Intuit Tax Level 1 Study Guide – Complete With
Solutions
Ford 1040, Line 1 Right Ans - Wages, salaries, tips, etc. Reflects income
from form W2.
Form 1040 Line 2B Right Ans - taxable interest; form 1099-INT
What is the child tax credit for each child under 17? Right Ans - $2000
Net capital losses over $3000 can be carried forward indefinitely until
exhausted. Right Ans - True
In 2021, Gustav bought a residential real estate property and rented it full
time on November 1, 2021. What schedule should he include with Form 1040?
Right Ans - Schedule 1; Schedule E
Kahn received a Capital Gain Distribution reported on Form 1099-DIV, Box2a
and also received a 1099B reporting long term capital gains. What should he
do when preparing the Form 1040? Right Ans - Attach a schedule D
Schedule 1 (Form 1040) Right Ans - additional income and adjustments to
income
Schedule 2 (Form 1040) Right Ans - additional taxes
Schedule 3 (Form 1040) Right Ans - Additional Credits and Payments
Schedule A (Form 1040) Right Ans - itemized deductions
Schedule B (Form 1040) Right Ans - Interest and Ordinary Dividends
Schedule D form 1040 Right Ans - Capital Gains and Losses
Schedule C (Form 1040) Right Ans - Profit or Loss from Business (Sole
Proprietorship)
Schedule SE (Form 1040) Right Ans - self employment tax (SS tax)
, Schedule E (Form 1040) Right Ans - Supplemental Income and Loss (From
rental real estate, royalties, partnerships, S corporations, estates, trusts,
REMICs, etc.)
Schedule EIC (Form 1040) Right Ans - Earned Income Credit for a
qualifying child
Schedule 8812 (Form 1040) Right Ans - Additional child tax credit;
refundable credit received if child tax credit is greater than total amount of
income taxes owed
Three conditions to not pay estimated tax for current year Right Ans - 1.
They had no tax liability for prior year
2. They were a U.S citizen or resident alien for the whole year
3. Prior tax year covered 12 months
Form 2210 Right Ans - Underpayment of Estimated Tax by Individuals,
Estates, and Trusts
Linda, a US resident and sole proprietor, expects that she will owe $2500 and
taxes for the current year. According to the IRS guidelines, which is true about
Linda's estimated tax payments? Right Ans - Linda must make estimated
tax payments for the current year since her expected tax liability is $2500 or
more
How to request an extension on taxes Right Ans - - online payment option
and check the box
- File Form 4868 by mail or tax professional
- using free file function
Variations of form 1040 Right Ans - Form 1040
Form 1040-SR: senior taxpayers
Form 1040-NR: non-U.S citizens
Form 1040-X: amending their tax returns after filing Form 1040
Filing status is used to determine Right Ans - Filing requirements
Standard deduction
Eligibility for certain credits
Solutions
Ford 1040, Line 1 Right Ans - Wages, salaries, tips, etc. Reflects income
from form W2.
Form 1040 Line 2B Right Ans - taxable interest; form 1099-INT
What is the child tax credit for each child under 17? Right Ans - $2000
Net capital losses over $3000 can be carried forward indefinitely until
exhausted. Right Ans - True
In 2021, Gustav bought a residential real estate property and rented it full
time on November 1, 2021. What schedule should he include with Form 1040?
Right Ans - Schedule 1; Schedule E
Kahn received a Capital Gain Distribution reported on Form 1099-DIV, Box2a
and also received a 1099B reporting long term capital gains. What should he
do when preparing the Form 1040? Right Ans - Attach a schedule D
Schedule 1 (Form 1040) Right Ans - additional income and adjustments to
income
Schedule 2 (Form 1040) Right Ans - additional taxes
Schedule 3 (Form 1040) Right Ans - Additional Credits and Payments
Schedule A (Form 1040) Right Ans - itemized deductions
Schedule B (Form 1040) Right Ans - Interest and Ordinary Dividends
Schedule D form 1040 Right Ans - Capital Gains and Losses
Schedule C (Form 1040) Right Ans - Profit or Loss from Business (Sole
Proprietorship)
Schedule SE (Form 1040) Right Ans - self employment tax (SS tax)
, Schedule E (Form 1040) Right Ans - Supplemental Income and Loss (From
rental real estate, royalties, partnerships, S corporations, estates, trusts,
REMICs, etc.)
Schedule EIC (Form 1040) Right Ans - Earned Income Credit for a
qualifying child
Schedule 8812 (Form 1040) Right Ans - Additional child tax credit;
refundable credit received if child tax credit is greater than total amount of
income taxes owed
Three conditions to not pay estimated tax for current year Right Ans - 1.
They had no tax liability for prior year
2. They were a U.S citizen or resident alien for the whole year
3. Prior tax year covered 12 months
Form 2210 Right Ans - Underpayment of Estimated Tax by Individuals,
Estates, and Trusts
Linda, a US resident and sole proprietor, expects that she will owe $2500 and
taxes for the current year. According to the IRS guidelines, which is true about
Linda's estimated tax payments? Right Ans - Linda must make estimated
tax payments for the current year since her expected tax liability is $2500 or
more
How to request an extension on taxes Right Ans - - online payment option
and check the box
- File Form 4868 by mail or tax professional
- using free file function
Variations of form 1040 Right Ans - Form 1040
Form 1040-SR: senior taxpayers
Form 1040-NR: non-U.S citizens
Form 1040-X: amending their tax returns after filing Form 1040
Filing status is used to determine Right Ans - Filing requirements
Standard deduction
Eligibility for certain credits
