INTUIT ACADEMY TAX LEVEL 1 FINAL
EXAM 2026/2027 WITH ACTUAL CORRECT
QUESTIONS AND VERIFIED DETAILED
ANSWERS |CURRENTLY TESTING
QUESTIONS AND SOLUTIONS|ALREADY
GRADED A+|NEWEST |JUST
RELEASED!!|GUARANTEED PASS
Sandeep, 70, and Mary, 67, are married. Sandeep's unmarried brother lives with them.
The couples combined gross income is $28,400, do they need to file a tax return?
Yes, the couple needs to file a tax return.
One of the most beneficial and refundable tax credits for families with low or moderate incomes
is the _____.
Earned Income Tax Credit
Sandeep, 70, and Mary, 67, are married. Sandeep's unmarried brother, John, lives with them.
Their daughter is a U.S. citizen who has been living and working abroad for many years.
Based on this information, which option is correct?
Sandeep's daughter's income is subject to U.S. income tax.
Michelle has two foster children, both under 10, and her 22 year old son, who is in college. He is
a full-time student.
Do all of her children qualify as dependents?
Yes
1|Page
,Mia and her spouse, Amanda provided a home for their daughter and niece during the last tax
year. Mia and Amanda provided full financial support for the both of them.
Can Mia and her spouse claim both her niece and daughter as dependents on their tax return?
Yes, Mia and her spouse can claim them as their dependents.
The Child and Dependent Care Credit helps defray costs of babysitting or daycare.
Which of the below best describes the purpose of the Care Credit?
The credit is available to people who must pay childcare for dependents under age 13 to work
or look for work.
Sandeep, 70, and Mary, 67, are married. Sandeep's unmarried brother, John, lives with them.
John is 65 years old and his gross income is $18,700.
Does he need to file a tax return?
Yes, he needs to file a tax return.
Stanley is a citizen of India who arrived in the U.S. on May 21, 2021. He came for work with a
pharmaceuticals company. He plans to remain in the U.S. for two years and does not intend to
change his immigration status before returning home.
What is his resident status during the tax year 2022?
Resident Alien
Jack and Ryan welcome their first child into their family at the end of 2022. The baby does not
have a social security number immediately but it is received just prior to the filing of their tax
return.
Can Jack and Ryan claim the child as a dependent?
Yes
Which of the following credits are most beneficial to low-income earners?
2|Page
,Earned Income Tax Credit
What is adjusted gross income?
a figure that the Internal Revenue Service uses to determine a taxpayer's income tax liability for
the year. The IRS calculates it by subtracting certain adjustments from gross income, such as
educator expenses, student loan interest, and other adjustments.
Did you know that a taxpayer can subtract certain expenses, payments, contributions, fees, etc.
from their total income to obtain the adjusted gross income (AGI)?
Gross income
the sum of the taxpayer's income earned in a year, which may include salary, dividends, capital
gains, interest income, royalties, rental income, alimony, and retirement distributions.
Adjusted gross income (AGI)
equals a taxpayer's total income minus adjustments to income.
AGI
The Internal Revenue Service uses adjusted gross income (AGI) to calculate taxable income.
AGI is calculated by taking total income for the year (gross income) and subtracting certain
"adjustments to income."
AGI can affect the size of a taxpayer's tax deductions as well as their eligibility for some types of
retirement plan contributions.
Modified adjusted gross income is AGI with some otherwise-allowable deductions added back
in. For many people, AGI and MAGI will be the same.
Adjusted gross income is simply the ______ of all the money you earned in a year, which may
include wages, dividends, capital gains, interest income, royalties, rental income, alimony, and
retirement distributions.
3|Page
, sum
What Is the Income Exclusion Rule?
sets aside certain types of income as non-taxable.
Income Exclusion Rule
There are many types of income that qualify under this rule, such as life insurance death benefit
proceeds, child support, welfare, and municipal bond income. Income that is excluded is not
reported anywhere on Form 1040(opens in a new tab).
To identify the adjustments to income, you first have to identify the types of expenses listed on
the adjustments to income section of Schedule 1.
True
Common Transactions as Exclusions
To identify the adjustments to income that taxpayers can claim, they need to identify the types
of expenses listed on the Adjustments to Income section of Schedule 1.
