INTUIT ACADEMY 1 CONTINUATION -
GROSS INCOME. EXAM 2025/2026
QUESTIONS AND ANSWERS 100% PASS
Sandeep, 70, and Mary, 67, are married. Sandeep's unmarried brother, John, lives with them.
Their daughter is a U.S. citizen who has been living and working abroad for many years.
Based on this information, which option is correct? - ANS
Gross Income - ANS is the sum of the taxpayer's income earned in a year, which may include
salary, dividends, capital gains, interest income, royalties, rental income, alimony, and
retirement distributions.
Certain items subtracted from a taxpayer's gross income to calculate their AGI are referred to
as adjustments to income.
Adjusted gross income (AGI) - ANS is a figure that the Internal Revenue Service uses to
determine a taxpayer's income tax liability for the year. The IRS calculates it by subtracting
certain adjustments from gross income, such as educator expenses, student loan interest, and
other adjustments.
Common Transactions as Exclusions:
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
,Some common transactions as exclusions or deductions from gross income are: -
ANS Educator expenses
Self-employment tax
Alimony payments
Early withdrawal penalty
Self-employed health insurance
Charitable contributions
Traditional IRA
Health savings account
Student loan interest
Jury duty
Alimony Payments - ANS Payment to Spouse
ex-spouse
former spouse
legal separation instrument
What expenses qualify - ANS remarriage
death
court order
medical bills
housing costs
other expenses
person who is paying alimony will deduct to income
person who is receiving alimony will treat as a income
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, what information needed to complete the schedule 1 - ANS Exact amount, Social Security
number, date of divorce
Before December 31, 2018 - ANS Taxable consequences of alimony applies to divorce
decrees
Early withdrawal penalty - ANS early withdrawal, charged , maturity date
expenses qualify : deduct penalties, drawing fundsdeferred interest .
How to report :
Interest income -form 1099-int
Deduction -form 1040 Schedule 1
Self-Employed Health Insurance - ANS Net profit on schedule c
Deduct the cost
Who is eligible?
Medical, dental, vision, Supplemental, Long term care
self-employed taxpayer, tax payer spouse, tax payer dependents
Other rules: can't
Deduct payments
Participate in health plan- employer, spouses of tax payer employer, employer's of tax
dependent
What is the limit:
net self employment profit
one-half of the self-employment tax
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
GROSS INCOME. EXAM 2025/2026
QUESTIONS AND ANSWERS 100% PASS
Sandeep, 70, and Mary, 67, are married. Sandeep's unmarried brother, John, lives with them.
Their daughter is a U.S. citizen who has been living and working abroad for many years.
Based on this information, which option is correct? - ANS
Gross Income - ANS is the sum of the taxpayer's income earned in a year, which may include
salary, dividends, capital gains, interest income, royalties, rental income, alimony, and
retirement distributions.
Certain items subtracted from a taxpayer's gross income to calculate their AGI are referred to
as adjustments to income.
Adjusted gross income (AGI) - ANS is a figure that the Internal Revenue Service uses to
determine a taxpayer's income tax liability for the year. The IRS calculates it by subtracting
certain adjustments from gross income, such as educator expenses, student loan interest, and
other adjustments.
Common Transactions as Exclusions:
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
,Some common transactions as exclusions or deductions from gross income are: -
ANS Educator expenses
Self-employment tax
Alimony payments
Early withdrawal penalty
Self-employed health insurance
Charitable contributions
Traditional IRA
Health savings account
Student loan interest
Jury duty
Alimony Payments - ANS Payment to Spouse
ex-spouse
former spouse
legal separation instrument
What expenses qualify - ANS remarriage
death
court order
medical bills
housing costs
other expenses
person who is paying alimony will deduct to income
person who is receiving alimony will treat as a income
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, what information needed to complete the schedule 1 - ANS Exact amount, Social Security
number, date of divorce
Before December 31, 2018 - ANS Taxable consequences of alimony applies to divorce
decrees
Early withdrawal penalty - ANS early withdrawal, charged , maturity date
expenses qualify : deduct penalties, drawing fundsdeferred interest .
How to report :
Interest income -form 1099-int
Deduction -form 1040 Schedule 1
Self-Employed Health Insurance - ANS Net profit on schedule c
Deduct the cost
Who is eligible?
Medical, dental, vision, Supplemental, Long term care
self-employed taxpayer, tax payer spouse, tax payer dependents
Other rules: can't
Deduct payments
Participate in health plan- employer, spouses of tax payer employer, employer's of tax
dependent
What is the limit:
net self employment profit
one-half of the self-employment tax
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
