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INTUIT ACADEMY TAX LEVEL 1 FINAL EXAM LATEST 2026 ACTUAL
EXAM WITH COMPLETE QUESTIONS AND CORRECT DETAILED
ANSWERS (100% VERIFIED ANSWERS) |ALREADY GRADED A+|
||PROFESSOR VERIFIED|| ||BRANDNEW!!!||
Adam Clark is a freelance voiceover artist, he's paid between
$2,000 to $4,000 per year. He has full-time job in accounting,
where he makes $85,000 per year. Should Adam report the
income he receives as a voiceover artist? - ANSWER-Yes, Adam
should include his voiceover artist income when he files his
federal tax return.
Jake is a freelance photographer who travels the world with
Doctors Without Borders. When he's not traveling, he works as an
employee yoga instructor.
Is Jake's yoga instructor income miscellaneous? - ANSWER-No,
because he is an employee and would file taxes via his W-2 form.
Stanley likes to gamble. His annual gambling winnings totaled
$150,000.
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Which of the following is correct? - ANSWER-Stanley's income is
considered miscellaneous income and reported on Schedule 1 of
Form 1040.
The IRS requires you to keep detailed records of your gambling
winnings and losses as well as any related documents, including
receipts, tickets, payment slips, statements, and Form W-2G.
You must be able to _________________________. - ANSWER-
Report your gambling winnings and gambling losses. You may be
able to deduct your losses if you have itemized deductions.
A sole proprietor provides legal services to over 40 clients. These
clients provided a 1099-misc to the sole proprietor at the end of
the year. The sole proprietor can claim tax deductions for a variety
of work-related expenses.
What form must the sole proprietor complete with their federal
income tax return? - ANSWER-Schedule C
Wes and Rahul are married. Wes is 48 years old, and Rahul is
65. Both make a living from rental properties. On Form 1099-
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MISC which miscellaneous income box should be checked? -
ANSWER-Rents
Dividend Income - ANSWER-Dividends are distributions of
property a corporation may pay the taxpayer if they own stock in
that corporation. Corporations pay most dividends in cash. For
dividends to fall in the qualified dividend category, they typically
must be paid by a U.S. corporation or a qualifying foreign
corporation. Generally, the taxpayer must also meet the holding
period requirement.
Mutual funds and ETFs may have state or municipal bonds as
holdings. These bonds pay interest that's often exempt from
federal income tax. When mutual funds or ETFs distribute this
interest, they usually do it through an interest dividend.
Form 1099-DIV Dividends and Distributions is the form financial
institutions typically use to report information to the taxpayer and
the IRS about dividends and certain other distributions.
Taxable interest is taxed as ordinary income. - ANSWER-True
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The tax rates for non-qualified dividends are the same as federal
ordinary income tax rates. - ANSWER-True
Dividends that meet the qualified requirements are subject to less
beneficial tax rates than their non-qualified counterparts. -
ANSWER-False
The amount of a withdrawal penalty depends on many factors,
including the type of financial instrument involved. - ANSWER-
True
Mary has three savings accounts in three different banks. She
earned the total interest earned from all three accounts is $2200.
Mary receives three Forms 1099-INT.
How should she report this interest income? - ANSWER-Mary lists
each payer and amount on Schedule B and files it with her tax
return.
INTUIT ACADEMY TAX LEVEL 1 FINAL EXAM LATEST 2026 ACTUAL
EXAM WITH COMPLETE QUESTIONS AND CORRECT DETAILED
ANSWERS (100% VERIFIED ANSWERS) |ALREADY GRADED A+|
||PROFESSOR VERIFIED|| ||BRANDNEW!!!||
Adam Clark is a freelance voiceover artist, he's paid between
$2,000 to $4,000 per year. He has full-time job in accounting,
where he makes $85,000 per year. Should Adam report the
income he receives as a voiceover artist? - ANSWER-Yes, Adam
should include his voiceover artist income when he files his
federal tax return.
Jake is a freelance photographer who travels the world with
Doctors Without Borders. When he's not traveling, he works as an
employee yoga instructor.
Is Jake's yoga instructor income miscellaneous? - ANSWER-No,
because he is an employee and would file taxes via his W-2 form.
Stanley likes to gamble. His annual gambling winnings totaled
$150,000.
,2|Page
Which of the following is correct? - ANSWER-Stanley's income is
considered miscellaneous income and reported on Schedule 1 of
Form 1040.
The IRS requires you to keep detailed records of your gambling
winnings and losses as well as any related documents, including
receipts, tickets, payment slips, statements, and Form W-2G.
You must be able to _________________________. - ANSWER-
Report your gambling winnings and gambling losses. You may be
able to deduct your losses if you have itemized deductions.
A sole proprietor provides legal services to over 40 clients. These
clients provided a 1099-misc to the sole proprietor at the end of
the year. The sole proprietor can claim tax deductions for a variety
of work-related expenses.
What form must the sole proprietor complete with their federal
income tax return? - ANSWER-Schedule C
Wes and Rahul are married. Wes is 48 years old, and Rahul is
65. Both make a living from rental properties. On Form 1099-
,3|Page
MISC which miscellaneous income box should be checked? -
ANSWER-Rents
Dividend Income - ANSWER-Dividends are distributions of
property a corporation may pay the taxpayer if they own stock in
that corporation. Corporations pay most dividends in cash. For
dividends to fall in the qualified dividend category, they typically
must be paid by a U.S. corporation or a qualifying foreign
corporation. Generally, the taxpayer must also meet the holding
period requirement.
Mutual funds and ETFs may have state or municipal bonds as
holdings. These bonds pay interest that's often exempt from
federal income tax. When mutual funds or ETFs distribute this
interest, they usually do it through an interest dividend.
Form 1099-DIV Dividends and Distributions is the form financial
institutions typically use to report information to the taxpayer and
the IRS about dividends and certain other distributions.
Taxable interest is taxed as ordinary income. - ANSWER-True
, 4|Page
The tax rates for non-qualified dividends are the same as federal
ordinary income tax rates. - ANSWER-True
Dividends that meet the qualified requirements are subject to less
beneficial tax rates than their non-qualified counterparts. -
ANSWER-False
The amount of a withdrawal penalty depends on many factors,
including the type of financial instrument involved. - ANSWER-
True
Mary has three savings accounts in three different banks. She
earned the total interest earned from all three accounts is $2200.
Mary receives three Forms 1099-INT.
How should she report this interest income? - ANSWER-Mary lists
each payer and amount on Schedule B and files it with her tax
return.
