Intuit Academy Tax Level 2 Examination Questions And
Correct Answers With Rationales
Original exam-style practice questions with answers and rationales; not leaked or reproduced examination content.
1. Which statement is most accurate regarding What is the purpose of Form 1040?
● A state business license
■✓ It is the primary U.S. individual income tax return
● A deduction that always creates a refund
● A payroll document only
Rationale: Form 1040 is the central federal individual income tax return.
2. A learner is asked: What is the purpose of Form 1040?. Which answer is best?
● To prepay tax when withholding is insufficient or unavailable
■✓ It is the primary U.S. individual income tax return
● A state business license
● A deduction that always creates a refund
Rationale: Form 1040 is the central federal individual income tax return.
3. During review, the instructor asks: What is the purpose of Form 1040?. What is the correct
response?
● A payroll document only
● A deduction that always creates a refund
● A state business license
■✓ It is the primary U.S. individual income tax return
Rationale: Form 1040 is the central federal individual income tax return.
4. Which option best answers the following question: What is the purpose of Form 1040?
■✓ It is the primary U.S. individual income tax return
● A payroll document only
● A deduction that always creates a refund
● A state business license
Rationale: Form 1040 is the central federal individual income tax return.
,5. A candidate needs to identify the correct principle. What is the purpose of Form 1040?. Which
answer is correct?
● A payroll document only
● To reduce omissions and inconsistencies
■✓ It is the primary U.S. individual income tax return
● A state business license
Rationale: Form 1040 is the central federal individual income tax return.
6. Which statement is most accurate regarding What is the purpose of Form 1040?
● A payroll document only
● A state business license
■✓ It is the primary U.S. individual income tax return
● A deduction that always creates a refund
Rationale: Form 1040 is the central federal individual income tax return.
7. A learner is asked: What is the purpose of Form 1040?. Which answer is best?
● A payroll document only
● A state business license
■✓ It is the primary U.S. individual income tax return
● A deduction that always creates a refund
Rationale: Form 1040 is the central federal individual income tax return.
8. During review, the instructor asks: What is the purpose of Form 1040?. What is the correct
response?
■✓ It is the primary U.S. individual income tax return
● A payroll document only
● A state business license
● To reduce omissions and inconsistencies
Rationale: Form 1040 is the central federal individual income tax return.
9. Which option best answers the following question: What is the purpose of Form 1040?
● A payroll document only
● A state business license
● A deduction that always creates a refund
■✓ It is the primary U.S. individual income tax return
Rationale: Form 1040 is the central federal individual income tax return.
,10. A candidate needs to identify the correct principle. What is the purpose of Form 1040?. Which
answer is correct?
● A deduction that always creates a refund
● A payroll document only
■✓ It is the primary U.S. individual income tax return
● A state business license
Rationale: Form 1040 is the central federal individual income tax return.
11. Which statement is most accurate regarding What is gross income?
● A state business license
■✓ Income that is potentially included before allowable exclusions and adjustments
● A deduction that always creates a refund
● A payroll document only
Rationale: Gross income is the starting point for determining taxable income.
12. A learner is asked: What is gross income?. Which answer is best?
● The amount of tax owed after applicable computations and credits
● A state business license
● A deduction that always creates a refund
■✓ Income that is potentially included before allowable exclusions and adjustments
Rationale: Gross income is the starting point for determining taxable income.
13. During review, the instructor asks: What is gross income?. What is the correct response?
● A state business license
● A deduction that always creates a refund
● A payroll document only
■✓ Income that is potentially included before allowable exclusions and adjustments
Rationale: Gross income is the starting point for determining taxable income.
14. Which option best answers the following question: What is gross income?
● A state business license
■✓ Income that is potentially included before allowable exclusions and adjustments
● A payroll document only
● A deduction that always creates a refund
Rationale: Gross income is the starting point for determining taxable income.
, 15. A candidate needs to identify the correct principle. What is gross income?. Which answer is
correct?
● A payroll document only
● The amount of tax owed after applicable computations and credits
■✓ Income that is potentially included before allowable exclusions and adjustments
● A deduction that always creates a refund
Rationale: Gross income is the starting point for determining taxable income.
16. Which statement is most accurate regarding What is gross income?
● A payroll document only
■✓ Income that is potentially included before allowable exclusions and adjustments
● A state business license
● A deduction that always creates a refund
Rationale: Gross income is the starting point for determining taxable income.
17. A learner is asked: What is gross income?. Which answer is best?
■✓ Income that is potentially included before allowable exclusions and adjustments
● A deduction that always creates a refund
● A payroll document only
● A state business license
Rationale: Gross income is the starting point for determining taxable income.
18. During review, the instructor asks: What is gross income?. What is the correct response?
● A permitted reduction used in arriving at adjusted gross income
● A deduction that always creates a refund
● A payroll document only
■✓ Income that is potentially included before allowable exclusions and adjustments
Rationale: Gross income is the starting point for determining taxable income.
19. Which option best answers the following question: What is gross income?
● A payroll document only
● A deduction that always creates a refund
● A state business license
■✓ Income that is potentially included before allowable exclusions and adjustments
Rationale: Gross income is the starting point for determining taxable income.
