Intuit Academy Tax Level 1
2025/2026
Exam Prep Material
with
Verified Questions and Answers
A+ Grades Guarantee
, Standard deduction
Below the line deductions 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.
qualifying relative test
To claim a child as a dependent,
they must meet the qualifying
child test or ________________.
ordinary
Ordinary dividends are taxed at
the same rate as __________
income tax rate.
Distributions from HSA, Archer spent for qualified medical expenses of your dependent
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?
_____________ and Taxable income and filing status
____________ 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.
Tax credits
__________ reduce the 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?
Complete the equation. Capital Loss or Capital Gain
___________ = 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 a HSA Tuition fees
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 sourcing
As it applies to compensation wages and personal services income is controlled by where the
income, the general rule for service is performed. The residence of the recipient of the service,
sourcing wages and personal the place of contracting, and the time and place of payment are
services income is controlled by irrelevant.
__________________________
______.
, military personnel allowances Payments received as a member of
military service are generally taxed as wages except for retirement
Which is considered non-taxable pay, which is taxed as a pension. Allowances generally aren't
income? taxed.
Earned Income Tax Credit Earned Income Tax Credit is used to
______________ is used to offset income and payroll taxes for low-income workers and to
offset income and payroll taxes provide an incentive to work.
for low-income workers and to
provide an incentive to work.
family vacation Expenses done for personal and recreational
Which is a non-deductible
purposes are personal expenses and are non-deductible.
business expense?
$25 The upper cap of $25 is applicable on business gifts.
What amount of upper cap is
applicable on business gifts?
$1500 If yearly dividend amounts exceed $1500, a Schedule B
If yearly dividend amounts must be completed and attached.
exceed __________, a Schedule
B must be completed and
attached to Form 1040.
five There are five filing statuses.
Single
Married Filing Jointly
The are _________ filing Married Filing Separately
statuses. Head of Household
Qualifying Widow(er)
$3,600.00 Taxpayers can claim a CTC of up to $3,600 for each
child under age 17 in 2021(2022). Since 2021, qualifying families
Taxpayers can claim a Child Tax may now receive up to $3,600 per child under the age of 5 and
Credit of up to __________ for $3,000 for those ages 6 to 17. That's up from $2,000 per child,
each child under age 17 in provided families fall under certain income thresholds (less than
2021(2022). $150,000 for couples and $112,500 for single parents).
Schedule E includes supplemental income and loss
Supplemental Income and Loss consists of:
Income or Loss from Rental Real Estate and Royalties
Income or Loss from Partnerships and S Corporations
______________ includes Income or Loss from Estates and Trusts, and
supplemental income and loss. Income or Loss from Real Estate Mortgage Investment Conduits
(REMICs)
Lines 25 through 30 are payments and refundable credits.
Payments and refundable credits
are listed between what lines on
Form 1040?
A partnership files a tax return on A partnership files a tax return on Form 1065.
______________.
2025/2026
Exam Prep Material
with
Verified Questions and Answers
A+ Grades Guarantee
, Standard deduction
Below the line deductions 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.
qualifying relative test
To claim a child as a dependent,
they must meet the qualifying
child test or ________________.
ordinary
Ordinary dividends are taxed at
the same rate as __________
income tax rate.
Distributions from HSA, Archer spent for qualified medical expenses of your dependent
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?
_____________ and Taxable income and filing status
____________ 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.
Tax credits
__________ reduce the 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?
Complete the equation. Capital Loss or Capital Gain
___________ = 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 a HSA Tuition fees
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 sourcing
As it applies to compensation wages and personal services income is controlled by where the
income, the general rule for service is performed. The residence of the recipient of the service,
sourcing wages and personal the place of contracting, and the time and place of payment are
services income is controlled by irrelevant.
__________________________
______.
, military personnel allowances Payments received as a member of
military service are generally taxed as wages except for retirement
Which is considered non-taxable pay, which is taxed as a pension. Allowances generally aren't
income? taxed.
Earned Income Tax Credit Earned Income Tax Credit is used to
______________ is used to offset income and payroll taxes for low-income workers and to
offset income and payroll taxes provide an incentive to work.
for low-income workers and to
provide an incentive to work.
family vacation Expenses done for personal and recreational
Which is a non-deductible
purposes are personal expenses and are non-deductible.
business expense?
$25 The upper cap of $25 is applicable on business gifts.
What amount of upper cap is
applicable on business gifts?
$1500 If yearly dividend amounts exceed $1500, a Schedule B
If yearly dividend amounts must be completed and attached.
exceed __________, a Schedule
B must be completed and
attached to Form 1040.
five There are five filing statuses.
Single
Married Filing Jointly
The are _________ filing Married Filing Separately
statuses. Head of Household
Qualifying Widow(er)
$3,600.00 Taxpayers can claim a CTC of up to $3,600 for each
child under age 17 in 2021(2022). Since 2021, qualifying families
Taxpayers can claim a Child Tax may now receive up to $3,600 per child under the age of 5 and
Credit of up to __________ for $3,000 for those ages 6 to 17. That's up from $2,000 per child,
each child under age 17 in provided families fall under certain income thresholds (less than
2021(2022). $150,000 for couples and $112,500 for single parents).
Schedule E includes supplemental income and loss
Supplemental Income and Loss consists of:
Income or Loss from Rental Real Estate and Royalties
Income or Loss from Partnerships and S Corporations
______________ includes Income or Loss from Estates and Trusts, and
supplemental income and loss. Income or Loss from Real Estate Mortgage Investment Conduits
(REMICs)
Lines 25 through 30 are payments and refundable credits.
Payments and refundable credits
are listed between what lines on
Form 1040?
A partnership files a tax return on A partnership files a tax return on Form 1065.
______________.
