INTUIT ACADEMY TAX LEVEL 1 EXAM
Complete Questions and Guide Answers
100% Verified Graded A+
1. Below the line deductions include
Answer Standard deduction
2. Eligible educators can deduct up to of qualified expenses paid during the
tax year.
Answer $250
3. Which of the following is an ineligible medical expense for HSA, Archer MSA, and MA
MSA?
Answer Breast enhancement
4. The net capital gain is taxed at if the married filing jointly taxpayer
income is less than $80,800.
Answer 0%
5. To claim a child as a dependent, they must meet the qualifying child test or
, .
Answer qualifying relative test
6. Ordinary dividends are taxed at the same rate as income tax rate.-
Answer ordinary
7. Distributions from HSA, Archer MSA, or MS MSA are non-taxable when
.
Answer spent for qualified medical expenses of your dependent
8. Which residency status is used when an individual is neither a U.S. citizen nor a resident
alien for tax purposes?
Answer Non-residentalien
9. and are what taxpayers must know to calculate their tax
amount.
Answer Taxable income and filing status
10. 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.
Answer 750,000
,11. reduce the amount of tax due.
Answer Tax credits
12. Which form is for beneficiaries who get income from trusts and estates?
Answer Form 1041
13. 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.
Answer Taxable income
14. To satisfy the Substantial Presence Test, how many minimum days (in the current
year) must you be physically present in the United States?
Answer 31
15. Complete the equation. = Selling Price - Purchase Price
Answer Capital Loss or Capital Gain
16. helps sole proprietorships calculate the profit or loss from a
business while also providing the IRS with your total business income and deductions.
Answer ScheduleC
17. What type of deduction is a HSA contribution?
Answer Above-the-Line Deduction Some of the common expenses on which Above-the-Line deductions are
available include
, Answer
Educator expenses
Early withdrawal penalties of saving accounts Moving
expenses
Business expenses
HSA contributions
Self-employment tax
Alimony payments
Tuition fees
Contributions to a traditional IRA Student
loan interest deduction Health
insurance premiums Retirement
account contribution
18. As it applies to compensation income, the general rule for sourcing wages and
personal services income is controlled by .-
Answer where the service is performed The general rule for sourcing wages and personal services income is controlled by where
the service is performed. The residence of the recipient of the service, the place of contracting, and the time and place of payment are
Complete Questions and Guide Answers
100% Verified Graded A+
1. Below the line deductions include
Answer Standard deduction
2. Eligible educators can deduct up to of qualified expenses paid during the
tax year.
Answer $250
3. Which of the following is an ineligible medical expense for HSA, Archer MSA, and MA
MSA?
Answer Breast enhancement
4. The net capital gain is taxed at if the married filing jointly taxpayer
income is less than $80,800.
Answer 0%
5. To claim a child as a dependent, they must meet the qualifying child test or
, .
Answer qualifying relative test
6. Ordinary dividends are taxed at the same rate as income tax rate.-
Answer ordinary
7. Distributions from HSA, Archer MSA, or MS MSA are non-taxable when
.
Answer spent for qualified medical expenses of your dependent
8. Which residency status is used when an individual is neither a U.S. citizen nor a resident
alien for tax purposes?
Answer Non-residentalien
9. and are what taxpayers must know to calculate their tax
amount.
Answer Taxable income and filing status
10. 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.
Answer 750,000
,11. reduce the amount of tax due.
Answer Tax credits
12. Which form is for beneficiaries who get income from trusts and estates?
Answer Form 1041
13. 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.
Answer Taxable income
14. To satisfy the Substantial Presence Test, how many minimum days (in the current
year) must you be physically present in the United States?
Answer 31
15. Complete the equation. = Selling Price - Purchase Price
Answer Capital Loss or Capital Gain
16. helps sole proprietorships calculate the profit or loss from a
business while also providing the IRS with your total business income and deductions.
Answer ScheduleC
17. What type of deduction is a HSA contribution?
Answer Above-the-Line Deduction Some of the common expenses on which Above-the-Line deductions are
available include
, Answer
Educator expenses
Early withdrawal penalties of saving accounts Moving
expenses
Business expenses
HSA contributions
Self-employment tax
Alimony payments
Tuition fees
Contributions to a traditional IRA Student
loan interest deduction Health
insurance premiums Retirement
account contribution
18. As it applies to compensation income, the general rule for sourcing wages and
personal services income is controlled by .-
Answer where the service is performed The general rule for sourcing wages and personal services income is controlled by where
the service is performed. The residence of the recipient of the service, the place of contracting, and the time and place of payment are
