1
Intuit Academy Tax Level 1 Exam Review | 335
Expert-Verified Questions and Correct
Solutions | Updated 2025
1. Is Social Security taxable? - ANSWER For most Americans, social
security is taxable. That is, a majority of those who receive Social
Security benefits pay income tax on up to half or even 85% of that
money because their combined income from Social Security and other
sources pushes them above the very low thresholds for taxes to kick in.
2. Retirees who have little income other than Social Security won't be
taxed on their benefits. In fact, you may not even have to file a return. -
ANSWER True
- ANSWER Up to 50% of Social Security income is taxable for
individuals with a total gross income including Social Security of at
least $25,000, or couples filing jointly with a combined gross income
of at least $32,000.
3. Up to 85% of Social Security benefits are taxable for an individual with
a combined gross income of at least $34,000, or a couple filing jointly
with a combined gross income of at least $44,000.
4. No taxpayer, regardless of income, has all of their Social Security
benefits taxed. - ANSWER True
5. Are gambling losses tax deductible? - ANSWER Gambling losses are
tax deductible, but only to the extent of your winnings. Find out more
about reporting gambling losses on your tax return.
6. You can include in your gambling losses the actual wagers from sports
gambling, horse racing, lotteries, and sweepstake. - ANSWER True
- ANSWER Gambling losses are tax deductible, but only to the extent
of the taxpayer's winnings, requiring them to report all the money won
as taxable income on a return.
, 2
7. The deduction is only available if taxpayers itemize their deductions. If
taxpayers claim the standard deduction, they can't reduce their taxes by
gambling losses.
8. The IRS requires you to keep a log of your winnings and losses as a
prerequisite to deducting losses from your winnings.
9. You can include the actual cost of wagers from sports gambling, horse
racing, lotteries, and sweepstake in your gambling losses.
10.The IRS requires you to keep a log of your winnings and losses as a
prerequisite to deducting losses from your winnings. This includes:
(select all that apply) - ANSWER Lotteries
Raffles
Horse and dog races
Casino games
Poker games
Sports betting
11.Social Security benefits can be taxed to a maximum of ___________%
based on the beneficiary's annual income. - ANSWER 85
12.Casinos may deduct 24% tax on winnings in table games like craps,
blackjack, and roulette. - ANSWER False
13.Under which of the below circumstances are the distributions from
HSA, Archer MSA, or MS MSA taxable? - ANSWER You didn't use
the distributions to pay for qualified medical expenses.
14.What are the five individual tax filing statuses? - ANSWER 1. Single
2. Married filing jointly
3. Married filing separately
4. Head of household
5. Qualified widow or widower
, 3
15.What's the significance of a tax filing status? - ANSWER The
taxpayer's tax filing status can significantly effect their tax bill and
which tax forms they will need to fill out.
16.Who might use the "single" tax filing status? - ANSWER Unmarried
people who do not qualify for another filing status
17.Who might use the "Married filing jointly" filing status? - ANSWER
Most married couple
18.Who might use the "Married filing separately" status? - ANSWER
Married high earners, people who think their spouses may be hiding
income, or people whose spouses have tax liability
19.Who might use "Head of household" status? - ANSWER Unmarried
people paying at least half the cost of housing and support for others
20.Who might use "Qualified widow or widower" filing status? -
ANSWER People who lost a spouse and are supporting a child at home
21.Who is considered "unmarried" for head of household filing status? -
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
22.What does cost of keeping up the house mean? - ANSWER The cost of
keeping up a home includes paying property taxes, mortgage interest or
rent, utilities, repairs and maintenance, property insurance, food, and
other household expenses
23.Who is a qualifying person for tax purposes? - ANSWER A child under
19 years of age; an adult under 24 years of age who is a student living
at home for more than half the year; A parent who receives at least half
their support from the taxpayer; and siblings and in-laws if the taxpayer
provides at least half their support for the year.
24.How does using "Head of household" tax filing status benefit the
taxpayer? - ANSWER This filing status allows the taxpayer to access
, 4
significant tax deductions and more favorable tax brackets than if they
filed as single.
25.When should taxpayer use the "Qualified widow or widower" tax filing
status? - 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.
26.What is one requirement for being able use "Qualified widow or
widower" tax filing status? - ANSWER There must be a dependent
child, and the surviving spouse must provide at least half the cost of
keeping up the house during the tax year.
27.What are some rules for using "Married filing jointly" tax filing status?
- ANSWER - The couple have to be legally married through the last
day of the tax year
-If one of the spouse died during the tax year, the surviving spouse can use
the "Married filing jointly" tax filing status b
-When taxpayers file jointly, the IRS holds both taxpayers responsible for
the taxes and any interest or penalties due
28.How does using the "Qualified widow or widower" tax filing status
benefit the taxpayer? - ANSWER It lets the taxpayer file as if they were
married and filing jointly, which allows them a much higher standard
deduction and puts them in a better tax bracket then if they filed as a
single.
29.How does using "Married filing jointly" tax filing status benefit the
taxpayer? - ANSWER Tax payers who file as married filing jointly
likely have a lower tax bill then those who file separately; their standard
deduction would be higher; and they can take deductions and credits
that generally are not available if they file separately.
