INTUIT ACADEMY TAX LEVEL 1 EXAM 2026 COMPLETE ACCURATE EXAM ACTUAL
QUESTIONS AND CORRECT DETAILED ANSWERS (100% CORRECT VERIFIED
SOLUTIONS) LATEST UPDATED VERSION 2026 |GUARANTEED PASS A+ (BRAND NEW!)
FULL REVISED INTUIT ACADEMY TAX LEVEL 1 APPROVED EXAM
Taxpayer is single and reports $80,000 of gross revenue and $50,000 of
ordinary and necessary business expenses, resulting in $30,000 of net
profits on the Schedule C from a law practice. The taxpayer had no self-
employed health deductions and 1/2 of the Self-Employment tax is
$2,295.
Is this how much the Taxpayer's deduction for Qualified Business
Income (QBI) will be?
Answer- 30,000−2,295=27,705 Calculate the QBI Deduction: The QBI
deduction is generally 20% of the adjusted QBI. 27,705×0.20= $5,541
Taxpayer A and Taxpayer B are married, file a joint tax return and had
the following investment transactions:
• Sold a stock after holding for 5 years for a gain of $5,000
• Sold a stock after holding for 5 months for a loss of $10,000 • Sold a
stock after holding for 9 months for a gain of $1,000 Is this following
statement true?
They have a net long term capital gain of $16.000??
They have a capital loss carryover of $1,000??
They can deduct a capital loss of $3,000??
No.
Yes.
,Answer- Yes.
Is this a type of interest income and dividends that is not taxed at the
federal level?
Interest Income from Certificate of Deposit.
Dividends from Corporations.
Dividends from State Bond Municipal Fund.
No.
Yes.
Answer- No.
T/F A penalty for premature withdrawal of a certificate of deposit used
as tax deduction?
Answer- TRUE
T/F A distribution from Roth IRA four months after it was established
used as a tax deduction.
Answer- FALSE
T/F The IRS gives a choice to deduct their foreign taxes or claim the
foreign tax credit.
Answer- True
, T/F The IRS allows unused foreign tax credits to be carried back ten
years or forward one year.
Answer- FALSE Excess credits can be carried BACK one year and
carried FORWARD ten years.
T/F The IRS requires U.S. citizens to report and pay taxes on their
worldwide income.
Answer- True
T/F Schedule K-1 is issued to taxpayers no later than April 15 for
calendar year partnerships unless an extension is filed.
Answer- FALSE, March 15th
T/F All individual partners report their share of the partnership's income
on their own individual income tax returns.
Answer- True
T/F 1065 Schedule K-1 is a federal tax document used to report the
income and losses of a business to its partners.
Answer- True
QUESTIONS AND CORRECT DETAILED ANSWERS (100% CORRECT VERIFIED
SOLUTIONS) LATEST UPDATED VERSION 2026 |GUARANTEED PASS A+ (BRAND NEW!)
FULL REVISED INTUIT ACADEMY TAX LEVEL 1 APPROVED EXAM
Taxpayer is single and reports $80,000 of gross revenue and $50,000 of
ordinary and necessary business expenses, resulting in $30,000 of net
profits on the Schedule C from a law practice. The taxpayer had no self-
employed health deductions and 1/2 of the Self-Employment tax is
$2,295.
Is this how much the Taxpayer's deduction for Qualified Business
Income (QBI) will be?
Answer- 30,000−2,295=27,705 Calculate the QBI Deduction: The QBI
deduction is generally 20% of the adjusted QBI. 27,705×0.20= $5,541
Taxpayer A and Taxpayer B are married, file a joint tax return and had
the following investment transactions:
• Sold a stock after holding for 5 years for a gain of $5,000
• Sold a stock after holding for 5 months for a loss of $10,000 • Sold a
stock after holding for 9 months for a gain of $1,000 Is this following
statement true?
They have a net long term capital gain of $16.000??
They have a capital loss carryover of $1,000??
They can deduct a capital loss of $3,000??
No.
Yes.
,Answer- Yes.
Is this a type of interest income and dividends that is not taxed at the
federal level?
Interest Income from Certificate of Deposit.
Dividends from Corporations.
Dividends from State Bond Municipal Fund.
No.
Yes.
Answer- No.
T/F A penalty for premature withdrawal of a certificate of deposit used
as tax deduction?
Answer- TRUE
T/F A distribution from Roth IRA four months after it was established
used as a tax deduction.
Answer- FALSE
T/F The IRS gives a choice to deduct their foreign taxes or claim the
foreign tax credit.
Answer- True
, T/F The IRS allows unused foreign tax credits to be carried back ten
years or forward one year.
Answer- FALSE Excess credits can be carried BACK one year and
carried FORWARD ten years.
T/F The IRS requires U.S. citizens to report and pay taxes on their
worldwide income.
Answer- True
T/F Schedule K-1 is issued to taxpayers no later than April 15 for
calendar year partnerships unless an extension is filed.
Answer- FALSE, March 15th
T/F All individual partners report their share of the partnership's income
on their own individual income tax returns.
Answer- True
T/F 1065 Schedule K-1 is a federal tax document used to report the
income and losses of a business to its partners.
Answer- True
