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

H & R Block Income Tax Final Exam (Latest

2024/ 2025 Update) Questions and Verified

Answers| 100% Correct| Grade A

Q: Nash was reimbursed in 2022 by his insurance company for a medical expense that he had

previously deducted on his 2021 Schedule A (Form 1040), Itemized Deductions. What is the tax

treatment of the recovered medical expense, if any?

Answer:

The recovery is includable in income in the year received up to the amount by which the

deduction or credit claimed reduced taxes in the prior year.

Q: Paloma purchased a home with her husband, Neville, in January of 2021 for $700,000. In

June of 2021, Paloma and Neville separated. On December 31, 2022, they were still legally

married but did not live together all year. They do not live in a community property state. Neville

refused to file a joint return with Paloma. Paloma filed her return using the married filing

separately filing status. Paloma is living in the home and has continued to make the mortgage

payments using funds from her own account. Paloma will be itemizing her deductions. On what

portion of the acquisition debt will interest be deductible on Paloma's tax return for 2022?

Answer:

$375,000

Q: If a taxpayer has to repay an amount they reported as income in an earlier year (because at

the time, they thought they had an unrestricted right to it), they may be able to claim a deduction

or a credit under the "claim of right" rules.Choose the response that correctly completes the next

sentence describing a taxpayer's eligibility for a deduction or credit under these rules. The

taxpayer:

Answer:

ay be able to claim the deduction or credit if the amount they repaid is more than $3,000.

Q: Joshua purchased a qualified plug-in electric motor vehicle on June 2, 2022. He qualifies for

the Qualified Plug-in Electric Drive Motor Vehicle Credit. Joshua may qualify for a credit of

what amount?

Answer:

The credit ranges from $2,500 to $7,500, depending on battery capacity and other factors.

Q: To claim the Clean Vehicle Credit, the qualifying electric vehicle must have been assembled

in North America after which date?

Answer:

To claim the Clean Vehicle Credit, the qualifying electric vehicle must have been assembled in

North America after which date?

Q: The Premium Tax Credit is a credit that helps pay the cost of health care coverage through

the Health Insurance Marketplace. All the following are true, EXCEPT:

Answer:

The tax household includes the taxpayer, spouse, and anyone who is claimed as a dependent on

the tax return.

Q: Jamal purchased his home in 2019. In 2022, he installed energy efficient windows that meet

the Energy Star most efficient certification requirements for a total cost of $1,600. He also

installed exterior doors that meet the Energy Star requirements for a total cost of $2,100. His tax

liability is $3,900. Jamal had a Residential Energy Property Credit in a previous year in the

amount of $300. What is the amount of his Energy Efficient Home Improvement Credit?

Answer:

$200

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

after December 31, 2022, 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?

Answer:

$7,500

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

$5,500 in qualified adoption expenses in 2022, and the adoption was finalized on December 18,

2022. Their modified adjusted gross income is $210,000. Assuming all requirements are met,

what is the maximum adoption credit they can claim in 2022?

Answer:

$14,890

Q: Stanley holds foreign investments in foreign stocks and bonds. The issuing foreign country

withheld taxes on his investment income. To avoid double taxation on the income earned from

these investments, Stanley may be eligible to claim which credit?

Answer:

Foreign Tax Credit.

Q: On July 15, 2008, Michael and his wife Julie purchased a new home. They received the

First-time Homebuyer Credit in the amount of $7,000. What tax form is used to repay their tax

credit?

Answer:

Form 5405.

Q: Marcel attends graduate school. For 2022, he received a Form 1098-T, Tuition Statement,

showing tuition paid of $14,300. What is the maximum amount of the lifetime learning credit he

can claim for 2022?