30.In the event of the death of a beneficiary, who are eligible for the
beneficiary's Social Security benefits ? - ANSWER Stepchild
31.Which of the following is an ineligible medical expense for HSA,
Archer MSA, and MA MSA? - ANSWER Aromatherapy
Intuit Academy Tax Level 1 Exam Review | 335
Expert-Verified Questions and Correct
Solutions | Updated 2025
1. Is Social Security taxable? - ANSWER For most Americans, social
security is taxable. That is, a majority of those who receive Social
Security benefits pay income tax on up to half or even 85% of that
money because their combined income from Social Security and other
sources pushes them above the very low thresholds for taxes to kick in.
2. Retirees who have little income other than Social Security won't be
taxed on their benefits. In fact, you may not even have to file a return. -
ANSWER True
- ANSWER Up to 50% of Social Security income is taxable for
individuals with a total gross income including Social Security of at
least $25,000, or couples filing jointly with a combined gross income
of at least $32,000.
3. Up to 85% of Social Security benefits are taxable for an individual with
a combined gross income of at least $34,000, or a couple filing jointly
with a combined gross income of at least $44,000.
4. No taxpayer, regardless of income, has all of their Social Security
benefits taxed. - ANSWER True
5. Are gambling losses tax deductible? - ANSWER Gambling losses are
tax deductible, but only to the extent of your winnings. Find out more
about reporting gambling losses on your tax return.
6. You can include in your gambling losses the actual wagers from sports
gambling, horse racing, lotteries, and sweepstake. - ANSWER True
- ANSWER Gambling losses are tax deductible, but only to the extent
of the taxpayer's winnings, requiring them to report all the money won
as taxable income on a return.
, 2
7. The deduction is only available if taxpayers itemize their deductions. If
taxpayers claim the standard deduction, they can't reduce their taxes by
gambling losses.
8. The IRS requires you to keep a log of your winnings and losses as a
prerequisite to deducting losses from your winnings.
9. You can include the actual cost of wagers from sports gambling, horse
racing, lotteries, and sweepstake in your gambling losses.
10.The IRS requires you to keep a log of your winnings and losses as a
prerequisite to deducting losses from your winnings. This includes:
(select all that apply) - ANSWER Lotteries
Raffles
Horse and dog races
Casino games
Poker games
Sports betting
11.Social Security benefits can be taxed to a maximum of ___________%
based on the beneficiary's annual income. - ANSWER 85
12.Casinos may deduct 24% tax on winnings in table games like craps,
blackjack, and roulette. - ANSWER False
13.Under which of the below circumstances are the distributions from
HSA, Archer MSA, or MS MSA taxable? - ANSWER You didn't use
the distributions to pay for qualified medical expenses.
14.What are the five individual tax filing statuses? - ANSWER 1. Single
2. Married filing jointly
3. Married filing separately
4. Head of household
5. Qualified widow or widower
, 3
15.What's the significance of a tax filing status? - ANSWER The
taxpayer's tax filing status can significantly effect their tax bill and
which tax forms they will need to fill out.
16.Who might use the "single" tax filing status? - ANSWER Unmarried
people who do not qualify for another filing status
17.Who might use the "Married filing jointly" filing status? - ANSWER
Most married couple
18.Who might use the "Married filing separately" status? - ANSWER
Married high earners, people who think their spouses may be hiding
income, or people whose spouses have tax liability
19.Who might use "Head of household" status? - ANSWER Unmarried
people paying at least half the cost of housing and support for others
20.Who might use "Qualified widow or widower" filing status? -
ANSWER People who lost a spouse and are supporting a child at home
21.Who is considered "unmarried" for head of household filing status? -
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
22.What does cost of keeping up the house mean? - ANSWER The cost of
keeping up a home includes paying property taxes, mortgage interest or
rent, utilities, repairs and maintenance, property insurance, food, and
other household expenses
23.Who is a qualifying person for tax purposes? - ANSWER A child under
19 years of age; an adult under 24 years of age who is a student living
at home for more than half the year; A parent who receives at least half
their support from the taxpayer; and siblings and in-laws if the taxpayer
provides at least half their support for the year.
24.How does using "Head of household" tax filing status benefit the
taxpayer? - ANSWER This filing status allows the taxpayer to access
, 4
significant tax deductions and more favorable tax brackets than if they
filed as single.
25.When should taxpayer use the "Qualified widow or widower" tax filing
status? - 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.
26.What is one requirement for being able use "Qualified widow or
widower" tax filing status? - ANSWER There must be a dependent
child, and the surviving spouse must provide at least half the cost of
keeping up the house during the tax year.
27.What are some rules for using "Married filing jointly" tax filing status?
- ANSWER - The couple have to be legally married through the last
day of the tax year
-If one of the spouse died during the tax year, the surviving spouse can use
the "Married filing jointly" tax filing status b
-When taxpayers file jointly, the IRS holds both taxpayers responsible for
the taxes and any interest or penalties due
28.How does using the "Qualified widow or widower" tax filing status
benefit the taxpayer? - ANSWER It lets the taxpayer file as if they were
married and filing jointly, which allows them a much higher standard
deduction and puts them in a better tax bracket then if they filed as a
single.
29.How does using "Married filing jointly" tax filing status benefit the
taxpayer? - ANSWER Tax payers who file as married filing jointly
likely have a lower tax bill then those who file separately; their standard
deduction would be higher; and they can take deductions and credits
that generally are not available if they file separately.
30.In the event of the death of a beneficiary, who are eligible for the
beneficiary's Social Security benefits ? - ANSWER Stepchild
31.Which of the following is an ineligible medical expense for HSA,
Archer MSA, and MA MSA? - ANSWER Aromatherapy
