INTUIT ACADEMY TAX LEVEL 1 EXAM
QUESTIONS AND CORRECT VERIFIED
ANSWERS GRADED A+ | GUARANTEED
PASS
Question 1
When should taxpayer use the "Qualified widow or widower" tax filing status?
Correct Answer
The surviving spouse can file as "Married filing jointly" if their spouse died during
the tax payer, and they can use "Qualified widow or widower" tax filing status for
the next two years if they have a dependent child.
Question 2
Who might use the "Married filing separately" status?
Correct Answer
Married high earners, people who think their spouses may be hiding income, or
people whose spouses have tax liability
Question 3
Who might use "Qualified widow or widower" filing status?
Correct Answer
People who lost a spouse and are supporting a child at home
Question 4
How does using "Head of household" tax filing status benefit the taxpayer?
Correct Answer
This filing status allows the taxpayer to access significant tax deductions and more
favorable tax brackets than if they filed as single.
Page 1 of 192
,Question 5
Who is considered "unmarried" for head of household filing status?
Correct Answer
- People who are not legally married
-People whose spouses did not live in the house for the last six months of the tax
year (temporary absences do not count), they paid half the cost of keeping up the
house, and the house was their child's primary home.
-People who support a qualifying person in the household
Question 1: What is the primary purpose of the Internal Revenue Service (IRS) in the
United States tax system?
A. To write federal tax legislation and establish new tax laws
B. To administer and enforce the internal revenue laws enacted by Congress
C. To provide direct legal defense for taxpayers facing criminal charges
D. To set municipal property tax rates across local jurisdictions
CORRECT ANSWER: B. To administer and enforce the internal revenue laws enacted
by Congress
Rationale: The IRS is an agency of the Department of the Treasury responsible for
administering and enforcing federal tax laws enacted by Congress, while tax
legislation itself is created by the legislative branch.
Question 2: Which of the following filing statuses requires a taxpayer to be unmarried
on the last day of the tax year and pay more than half the cost of keeping up a home
for a qualifying person?
A. Married Filing Jointly
B. Married Filing Separately
C. Head of Household
D. Single
CORRECT ANSWER: C. Head of Household
Rationale: To qualify for Head of Household status, a taxpayer must generally be
unmarried, be a U.S. citizen or resident alien for part of the year, pay more than half
the cost of keeping up a home, and have a qualifying person live with them for
more than half the year.
Page 2 of 192
,Question 3: Under the U.S. federal tax system, what is the fundamental tax status
requirement for U.S. citizens living and working abroad?
A. They are completely exempt from U.S. income tax obligations
B. They are only taxed on income earned within the United States borders
C. They are subject to U.S. income tax on their worldwide income
D. They automatically file under a separate nonresident tax schedule
CORRECT ANSWER: C. They are subject to U.S. income tax on their worldwide income
Rationale: U.S. citizens and resident aliens are taxed on their worldwide income
regardless of where they reside, though provisions like the Foreign Earned Income
Exclusion help mitigate double taxation.
Question 4: Which test under the dependency rules requires that a qualifying child
must not have provided more than half of their own financial support during the tax
year?
A. Relationship test
B. Age test
C. Residency test
D. Support test
CORRECT ANSWER: D. Support test
Rationale: The support test dictates that to be a qualifying child, the individual must
not have provided more than 50% of their own financial support for the calendar
year in question.
Question 5: What is the maximum age limit for a child to qualify as a "Qualifying
Child" under the age test if they are NOT a full-time student?
A. Under age 19 at the end of the tax year
B. Under age 21 at the end of the tax year
C. Under age 24 at the end of the tax year
D. Any age as long as they are a dependent
CORRECT ANSWER: A. Under age 19 at the end of the tax year
Page 3 of 192
, Rationale: A qualifying child must be under age 19 at the end of the year and
younger than the taxpayer (or spouse if filing jointly) to meet the age test if they are
not a student. Full-time students can be under age 24.
Question 6: Which Form W-2 box typically reports total taxable wages, tips, and other
compensation for federal income tax purposes?
A. Box 1
B. Box 2
C. Box 3
D. Box 5
CORRECT ANSWER: A. Box 1
Rationale: Box 1 of Form W-2 reports the total taxable wages, tips, and other
compensation that an employee received from the employer during the year, which
must be reported on Form 1040.
Question 7: Which form is used by financial institutions to report interest income
earned by a taxpayer during the calendar year?
A. Form 1099-DIV
B. Form 1099-INT
C. Form 1099-NEC
D. Form 1099-MISC
CORRECT ANSWER: B. Form 1099-INT
Rationale: Form 1099-INT is issued by banks, savings and loans, and other financial
institutions to report taxable interest income paid or credited to a taxpayer's
account.
Question 8: How are qualified dividends generally taxed compared to ordinary income
for individual taxpayers?
