H & R Block Final Exam Review (New 2024/
2025 Update) Questions and Verified
Answers| 100% Correct| Graded A
QUESTION
Which of these would be ful... [Show More] ly deductible in 2022 on Schedule A (Form 1040), Itemized
Deductions?
a) Investment interest expense of $800 with investment income of $900.
b) Investment interest expense of $1,200 with investment income of $1,100.
c) Investment interest expense of $1,900 with $1,350 in investment income.
d) Investment interest expense of $1,400 with investment income of $1,500 ($300 of which was
from municipal bond interest).
Answer:
a) Investment interest expense of $800 with investment income of $900.
QUESTION
In 2019, Zoya purchased her principal residence for $400,000. On January 15, 2023, when she
owed $360,000 on the original mortgage, she took out a home equity loan. In January 2023, the
fair market value of the home was $490,000. The home equity loan proceeds were used to
purchase a new car and pay off credit cards. It was not used to build, buy, or improve her home.
During the year, she paid $6,350 in interest on her first mortgage and $1,490 in interest on the
home equity loan. What amount of
Answer:
c) $6,350
QUESTION
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:
a) May only deduct the repayment as an "other" itemized deduction on Schedule A (Form 1040),
line 16,
Answer:
c) Maybe be able to claim the deduction or credit if the amount they repaid is more than $3,000.
QUESTION
Manuel drove his car 400 miles in 2023to perform volunteer work. He did not keep records of
the actual cost for gas or oil. How much can he deduct as a charitable contribution on his
Schedule A (Form 1040), Itemized Deductions?
a) $0
b) $56
c) $72
d) $234
Answer:
b) $56
QUESTION
What is the amount of allowable medical and dental expenses Megan can report on Schedule A
(Form 1040), line 4?
a) $1,780
b) $5,250
c) $7,030
d) $8,280
Answer:
a) $1,780
QUESTION
Jamal purchased his home in 2019. In 2023, 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?
a) $200
b) $370
c) $500
d) $3,700
Answer:
a) $200
QUESTION
Josef has two daughters, Paige, age 4, and Natalie, age 10. Josef paid a local day care provider
$6,000 for Paige from January through December and $4,000 for Natalie from January through
June. Josef's earned income is $70,000. Assuming all other requirements are met, how much
expense can be used to calculate Josef's 2023Child and Dependent Care Credit?
a) $3,000
b) $6,000
c) $8,000
d) $10,000
Answer:
b) $6,000
QUESTION
Paloma purchased a home with her husband, Neville, in January of 2022 for $700,000. In June
of 2022, Paloma and Neville separated. On December 31, 2023, 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 payme [Show Less]