know that in these earlier chapters of the course, unless otherwise specified, all taxpayers in the case studies will have employer-sponsored health coverage.
What form is received from the state is unemployment compensation was received? -
CORRECT ANSWER: Form 1099-G
What form is used in substitution of the Form W-2? - CORRECT ANSWER: Form 4852
What IRS Publication is the Federal Income Tax Guide for Individuals? - CORRECT
ANSWER: Pub 17
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