INTUIT ACADEMY TAX LEVEL 1 UPDATED ACTUAL EXAM QUESTIONS CORRECT ANSWERS
GRADED A PLUS
Determines tax obligations based on personal circumstances
The type of form used
Employment classification
Answer: Determines tax obligations based on personal circumstances
● What is Residency Status?
Where you work
Determines tax liability based on residence location
Your citizenship
Property ownership
Answer: Determines tax liability based on residence location
● What are Eligible Dependents?
All family members
Individuals qualifying for tax benefits under taxpayer
Children only
Elderly parents only
Answer: Individuals qualifying for tax benefits under taxpayer
● What is the W-2 Form?
Business income form
Reports wages and tax withheld from employee's paycheck
Investment income form
Deduction form
Answer: Reports wages and tax withheld from employee's paycheck
● What is the 1040 Form?
Business tax return
Estate tax form
Primary tax form for individual income tax returns
Quarterly payment form
Answer: Primary tax form for individual income tax returns
● What is Taxable Income?
All money received
Income subject to taxation after deductions
Gross income only
Investment returns
Answer: Income subject to taxation after deductions
, ● What is Non-Taxable Income?
All income is taxable
Income exempt from federal income tax
Income over $100,000
Foreign income only
Answer: Income exempt from federal income tax
● What is Schedule C?
Form for reporting capital gains
Form for reporting income or loss from business
Charitable contribution form
Rental income form
Answer: Form for reporting income or loss from business
● What is QBI?
Quarterly Business Income
Qualified Business Income eligible for tax deduction
Quick Business Investment
Quality Business Indicator
Answer: Qualified Business Income eligible for tax deduction
● What are Capital Gains?
Salary increases
Business profits
Profit from the sale of assets or investments
Interest income
Answer: Profit from the sale of assets or investments
● What is Adjusted Gross Income (AGI)?
Total income before any adjustments
Gross income minus specific deductions
Net income after taxes
Investment income only
Answer: Gross income minus specific deductions
● What are Roth IRA Distributions?
Always taxable withdrawals
Tax-free withdrawals from Roth IRA under conditions
Mandatory withdrawals
Penalty withdrawals
Answer: Tax-free withdrawals from Roth IRA under conditions
● What are Above the Line Deductions?
Itemized deductions
Deductions subtracted from gross income to calculate AGI
Business expenses only
Standard deduction
GRADED A PLUS
Determines tax obligations based on personal circumstances
The type of form used
Employment classification
Answer: Determines tax obligations based on personal circumstances
● What is Residency Status?
Where you work
Determines tax liability based on residence location
Your citizenship
Property ownership
Answer: Determines tax liability based on residence location
● What are Eligible Dependents?
All family members
Individuals qualifying for tax benefits under taxpayer
Children only
Elderly parents only
Answer: Individuals qualifying for tax benefits under taxpayer
● What is the W-2 Form?
Business income form
Reports wages and tax withheld from employee's paycheck
Investment income form
Deduction form
Answer: Reports wages and tax withheld from employee's paycheck
● What is the 1040 Form?
Business tax return
Estate tax form
Primary tax form for individual income tax returns
Quarterly payment form
Answer: Primary tax form for individual income tax returns
● What is Taxable Income?
All money received
Income subject to taxation after deductions
Gross income only
Investment returns
Answer: Income subject to taxation after deductions
, ● What is Non-Taxable Income?
All income is taxable
Income exempt from federal income tax
Income over $100,000
Foreign income only
Answer: Income exempt from federal income tax
● What is Schedule C?
Form for reporting capital gains
Form for reporting income or loss from business
Charitable contribution form
Rental income form
Answer: Form for reporting income or loss from business
● What is QBI?
Quarterly Business Income
Qualified Business Income eligible for tax deduction
Quick Business Investment
Quality Business Indicator
Answer: Qualified Business Income eligible for tax deduction
● What are Capital Gains?
Salary increases
Business profits
Profit from the sale of assets or investments
Interest income
Answer: Profit from the sale of assets or investments
● What is Adjusted Gross Income (AGI)?
Total income before any adjustments
Gross income minus specific deductions
Net income after taxes
Investment income only
Answer: Gross income minus specific deductions
● What are Roth IRA Distributions?
Always taxable withdrawals
Tax-free withdrawals from Roth IRA under conditions
Mandatory withdrawals
Penalty withdrawals
Answer: Tax-free withdrawals from Roth IRA under conditions
● What are Above the Line Deductions?
Itemized deductions
Deductions subtracted from gross income to calculate AGI
Business expenses only
Standard deduction
