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1) How much was Trina's recovery rebate credit on the 2021 recovery rebate credit worksheet line 30? *)$0 *)$1400 *)$2800 *)$4,200

2) What is the amount Trina provided towards Evans total support? *) $3,900 *) $12,207 *) $13,200 *) $14,000

3) What is the amount of each person's share of the household expenses as computed on the Taxpayer Support Worksheet? *)$4,133 *) $6,997 *)$7097 *) $7497

4) How much tax did Trina save by using the 2021 Qualified Dividends and Capital Gain Tax Worksheet -Line 16? *) $0 *) $606 *) $1928 *) $2534

5)To answer this question, open your return in What if mode in Blockworks. Without using the adjustment code for multiple transactions, how many stocks transactions are entered on the Schedule D/8949 screen? *)2 *)3 *)4 *)6

6) To answer this question open your return in What if mode in Blockworks. To see if Evan could qualify to claim Missy as a qualifying child dependent, what section would be used on Missy's dependent screen to see who has the superior claim? None Unlock Tiebreaker Fields Custodial and Noncustodial Parents -Exemptiona Release Fields Special Situations

7) To answer this question open your return in What If mode in Blockworks. On Missy's Dependent Screen how many drop-down questions were answered under the "Custodial and Noncustodial Parents-Exemption Release? 1 3 4 6

8) To answer this question open your return in what if mode in Blockworks. Other than using the Forms Search field where can you find the Household Support Worksheet Personal Information Screen Dependents screen Filling Status screen Due Diligence screen

9)To answer this question open your return in what if mode in Blockworks. On the Affordable Care Act Screen, which box is checked for Evan Harkens source of insurance coverage? Employer Government Marketplace Other 10) To answer this question, open your return in What If mode in Blockworks. If a mistake in selecting the correct filling status (single or head of household) had been made, how much would the total tax changed? Increase in total tax between $500 and $1000 Decrease in total tax between $500 and $1000 Increase in total tax between $1001 and $1500 Decrease in total tax between $1001 and $1500

\begin{tabular}{|l|l|} \hline Topics & Current H\&R Block Course \\ \hline Basic Tax Knowledge & \begin{tabular}{l} Dependency and Filing \\ Requirements \end{tabular} \\ \hline Credits and Adjustments & \begin{tabular}{l} Finding Money: Credits for Every \\ Taxpayer \\ Intermediate Adjustments (including \\ HSAs) \end{tabular} \\ \hline Investment Income (including Interest and & Intermediate Credits \\ \hline Dividends) & \begin{tabular}{l} Intermediate Investment Income \\ Crypto and Other Virtual Currency \end{tabular} \\ \hline Clergy & Intermediate Clergy \\ \hline Military & Intermediate Military Taxpayer \\ \hline Tax Planning & Intermediate Tax Planning: Employee \\ \hline Benefits \\ \hline Form W-4 \\ \hline Intermediate Vehicle Expense \end{tabular} Using the information below, complete a tax return for Trina Harken. Read the scenario carefully before beginning. Taxpayer Information Trina is single. Her SSN is valid for work in the U.S. and was received before the original filing due date of her return (including extensions). She is a U.S. citizen. No one may claim her as a dependent. Trina does not wish to designate $3 to the Presidential Election Campaign Fund. She is not blind or disabled. She is not a student. The taxpayer has not received a notice from the IRS or any state or local taxing authority within the last year. Trina provided her driver's license for identification. The ID number is 459282L. It was issued by YS on March 24, 2021, and expires March 31, 2025. Trina did not suffer any casualty losses during the current tax year. She did not receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency. Trina does not have a financial interest in or signature authority over a foreign account, and she did not receive a distribution from, nor was she the grantor of or transferor to, a foreign trust. The IRS has not issued an Identity Protection ID Number for her return. Unemployment, Charitable Unemployment, Charitable Contributions, or Distributions Trina did not receive any unemployment income. She did not make any charitable contributions other than the United Way contributions through her payroll. She did not take advantage of any COVID-19-related relief for retirement plans and IRAs in a prior year. American Rescue Plan Act (2021) Information Trina received the IRS Economic Impact Payment (EIP3) in the amount of $1,400. ualified Sick and/or Family Leave credit Trina did not receive qualified sick and/or family leave credits. She does not qualify for the Health Coverage Tax Credit. Household Information The taxpayer rents her home, where she lives with her father and daughter. Trina and her father, Evan, paid all of the household expenses. They remember the last Household Information The taxpayer rents her home, where she lives with her father and daughter. Trina and her father, Evan, paid all of the household expenses. They remember the last time their taxes were prepared they had to provide some details of their yearly spending. They provided the following list of expenses they each paid: She was asked and she confirmed she could provide documentation to substantiate eligibility for all of the refundable credits and/or head of household filing status. She did not have any credits disallowed or reduced in any prior years. The following individuals may or may not qualify the taxpayer for certain credits or deductions. Gross income: Support: Name: SSN: DOB: Relationship: Time in household: Gross income: Support: Received $12,300 in social security benefits To be determined Sofia Perez None February 11, 2013 Soon-to-be adopted daughter 0 months; lived in Mexico $0 Does not provide over half of her own support Missy and Evan lived with Trina all year. Missy does not have any income, and Evan has only social security income. Evan has health insurance through medicare. Missy and Evan are not disabled and are not married. Missy and Evan are both U.S. citizens with SSNS valid for work in the U.S., which were received before the original filing due date of the return (including extensions). Missy's father pays $250 a month in child support. Missy's father claims her in even years per their agreement; a Form 8332 releasing the claim every other year has been signed and filed. During 2021, Missy stayed with her dad a total of 170 nights and stayed with Trina the other 195 nights. Evan, Missy's grandfather, cares for Missy after school while Trina is working. Evan does not charge for this. Trina's father, Evan, received $12,300 in social security benefits in 2021. He had no other income, making his social security benefits nontaxable income. Evan requires a special diet and buys all of his own food, plus the majority of the family's groceries. As shown earlier, he saved $500 or his income and spent $2,510 on his own support $1,182 tor Medicare Part B and $728 on personal items for himself). He also paid $9,290 towards the general household support. No one else provides towards his support. Trina used her savings to pay $14,000 towards Evan's outstanding medical bills in January of 2021, in addition to the amounts she paid toward the general household support. Sofia is Trina's soon-to-be adopted daughter. She lives with and is currently supported by her elderly grandmother in Mexico. She was continuing her education in Mexico while Trina works on formalizing the adoption and is tending to the details of her move to the United States. The adoption is being handled through a private adoption agency. Trina currently sends money to cover health insurance for Sofia. During the year, Trina spent a total of $3,500 in adoption and legal fees to complete the adoption process. She paid her initial legal fees of $600 in 2020 . Trina is hoping that the adoption will be finalized next year. Advance Child Tax Credit Payments Since Missy's father claims her in even years, Trina did not receive any Advance Child Tax Credit payments. Trina verified this by logging into her IRS.gov account. 2019 Earned Income The taxpayer had earned income of $39,895 in 2019. Other Income Trina bought and sold some investments throughout the year. Trina bought and sold some investments throughout the year. On April 7, 2021, she sold 100 shares of XYZ stock that she had inherited from her aunt, Angela Smoid, who passed away on June 1, 2020. The administrator of Angela's estate, had given Trina a document stating Angela had purchased the stock on December 15, 2013 , for $8.50 a share. The value of the stock on the date of Angela's death was $29.81 per share. There have been no stock splits or stock dividends, so the number of shares Trina owns has not changed. Trina received a Form 1099-B from the brokerage firm showing the proceeds from her sale. Trina also sold 126 shares of HIJ stock held in a different account. She sold the shares at $42 a share on July 16,2021 . The brokerage firm's default methodology of first-in, firstout (FIFO) was applied in this transaction. In addition, on November 18,2021, Trina decided to sell 200 shares of LMN stock as well. She had purchased 150 shares on August 11,2020, and another 150 shares on February 17, 2021. She elected to sell all of the 150 shares from her 2020 purchase and 50 shares of her 2021 purchase after consulting with a tax preparer who told Trina that if she identified her shares to her broker before the sale, she might be able to minimize the taxable gain. Trina has detailed records of all her transactions relating to this stock. Information Documents Trina brings in Form W-2, Form 1099-B, a consolidated Form 1099-B, and Notice 1444-C. CORRECTED (if checked) P \begin{tabular}{|c|c|} \hline FIRST FINANCIAL & \begin{tabular}{l} Detail for Dividends and Distributions \\ Account 12345 \end{tabular} \\ \hline \end{tabular} Ilquidation distributions. Abo shown are the fair anarket values of ony tomable stock dividends or noncash llquidation distributians. endinotes are pravided for further explanation This section of your tax informotion statement contains the payment level detal of your tawable divideads, capital gains datnbutions exempt intereat dividends nondividend dotributions and Federal stote and foreign tax whiheld and investmest expenses are presented as negotive amounts but do not net egainut the reportable income totak. All amounts are grouped by secunith, with the transoctions listed in chronological order. Subtotals for each security are provided. for situations in which the tax character of a distnibution (or part thereaf) is different then ot the time it wes paid, endinotes are provided for further explanation. Note that o payment charocterited ar a "Quol fied dividend" is only issuen-guolf fied. 202110998 Proceeds from Broker and Barter Exchange Transactions Account 12345 Statement date 2/15/2022 SHORT TERM TRANSACTIONS FOR COVERED TAX LOTS (Ordinary gains or losses are identified in the Additional information column) (Lines 2 \& 5 ) Report on Form 8949, Part I with Box A checked. Basis is provided to the IRS. (Line 3) "Gain or loss (. . Yand "Additionat information" are NOT resorted to the IRS. 1a- Description of propertv / cusip / Simhnl LONG TERM TRANSACTIONS FOR COVERED TAX LOTS (Ordinary gains or losses are identified in the Additional information column) (Lines 285 ) Report on Form 5949, Part I with Box D checked. Rasis is provided to the IRS. (tine 3) "Gain or loss (- Fand "Additional information" are NOT resorted to the IRS. If this income is taxable and the IRS determines that it has not been reported. Remember, taxpavers are uhimately responsible for the accuracy of their tax return(s). WASHINGTON TRINA HARKEN 496 GENERAL WAY NOTICE DATE: APRIL 15, 2021 NOTICE NUMBER: 1444-C (en-sp) YOUR CITY, YS XXXXX My fellow American, On March I1, 2021, I signed into law the American Reseue Plan, a law that will help vaccinate America and deliver immediate economic relief to hundreds of millions of Americans, including you. A key part of the American Rescue Plan is direct payments of $1,400 per person for most American households. With the $600 direct payment from December, this brings the total relief payment up to $2,000. This fulfills a promise I made to you, and will help get millions of Americans through this crisis. 1 am pleased to inform you that because of the American Rescue Plan, a direct payment of $1,400.00 was issued to you by direct deposit. If you haven't received your payment within 7 days of receiving this letter. please check the status of the payment by visiting the IRS website or calling the IRS phone number listed at the bottom of this letter. There may be other parts of the American Rescue Plan that will help you as well. For example, there is aid for small businesses, an expanded child tax credit for families, and resources to reopen our schools safely. The American Rescue Plan also extends unemployment insurance and helps reduce your health care premiums if you have a plan through the Affordable Care Act. To leam more about this law and how it will work for you, please visit wh.gov/arp. When I took office, I promised the American people that help was on the way. The American Rescue plan makes good on that promise. This bill was passed to provide emergency relief to millions of Americans. I want to be sure you receive all the benefits that you are entitled to. This has been a long, hard time for our nation. But I believe brighter days are ahead. We are on the path to vaccinating the nation. Our economy is on the mend. And our children will be back in school. I truly believe there is nothing we can't do as a nation, as long as we do it together. \begin{tabular}{|l|l|} \hline Topics & Current H\&R Block Course \\ \hline Basic Tax Knowledge & \begin{tabular}{l} Dependency and Filing \\ Requirements \end{tabular} \\ \hline Credits and Adjustments & \begin{tabular}{l} Finding Money: Credits for Every \\ Taxpayer \\ Intermediate Adjustments (including \\ HSAs) \end{tabular} \\ \hline Investment Income (including Interest and & Intermediate Credits \\ \hline Dividends) & \begin{tabular}{l} Intermediate Investment Income \\ Crypto and Other Virtual Currency \end{tabular} \\ \hline Clergy & Intermediate Clergy \\ \hline Military & Intermediate Military Taxpayer \\ \hline Tax Planning & Intermediate Tax Planning: Employee \\ \hline Benefits \\ \hline Form W-4 \\ \hline Intermediate Vehicle Expense \end{tabular} Using the information below, complete a tax return for Trina Harken. Read the scenario carefully before beginning. Taxpayer Information Trina is single. Her SSN is valid for work in the U.S. and was received before the original filing due date of her return (including extensions). She is a U.S. citizen. No one may claim her as a dependent. Trina does not wish to designate $3 to the Presidential Election Campaign Fund. She is not blind or disabled. She is not a student. The taxpayer has not received a notice from the IRS or any state or local taxing authority within the last year. Trina provided her driver's license for identification. The ID number is 459282L. It was issued by YS on March 24, 2021, and expires March 31, 2025. Trina did not suffer any casualty losses during the current tax year. She did not receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency. Trina does not have a financial interest in or signature authority over a foreign account, and she did not receive a distribution from, nor was she the grantor of or transferor to, a foreign trust. The IRS has not issued an Identity Protection ID Number for her return. Unemployment, Charitable Unemployment, Charitable Contributions, or Distributions Trina did not receive any unemployment income. She did not make any charitable contributions other than the United Way contributions through her payroll. She did not take advantage of any COVID-19-related relief for retirement plans and IRAs in a prior year. American Rescue Plan Act (2021) Information Trina received the IRS Economic Impact Payment (EIP3) in the amount of $1,400. ualified Sick and/or Family Leave credit Trina did not receive qualified sick and/or family leave credits. She does not qualify for the Health Coverage Tax Credit. Household Information The taxpayer rents her home, where she lives with her father and daughter. Trina and her father, Evan, paid all of the household expenses. They remember the last Household Information The taxpayer rents her home, where she lives with her father and daughter. Trina and her father, Evan, paid all of the household expenses. They remember the last time their taxes were prepared they had to provide some details of their yearly spending. They provided the following list of expenses they each paid: She was asked and she confirmed she could provide documentation to substantiate eligibility for all of the refundable credits and/or head of household filing status. She did not have any credits disallowed or reduced in any prior years. The following individuals may or may not qualify the taxpayer for certain credits or deductions. Gross income: Support: Name: SSN: DOB: Relationship: Time in household: Gross income: Support: Received $12,300 in social security benefits To be determined Sofia Perez None February 11, 2013 Soon-to-be adopted daughter 0 months; lived in Mexico $0 Does not provide over half of her own support Missy and Evan lived with Trina all year. Missy does not have any income, and Evan has only social security income. Evan has health insurance through medicare. Missy and Evan are not disabled and are not married. Missy and Evan are both U.S. citizens with SSNS valid for work in the U.S., which were received before the original filing due date of the return (including extensions). Missy's father pays $250 a month in child support. Missy's father claims her in even years per their agreement; a Form 8332 releasing the claim every other year has been signed and filed. During 2021, Missy stayed with her dad a total of 170 nights and stayed with Trina the other 195 nights. Evan, Missy's grandfather, cares for Missy after school while Trina is working. Evan does not charge for this. Trina's father, Evan, received $12,300 in social security benefits in 2021. He had no other income, making his social security benefits nontaxable income. Evan requires a special diet and buys all of his own food, plus the majority of the family's groceries. As shown earlier, he saved $500 or his income and spent $2,510 on his own support $1,182 tor Medicare Part B and $728 on personal items for himself). He also paid $9,290 towards the general household support. No one else provides towards his support. Trina used her savings to pay $14,000 towards Evan's outstanding medical bills in January of 2021, in addition to the amounts she paid toward the general household support. Sofia is Trina's soon-to-be adopted daughter. She lives with and is currently supported by her elderly grandmother in Mexico. She was continuing her education in Mexico while Trina works on formalizing the adoption and is tending to the details of her move to the United States. The adoption is being handled through a private adoption agency. Trina currently sends money to cover health insurance for Sofia. During the year, Trina spent a total of $3,500 in adoption and legal fees to complete the adoption process. She paid her initial legal fees of $600 in 2020 . Trina is hoping that the adoption will be finalized next year. Advance Child Tax Credit Payments Since Missy's father claims her in even years, Trina did not receive any Advance Child Tax Credit payments. Trina verified this by logging into her IRS.gov account. 2019 Earned Income The taxpayer had earned income of $39,895 in 2019. Other Income Trina bought and sold some investments throughout the year. Trina bought and sold some investments throughout the year. On April 7, 2021, she sold 100 shares of XYZ stock that she had inherited from her aunt, Angela Smoid, who passed away on June 1, 2020. The administrator of Angela's estate, had given Trina a document stating Angela had purchased the stock on December 15, 2013 , for $8.50 a share. The value of the stock on the date of Angela's death was $29.81 per share. There have been no stock splits or stock dividends, so the number of shares Trina owns has not changed. Trina received a Form 1099-B from the brokerage firm showing the proceeds from her sale. Trina also sold 126 shares of HIJ stock held in a different account. She sold the shares at $42 a share on July 16,2021 . The brokerage firm's default methodology of first-in, firstout (FIFO) was applied in this transaction. In addition, on November 18,2021, Trina decided to sell 200 shares of LMN stock as well. She had purchased 150 shares on August 11,2020, and another 150 shares on February 17, 2021. She elected to sell all of the 150 shares from her 2020 purchase and 50 shares of her 2021 purchase after consulting with a tax preparer who told Trina that if she identified her shares to her broker before the sale, she might be able to minimize the taxable gain. Trina has detailed records of all her transactions relating to this stock. Information Documents Trina brings in Form W-2, Form 1099-B, a consolidated Form 1099-B, and Notice 1444-C. CORRECTED (if checked) P \begin{tabular}{|c|c|} \hline FIRST FINANCIAL & \begin{tabular}{l} Detail for Dividends and Distributions \\ Account 12345 \end{tabular} \\ \hline \end{tabular} Ilquidation distributions. Abo shown are the fair anarket values of ony tomable stock dividends or noncash llquidation distributians. endinotes are pravided for further explanation This section of your tax informotion statement contains the payment level detal of your tawable divideads, capital gains datnbutions exempt intereat dividends nondividend dotributions and Federal stote and foreign tax whiheld and investmest expenses are presented as negotive amounts but do not net egainut the reportable income totak. All amounts are grouped by secunith, with the transoctions listed in chronological order. Subtotals for each security are provided. for situations in which the tax character of a distnibution (or part thereaf) is different then ot the time it wes paid, endinotes are provided for further explanation. Note that o payment charocterited ar a "Quol fied dividend" is only issuen-guolf fied. 202110998 Proceeds from Broker and Barter Exchange Transactions Account 12345 Statement date 2/15/2022 SHORT TERM TRANSACTIONS FOR COVERED TAX LOTS (Ordinary gains or losses are identified in the Additional information column) (Lines 2 \& 5 ) Report on Form 8949, Part I with Box A checked. Basis is provided to the IRS. (Line 3) "Gain or loss (. . Yand "Additionat information" are NOT resorted to the IRS. 1a- Description of propertv / cusip / Simhnl LONG TERM TRANSACTIONS FOR COVERED TAX LOTS (Ordinary gains or losses are identified in the Additional information column) (Lines 285 ) Report on Form 5949, Part I with Box D checked. Rasis is provided to the IRS. (tine 3) "Gain or loss (- Fand "Additional information" are NOT resorted to the IRS. If this income is taxable and the IRS determines that it has not been reported. Remember, taxpavers are uhimately responsible for the accuracy of their tax return(s). WASHINGTON TRINA HARKEN 496 GENERAL WAY NOTICE DATE: APRIL 15, 2021 NOTICE NUMBER: 1444-C (en-sp) YOUR CITY, YS XXXXX My fellow American, On March I1, 2021, I signed into law the American Reseue Plan, a law that will help vaccinate America and deliver immediate economic relief to hundreds of millions of Americans, including you. A key part of the American Rescue Plan is direct payments of $1,400 per person for most American households. With the $600 direct payment from December, this brings the total relief payment up to $2,000. This fulfills a promise I made to you, and will help get millions of Americans through this crisis. 1 am pleased to inform you that because of the American Rescue Plan, a direct payment of $1,400.00 was issued to you by direct deposit. If you haven't received your payment within 7 days of receiving this letter. please check the status of the payment by visiting the IRS website or calling the IRS phone number listed at the bottom of this letter. There may be other parts of the American Rescue Plan that will help you as well. For example, there is aid for small businesses, an expanded child tax credit for families, and resources to reopen our schools safely. The American Rescue Plan also extends unemployment insurance and helps reduce your health care premiums if you have a plan through the Affordable Care Act. To leam more about this law and how it will work for you, please visit wh.gov/arp. When I took office, I promised the American people that help was on the way. The American Rescue plan makes good on that promise. This bill was passed to provide emergency relief to millions of Americans. I want to be sure you receive all the benefits that you are entitled to. This has been a long, hard time for our nation. But I believe brighter days are ahead. We are on the path to vaccinating the nation. Our economy is on the mend. And our children will be back in school. I truly believe there is nothing we can't do as a nation, as long as we do it together

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