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Tax Exam 1 practice Question and answers rated A+ 2025/2026

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Tax Exam 1 practice Question and answers rated A+ 2025/2026 Personal and dependency exemptions are: - correct answer D. below line deductions on page two of the 1040. There are no exemptions anymore Taxpayer's husband died on July 4, 2014. Assuming that the Taxpayer has no dependents other than herself, her filing status in 2015 would be: - correct answer single. 3. Which of the following statuses would have the largest standard deduction? - correct answer Married filing jointly. Taxpayer who sells a car for $10,000: - correct answer B. Would have taxable income of $10,000 less the cost the taxpayer paid for the car plus improvements. Taxpayer is twenty-one years old and a full-time student. Although she earned $15,000 by working during the summer, her parents provided over half of her support. - correct answer Taxpayer's parents get a dependency exemption for the taxpayer----- no exemption, 24 is the magic number The U.S. federal income tax rates are: KIDDIE TAX - correct answer progressive (not the same for all taxpayers) so shifting income from one taxpayer to anothe

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Intuit Tax Level 1 Exam Question and
answers verified to pass 2025/2026
Married Filing Jointly: Social Security Taxes - correct answer ✔Below $32,000 - No tax

$32k -$44k - 50%

$44k + - 85%



All other filing status': Social Security Tax - correct answer ✔Below $25,000 - No tax

$25k-$34k - 50%

$34k+ - 85%



States that tax social security income - correct answer ✔Colorado

CT

Kansas

Minnesota

Montana

New Mexico

RI

Utah

Vermont

WV



Non-deductible Expenses - correct answer ✔Federal income

Social Security

Medicare

, Federal unemployment

Railroad retirement

Custom duties

Federal estate & gift taxes

Gasoline, car, property improvements, license fee taxes

Foreign personal or real property taxes

State & local income AND sales taxes

All real estate taxes that year if sold home



Nontaxable Income - correct answer ✔child support payments, welfare benefits, cash rebates, damage
awards for personal injury or sickness, gifts, alimony for divorce after 2018, healthcare benefits, money
reimbursed from qualifying adoptions, life insurance policy when someone dies, money from a qualified
scholarship except if spent on rent, personal expenses.



Is Gofund me taxable? - correct answer ✔False



Can you amend your tax return from married filing jointly to married filing separately? - correct answer
✔



Are guaranteed payments considered wages in Box 1 on 1040? - correct answer ✔The payments are
recorded on schedule k-1 and included as income on schedule E of their form 1040



Form 8812 - correct answer ✔Additional Child Tax Credit



Form 1040 - correct answer ✔The standard Internal Revenue Service (IRS) form that individuals use to
file their annual income tax returns.



Form 1116 - correct answer ✔Foreign Tax Credit (Individual, Estate or Trust)

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