Intuit Academy Tax Level 1
Study online at https://quizlet.com/_eyb564
1. Below the line deductions include: Standard deduction
2. Eligible educators can deduct up to _______ of qualified expenses paid during
the tax year.: $250
3. Which of the following is an ineligible medical expense for HSA, Archer MSA,
and MA MSA?: Breast enhancement
4. The net capital gain is taxed at _______ if the married filing jointly taxpayer
income is less than $80,800.: 0%
5. To claim a child as a dependent, they must meet the qualifying child test or
________________.: qualifying relative test
6. Ordinary dividends are taxed at the same rate as __________ income tax rate.-
: ordinary
7. Distributions from HSA, Archer MSA, or MS MSA are non-taxable when
_________________________________________.: 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?: Non-resident alien
9. _____________ and ____________ are what taxpayers must know to calculate their
tax amount.: 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.: 750,000
11. __________ reduce the amount of tax due.: Tax credits
12. Which form is for beneficiaries who get income from trusts and estates?: 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.: 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?: 31
15. Complete the equation. ___________ = Selling Price - Purchase Price: Capital Loss
or Capital Gain
, Intuit Academy Tax Level 1
Study online at https://quizlet.com/_eyb564
16. _________________ helps sole proprietorships calculate the profit or loss from
a business while also providing the IRS with your total business income and
deductions.: Schedule C
17. What type of deduction is a HSA contribution?: Above-the-Line Deduction Some of the
common expenses on which Above-the-Line deductions are available include:
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 ________________________________.-
: 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 irrelevant.
19. Which is considered non-taxable income?: military personnel allowances Payments received
as a member of military service are generally taxed as wages except for retirement pay, which is taxed as a pension.
Allowances generally aren't taxed.
20. ______________ is used to offset income and payroll taxes for low-income
workers and to provide an incentive to work.: Earned Income Tax Credit Earned Income Tax
Credit is used to offset income and payroll taxes for low-income workers and to provide an incentive to work.
21. Which is a non-deductible business expense?: family vacation Expenses done for personal
and recreational purposes are personal expenses and are non-deductible.
22. What amount of upper cap is applicable on business gifts?: $25 The upper cap of $25
is applicable on business gifts.
, Intuit Academy Tax Level 1
Study online at https://quizlet.com/_eyb564
23. If yearly dividend amounts exceed __________, a Schedule B must be complet-
ed and attached to Form 1040.: $1500 If yearly dividend amounts exceed $1500, a Schedule B must
be completed and attached.
24. The are _________ filing statuses.: five There are five filing statuses.
Single
Married Filing Jointly
Married Filing Separately
Head of Household
Qualifying Widow(er)
25. Taxpayers can claim a Child Tax Credit of up to __________ for each child under
age 17 in 2021(2022).: $3,600.00 Taxpayers can claim a CTC of up to $3,600 for each child under age 17 in
2021(2022). Since 2021, qualifying families may now receive up to $3,600 per child under the age of 5 and $3,000 for
those ages 6 to 17. That's up from $2,000 per child, provided families fall under certain income thresholds (less than
$150,000 for couples and $112,500 for single parents).
26. ______________ includes supplemental income and loss.: Schedule E includes supple-
mental income and loss
Supplemental Income and Loss consists of:
Income or Loss from Rental Real Estate and Royalties
Income or Loss from Partnerships and S Corporations
Income or Loss from Estates and Trusts, and
Income or Loss from Real Estate Mortgage Investment Conduits (REMICs)
27. Payments and refundable credits are listed between what lines on Form
1040?: Lines 25 through 30 are payments and refundable credits.
28. A partnership files a tax return on ______________.: A partnership files a tax return on Form
1065.
29. Which of the following is not a requirement for S-Corporation election?: Being
an international entity is not a requirement for S-Corporation election.
30. ________________ generally have to make estimated tax payments if they ex-
pect to owe tax of $500 or more when their return is filed.: Corporations generally have
to make estimated tax payments if they expect to owe tax of $500 or more when their return is filed.
31. Which is not a nonrefundable tax credit? (Select all that apply): Child and Dependent
Care Credit Nonrefundable tax credits include:
, Intuit Academy Tax Level 1
Study online at https://quizlet.com/_eyb564
Child Tax Credit/Credit for Other Dependents
Adoption Credit
32. Social Security benefits can be taxed to a maximum of ___________% based
on the beneficiary's annual income.: Up to 85% of your Social Security income is taxed if you receive
income from other sources and your combined income is more than a certain base amount.
33. Which factor does not limit QBI components of QBI deduction?: reported on
Schedule C
34. Who cannot take the standard deduction? (select all that apply): An individual filing
as Married Filing Separately and the spouse itemizes An individual filing a return for a short tax year due to a change
in the annual accounting period A nonresident or dual-status alien during the year
35. What type of payment is not considered miscellaneous?: employment wages Miscel-
laneous income can include payments in the form of rents received, royalties, medical and health care, crop insurance
proceeds, refund or credits of state and local taxes, unemployment compensation, and prizes and awards,
36. What dividend comes from mutual funds and real estate investment trusts
(REITs)?: capital gain Capital gain distributions come from mutual funds and real estate investment trusts (REITs).
37. Which is not considered a gambling winning?: games of chance Gambling winnings include,
but are not limited to, money or prizes earned from:
Casino games
Slot machines
Keno
Poker tournaments
Lotteries
Sweepstakes
Raffles
Betting pools
Gameshows
Horse or dog races
Off-track betting
Bingo
38. Which is considered an adjustment to Gross Income?: Moving Expense Adjustments to
gross income are divided into four categories: charitable items, employment-related items, compensation and benefits,
and investment-related exclusions.