Some common transactions as exclusions or deductions from gross income are:
1
1. Educator expenses
2. Self-employment tax
3
3
Alimony payments
4
4
Early withdrawal penalty
4|Page
EXAM 2026/2027 WITH ACTUAL CORRECT
QUESTIONS AND VERIFIED DETAILED
ANSWERS |CURRENTLY TESTING
QUESTIONS AND SOLUTIONS|ALREADY
GRADED A+|NEWEST |JUST
RELEASED!!|GUARANTEED PASS
Sandeep, 70, and Mary, 67, are married. Sandeep's unmarried brother lives with them.
The couples combined gross income is $28,400, do they need to file a tax return?
Yes, the couple needs to file a tax return.
One of the most beneficial and refundable tax credits for families with low or moderate incomes
is the _____.
Earned Income Tax Credit
Sandeep, 70, and Mary, 67, are married. Sandeep's unmarried brother, John, lives with them.
Their daughter is a U.S. citizen who has been living and working abroad for many years.
Based on this information, which option is correct?
Sandeep's daughter's income is subject to U.S. income tax.
Michelle has two foster children, both under 10, and her 22 year old son, who is in college. He is
a full-time student.
Do all of her children qualify as dependents?
Yes
1|Page
,Mia and her spouse, Amanda provided a home for their daughter and niece during the last tax
year. Mia and Amanda provided full financial support for the both of them.
Can Mia and her spouse claim both her niece and daughter as dependents on their tax return?
Yes, Mia and her spouse can claim them as their dependents.
The Child and Dependent Care Credit helps defray costs of babysitting or daycare.
Which of the below best describes the purpose of the Care Credit?
The credit is available to people who must pay childcare for dependents under age 13 to work
or look for work.
Sandeep, 70, and Mary, 67, are married. Sandeep's unmarried brother, John, lives with them.
John is 65 years old and his gross income is $18,700.
Does he need to file a tax return?
Yes, he needs to file a tax return.
Stanley is a citizen of India who arrived in the U.S. on May 21, 2021. He came for work with a
pharmaceuticals company. He plans to remain in the U.S. for two years and does not intend to
change his immigration status before returning home.
What is his resident status during the tax year 2022?
Resident Alien
Jack and Ryan welcome their first child into their family at the end of 2022. The baby does not
have a social security number immediately but it is received just prior to the filing of their tax
return.
Can Jack and Ryan claim the child as a dependent?
Yes
Which of the following credits are most beneficial to low-income earners?
2|Page
,Earned Income Tax Credit
What is adjusted gross income?
a figure that the Internal Revenue Service uses to determine a taxpayer's income tax liability for
the year. The IRS calculates it by subtracting certain adjustments from gross income, such as
educator expenses, student loan interest, and other adjustments.
Did you know that a taxpayer can subtract certain expenses, payments, contributions, fees, etc.
from their total income to obtain the adjusted gross income (AGI)?
Gross income
the sum of the taxpayer's income earned in a year, which may include salary, dividends, capital
gains, interest income, royalties, rental income, alimony, and retirement distributions.
Adjusted gross income (AGI)
equals a taxpayer's total income minus adjustments to income.
AGI
The Internal Revenue Service uses adjusted gross income (AGI) to calculate taxable income.
AGI is calculated by taking total income for the year (gross income) and subtracting certain
"adjustments to income."
AGI can affect the size of a taxpayer's tax deductions as well as their eligibility for some types of
retirement plan contributions.
Modified adjusted gross income is AGI with some otherwise-allowable deductions added back
in. For many people, AGI and MAGI will be the same.
Adjusted gross income is simply the ______ of all the money you earned in a year, which may
include wages, dividends, capital gains, interest income, royalties, rental income, alimony, and
retirement distributions.
3|Page
, sum
What Is the Income Exclusion Rule?
sets aside certain types of income as non-taxable.
Income Exclusion Rule
There are many types of income that qualify under this rule, such as life insurance death benefit
proceeds, child support, welfare, and municipal bond income. Income that is excluded is not
reported anywhere on Form 1040(opens in a new tab).
To identify the adjustments to income, you first have to identify the types of expenses listed on
the adjustments to income section of Schedule 1.
True
Common Transactions as Exclusions
To identify the adjustments to income that taxpayers can claim, they need to identify the types
of expenses listed on the Adjustments to Income section of Schedule 1.
Some common transactions as exclusions or deductions from gross income are:
1
1. Educator expenses
2. Self-employment tax
3
3
Alimony payments
4
4
Early withdrawal penalty
4|Page
