Test – Tax Specialist Certification Test (2023)
Part 1
INSTRUCTIONS
You will have three hours to complete this test. The test is comprised of two parts. Part 1 of the test consists of 60 multiple-choice questions about topics covered at the Tax Specialist certification level. In Part 2 of the test, you will need to complete two case study shell returns using BlockWorks, then answer 15 questions relating to these returns.
Unless otherwise specified in the question, this test is written to, and based upon, 2022 tax law.
While the test is open resource, remember that it reflects your experience and existing tax knowledge. Therefore, it is not advisable that you enter test questions into any applications or websites.
Save Your Work!
Successful completion of this test requires a passing score of 80% within three attempts.
If you need to take a break or conduct research while taking the test, SAVE your work in Block Academy. If you fail to do so, you will lose your work and have to start over. Saving your work before completing the case study returns in BlockWorks is recommended.
If you save your work and return later, it will not be considered a separate attempt to take the test. However, if you must start over because you were timed out after failing to save your work, this will count as a separate attempt.
Question 1 of 75.
Benicio purchased stock shares many years ago. His records were destroyed, and he does not know exactly when the purchase was made or what he paid. He sold the shares for $10,000 in 2022. If he is unable to verify what the original basis was, what is his taxable gain?
$0
$2,500
$5,000
$10,000
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Question 2 of 75.
Grayson purchased his primary residence for $260,000. As part of the closing procedure, he paid $2,900 in loan origination fees, $750 to a lawyer to review the purchase contract and other closing papers, $250 for a property survey, and $1,200 for title insurance. He also gave the real estate agent a $100 gift certificate in appreciation for her hard work. What is Grayson’s basis in the residence?
$260,000
$261,200
$262,200
$263,000
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Investment Income
Question 3 of 75.
Jeremiah converted $2,000 into Bitcoin in November 2021. In October 2022, when the value of his holding had increased to $3,500, Jeremiah decided to purchase a watch using Bitcoin. He spent the entire holding on the watch. How will Jeremiah report this on his tax return?
No reporting is necessary until he sells the watch. At that time, he will report a gain or loss, depending on the sale price of the watch.
As a short-term capital gain of $2,000 on Form 8949. His basis in the watch is $3,500.
As $3,500 in ordinary income.
No reporting is necessary when purchases are made using virtual currency.
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Question 4 of 75.
Gizelle, a shareholder in ABC Corporation, received a distribution of cash from the earnings and profits of the company. This income is reported as:
Capital gain income.
Corporate bond interest.
Dividend income.
A return of capital.
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Question 5 of 75.
All of the following are considered a capital asset EXCEPT:
Investment-use property, such as land.
Jewelry.
Personal residence.
Real property used in a trade or business.
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Question 6 of 75.
Lesha purchased some units of ECoin in 2022. For tax purposes, the virtual currency is treated as:
Cash.
Credit.
Property.
Stock.
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Question 7 of 75.
Carmella owns 250 shares of stock, with a basis of $2,500. The stock split 2 for 1. Carmella now owns ______ shares at ______ per share.
500 shares at $5 per share.
500 shares at $10 per share.
250 shares at $5 per share.
250 shares at $10 per share.
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Question 8 of 75.
Melonie owns shares of KBC Corporation. In early 2023, she received the following Form 1099-DIV, reporting the dividends paid for 2022. She has elected to have these dividends reinvested. Which of the following statements correctly describes the tax treatment of her reinvested dividends and the effect on her basis? (Answer choices are below the image.)
The dividends are:
Not taxable on her 2022 return, but the new shares purchased increase her basis in the stock.
Not taxable until the stock is sold, and it does not affect her basis.
Taxable on her 2022 return and increase her basis in the original shares.
Taxable on her 2022 return, and her basis in the new shares purchased is the cash value of the dividends.
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Question 9 of 75.
Qualified dividends may be taxed at which of the following rates?
0%.
22%.
35%.
37%.
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Question 10 of 75.