Study online at https://quizlet.com/_eyb564
1. Below the line deductions include: Standard deduction
2. Eligible educators can deduct up to _______ of qualified expenses paid during
the tax year.: $250
3. Which of the following is an ineligible medical expense for HSA, Archer MSA,
and MA MSA?: Breast enhancement
4. The net capital gain is taxed at _______ if the married filing jointly taxpayer
income is less than $80,800.: 0%
5. To claim a child as a dependent, they must meet the qualifying child test or
________________.: qualifying relative test
6. Ordinary dividends are taxed at the same rate as __________ income tax rate.-
: ordinary
7. Distributions from HSA, Archer MSA, or MS MSA are non-taxable when
_________________________________________.: 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?: Non-resident alien
9. _____________ and ____________ are what taxpayers must know to calculate their
tax amount.: 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.: 750,000
11. __________ reduce the amount of tax due.: Tax credits
12. Which form is for beneficiaries who get income from trusts and estates?: 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.: 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?: 31
15. Complete the equation. ___________ = Selling Price - Purchase Price: Capital Loss
or Capital Gain
, Intuit Academy Tax Level 1
Study online at https://quizlet.com/_eyb564
16. _________________ helps sole proprietorships calculate the profit or loss from
a business while also providing the IRS with your total business income and
deductions.: Schedule C
17. What type of deduction is a HSA contribution?: Above-the-Line Deduction Some of the
common expenses on which Above-the-Line deductions are available include:
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 ________________________________.-
: 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 irrelevant.
19. Which is considered non-taxable income?: military personnel allowances Payments received
as a member of military service are generally taxed as wages except for retirement pay, which is taxed as a pension.
Allowances generally aren't taxed.
20. ______________ is used to offset income and payroll taxes for low-income
workers and to provide an incentive to work.: Earned Income Tax Credit Earned Income Tax
Credit is used to offset income and payroll taxes for low-income workers and to provide an incentive to work.
21. Which is a non-deductible business expense?: family vacation Expenses done for personal
and recreational purposes are personal expenses and are non-deductible.
22. What amount of upper cap is applicable on business gifts?: $25 The upper cap of $25
is applicable on business gifts.
, Intuit Academy Tax Level 1
Study online at https://quizlet.com/_eyb564
23. If yearly dividend amounts exceed __________, a Schedule B must be complet-
ed and attached to Form 1040.: $1500 If yearly dividend amounts exceed $1500, a Schedule B must
be completed and attached.
24. The are _________ filing statuses.: five There are five filing statuses.
Single
Married Filing Jointly
Married Filing Separately
Head of Household
Qualifying Widow(er)
25. Taxpayers can claim a Child Tax Credit of up to __________ for each child under
age 17 in 2021(2022).: $3,600.00 Taxpayers can claim a CTC of up to $3,600 for each child under age 17 in
2021(2022). Since 2021, qualifying families may now receive up to $3,600 per child under the age of 5 and $3,000 for
those ages 6 to 17. That's up from $2,000 per child, provided families fall under certain income thresholds (less than
$150,000 for couples and $112,500 for single parents).
26. ______________ includes supplemental income and loss.: Schedule E includes supple-
mental income and loss
Supplemental Income and Loss consists of:
Income or Loss from Rental Real Estate and Royalties
Income or Loss from Partnerships and S Corporations
Income or Loss from Estates and Trusts, and
Income or Loss from Real Estate Mortgage Investment Conduits (REMICs)
27. Payments and refundable credits are listed between what lines on Form
1040?: Lines 25 through 30 are payments and refundable credits.
28. A partnership files a tax return on ______________.: A partnership files a tax return on Form
1065.
29. Which of the following is not a requirement for S-Corporation election?: Being
an international entity is not a requirement for S-Corporation election.
30. ________________ generally have to make estimated tax payments if they ex-
pect to owe tax of $500 or more when their return is filed.: Corporations generally have
to make estimated tax payments if they expect to owe tax of $500 or more when their return is filed.
31. Which is not a nonrefundable tax credit? (Select all that apply): Child and Dependent
Care Credit Nonrefundable tax credits include:
, Intuit Academy Tax Level 1
Study online at https://quizlet.com/_eyb564
Child Tax Credit/Credit for Other Dependents
Adoption Credit
32. Social Security benefits can be taxed to a maximum of ___________% based
on the beneficiary's annual income.: Up to 85% of your Social Security income is taxed if you receive
income from other sources and your combined income is more than a certain base amount.
33. Which factor does not limit QBI components of QBI deduction?: reported on
Schedule C
34. Who cannot take the standard deduction? (select all that apply): An individual filing
as Married Filing Separately and the spouse itemizes An individual filing a return for a short tax year due to a change
in the annual accounting period A nonresident or dual-status alien during the year
35. What type of payment is not considered miscellaneous?: employment wages Miscel-
laneous income can include payments in the form of rents received, royalties, medical and health care, crop insurance
proceeds, refund or credits of state and local taxes, unemployment compensation, and prizes and awards,
36. What dividend comes from mutual funds and real estate investment trusts
(REITs)?: capital gain Capital gain distributions come from mutual funds and real estate investment trusts (REITs).
37. Which is not considered a gambling winning?: games of chance Gambling winnings include,
but are not limited to, money or prizes earned from:
Casino games
Slot machines
Keno
Poker tournaments
Lotteries
Sweepstakes
Raffles
Betting pools
Gameshows
Horse or dog races
Off-track betting
Bingo
38. Which is considered an adjustment to Gross Income?: Moving Expense Adjustments to
gross income are divided into four categories: charitable items, employment-related items, compensation and benefits,
and investment-related exclusions.
