INTUIT TAX LEVEL 1 COMPREHENSIVE EXAM UPDATED ACTUAL QUESTIONS AND CORRECT ANSWERS

INTUIT TAX LEVEL 1 COMPREHENSIVE EXAM UPDATED
ACTUAL QUESTIONS AND CORRECT ANSWERS

Question:
What is the name of the tax form that individuals use to file their annual income tax
return?
Answer:
IRS 1040

Question:
How many variations of the 1040 are there? Name them.
Answer:
4:
Form 1040 Form 1040-SR (seniors) Form 1040-NR (non-U.S. citizens) Form 1040-X
(amendments)

Question:
What does Schedule 1 of form 1040 include?
Answer:
Additional Income and Adjustments to Income

Question:
What does Schedule A of form 1040 include?
Answer:
Itemized Deductions

Question:
What does Schedule B of form 1040 include?
Answer:
Taxable interest and ordinary dividends totaling more than $1,500

Question:
What does Schedule D of form 1040 include?
Answer:
Capital Gains and Losses

Question:
What does Schedule C of form 1040 include?
Answer:
Profit or Loss from Business

Question:
What does Schedule SE of form 1040 include?
Answer:
Self-Employment Tax

, Question:
What does Schedule E of form 1040 include?
Answer:
Supplemental Income and Loss Ex: Income from properties or real estate investments

Question:
What does Schedule EIC of form 1040 include?
Answer:
Earned Income Credit Applies to taxpayers who claimed the earned income credit for a
qualifying child

Question:
What does Schedule 8812 of form 1040 include?
Answer:
Additional Child Tax Credit

Question:
What are the 5 most common mistakes on Form 1040?
Answer:
1. Misclassifying Income
2. Inaccurate Filing Status
3. Schedule not included
4. Information not carried forward
5. Misuse of a social security number

Question:
What is considered to be "taxable interest" on line 2b?
Answer:
Interest accrued from savings accounts, personal loans, CDs, and annuity contracts

Question:
What is the Child Tax Credit? How much per qualifying child?
Answer:
Credit for children under the age of 17 as of the end of the year. For 2023, the credit was
$2,000 per qualifying child.

Question:
What amount of net capital losses can be deducted against ordinary income in a given
year? How much can be carried forward and for how long?
Answer:
Up to $3,000 of net capital losses can be used in the current year. Anything in excess of
$3,000 can be carried forward indefinitely until the amount is exhausted.