Jaxon (51) purchased a $10,000, 13-week Treasury bill as a short-term investment. He paid $9,960 for the security, which was issued on June 17, 2022. When the bill matured on September 16, 2022, Jaxon received $10,000. How is the $40 in interest that he earned on this investment reported on his return?
As accrued interest on Schedule B, Interest and Ordinary Dividends.
As taxable interest on line 2b of his Form 1040.
As tax-exempt interest on line 2a of his Form 1040.
As tax-exempt interest that is taxable for the alternative minimum tax (AMT), reported only on Form 6251.
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Kiddie Tax
Question 11 of 75.
For the “kiddie tax” rule to apply, the child must:
Be required to file a tax return for 2022.
Not be a full-time student and not have attained age 23 in the tax year.
Have both parents living.
Not have claimed the American Opportunity Credit the previous year.
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Schedules K-1
Question 12 of 75.
Which of the following situations does NOT describe a material participant?
Mika participated in Activity A for 20 hours, Activity B for 80 hours, and Activity C for 75 hours. Another person contributed more hours in the same activity.
Bree participated in Activity X for 612 hours.
Justin was a full-time owner/employee at Activity Q from 2012 to 2022.
Brent participated in Activity Y for 210 hours, more than any other individual.
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Question 13 of 75.
Portfolio income includes:
Commissions for a stockbroker.
Guaranteed payments for service rendered by a partner to the partnership.
Royalties not derived in the ordinary course of a trade or business.
Quarterly bonus payments.
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Question 14 of 75.
Mackenzie works full-time as a director of a corporation. She is also a shareholder in an S corporation, a family restaurant. Mackenzie does not do any work for the restaurant, but does receive a Schedule K-1 for her share of the income. Where would that income be reported on her tax return?
Schedule B, Interest and Ordinary Dividends.
Schedule C, Profit or Loss from Business.
Schedule D, Capital Gains and Losses.
Schedule E, Supplemental Income and Loss.
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Clergy
Question 15 of 75.
Like all self-employed taxpayers, self-employed clergy can deduct health care coverage amounts paid for medical and dental insurance and long-term care for:
Themselves only, and not for their spouse or dependents.
Themselves, their spouse, their dependents, and any child who, at the end of the year, is under age 27.
Themselves, their spouse, their dependents, and any child who, at the end of the year, is under age 28.
Themselves and spouse only, and not for their dependents.
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Question 16 of 75.
The Reverend Roberson receives an annual salary of $51,000 as a full-time minister. This includes $5,000 designated as rental allowance to pay utilities. Reverend Roberson is not exempt from self-employment tax.
How much must he include when figuring net income for self-employment tax?
$5,000
$46,000
$51,000
$56,000
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Question 17 of 75.
Jessica is an ordained minister. Jessica’s salary from her employing church last year was $52,000. The church did not designate any of her salary as housing allowance. Jessica spent $12,400 to rent her home last year.
How much of Jessica’s salary must be included when figuring net income for self-employment tax?
$39,600
$52,000
$58,200
$64,400
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Military
Question 18 of 75.
Riva Huster is a servicemember, and a legal resident of New York. She met her husband, Mitch, in Florida during a visit in 2017, where he grew up. In 2022, Riva and Mitch moved from New York to Michigan in accordance with new PCS orders Riva received. Which of the following statements is TRUE regarding Mitch’s state of legal residency?
He may elect to be considered a legal resident of New York.
He may elect to be considered a legal resident of either Michigan or Florida.
He is required to maintain his legal residency of New York.
He is required to maintain his legal residency in Florida.
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Question 19 of 75.
Which of the following is an accurate statement regarding the filing of a joint tax return for military families?
The spouse of a member of the military may sign a joint return if the servicemember is serving in Germany and the spouse is still stateside.
One spouse can prepare and sign the return and then send it to the other spouse to sign and file.
The spouse of a member of the military may never sign for the servicemember on a joint return.
The spouse of a member of the military never needs a power of attorney (POA) in order to file an MFJ tax return.
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Question 20 of 75.
