Test – Tax Specialist Certification Test (2023)
Part 1
INSTRUCTIONSYou 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.
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.
Mark for follow up
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
Mark for follow up
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
Mark for follow up
