INTUIT ACADEMY TAX LEVEL 1 EXAM REVIEW SOLVED QUESTIONS COMPLETE ANSWERS
GRADED A PLUS
● Introduction to Tax Preparation. Answer: Key players: IRS, taxpayer, preparer; filing
requirements; e-filing vs paper.
● Taxpayer Filing Requirements. Answer: Filing thresholds based on age, filing status, gross
income.
● Form 1040 Overview. Answer: Purpose of Form 1040; main sections for income,
adjustments, tax computation, payments.
● Form 1040 Line 1: Wages, Salaries, Tips. Answer: Box 1 of W-2; reporting tips; attached
Form W-2.
● Form 1040 Lines 2a & 2b: Interest Income. Answer: 2a: Tax-exempt interest (municipal
bond interest); 2b: Taxable interest (1099-INT box 1).
● Form 1040 Lines 3a & 3b: Dividends. Answer: 3a: Qualified dividends at capital gains rates;
3b: Ordinary dividends at ordinary rates.
● Filing Status Definitions. Answer: Single; Married Filing Jointly (MFJ); Married Filing
Separately (MFS); Head of Household (HOH); Qualifying Widow(er).
● Qualifying Dependent Tests. Answer: Relationship test; residency test; age test; support
test; joint return test.
● Gross Income Inclusions. Answer: Wages; salaries; tips; interest; dividends; business
income; rental income; unemployment compensation; alimony (pre-2019).
● Gross Income Exclusions. Answer: Gifts and bequests; life insurance proceeds; municipal
bond interest; qualified scholarships; employer-provided health benefits.
● Adjustments to Income. Answer: Educator expenses; IRA contributions; student loan
interest; self-employed health insurance; HSA contributions.
● Adjusted Gross Income (AGI). Answer: Gross income minus above-the-line deductions;
used to determine eligibility for many tax benefits.
GRADED A PLUS
● Introduction to Tax Preparation. Answer: Key players: IRS, taxpayer, preparer; filing
requirements; e-filing vs paper.
● Taxpayer Filing Requirements. Answer: Filing thresholds based on age, filing status, gross
income.
● Form 1040 Overview. Answer: Purpose of Form 1040; main sections for income,
adjustments, tax computation, payments.
● Form 1040 Line 1: Wages, Salaries, Tips. Answer: Box 1 of W-2; reporting tips; attached
Form W-2.
● Form 1040 Lines 2a & 2b: Interest Income. Answer: 2a: Tax-exempt interest (municipal
bond interest); 2b: Taxable interest (1099-INT box 1).
● Form 1040 Lines 3a & 3b: Dividends. Answer: 3a: Qualified dividends at capital gains rates;
3b: Ordinary dividends at ordinary rates.
● Filing Status Definitions. Answer: Single; Married Filing Jointly (MFJ); Married Filing
Separately (MFS); Head of Household (HOH); Qualifying Widow(er).
● Qualifying Dependent Tests. Answer: Relationship test; residency test; age test; support
test; joint return test.
● Gross Income Inclusions. Answer: Wages; salaries; tips; interest; dividends; business
income; rental income; unemployment compensation; alimony (pre-2019).
● Gross Income Exclusions. Answer: Gifts and bequests; life insurance proceeds; municipal
bond interest; qualified scholarships; employer-provided health benefits.
● Adjustments to Income. Answer: Educator expenses; IRA contributions; student loan
interest; self-employed health insurance; HSA contributions.
● Adjusted Gross Income (AGI). Answer: Gross income minus above-the-line deductions;
used to determine eligibility for many tax benefits.