If a servicemember dies while on active duty, all of the following allowances are available to surviving family members EXCEPT:
Interment and a burial marker at any cemetery for the servicemember’s direct descendants.
Death gratuity payments for eligible survivors.
Travel of dependents to the servicemember’s burial site.
Burial services for the deceased servicemember.
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Question 21 of 75.
Ladislav Vadim was deployed in a combat zone for all of 2022. He is married and has two children. Ladislav’s nontaxable combat pay in 2022 is $25,000. His wife worked part-time while Ladislav was deployed and earned $9,000. What is the maximum amount of earned income the Vadims can report for Earned Income Tax Credit (EITC) purposes in 2022?
$9,000
$16,000
$25,000
$34,000
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Question 22 of 75.
Quincy was in a combat zone from March 10 through August 15. During the year, the military paid $4,800 toward his student loans ($400 per month). How much of that benefit is taxable income?
$400
$2,400
$3,600
$4,800
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Tax Planning
Question 23 of 75.
Health savings account (HSA) contributions made by an employer:
Exist on a use-it-or-lose-it basis.
Reduce the total amount an employee can contribute to their HSA.
May include amounts over and above the employee’s wages.
Are not subject to the same limits as the individual for whom they are made.
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Question 24 of 75.
Contributions from wages to an employer retirement plan are generally either:
Tax-reduced or tax-deferred.
Tax-deferred or tax-accelerated.
Tax-exempt or tax-deferred.
Tax-accelerated or tax-exempt.
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Question 25 of 75.
Which of the following statements is TRUE regarding excess health savings account (HSA) contributions? Excess HSA contributions:
Can be rolled into the following year’s contributions by completing Form 2121.
May be removed, without penalty, by the due date of the tax return, including extensions.
Are subject to a 20% penalty.
Can only be resolved by the taxpayer’s employer. There is no effect on income tax.
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Form 1040 Adjustments
Question 26 of 75.
June (56) and Yusef (53) are married filing jointly. June’s health insurance through work covers both of them, with a $3,500 annual deductible. June has a health savings account (HSA). They had no other insurance. What is the maximum contributions to their HSA account for 2022?
$4,600
$7,300
$8,300
$9,200
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Question 27 of 75.
Which of the following statements is a benefit of having a health savings account (HSA)?
An HSA is “portable,” and will remain in place even if you change employers or leave the workforce.
Contributions to an HSA made by an employer are included in income.
After-tax contributions to an HSA are deducted from gross income if the taxpayer itemizes deductions.
Contributions to an HSA must be used by the end of the year, plus a short grace period, or they are lost.
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Question 28 of 75.
Which of the following describes a qualified expense for the educator expense deduction?
Snacks for in-class birthday parties.
Buying art supplies for a homeschool class.
Acquiring hand soap, hand sanitizer, and disposable gloves for the classroom.
Teacher’s union dues.
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Question 29 of 75.
Diana (43) contributed $225 per month to a self-only health savings account (HSA) through her paycheck in 2022. Her employer contributed $1,000 for the year. She had no other health insurance. Diana’s excess contribution amount is __________ and the excise tax is __________.
$50; $3
$100; $6
$500; $30
$750; $45
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Question 30 of 75.
Select the taxpayer who is an eligible educator for the educator expense deduction.
Melba is a teacher’s aide at Indian Creek Middle School. She worked 761 hours in 2022 and spent $144 on supplies she used in the classroom. She was not reimbursed for her expenses.
Linseey is the principal at Cross Creek Elementary School. She worked 748 hours in 2022 and spent $447 on books and supplies for two classrooms with new teachers. She was not reimbursed for her expenses.
Val homeschooled her five children for 1,227 hours in 2022. She spent $663 on a curriculum for her children. She was not reimbursed for her expenses.
Brandy is a kindergarten teacher at Brougham Elementary School. She worked 1,240 hours in 2022. Brandy spent $461 on supplies for her classroom. She was not reimbursed for her expenses.
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Question 31 of 75.
Janine turned age 64 on May 19, 2022. During the year, she received distributions from her health savings account (HSA) totaling $1,096. She paid $494 for a year’s supply of nutritional supplements (not recommended by a doctor or for treatment with a diagnosis) in February. In April, she paid $134 to her podiatrist, and in August and October, she paid $468 to her chiropractor. The penalty on Janine’s nonqualified distributions is __________.
$27
$94
$99
$219
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Question 32 of 75.
Roderick and Ashely Garin, a married couple who will file jointly, are both full-time teachers. In 2022, Roderick had receipts totaling $374 in qualifying expenses for his classroom. Ashley had qualifying receipts totaling $214. What is the maximum amount of the educator expense deduction they are able to claim on their joint return?
$500
$514
$588
$600
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Question 33 of 75.
The form sent or provided online by the health savings account (HSA) trustee to report a taxpayer’s contributions to an HSA is:
Form 1099-MISC.
Form 8889.
Form W-2.
Form 5498-SA.
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Injured/Innocent Spouse
Question 34 of 75.
A request for relief by separation of liability can only be made:
Before the joint return is filed.
At the time the joint return is filed.
After the joint return is filed.
With an extension of time to file the joint return.
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Question 35 of 75.
Jacinda decides to file separately from her husband, Xavier. On his separately filed return, Xavier claims itemized deductions in the amount of $15,223. What are Jacinda’s options regarding itemizing on her federal return?
Jacinda can use the full standard deduction of $12,950 or itemized deductions if she has enough to exceed that number.
Because Xavier is itemizing, Jacinda may not use the standard deduction. She is required to itemize deductions on her return.
Jacinda is able to claim either the full standard deduction or one-half of Xavier’s itemized deductions, whichever is greater.
Because they are married, even though not filing jointly, Jacinda is required to take one-half of the amount of Xavier’s itemized deductions as her standard deduction.
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Question 36 of 75.
Which of the following taxpayers might benefit from filing Form 8379, Injured Spouse Allocation?
Stan and Rina file a joint return that results in a refund that includes refundable credits. Both had earned income. Stan was married before and bought a car for his ex-wife. He is behind on those payments.
Yared misrepresented the amount of tax withheld when he filed a joint return with his wife, Zoe.
Carmen and Jian file a joint return, which results in a refund that includes refundable credits. Carmen earned $42,000. Jian was a stay-at-home dad and had no earned income. Jian owes back child support.
Bran has earned income and files a joint return with his wife, Naomi. Naomi did not work in 2022. Their joint return results in a refund that is not dependent on any refundable credits. Bran owes $4,450 in delinquent student loan payments.
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Question 37 of 75.
When taxpayers file jointly and only one spouse is liable for a past due debt that is offset or will be offset, the other spouse can be considered a(n):
Innocent spouse.
Exempt spouse.
Complicit spouse.
Injured spouse.
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Dependent Related Credits
Question 38 of 75.
What two situations may cause a taxpayer’s Child Tax Credit to be limited or excluded?
1) Tax liability, and 2) modified adjusted gross income above the phaseout thresholds.
1) Earned income above the phaseout thresholds, and 2) taxpayer age.
1) Modified adjusted gross income above the phaseout thresholds, and 2) three or more children.
1) Tax liability, and 2) earned income above the phaseout thresholds.
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Question 39 of 75.
Cheron files single and claims her daughter, Xandra (24). Her adjusted gross income (AGI) is $184,000. What is the maximum amount Cheron may potentially be able to claim for the credit for other dependents?
$0
$500
$2,000
$3,000
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Question 40 of 75.
Miranda has two qualifying children for the Child and Dependent Care Credit, Kailee (5) and Alex (9). Miranda paid $13,000 for Kailee’s care, but Alex stayed at a friend’s house, so there were no expenses for him. Assuming all other tests are met, how much expense can Miranda use to calculate her credit?
$3,000
$6,000
$8,000
$16,000
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Question 41 of 75.
Amina was enrolled as a full-time student for the entire year and had no earned income. She is single and has two qualifying children for the Child and Dependent Care Credit. For credit calculation, what amount of earned income per month is she deemed to have?
