H & R Block Final Exam Review (Latest 2024/ 2025 Update) Questions and Verified Answers| 100% Correct| Grade A

H & R Block Final Exam Review (Latest

2024/ 2025 Update) Questions and Verified

Answers| 100% Correct| Grade A

Q: Devan and Amber adopted a child with special needs in a domestic adoption. They had

$5,500 in qualified adoption expenses in 2023, and the adoption was finalized on December 18,

2023. Their modified adjusted gross income is $210,000. Assuming all requirements are met,

what is the maximum adoption credit they can claim in 2023?

a) $5,500

b) $14,300

c) $14,890

d) $20,390

Answer:

c) $14,890

Q: If a taxpayer files their return claiming an education credit for the full amount of a student's

qualified education expenses and later receives a refund from the institution, what advice will

you give to the taxpayer?

a) All credits will be reduced in future years.

b) Any future education credits will be disallowed.

c) There is no tax consequence.

d) They will have to recapture (pay back) some of the credit claimed.

Answer:

d) They will have to recapture (pay back) some of the credit claimed.

Q: Taxpayers who acquire qualifying commercial vehicles, weighing under 14,000 pounds,

after December 31, 2023, through December 31, 2032 may qualify for the Credit for Qualified

Commercial Clean Vehicles on the 2023 tax return. What is the maximum credit per vehicle?

a) $3,750

b) $4,000

c) $5,000

d) $7,500

Answer:

d) $7,500

Q: Ellen and her husband were legally divorced in 2017. After divorce, Ellen retained physical

custody of their children. Ellen received the following amounts from her ex-husband, on behalf

of the children or as ordered by the court through a divorce decree:

• Court-ordered child support of $1,000 per month.

• Court-ordered alimony of $500 per month.

How much of this income should be reported on HELLEN federal return?

a) $0

b) $6,000

c) $12,000

d) $18,000

Answer:

b) $6,000

Q: Monica cashed in a CD (certificate of deposit) early because she needed money quickly to

pay credit card bills. The bank charged her an early withdrawal penalty of 3#, which amounted to

$90. Can Monica deduct the penalty on her tax return? If so, where on the return is it reported?

a) No; Monica will not be allowed to deduct the early withdrawal penalty.

b) Yes; Monica can deduct the early withdrawal penalty but only if she uses Schedule A (Form

1040) and itemizes.

c) Yes; Monica can deduct $90

Answer:

c) Yes; Monica can deduct $90 on Part II, line 18 of Schedule 1 (Form 1040) as an adjustment to

income.

Q: In 2023, Gabby incurred $2,500 in unreimbursed employee business expenses (none of the

expenses are impairment related). Her adjusted gross income was 50,000, and she had no other

miscellaneous deductions. What amount is she able to deduct on her 2023Schedule A

(Form1040), Itemized Deductions?

a) $0

b) $1,000

c) $1,500

d) $2,500

Answer:

a) $0 ???

Q: Robert is single. He purchased a new main home in March of 2017 for $900,000. Robert

will be itemizing his deductions. On what portion of the acquisition debt will interest be

deductible on Robert's tax return for 2023?

a) $375,000

b) $500,000

c) $750,000

d) $900,000

Answer:

d) $900,000

Q: On what forms are noncash contributions totaling more than $500 reported?

a) Form 8283, Noncash Charitable Contributions, and Schedule A (Form 1040), Itemized

Deductions.

b) Form 8283, Noncash Charitable Contributions, and Schedule 1 (Form 1040), Additional

Income and Adjustments to Income.

c) Schedule A (Form 1040), Itemized Deductions, and Schedule 1 (Form 1040), Additional

Income and Adjustments to Income.

d) Schedule A (Form 1040), Itemized Deductions, and Form 1040, U.S. Individual Income

Answer:

a) Form 8283, Noncash Charitable Contributions, and Schedule A (Form 1040), Itemized

Deductions.