Intuit Academy Tax Level 1 Comprehensive Resource To Help You Ace 2026-2027 Exams
Includes Frequently Tested Questions With ELABORATED 100% Correct COMPLETE SOLUTIONS
Guaranteed Pass First Attempt!! Current Update!!
Below the line deductions include Standard deduction
Eligible educators can deduct up to of qualified
$250
expenses paid during the tax year.
Which of the following is an ineligible medical expense for
Breast enhancement
HSA, Archer MSA, and MA MSA?
The net capital gain is taxed at if the married
0%
filing jointly taxpayer income is less than $80,800.
To claim a child as a dependent, they must meet the
qualifying relative test
qualifying child test or .
Ordinary dividends are taxed at the same rate as
ordinary
income tax rate.
Distributions from HSA, Archer MSA,
or MS MSA are non-taxable when spent for qualified medical expenses of your dependent
.
Which residency status is used when an individual is nei-
Non-resident alien
ther a U.S. citizen nor a resident alien for tax purposes?
and are what taxpayers
Taxable income and filing status
must know to calculate their tax amount.
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 750,000
substantially improve their principal home and a second
home.
reduce the amount of tax due. Tax credits
Which form is for beneficiaries who get income from
Form 1041
trusts and estates?
consists of both earned and un-
earned income that is used to calculate the tax. It is gen-
,erally less than adjusted gross income due to the deduc-
Taxable income
tions.
To satisfy the Substantial Presence Test, how many min-
imum days (in the current year) must you be physically 31
present in the United States?
Complete the equation. = Selling Price -
Capital Loss or Capital Gain
Purchase Price
helps sole proprietorships calculate
the profit or loss from a business while also providing the Schedule C
IRS with your total business income and deductions.
Above-the-Line Deduction Some of the common expens-
es on which Above-the-Line deductions are available in-
clude:
Educator expenses
Early withdrawal penalties of saving accounts
Moving expenses
Business expenses
What type of deduction is a HSA contribution? HSA contributions
Self-employment tax
Alimony payments
Tuition fees
Contributions to a traditional IRA
Student loan interest deduction
Health insurance premiums
Retirement account contribution
where the service is performed The general rule for sourc-
As it applies to compensation income, the general rule ing wages and personal services income is controlled
for sourcing wages and personal services income is con- by where the service is performed. The residence of the
trolled by . recipient of the service, the place of contracting, and the
time and place of payment are irrelevant.
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.
is used to ottset income and payroll Earned Income Tax Credit Earned Income Tax Credit is
taxes for low-income workers and to provide an incentive used to ottset income and payroll taxes for low-income
to work. workers and to provide an incentive to work.
family vacation Expenses done for personal and recre-
Which is a non-deductible business expense? ational purposes are personal expenses and are non-de-
ductible.
What amount of upper cap is applicable on business gifts? $25 The upper cap of $25 is applicable on business gifts.
If yearly dividend amounts exceed , a Sched- $1500 If yearly dividend amounts exceed $1500, a Sched-
ule B must be completed and attached to Form 1040. ule B must be completed and attached.
five There are five filing statuses.
Single
Married Filing Jointly
The are filing statuses.
Married Filing Separately
Head of Household
Qualifying Widow(er)
$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
Taxpayers can claim a Child Tax Credit of up to
under the age of 5 and $3,000 for those ages 6 to 17.
for each child under age 17 in 2021(2022).
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).
Schedule E includes supplemental 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
includes supplemental income and Income or Loss from Estates and Trusts, and
loss. Income or Loss from Real Estate Mortgage Investment
Conduits (REMICs)
Payments and refundable credits are listed between what
Lines 25 through 30 are payments and refundable credits.
lines on Form 1040?
A partnership files a tax return on . A partnership files a tax return on Form 1065.
Which of the following is not a requirement for S-Corpo- Being an international entity is not a requirement for
ration election? S-Corporation election.
generally have to make estimated tax Corporations generally have to make estimated tax pay-
payments if they expect to owe tax of $500 or more when ments if they expect to owe tax of $500 or more when their
their return is filed. return is filed.
Child and Dependent Care Credit Nonrefundable tax cred-
Which is not a nonrefundable tax credit? (Select all that its include:
apply) Child Tax Credit/Credit for Other Dependents
Adoption Credit
Social Security benefits can be taxed to a maximum of Up to 85% of your Social Security income is taxed if you
% based on the beneficiary's annual in- receive income from other sources and your combined
come. income is more than a certain base amount.
Which factor does not limit QBI components of QBI de-
reported on Schedule C
duction?
An individual filing as Married Filing Separately and the
Who cannot take the standard deduction? (select all that spouse itemizes An individual filing a return for a short tax
apply) year due to a change in the annual accounting period A
nonresident or dual-status alien during the year
employment wages Miscellaneous income can include
What type of payment is not considered miscellaneous? payments in the form of rents received, royalties, medical
and health care, crop insurance proceeds, refund or cred-
Includes Frequently Tested Questions With ELABORATED 100% Correct COMPLETE SOLUTIONS
Guaranteed Pass First Attempt!! Current Update!!