$200
$400
$500
$1,000
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Question 42 of 75.
Which of the following describes the tie-breaker rules for taxpayers claiming benefits, including the Earned Income Tax Credit, when a dependent child’s parents do not file a joint return?
The parent with whom the child spent the fewer number of nights and the parent that had the higher AGI concurrently during the year takes precedence.
The parent with whom the child spent the greater number of nights during the year takes precedence.
The parent with whom the child spent the greater number of nights and the parent that had the lower AGI concurrently during the year takes precedence.
If the child spent the same amount of time with each parent, the parent with the lowest adjusted gross income takes precedence.
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Education Credits
Question 43 of 75.
Uma attends graduate school. For 2022, she received a Form 1098-T showing tuition paid of $5,250. What is the maximum amount of lifetime learning credit she can claim for 2022?
$2,000
$2,500
$4,000
$5,250
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Question 44 of 75.
Which of the following expenses is allowed for the American Opportunity Tax Credit?
Student health fees.
Room and board.
Non-credit courses.
Lab fees for science class.
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Question 45 of 75.
Which of the following reduces qualified education expenses for the education credits?
Expenses paid by credit card.
Student loans.
Employer tuition reimbursement.
529 Plan disbursements.
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Adoption Credit
Question 46 of 75.
Waylon and Jonah adopted a child with special needs in a domestic adoption. They had $10,400 in adoption expenses in 2022, and the adoption was finalized on December 18, 2022. Their MAGI is $101,550. What is the maximum adoption credit they can claim in 2022?
$10,400
$14,890
$15,400
$15,950
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Question 47 of 75.
Sampson and Jaqueline had $2,500 in domestic adoption expenses in 2020, $2,500 in adoption expenses in 2021, and $5,000 in adoption expenses in 2022. The adoption was finalized on April 25, 2022. Which statement is TRUE about their Adoption Credit if they wish to claim the expenses as early as possible? They can claim:
$10,000 in 2022.
$5,000 in 2021 and $5,000 in 2022.
$2,500 in 2021 and $7,500 in 2022.
$2,500 in 2022, $2,500 in 2023, and $5,000 in 2024.
TKA Topics
Question 48 of 75.
Which of the following taxpayers will incur a failure to file penalty?
Boston shows negligence or disregard of the rules or regulations, causing an underpayment of taxes on his return.
Chantel understates her tax by $1,520, which is greater than 10% of the correct tax.
Francesca fails to pay the tax she owes by the due date of the return.
Santiago fails to file his return by the due date or extended due date, has a $400 balance due, and presents no reasonable cause for filing late.
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Question 49 of 75.
Gemma is not married. Her son, Kamden, lived with her all year. To claim the filing status of head of household, Gemma must:
Live in the U.S. more than half the year.
Maintain a quality living for the dependent and the household.
Pay over half the cost of maintaining the household for herself and Kamden.
Pay a substantial portion of the cost of maintaining the household for herself and Kamden.
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Question 50 of 75.
Grant (17) is a dependent of his parents. He had wages of $3,325 and earned $240 in interest from his savings account. The maximum amount he may contribute to a traditional or Roth IRA for 2022 is __________.
$0
$3,325
$3,565
$6,000
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Question 51 of 75.
Hyacinthe (44) is unmarried, filing head of household, with the following income for the year:
- Wages, $32,275.
- Bank interest, $380.
- Municipal bond interest, $330.
- Lottery prize, $800.
- Gift from her father, $4,000.
Hyacinthe also contributed $2,500 to her traditional IRA, which she will deduct. Hyacinthe’s adjusted gross income is __________.
$30,955
$31,285
$34,485
$37,785
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Question 52 of 75.
All of the following individuals can file as head of household EXCEPT:
Mario is a married taxpayer who lives with and provides more than half the support for his eleven-year-old daughter. He also provided more than half the cost of maintaining their household. Mario’s wife moved to Colorado permanently in March and has had no further contact with the family.
Leah is an unmarried taxpayer who pays all the costs to maintain her home and provides more than half the support for her four-year-old son with whom she lives.
Derrick is a married taxpayer who lives with his mother-in-law, Renee, and his ten-year-old daughter in Renee’s home. Derrick provides more than half the cost of maintaining the household and provides more than half of his daughter’s support. Derrick’s wife is in the military. She was deployed all year and intends to move back in with Derrick and the family once her deployment is complete.
Corey is a married father who lives with and provides all of the support for his two children, ages 6 and 10. Corey and his estranged wife have not lived in the same residence for at least two years.
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Question 53 of 75.
Which of the following is a special tax treatment allowed to those who contribute to a 401(k) or 403(b) plan?
There are no limits on annual pre-tax contributions to 401(k) or 403(b) plans.
Qualified earnings are tax-exempt.
Pre-tax contributions reduce adjusted gross income.
Pre-tax contributions are deferred for social security and medicare taxes.
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Question 54 of 75.
Each taxpayer is covered by an employer retirement plan in 2022. Choosing from the listed scenarios, who may qualify for a full deduction of their traditional IRA contribution?
Barker, who files single with modified adjusted gross income of $68,025.
Crosby, who is filing a joint return as a qualifying surviving spouse with modified adjusted gross income of $94,000.
Darius, who files head of household with modified adjusted gross income of $68,500.
Kaitlyn, who files a joint return with Kenneth, with modified adjusted gross income of $109,200.
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Question 55 of 75.
Chance and Mariah entered into a common law marriage in 2016. They have not divorced. Chance does not know the whereabouts of Mariah and has not spoken with her in two years. He does not have any dependents. Chance’s correct filing status is:
Head of household.
Married filing separately.
Married filing jointly.
Single.
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Vehicle Expense
Question 56 of 75.
In which of the following situations would the standard mileage rate be allowed?
Jenny uses her vehicle 85% for business and maintains a mileage log with all required information.
Geri, a rural mail carrier, received qualified reimbursement for miles driven on her route.
Torrance used the actual expense method when his vehicle was placed in service three years ago.
Bubba has seven cars used at the same time (a fleet of vehicles) in his business.
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Question 57 of 75.
Which of the following employees may NOT use Form 2106?
Casper, an Armed Forces reservist who attends monthly training weekends.
Fatima, a singer who is employed by two local clubs.
Bella, who works for ACM, Inc. and traveled to their headquarters in Atlanta for corporate meetings.
Rocky, who needs a service animal due to a medical condition.
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Question 58 of 75.
Which of the following are allowed as actual vehicle expenses?
Property taxes based solely on vehicle weight.
Estimated maintenance expenses.
Garage rent.
Parking tickets.
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Form W-4
Question 59 of 75.
In which of the following situations should an employee provide a new Form W-4 to their employer?
Balencia does not anticipate any changes to her income next year, and her withholding closely matches her last year’s tax liability.
Cassius and Natalia are getting married and having a baby this year.
Felicity estimated her tax return will result in a $50 refund. She expects to continue with her employer.
Ophelia has worked at the same job for five years and has had no change in income.
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Question 60 of 75.
Guiseppe (Single) has one employer, and his only source of income is wages. Additionally, he has no dependents. In 2022, he claimed the standard deduction and no other deductions or credits. He received a large refund after filing his 2022 tax return. In 2023, Guiseppe expects no changes to his tax situation. He would like to pay less in taxes throughout the year, even if that means a lower refund when he files his 2023 tax return. Which of the following is most likely to help Guiseppe achieve this goal?
Complete only Steps 1 and 5 of the 2022 Form W-4, entering personal information and filing status and signing the form. Tax will be computed only on the standard deduction amount and tax rates for Guiseppe’s filing status.
Complete Step 2 and use the IRS Tax Withholding Estimator to determine the amount to enter.
Enter a negative amount of withholding in Step 4(c).
Select the “married, but withhold at higher single rate” option.
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Part 2 – Case Study 1
Part 2 Instructions
Using BlockWorks Legacy software in the PRACTICE ENVIRONMENT, you will need to complete two tax returns.