A. At higher progressive tax brackets than ordinary income
B. At preferential capital gains tax rates (0%, 15%, or 20%)
C. They are entirely exempt from federal income tax
D. At a flat 35% surtax regardless of total taxable income
Page 4 of 192
QUESTIONS AND CORRECT VERIFIED
ANSWERS GRADED A+ | GUARANTEED
PASS
Question 1
When should taxpayer use the "Qualified widow or widower" tax filing status?
Correct Answer
The surviving spouse can file as "Married filing jointly" if their spouse died during
the tax payer, and they can use "Qualified widow or widower" tax filing status for
the next two years if they have a dependent child.
Question 2
Who might use the "Married filing separately" status?
Correct Answer
Married high earners, people who think their spouses may be hiding income, or
people whose spouses have tax liability
Question 3
Who might use "Qualified widow or widower" filing status?
Correct Answer
People who lost a spouse and are supporting a child at home
Question 4
How does using "Head of household" tax filing status benefit the taxpayer?
Correct Answer
This filing status allows the taxpayer to access significant tax deductions and more
favorable tax brackets than if they filed as single.
Page 1 of 192
,Question 5
Who is considered "unmarried" for head of household filing status?
Correct Answer
- People who are not legally married
-People whose spouses did not live in the house for the last six months of the tax
year (temporary absences do not count), they paid half the cost of keeping up the
house, and the house was their child's primary home.
-People who support a qualifying person in the household
Question 1: What is the primary purpose of the Internal Revenue Service (IRS) in the
United States tax system?
A. To write federal tax legislation and establish new tax laws
B. To administer and enforce the internal revenue laws enacted by Congress
C. To provide direct legal defense for taxpayers facing criminal charges
D. To set municipal property tax rates across local jurisdictions
CORRECT ANSWER: B. To administer and enforce the internal revenue laws enacted
by Congress
Rationale: The IRS is an agency of the Department of the Treasury responsible for
administering and enforcing federal tax laws enacted by Congress, while tax
legislation itself is created by the legislative branch.
Question 2: Which of the following filing statuses requires a taxpayer to be unmarried
on the last day of the tax year and pay more than half the cost of keeping up a home
for a qualifying person?
A. Married Filing Jointly
B. Married Filing Separately
C. Head of Household
D. Single
CORRECT ANSWER: C. Head of Household
Rationale: To qualify for Head of Household status, a taxpayer must generally be
unmarried, be a U.S. citizen or resident alien for part of the year, pay more than half
the cost of keeping up a home, and have a qualifying person live with them for
more than half the year.
Page 2 of 192
,Question 3: Under the U.S. federal tax system, what is the fundamental tax status
requirement for U.S. citizens living and working abroad?
A. They are completely exempt from U.S. income tax obligations
B. They are only taxed on income earned within the United States borders
C. They are subject to U.S. income tax on their worldwide income
D. They automatically file under a separate nonresident tax schedule
CORRECT ANSWER: C. They are subject to U.S. income tax on their worldwide income
Rationale: U.S. citizens and resident aliens are taxed on their worldwide income
regardless of where they reside, though provisions like the Foreign Earned Income
Exclusion help mitigate double taxation.
Question 4: Which test under the dependency rules requires that a qualifying child
must not have provided more than half of their own financial support during the tax
year?
A. Relationship test
B. Age test
C. Residency test
D. Support test
CORRECT ANSWER: D. Support test
Rationale: The support test dictates that to be a qualifying child, the individual must
not have provided more than 50% of their own financial support for the calendar
year in question.
Question 5: What is the maximum age limit for a child to qualify as a "Qualifying
Child" under the age test if they are NOT a full-time student?
A. Under age 19 at the end of the tax year
B. Under age 21 at the end of the tax year
C. Under age 24 at the end of the tax year
D. Any age as long as they are a dependent
CORRECT ANSWER: A. Under age 19 at the end of the tax year
Page 3 of 192
, Rationale: A qualifying child must be under age 19 at the end of the year and
younger than the taxpayer (or spouse if filing jointly) to meet the age test if they are
not a student. Full-time students can be under age 24.
Question 6: Which Form W-2 box typically reports total taxable wages, tips, and other
compensation for federal income tax purposes?
A. Box 1
B. Box 2
C. Box 3
D. Box 5
CORRECT ANSWER: A. Box 1
Rationale: Box 1 of Form W-2 reports the total taxable wages, tips, and other
compensation that an employee received from the employer during the year, which
must be reported on Form 1040.
Question 7: Which form is used by financial institutions to report interest income
earned by a taxpayer during the calendar year?
A. Form 1099-DIV
B. Form 1099-INT
C. Form 1099-NEC
D. Form 1099-MISC
CORRECT ANSWER: B. Form 1099-INT
Rationale: Form 1099-INT is issued by banks, savings and loans, and other financial
institutions to report taxable interest income paid or credited to a taxpayer's
account.
Question 8: How are qualified dividends generally taxed compared to ordinary income
for individual taxpayers?
A. At higher progressive tax brackets than ordinary income
B. At preferential capital gains tax rates (0%, 15%, or 20%)
C. They are entirely exempt from federal income tax
D. At a flat 35% surtax regardless of total taxable income
Page 4 of 192
