H & R Block Income Tax Study Guide (Latest 2024/ 2025 Update) Questions and Verified Answers| 100% Correct

H & R Block Income Tax Study Guide

(Latest 2024/ 2025 Update) Questions and

Verified Answers| 100% Correct

Q: Failure-to-File Penalty

Answer:

Generally 5% for each month or part of a month the return is late, but not more than 25% of the

tax not paid.

Q: Failure to File

Answer:

Taxpayer fails to file the return by the due date, and there is a balance due.

Q: Form 1040X

Answer:

Amended U.S. Individual Income Tax Return

Q: When can an amended return be filed?

Answer:

Within three years of the date the original return was filed, or within two years of the date the tax

was paid, whichever is later.

Q: Can the 1040X be e-filed?

Answer:

No.

Q: Portfolio Income and Losses

Answer:

Those from such sources as dividends, interest, capital gains and losses, and royalties.

Q: Schedule E

Answer:

Supplemental Income and Loss

Q: Royalty

Answer:

Payments received for the right to extract natural resources from the taxpayer's property or to use

a taxpayer's literary, musical, or artistic creation.

Q: Annuity

Answer:

A series of payments under a contract made at regular intervals over a period of more than one

year.

Q: Beneficiary

Answer:

The owner or recipient of funds in an account, such as an IRA, or from an insurance policy or

will.

Q: Contribution

Answer:

When a person puts money into a retirement plan.

Q: Defined Benefit Plan

Answer:

An employee benefit plan that provides determinable benefits not based on employer profits.

Q: Defined Contribution Plan

Answer:

An employee benefit plan that provides a separate account for each person covered and pays

benefits based on account earnings.

Q: Disability Pension

Answer:

A taxable pension from an employer-funded disability plan or a disability provision of a

retirement plan.

Q: Distribution

Answer:

When a person takes or receives money from a retirement plan.

Q: Pension

Answer:

Generally a series of definitely determinable payments made to a taxpayer after retirement from

work.

Q: Rollover

Answer:

A qualified transfer of funds from one tax-favored account to another, usually of the same type.

Q: Roth IRA

Answer:

A type of individual retirement arrangement in which contributions are not tax deductible,

earnings grow tax deferred, and qualified withdrawals are tax free.

Q: Traditional IRA

Answer: