INTUIT TAX 1 EXAM QUESTIONS WITH
ANSWERS 2026
The are _________ filing statuses. - ANSWERSFive.
Single
Married Filing Jointly
Married Filing Separately
Head of Household
Qualifying Widow(er)
Which is a non-deductible business expense?
investments made in your business
costs of goods sold
family vacation
employees' pay - ANSWERSfamily vacation
The self-employed health insurance deduction is limited to the net self-employment
profit shown on the return reduced by the deduction for ____________ of the self-
employment tax. - ANSWERSone-half
Which is considered an adjustment to Gross Income?
Moving Expense
Employee Wages
Municipal bond interest
Workers' compensation payments received as compensation for personal injury or
sickness - ANSWERSMoving Expense
short-gains - ANSWERSgains on assets that you have held for one year or less.
______________ is used to offset income and payroll taxes for low-income workers and
to provide an incentive to work. - ANSWERSEarned Income Tax Credi
To satisfy the Substantial Presence Test, how many minimum days (in the current year)
must you be physically present in the United States? - ANSWERS31 days
Which is not a common tax credit? - ANSWERSAmerican Family Credit
Which is not considered a gambling winning? - ANSWERSgames of chance
, Ordinary dividends are taxed at the same rate as __________ income tax rate. -
ANSWERSordinary
Social Security benefits can be taxed to a maximum of ___________% based on the
beneficiary's annual income - ANSWERS85
Taxable interest is reported on - ANSWERSForm 1099-INT
Distributions from HSA, Archer MSA, or MS MSA are non-taxable when
_________________________________________. - ANSWERSspent for qualified
medical expenses of your dependent
_____________ and ____________ are what taxpayers must know to calculate their
tax amount. - ANSWERSTaxable income and filing status
What amount of upper cap is applicable on business gifts? - ANSWERS$25
___________________ consists of both earned and unearned income that is used to
calculate the tax. It is generally less than adjusted gross income due to the deductions. -
ANSWERSTaxable Income
What is on Line 2b of Form 1040? - ANSWERSTaxable Interest
Line 2b includes taxable interest. This line consists of the taxable interest earned from
savings accounts, personal loans, certificates of deposits, and annuity contracts. An
interest-paying institution will send these amounts on a Form 1099-INT to the taxpayer.
If interest income exceeds $1500, a Schedule B will need to be completed and
attached.
Which residency status is used when an individual is neither a U.S. citizen nor a
resident alien for tax purposes? - ANSWERSnonresident alien
for any period that you're neither a U.S. citizen nor a resident alien for tax purposes.
What type of deduction is a HSA contribution? - ANSWERSAbove-the-Line Deduction
For mortgages entered into after December 15, 2017, the amount of interest the
taxpayer can deduct is no more than ______________ of the debt used to buy, build, or
substantially improve their principal home and a second home. - ANSWERS$750,000
What dividend comes from mutual funds and real estate investment trusts (REITs)? -
ANSWERScapital gains
Which form is for beneficiaries who get income from trusts and estates? -
ANSWERSForm 1041
ANSWERS 2026
The are _________ filing statuses. - ANSWERSFive.
Single
Married Filing Jointly
Married Filing Separately
Head of Household
Qualifying Widow(er)
Which is a non-deductible business expense?
investments made in your business
costs of goods sold
family vacation
employees' pay - ANSWERSfamily vacation
The self-employed health insurance deduction is limited to the net self-employment
profit shown on the return reduced by the deduction for ____________ of the self-
employment tax. - ANSWERSone-half
Which is considered an adjustment to Gross Income?
Moving Expense
Employee Wages
Municipal bond interest
Workers' compensation payments received as compensation for personal injury or
sickness - ANSWERSMoving Expense
short-gains - ANSWERSgains on assets that you have held for one year or less.
______________ is used to offset income and payroll taxes for low-income workers and
to provide an incentive to work. - ANSWERSEarned Income Tax Credi
To satisfy the Substantial Presence Test, how many minimum days (in the current year)
must you be physically present in the United States? - ANSWERS31 days
Which is not a common tax credit? - ANSWERSAmerican Family Credit
Which is not considered a gambling winning? - ANSWERSgames of chance
, Ordinary dividends are taxed at the same rate as __________ income tax rate. -
ANSWERSordinary
Social Security benefits can be taxed to a maximum of ___________% based on the
beneficiary's annual income - ANSWERS85
Taxable interest is reported on - ANSWERSForm 1099-INT
Distributions from HSA, Archer MSA, or MS MSA are non-taxable when
_________________________________________. - ANSWERSspent for qualified
medical expenses of your dependent
_____________ and ____________ are what taxpayers must know to calculate their
tax amount. - ANSWERSTaxable income and filing status
What amount of upper cap is applicable on business gifts? - ANSWERS$25
___________________ consists of both earned and unearned income that is used to
calculate the tax. It is generally less than adjusted gross income due to the deductions. -
ANSWERSTaxable Income
What is on Line 2b of Form 1040? - ANSWERSTaxable Interest
Line 2b includes taxable interest. This line consists of the taxable interest earned from
savings accounts, personal loans, certificates of deposits, and annuity contracts. An
interest-paying institution will send these amounts on a Form 1099-INT to the taxpayer.
If interest income exceeds $1500, a Schedule B will need to be completed and
attached.
Which residency status is used when an individual is neither a U.S. citizen nor a
resident alien for tax purposes? - ANSWERSnonresident alien
for any period that you're neither a U.S. citizen nor a resident alien for tax purposes.
What type of deduction is a HSA contribution? - ANSWERSAbove-the-Line Deduction
For mortgages entered into after December 15, 2017, the amount of interest the
taxpayer can deduct is no more than ______________ of the debt used to buy, build, or
substantially improve their principal home and a second home. - ANSWERS$750,000
What dividend comes from mutual funds and real estate investment trusts (REITs)? -
ANSWERScapital gains
Which form is for beneficiaries who get income from trusts and estates? -
ANSWERSForm 1041
