INTUIT ACADEMY TAX LEVEL 1 EXAM PREP
DETAILED QUESTIONS AND ANSWERS WITH
RATIONALES (GRADED A+)
This comprehensive practice exam bank is specifically
engineered for students preparing for the Intuit Academy Tax
Level 1 Certification. It covers fundamental individual tax
concepts, filing statuses, Schedule C sole proprietorships,
capital gains, deductions, and Circular 230 ethical regulations.
Every multiple-choice question features verified answers and
in-depth rationales formatted specifically to maximize study
efficiency and exam success.
Questions 1 to 10: Filing Status and
Dependents
1. Which filing status should a taxpayer use if they
are unmarried on December 31, have no
dependents, and do not qualify for any special
conditions?
A) Head of Household
B) Married Filing Separately
C) Single
D) Qualifying Surviving Spouse
Answer: C) Single
Rationale: Filing status is determined on the
last day of the tax year. An unmarried
individual with no dependents defaults to
Single status.
,2. To qualify as a Head of Household, a taxpayer
must pay more than what percentage of the
costs of keeping up a home for the year?
A) 10%
B) 25%
C) 50%
D) 75%
Answer: C) 50%
Rationale: The taxpayer must provide more
than half (over 50%) of the total support and
household maintenance costs to claim Head
of Household status.
3. A taxpayer's spouse passes away in 2024. The
taxpayer has a 5-year-old dependent child and
has not remarried. For the 2025 tax year, which
filing status is most advantageous?
A) Single
B) Head of Household
C) Married Filing Separately
D) Qualifying Surviving Spouse
Answer: D) Qualifying Surviving Spouse
Rationale: A widowed taxpayer with a
dependent child can use the Qualifying
Surviving Spouse status for two years
, following the year of the spouse's death,
provided they maintain a home for the child.
4. Which of the following is a requirement for a
child to be considered a Qualifying Child for
dependency purposes?
A) The child must be under age 24 and a full-
time student.
B) The child must provide more than half of their
own support.
C) The child must live with the taxpayer for at
least 3 months.
D) The child must be married.
Answer: A) The child must be under age 24 and
a full-time student.
Rationale: To be a qualifying child, the
individual must be under age 19, or under
age 24 and a full-time student, or
permanently and totally disabled.
5. What is the maximum age for a Qualifying Child
who is not a full-time student or disabled?
A) 16
B) 18
C) 21
D) 24
Answer: B) 18
, Rationale: A qualifying child must be under
age 19 at the end of the year, meaning age 18
is the maximum age unless they are a full-
time student.
6. Under the residency test for a Qualifying Child,
how long must the child live with the taxpayer
during the tax year?
A) More than 3 months
B) More than 6 months
C) More than 9 months
D) Exactly 12 months
Answer: B) More than 6 months
Rationale: The residency test requires the
child to live with the taxpayer for more than
half of the tax year, which equates to more
than 6 months.
7. If two divorced parents both attempt to claim the
same child as a dependent, and there is no
written agreement, which tie-breaker rule
generally applies first?
A) The parent with the higher Adjusted Gross
Income (AGI)
B) The parent with whom the child lived for the
longer period of time
C) The parent who filed their return first
DETAILED QUESTIONS AND ANSWERS WITH
RATIONALES (GRADED A+)
This comprehensive practice exam bank is specifically
engineered for students preparing for the Intuit Academy Tax
Level 1 Certification. It covers fundamental individual tax
concepts, filing statuses, Schedule C sole proprietorships,
capital gains, deductions, and Circular 230 ethical regulations.
Every multiple-choice question features verified answers and
in-depth rationales formatted specifically to maximize study
efficiency and exam success.
Questions 1 to 10: Filing Status and
Dependents
1. Which filing status should a taxpayer use if they
are unmarried on December 31, have no
dependents, and do not qualify for any special
conditions?
A) Head of Household
B) Married Filing Separately
C) Single
D) Qualifying Surviving Spouse
Answer: C) Single
Rationale: Filing status is determined on the
last day of the tax year. An unmarried
individual with no dependents defaults to
Single status.
,2. To qualify as a Head of Household, a taxpayer
must pay more than what percentage of the
costs of keeping up a home for the year?
A) 10%
B) 25%
C) 50%
D) 75%
Answer: C) 50%
Rationale: The taxpayer must provide more
than half (over 50%) of the total support and
household maintenance costs to claim Head
of Household status.
3. A taxpayer's spouse passes away in 2024. The
taxpayer has a 5-year-old dependent child and
has not remarried. For the 2025 tax year, which
filing status is most advantageous?
A) Single
B) Head of Household
C) Married Filing Separately
D) Qualifying Surviving Spouse
Answer: D) Qualifying Surviving Spouse
Rationale: A widowed taxpayer with a
dependent child can use the Qualifying
Surviving Spouse status for two years
, following the year of the spouse's death,
provided they maintain a home for the child.
4. Which of the following is a requirement for a
child to be considered a Qualifying Child for
dependency purposes?
A) The child must be under age 24 and a full-
time student.
B) The child must provide more than half of their
own support.
C) The child must live with the taxpayer for at
least 3 months.
D) The child must be married.
Answer: A) The child must be under age 24 and
a full-time student.
Rationale: To be a qualifying child, the
individual must be under age 19, or under
age 24 and a full-time student, or
permanently and totally disabled.
5. What is the maximum age for a Qualifying Child
who is not a full-time student or disabled?
A) 16
B) 18
C) 21
D) 24
Answer: B) 18
, Rationale: A qualifying child must be under
age 19 at the end of the year, meaning age 18
is the maximum age unless they are a full-
time student.
6. Under the residency test for a Qualifying Child,
how long must the child live with the taxpayer
during the tax year?
A) More than 3 months
B) More than 6 months
C) More than 9 months
D) Exactly 12 months
Answer: B) More than 6 months
Rationale: The residency test requires the
child to live with the taxpayer for more than
half of the tax year, which equates to more
than 6 months.
7. If two divorced parents both attempt to claim the
same child as a dependent, and there is no
written agreement, which tie-breaker rule
generally applies first?
A) The parent with the higher Adjusted Gross
Income (AGI)
B) The parent with whom the child lived for the
longer period of time
C) The parent who filed their return first
