Intuit Academy Tax Level 1 Final
Exam Prep Questions
2025/2026
Verified Questions and Answers
A+ Grades Guarantee
,Below the line deductions Standard deduction
include
$250
Eligible educators can
deduct up to _______ of
qualified expenses paid
during the tax year.
Breast enhancement
Which of the following is
an ineligible medical
expense for HSA, Archer
MSA, and MA MSA?
0%
The net capital gain is
taxed at _______ if the
married filing jointly
taxpayer income is less
than $80,800.
To claim a child as a qualifying relative test
dependent, they must
meet the qualifying child
test or
________________.
Ordinary dividends are ordinary
taxed at the same rate as
__________ income tax
rate.
spent for qualified medical expenses of your
Distributions from HSA, dependent
Archer MSA, or MS MSA
are non-taxable when
_____________________
____________________.
Non-resident alien
Which residency status is
used when an individual is
neither a U.S. citizen nor a
resident alien for tax
purposes?
, Taxable income and filing status
_____________ and
____________ are what
taxpayers must know to
calculate their tax amount.
750,000
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.
__________ reduce the Tax credits
amount of tax due.
Form 1041
Which form is for
beneficiaries who get
income from trusts and
estates?
Taxable income
___________________
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.
31
To satisfy the Substantial
Presence Test, how many
minimum days (in the
current year) must you be
physically present in the
United States?
Capital Loss or Capital Gain
Complete the equation.
___________ = Selling
Price - Purchase Price
, Schedule C
_________________
helps sole proprietorships
calculate the profit or loss
from a business while also
providing the IRS with
your total business
income and deductions.
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
What type of deduction is Tuition fees
a HSA contribution? Contributions to a traditional IRA
Student loan interest deduction
Health insurance premiums
Retirement account contribution
where the service is performed The general rule for
As it applies to sourcing wages and personal services income is
compensation income, the controlled by where the service is performed. The
general rule for sourcing residence of the recipient of the service, the place of
wages and personal contracting, and the time and place of payment are
services income is irrelevant.
controlled by
_____________________
___________.
military personnel allowances Payments received as
a member of military service are generally taxed as
Which is considered non- wages except for retirement pay, which is taxed as a
taxable income? pension. Allowances generally aren't taxed.
Earned Income Tax Credit Earned Income Tax Credit
______________ is used is used to offset income and payroll taxes for low-
to offset income and income workers and to provide an incentive to work.
payroll taxes for low-
income workers and to
provide an incentive to
work.
Exam Prep Questions
2025/2026
Verified Questions and Answers
A+ Grades Guarantee
,Below the line deductions Standard deduction
include
$250
Eligible educators can
deduct up to _______ of
qualified expenses paid
during the tax year.
Breast enhancement
Which of the following is
an ineligible medical
expense for HSA, Archer
MSA, and MA MSA?
0%
The net capital gain is
taxed at _______ if the
married filing jointly
taxpayer income is less
than $80,800.
To claim a child as a qualifying relative test
dependent, they must
meet the qualifying child
test or
________________.
Ordinary dividends are ordinary
taxed at the same rate as
__________ income tax
rate.
spent for qualified medical expenses of your
Distributions from HSA, dependent
Archer MSA, or MS MSA
are non-taxable when
_____________________
____________________.
Non-resident alien
Which residency status is
used when an individual is
neither a U.S. citizen nor a
resident alien for tax
purposes?
, Taxable income and filing status
_____________ and
____________ are what
taxpayers must know to
calculate their tax amount.
750,000
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.
__________ reduce the Tax credits
amount of tax due.
Form 1041
Which form is for
beneficiaries who get
income from trusts and
estates?
Taxable income
___________________
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.
31
To satisfy the Substantial
Presence Test, how many
minimum days (in the
current year) must you be
physically present in the
United States?
Capital Loss or Capital Gain
Complete the equation.
___________ = Selling
Price - Purchase Price
, Schedule C
_________________
helps sole proprietorships
calculate the profit or loss
from a business while also
providing the IRS with
your total business
income and deductions.
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
What type of deduction is Tuition fees
a HSA contribution? Contributions to a traditional IRA
Student loan interest deduction
Health insurance premiums
Retirement account contribution
where the service is performed The general rule for
As it applies to sourcing wages and personal services income is
compensation income, the controlled by where the service is performed. The
general rule for sourcing residence of the recipient of the service, the place of
wages and personal contracting, and the time and place of payment are
services income is irrelevant.
controlled by
_____________________
___________.
military personnel allowances Payments received as
a member of military service are generally taxed as
Which is considered non- wages except for retirement pay, which is taxed as a
taxable income? pension. Allowances generally aren't taxed.
Earned Income Tax Credit Earned Income Tax Credit
______________ is used is used to offset income and payroll taxes for low-
to offset income and income workers and to provide an incentive to work.
payroll taxes for low-
income workers and to
provide an incentive to
work.
