H & R Block Income Tax Final Exam (New
2024/ 2025 Update) Questions and Verified
Answers| 100% Correct| Graded A
QUESTION
Audrey is a degree
... [Show More] candidate at her local state college. She received a scholarship for $5,000.
She applied the amount to her tuition, which totaled $10,000. How much, if any, of the
scholarship is taxable income?
Answer:
$0
QUESTION
Which of the following statements is TRUE regarding nontaxable employer-provided tuition
reimbursements? Nontaxable employer-provided tuition reimbursements:
Answer:
Are tax-free and cannot be used to claim any education credit.
QUESTION
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?
Answer:
They will have to recapture (pay back) some of the credit claimed.
QUESTION
Rhianna purchased a home for $650,000. She added a swimming pool at a cost of $25,000 and a
patio deck for $8,000. What is Rhianna's adjusted basis for this property?
Answer:
$683,000
QUESTION
Christine wants to sell some property but needs to determine the basis first. Which of the
following items increase her original basis?
Answer:
The cost of capital improvements.
QUESTION
On October 1, 2022, Sara purchased 80 shares of JEP stock for $2,000. On September 30, 2023,
she sold the 80 shares for $1,500. What is Sara's gain or loss?
Answer:
A short-term loss of $500.
QUESTION
Jordyn is single. She purchased her first home for $180,000 in 2018. It served as her primary
residence until she sold it on November 1, 2023 for $440,000. She paid a $26,400 commission as
an expense of sale. During the time she owned her home, she did not use it for business or to
produce rental income. What is the amount of her long-term gain that can she exclude from
income on her return?
Answer:
$233,600
QUESTION
Owen received the following Form 1099-B reporting the sale of 100 shares of stock. How
should the sale of this property be reported on his tax return?
Answer:
Long-term capital loss of $1,660.
QUESTION
Which of the following is used to calculate the tax due when a taxpayer's only investment
income is from capital gain distributions from a mutual fund?
Answer:
Qualified Dividends and Capital Gain Tax Worksheet
QUESTION
Stevie received significant dividend income during the tax year. How should she report the
dividend income if she has ordinary dividend income in excess of $1,500?
Answer:
On Schedule B and Form 1040, line 3b.
QUESTION
What is the federal tax treatment of capital gain distributions reported on Form 1099-DIV,
Dividends and Distributions?
Answer:
Treated as long-term capital gains.
QUESTION
Which of the following will decrease [Show Less]