Case Study 1
Click the link below to access the PDF document with details needed to complete the first return. After you have made the required entries, return to the test and answer questions about this tax return.
Case Study 1 – Paul and Lori Cumberland
Save Your Work!
It is recommended that you SAVE the work you have done so far on this test before accessing BlockWorks. If you fail to do so and you are automatically timed out of the test, you will lose your work and have to start over.
After entering the required information, you should either save a copy of the completed return or keep the shell return open while you answer the questions.
Question 61 of 75.
If the Cumberlands took the lifetime learning credit, what would be the nonrefundable portion of that credit?
$1,000
$1,500
$2,000
$2,500
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Question 62 of 75.
What would be the most advantageous eduction credit for the Cumberlands if their modified AGI was $165,000?
American Opportunity Credit (AOTC) for $1,500 as a nonrefundable credit and $1,000 as a refundable credit.
American Opportunity Credit (AOTC) for $1,125 as a nonrefundable credit and $750 as a refundable credit.
American Opportunity Credit (AOTC) for $2,500 as a refundable credit.
Lifetime learning credit for $2,000 as a nonrefundable credit.
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Question 63 of 75.
If the Cumberlands took the lifetime learning credit, and Lori also had income of $71,000, what would be the nonrefundable portion of that credit?
$2,500
$2,000
$1,500
$0
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Question 64 of 75.
The amount of qualified education expenses used to calculate the American Opportunity Tax Credit (AOTC) is:
$2,500
$4,000
$15,000
$16,500
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Question 65 of 75.
The amount of qualified education expenses used to calculate the lifetime learning credit is:
$2,500
$4,000
$15,000
$16,500
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Question 66 of 75.
If the Cumberlands did not qualify for any education credits, how would this affect their tax return? Choose the best answer.
Their tax liability would increase, while their total payments would increase; thus, increasing their refund.
Their tax liability would increase, while their total payments would decrease; thus, decreasing their refund.
Their tax liability would decrease, while their total payments would decrease; thus, increasing their refund.
Their tax liability would decrease, while their total payments would increase; thus, decreasing their refund.
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Question 67 of 75.
What is the refundable portion of the AOTC that the Cumberlands qualify to claim?
$1,000
$1,500
$2,000
$2,500
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Part 2 – Case Study 2
Click the link below to access the PDF document with details needed to complete the second return. After you have made the required entries, return to the test and answer questions about this tax return.
Save Your Work!
It is recommended that you SAVE the work you have done so far on this test before accessing BlockWorks. If you fail to do so and you are automatically timed out of the test, you will lose your work and have to start over.
After entering the required information, you should either save a copy of the completed return or keep the shell return open while you answer the questions.
Question 68 of 75.
If Gina had two qualifying persons, what would then be the total amount of qualified expenses Gina can consider take for the Child and Dependent Care Credit?
$7,100
$6,000
$3,000
$1,200
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Question 69 of 75.
How much would Gina’s total Child and Dependent Care Credit be if the decimal amount was .30?
$600
$750
$900
$1,050
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Question 70 of 75.
If Gina’s AGI was $33,500 and assuming that the daycare expenses are not changed and all else remains equal, how much would her Child and Dependent Care Credit be?
$600
$750
$900
$1,050
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Question 71 of 75.
What is the total amount of Gina’s short-term capital gain or loss?
($1,050)
$1,050
$9,500
$10,550
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Question 72 of 75.
What is the total amount of qualified expenses Gina can consider take for the Child and Dependent Care Credit?
$600
$2,000
$3,000
$7,100
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Question 73 of 75.
How much is Gina’s total Child and Dependent Care Credit?
$600
$2,000
$3,000
$7,100
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Question 74 of 75.
The total amount of capital gain or loss that Gina must claim on her tax return is:
($1,290)
($1,050)
$1,050
$1,290
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Question 75 of 75.
What is the total amount of Gina’s long-term capital gain or loss?
($240)
$240
$785
$1,025
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