Below the line deductions include Standard deduction
Eligible educators can deduct up to of qualified
$250
expenses paid during the tax year.
Which of the following is an ineligible medical expense for
Breast enhancement
HSA, Archer MSA, and MA MSA?
The net capital gain is taxed at if the married
0%
filing jointly taxpayer income is less than $80,800.
To claim a child as a dependent, they must meet the
qualifying relative test
qualifying child test or .
Ordinary dividends are taxed at the same rate as
ordinary
income tax rate.
Distributions from HSA, Archer MSA,
or MS MSA are non-taxable when spent for qualified medical expenses of your dependent
.
Which residency status is used when an individual is nei-
Non-resident alien
ther a U.S. citizen nor a resident alien for tax purposes?
and are what taxpayers
Taxable income and filing status
must know to calculate their tax amount.
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 750,000
substantially improve their principal home and a second
home.
reduce the amount of tax due. Tax credits
Which form is for beneficiaries who get income from
Form 1041
trusts and estates?
consists of both earned and un-
earned income that is used to calculate the tax. It is gen-
,erally less than adjusted gross income due to the deduc-
Taxable income
tions.
To satisfy the Substantial Presence Test, how many min-
imum days (in the current year) must you be physically 31
present in the United States?
Complete the equation. = Selling Price -
Capital Loss or Capital Gain
Purchase Price
helps sole proprietorships calculate
the profit or loss from a business while also providing the Schedule C
IRS with your total business income and deductions.
Above-the-Line Deduction Some of the common expens-
es on which Above-the-Line deductions are available in-
clude:
Educator expenses
Early withdrawal penalties of saving accounts
Moving expenses
Business expenses
What type of deduction is a HSA contribution? HSA contributions
Self-employment tax
Alimony payments
Tuition fees
Contributions to a traditional IRA
Student loan interest deduction
Health insurance premiums
Retirement account contribution
where the service is performed The general rule for sourc-
As it applies to compensation income, the general rule ing wages and personal services income is controlled
for sourcing wages and personal services income is con- by where the service is performed. The residence of the
trolled by . recipient of the service, the place of contracting, and the
time and place of payment are irrelevant.
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.
is used to ottset income and payroll Earned Income Tax Credit Earned Income Tax Credit is
taxes for low-income workers and to provide an incentive used to ottset income and payroll taxes for low-income
to work. workers and to provide an incentive to work.
family vacation Expenses done for personal and recre-
Which is a non-deductible business expense? ational purposes are personal expenses and are non-de-
ductible.
What amount of upper cap is applicable on business gifts? $25 The upper cap of $25 is applicable on business gifts.
If yearly dividend amounts exceed , a Sched- $1500 If yearly dividend amounts exceed $1500, a Sched-
ule B must be completed and attached to Form 1040. ule B must be completed and attached.
five There are five filing statuses.
Single
Married Filing Jointly
The are filing statuses.
Married Filing Separately
Head of Household
Qualifying Widow(er)
$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
Taxpayers can claim a Child Tax Credit of up to
under the age of 5 and $3,000 for those ages 6 to 17.
for each child under age 17 in 2021(2022).
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).
Schedule E includes supplemental 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
includes supplemental income and Income or Loss from Estates and Trusts, and
loss. Income or Loss from Real Estate Mortgage Investment
Conduits (REMICs)
Payments and refundable credits are listed between what
Lines 25 through 30 are payments and refundable credits.
lines on Form 1040?
A partnership files a tax return on . A partnership files a tax return on Form 1065.
Which of the following is not a requirement for S-Corpo- Being an international entity is not a requirement for
ration election? S-Corporation election.
generally have to make estimated tax Corporations generally have to make estimated tax pay-
payments if they expect to owe tax of $500 or more when ments if they expect to owe tax of $500 or more when their
their return is filed. return is filed.
Child and Dependent Care Credit Nonrefundable tax cred-
Which is not a nonrefundable tax credit? (Select all that its include:
apply) Child Tax Credit/Credit for Other Dependents
Adoption Credit
Social Security benefits can be taxed to a maximum of Up to 85% of your Social Security income is taxed if you
% based on the beneficiary's annual in- receive income from other sources and your combined
come. income is more than a certain base amount.
Which factor does not limit QBI components of QBI de-
reported on Schedule C
duction?
An individual filing as Married Filing Separately and the
Who cannot take the standard deduction? (select all that spouse itemizes An individual filing a return for a short tax
apply) year due to a change in the annual accounting period A
nonresident or dual-status alien during the year
employment wages Miscellaneous income can include
What type of payment is not considered miscellaneous? payments in the form of rents received, royalties, medical
and health care, crop insurance proceeds, refund or cred-
