INTUIT ACADEMY TAX LEVEL 1 EXAM QUESTION BANK
LATEST UPDATE 2026 | QUESTIONS AND CORRECT
VERIFIED ANSWERS GRADED A+ | GUARANTEED PASS
1. For federal individual income tax, which form is generally used for a U.S. individual return?
Real tax-preparation scene used as a visual study cue.
Form 1040
· Form 1065
· Form 1120-S
· Form 941
2. What is the basic purpose of a federal income tax return?
2025 Form 1040 visual reference: identify where individual-return information belongs.
To report income, deductions, credits, tax, and payments
· To request a Social Security number
· To register a business name only
· To report only state sales tax
3. Adjusted gross income (AGI) is generally calculated by taking gross income and then subtracting:
Allowable adjustments to income
· The standard deduction
· The child tax credit
· Federal withholding only
INTUIT ACADEMY TAX LEVEL 1 • 2026 STUDY EDITION • 250 ORIGINAL EXAM-STYLE QUESTIONS Page 1
, 4. Taxable income is generally AGI reduced by:
The applicable deduction and certain other adjustments
· Only federal withholding
· Only estimated tax payments
· The taxpayer's refund
INTUIT ACADEMY TAX LEVEL 1 • 2026 STUDY EDITION • 250 ORIGINAL EXAM-STYLE QUESTIONS Page 2
, 5. A tax credit generally differs from a deduction because a credit:
Reduces tax liability directly
· Always reduces AGI
· Is always refundable
· Is reported only on Form W-2
6. Which statement best describes a progressive federal income tax?
Higher layers of taxable income can be taxed at higher rates
· All income is taxed at one rate
· Only the first dollar is taxed
· The tax rate falls whenever income rises
7. If a taxpayer moves into a higher tax bracket, what happens to income already taxed in lower brackets?
It generally remains taxed at the lower applicable rates
· All of it is retroactively taxed at the new rate
· It becomes tax-exempt
· It is taxed twice
8. Which item is generally a payment toward tax rather than a deduction?
Federal income tax withholding
· Traditional IRA deduction
· Student loan interest deduction
· Educator expense deduction
INTUIT ACADEMY TAX LEVEL 1 • 2026 STUDY EDITION • 250 ORIGINAL EXAM-STYLE QUESTIONS Page 3
, 9. Which is generally considered earned income?
Wages from employment
· Interest from a savings account
· A cash gift from a parent
· A tax refund from a prior year
10. Which agency administers the federal individual income tax system?
Internal Revenue Service
· Federal Reserve Board
· Department of Labor
· Securities and Exchange Commission
11. Which filing status is generally available to an unmarried taxpayer who paid more than half the cost of keeping
up a home for a qualifying person?
Head of household
· Married filing jointly
· Married filing separately
· Qualifying surviving spouse
12. A taxpayer whose spouse died during 2025 and who meets the applicable requirements may potentially use
which status for 2025?
Married filing jointly
· Single only
· Head of household only
· Married filing separately only
INTUIT ACADEMY TAX LEVEL 1 • 2026 STUDY EDITION • 250 ORIGINAL EXAM-STYLE QUESTIONS Page 4
LATEST UPDATE 2026 | QUESTIONS AND CORRECT
VERIFIED ANSWERS GRADED A+ | GUARANTEED PASS
1. For federal individual income tax, which form is generally used for a U.S. individual return?
Real tax-preparation scene used as a visual study cue.
Form 1040
· Form 1065
· Form 1120-S
· Form 941
2. What is the basic purpose of a federal income tax return?
2025 Form 1040 visual reference: identify where individual-return information belongs.
To report income, deductions, credits, tax, and payments
· To request a Social Security number
· To register a business name only
· To report only state sales tax
3. Adjusted gross income (AGI) is generally calculated by taking gross income and then subtracting:
Allowable adjustments to income
· The standard deduction
· The child tax credit
· Federal withholding only
INTUIT ACADEMY TAX LEVEL 1 • 2026 STUDY EDITION • 250 ORIGINAL EXAM-STYLE QUESTIONS Page 1
, 4. Taxable income is generally AGI reduced by:
The applicable deduction and certain other adjustments
· Only federal withholding
· Only estimated tax payments
· The taxpayer's refund
INTUIT ACADEMY TAX LEVEL 1 • 2026 STUDY EDITION • 250 ORIGINAL EXAM-STYLE QUESTIONS Page 2
, 5. A tax credit generally differs from a deduction because a credit:
Reduces tax liability directly
· Always reduces AGI
· Is always refundable
· Is reported only on Form W-2
6. Which statement best describes a progressive federal income tax?
Higher layers of taxable income can be taxed at higher rates
· All income is taxed at one rate
· Only the first dollar is taxed
· The tax rate falls whenever income rises
7. If a taxpayer moves into a higher tax bracket, what happens to income already taxed in lower brackets?
It generally remains taxed at the lower applicable rates
· All of it is retroactively taxed at the new rate
· It becomes tax-exempt
· It is taxed twice
8. Which item is generally a payment toward tax rather than a deduction?
Federal income tax withholding
· Traditional IRA deduction
· Student loan interest deduction
· Educator expense deduction
INTUIT ACADEMY TAX LEVEL 1 • 2026 STUDY EDITION • 250 ORIGINAL EXAM-STYLE QUESTIONS Page 3
, 9. Which is generally considered earned income?
Wages from employment
· Interest from a savings account
· A cash gift from a parent
· A tax refund from a prior year
10. Which agency administers the federal individual income tax system?
Internal Revenue Service
· Federal Reserve Board
· Department of Labor
· Securities and Exchange Commission
11. Which filing status is generally available to an unmarried taxpayer who paid more than half the cost of keeping
up a home for a qualifying person?
Head of household
· Married filing jointly
· Married filing separately
· Qualifying surviving spouse
12. A taxpayer whose spouse died during 2025 and who meets the applicable requirements may potentially use
which status for 2025?
Married filing jointly
· Single only
· Head of household only
· Married filing separately only
INTUIT ACADEMY TAX LEVEL 1 • 2026 STUDY EDITION • 250 ORIGINAL EXAM-STYLE QUESTIONS Page 4
