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HR BLOCK FINAL EXAM AND PRACTICE EXAM
NEWEST 2025 ACTUAL EXAM COMPLETE 250
QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) |100%
GUARANTEED PASS!!
HR BLOCK FINAL EXAM
What additional requirements must be met for a taxpayer to be eligible to claim the Child Tax Credit for their qualifying child?
- ANSWER-The child must:
Be a qualifying child who is the taxpayer's dependent and who has not reached their 18th birthday by the end of the year.Have a social security number valid for employment before the due date of the return.Be a citizen, national, or resident of the United States.
Is the Child Tax Credit refundable or nonrefundable? - ANSWER-For most taxpayers, the Child Tax Credit is fully refundable in 2021.In other years, the Child Tax Credit is nonrefundable. However, certain taxpayers may qualify for the Additional Child Tax Credit, which is refundable. 1 / 4
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How much is the penalty if a paid preparer fails to meet the Child Tax Credit due diligence requirements? - ANSWER-There is a $545 penalty for failing to meet the CTC/ODC/ACTC due diligence requirement on one taxpayer's return.
What is the first due diligence requirement for the CTC/ODC, and how does a paid preparer meet this requirement? - ANSWER-Complete and submit Form 8867, Paid Preparer's Earned Income Credit Checklist.
How may a married taxpayer qualify as unmarried for tax purposes? - ANSWER-To qualify as unmarried for the purpose of claiming the head of household filing status, a taxpayer must
meet all of the following:
Not file a joint return with their spouse.Provide more than half the cost of maintaining their home.The home must be the main home for the taxpayer and their dependent child (or child who would be a dependent except that the exemption was given to the noncustodial parent) for more than six months of the tax year.
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The taxpayer's spouse must not have lived in the home during the last six months of the year.
List at least four costs of maintaining a home: - ANSWER-
Among other things, mortgage interest and real estate taxes (or rent), fire/casualty (or renter's) insurance, upkeep and repairs, utilities, and food consumed in the home are all costs of maintaining a home.
What requirements must be met for a taxpayer to use the qualifying widow(er) status? - ANSWER-The death of the taxpayer's spouse must have occurred during one of the two preceding tax years; the taxpayer must not have remarried and must have been entitled to file a joint return for the year of death. The taxpayer must have paid over half the cost of maintaining the home, which was the main home of their dependent son, daughter, stepson, or stepdaughter for the entire year.
In the case of divorced or separated parents, which parent generally gets to claim the qualifying child? - ANSWER-The custodial parent, according to the IRS definition, which is the person with whom the child spent more nights during the year.
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What is the exception to the rules for children of divorced or separated parents? - ANSWER-For divorces granted after December 31, 2008, Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent, must be filed if parents are separating tax benefits.
What happens when more than one taxpayer claims the same qualifying child (QC)? - ANSWER-The IRS will apply
tiebreaker rules as follows:
If only one of the taxpayers is the child's parent, the child is treated as the qualifying child (QC) of the parent.
If the parents do not file a joint return together, but both parents claim the child, the IRS will treat the child as the QC of the parent with whom the child lived and stayed over for the greater number of nights during the year. If the child lived with each parent and stayed over the same number of nights during the year, the IRS will treat the child as the QC of the parent with the highest AGI.
If neither parent can claim the child as a QC, the child is treated as the QC of the person with the highest AGI for the year. This
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