H&R Block Income Tax Course questions with 100% correct answers 2024
Due Diligence - CORRECT ANSWER Requirements that tax professionals must follow
... [Show More] when preparing income tax returns.
Estimated Tax - CORRECT ANSWER The amount of tax a taxpayer expects to owe for the year after subtracting expected amounts withheld and certain refundable credits.
Estimated Tax Voucher - CORRECT ANSWER A statement by an individual of (1) the amount of income tax he estimates he will incur during the current taxable year on income that is not subject to withholding, (2) the excess amount over that withheld on income which is subject to withholding, and (3) his estimated self-employment tax.
Exemption from Withholding - CORRECT ANSWER Status claimed on Form W-4 directing the employer not to withhold federal income taxes from the employee.
Underpayment Penalty - CORRECT ANSWER If a taxpayer did not pay enough tax on a timely basis during the year, he may be required to pay an underpayment penalty.
Two Ways to Pay as You Go - CORRECT ANSWER Withholding and Estimated Tax Payments
Form W-4 - CORRECT ANSWER Employee's Withholding Allowance Certificate
Form 4868 - CORRECT ANSWER Application for Automatic Extension of Time To File U.S. Individual Income Tax Return
Amended Return - CORRECT ANSWER A tax return filed on Form 1040X after the original return has been filed.
Closed Year - CORRECT ANSWER A tax year for which the statute of limitations has expired.
Open Year - CORRECT ANSWER A taxable year for which the statute of limitations has not yet expired.
Failure-to-File Penalty - CORRECT 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.
Failure to File - CORRECT ANSWER Taxpayer fails to file the return by the due date, and there is a balance due.
Form 1040X - CORRECT ANSWER Amended U.S. Individual Income Tax Return
When can an amended return be filed? - CORRECT 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.
Can the 1040X be e-filed? - CORRECT ANSWER No.
Portfolio Income and Losses - CORRECT ANSWER Those from such sources as dividends, interest, capital gains and losses, and royalties. [Show Less]