INTUIT ACADEMY TAX LEVEL 1 EXAM COMPLETE QUESTIONS WITH 100% VERIFIED ANSWERS | VERIFIED EXAM QUESTIONS

INTUIT ACADEMY TAX LEVEL 1 EXAM COMPLETE QUESTIONS WITH 100% VERIFIED ANSWERS | VERIFIED EXAM QUESTIONS Below the line deductions include Standard deduction Eligible educators can deduct up to _______ of qualified expenses paid during the tax year. $250 Which of the following is an ineligible medical expense for HSA, Archer MSA, and MA MSA? Breast enhancement The net capital gain is taxed at _______ if the married filing jointly taxpayer income is less than $80,800. 0% To claim a child as a dependent, they must meet the qualifying child test or ________________. qualifying relative test Ordinary dividends are taxed at the same rate as __________ income tax rate. ordinary Distributions from HSA, Archer MSA, or MS MSA are non-taxable when _________________________________________. spent for qualified medical expenses of your dependent Which residency status is used when an individual is neither a U.S. citizen nor a resident alien for tax purposes? Non-resident alien _____________ and ____________ are what taxpayers must know to calculate their tax amount. Taxable income and filing status 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. 750,000 __________ reduce the amount of tax due. Tax credits Which form is for beneficiaries who get income from trusts and estates? Form 1041 ___________________ 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. Taxable income To satisfy the Substantial Presence Test, how many minimum days (in the current year) must you be physically present in the United States? 31 Complete the equation. ___________ = Selling Price - Purchase Price Capital Loss or Capital Gain _________________ helps sole proprietorships calculate the profit or loss from a business while also providing the IRS with your total business income and deductions. Schedule C What type of deduction is a HSA contribution? Above-the-Line Deduction Some of the common expenses on which Above-the-Line deductions are available include: Educator expenses Early withdrawal penalties of saving accounts Moving expenses Business expenses HSA contributions Self-employment tax Alimony payments Tuition fees Contributions to a traditional IRA Student loan interest deduction Health insurance premiums Retirement account contribution As it applies to compensation income, the general rule for sourcing wages and personal services income is controlled by ________________________________. where the service is performed The general rule for sourcing wages and personal services income is controlled by where the service is performed. The residence of the recipient of the service, the place of contracting, and the time and place of payment are irrelevant. Which is considered non-taxable income? military personnel allowances Payments received as a member of military service are generally taxed as wages except for retirement pay, which is taxed as a pension. Allowances generally aren't taxed. ______________ is used to offset income and payroll taxes for low-income workers and to provide an incentive to work. Earned Income Tax Credit Earned Income Tax Credit is used to offset income and payroll taxes for low-income workers and to provide an incentive to work. Which is a non-deductible business expense? family vacation Expenses done for personal and recreational purposes are personal expenses and are non-deductible. What amount of upper cap is applicable on business gifts? $25 The upper cap of $25 is applicable on business gifts. If yearly dividend amounts exceed __________, a Schedule B must be completed and attached to Form 1040. $1500 If yearly dividend amounts exceed $1500, a Schedule B must be completed and attached. The are _________ filing statuses. five There are five filing statuses. Single Married Filing Jointly Married Filing Separately Head of Household Qualifying Widow(er) Taxpayers can claim a Child Tax Credit of up to __________ for each child under age 17 in 2021(2022). $3,600.00 Taxpayers can claim a CTC of up to $3,600 for each child under age 17 in 2021(2022). Since 2021, qualifying families may now receive up to $3,600 per child under the age of 5 and $3,000 for those ages 6 to 17. That's up from $2,000 per child, provided families fall under certain income thresholds (less than $150,000 for couples and $112,500 for single parents). ______________ includes supplemental income and loss. Schedule E includes supplemental income and loss Supplemental Income and Loss consists of: Income or Loss from Rental Real Estate and Royalties Income or Loss from Partnerships and S Corporations Income or Loss from Estates and Trusts, and Income or Loss from Real Estate Mortgage Investment Conduits (REMICs) Payments and refundable credits are listed between what lines on Form 1040? Lines 25 through 30 are payments and refundable credits. A partnership files a tax return on ______________. A partnership files a tax return on Form 1065. Which of the following is not a requirement for S-Corporation election? Being an international entity is not a requirement for S-Corporation election. ________________ generally have to make estimated tax payments if they expect to owe tax of $500 or more when their return is filed. Corporations generally have to make estimated tax payments if they expect to owe tax of $500 or more when their return is filed. Which is not a nonrefundable tax credit? (Select all that apply) Child and Dependent Care Credit Nonrefundable tax credits include: Child Tax Credit/Credit for Other Dependents Adoption Credit Social Security benefits can be taxed to a maximum of ___________% based on the beneficiary's annual income. Up to 85% of your Social Security income is taxed if you receive income from other sources and your combined income is more than a certain base amount. Which factor does not limit QBI components of QBI deduction? reported on Schedule C