Correct Answers With Rationales
Original exam-style practice questions with answers and rationales; not leaked or reproduced examination content.
1. Which statement is most accurate regarding What is the purpose of Form 1040?
● A state business license
■✓ It is the primary U.S. individual income tax return
● A deduction that always creates a refund
● A payroll document only
Rationale: Form 1040 is the central federal individual income tax return.
2. A learner is asked: What is the purpose of Form 1040?. Which answer is best?
● To prepay tax when withholding is insufficient or unavailable
■✓ It is the primary U.S. individual income tax return
● A state business license
● A deduction that always creates a refund
Rationale: Form 1040 is the central federal individual income tax return.
3. During review, the instructor asks: What is the purpose of Form 1040?. What is the correct
response?
● A payroll document only
● A deduction that always creates a refund
● A state business license
■✓ It is the primary U.S. individual income tax return
Rationale: Form 1040 is the central federal individual income tax return.
4. Which option best answers the following question: What is the purpose of Form 1040?
■✓ It is the primary U.S. individual income tax return
● A payroll document only
● A deduction that always creates a refund
● A state business license
Rationale: Form 1040 is the central federal individual income tax return.
,5. A candidate needs to identify the correct principle. What is the purpose of Form 1040?. Which
answer is correct?
● A payroll document only
● To reduce omissions and inconsistencies
■✓ It is the primary U.S. individual income tax return
● A state business license
Rationale: Form 1040 is the central federal individual income tax return.
6. Which statement is most accurate regarding What is the purpose of Form 1040?
● A payroll document only
● A state business license
■✓ It is the primary U.S. individual income tax return
● A deduction that always creates a refund
Rationale: Form 1040 is the central federal individual income tax return.
7. A learner is asked: What is the purpose of Form 1040?. Which answer is best?
● A payroll document only
● A state business license
■✓ It is the primary U.S. individual income tax return
● A deduction that always creates a refund
Rationale: Form 1040 is the central federal individual income tax return.
8. During review, the instructor asks: What is the purpose of Form 1040?. What is the correct
response?
■✓ It is the primary U.S. individual income tax return
● A payroll document only
● A state business license
● To reduce omissions and inconsistencies
Rationale: Form 1040 is the central federal individual income tax return.
9. Which option best answers the following question: What is the purpose of Form 1040?
● A payroll document only
● A state business license
● A deduction that always creates a refund
■✓ It is the primary U.S. individual income tax return
Rationale: Form 1040 is the central federal individual income tax return.
,10. A candidate needs to identify the correct principle. What is the purpose of Form 1040?. Which
answer is correct?
● A deduction that always creates a refund
● A payroll document only
■✓ It is the primary U.S. individual income tax return
● A state business license
Rationale: Form 1040 is the central federal individual income tax return.
11. Which statement is most accurate regarding What is gross income?
● A state business license
■✓ Income that is potentially included before allowable exclusions and adjustments
● A deduction that always creates a refund
● A payroll document only
Rationale: Gross income is the starting point for determining taxable income.
12. A learner is asked: What is gross income?. Which answer is best?
● The amount of tax owed after applicable computations and credits
● A state business license
● A deduction that always creates a refund
■✓ Income that is potentially included before allowable exclusions and adjustments
Rationale: Gross income is the starting point for determining taxable income.
13. During review, the instructor asks: What is gross income?. What is the correct response?
● A state business license
● A deduction that always creates a refund
● A payroll document only
■✓ Income that is potentially included before allowable exclusions and adjustments
Rationale: Gross income is the starting point for determining taxable income.
14. Which option best answers the following question: What is gross income?
● A state business license
■✓ Income that is potentially included before allowable exclusions and adjustments
● A payroll document only
● A deduction that always creates a refund
Rationale: Gross income is the starting point for determining taxable income.
, 15. A candidate needs to identify the correct principle. What is gross income?. Which answer is
correct?
● A payroll document only
● The amount of tax owed after applicable computations and credits
■✓ Income that is potentially included before allowable exclusions and adjustments
● A deduction that always creates a refund
Rationale: Gross income is the starting point for determining taxable income.
16. Which statement is most accurate regarding What is gross income?
● A payroll document only
■✓ Income that is potentially included before allowable exclusions and adjustments
● A state business license
● A deduction that always creates a refund
Rationale: Gross income is the starting point for determining taxable income.
17. A learner is asked: What is gross income?. Which answer is best?
■✓ Income that is potentially included before allowable exclusions and adjustments
● A deduction that always creates a refund
● A payroll document only
● A state business license
Rationale: Gross income is the starting point for determining taxable income.
18. During review, the instructor asks: What is gross income?. What is the correct response?
● A permitted reduction used in arriving at adjusted gross income
● A deduction that always creates a refund
● A payroll document only
■✓ Income that is potentially included before allowable exclusions and adjustments
Rationale: Gross income is the starting point for determining taxable income.
19. Which option best answers the following question: What is gross income?
● A payroll document only
● A deduction that always creates a refund
● A state business license
■✓ Income that is potentially included before allowable exclusions and adjustments
Rationale: Gross income is the starting point for determining taxable income.
