INTUIT ACADEMY TAX LEVEL 1 – 250 ORIGINAL EXAM-STYLE
PRACTICE QUESTIONS | 2026 EDITION
Original practice questions aligned to Intuit Academy's current foundational federal tax topics. This is not official Intuit exam content and does not guarantee a
passing score.
Income Adjustments AGI Deductions Taxable Income
1. On December 31, which factor generally controls a taxpayer's filing status?
■ The taxpayer's marital and family situation at year-end
• The taxpayer's job title
• The taxpayer's bank balance
• The month the return is prepared
2. Which filing status may generally apply to an unmarried taxpayer who pays more than half the cost of keeping up a
home for a qualifying person?
• Corporate filing status
■ Head of Household
• Married Filing Separately
• Joint filing by default
3. What is the primary federal form used by most individual taxpayers to report income and calculate federal income tax?
• Form 1099-NEC
• Schedule C only
■ Form 1040
• Form W-2
4. Which document generally reports an employee's annual wages and federal income tax withholding?
• Form 1099-INT
• Form 1098
• Schedule K-1
■ Form W-2
5. Taxable interest is commonly reported to the taxpayer on which information return?
■ Form 1099-INT
• Form W-2
• Form 1099-R
• Form 1099-SA
6. Which form commonly reports dividends paid to an investor?
• Form 1099-SA
■ Form 1099-DIV
• Form 1099-NEC
• Form 1098-E
,7. Adjusted Gross Income is generally determined before subtracting which item?
• Taxable interest
• Total income adjustments
■ The standard or itemized deduction
• Wages
8. A taxpayer generally compares the standard deduction with what alternative?
• Payroll withholding
• Estimated payments
• Tax credits
■ Itemized deductions
Basic Individual Return Flow
Income
AGI → Deductions → Taxable Income → Tax
9. What is the basic distinction between a deduction and a tax credit?
■ A credit generally reduces tax while a deduction generally reduces taxable income
• They are always identical
• A deduction is a payment from the IRS
• A credit always increases AGI
10. Which factor can be relevant in determining whether a person qualifies as a dependent?
• Only whether the person has a bank account
■ Relationship, residency, support, and other applicable tests
• Only the person's favorite school
• Only the taxpayer's age
11. The Earned Income Tax Credit is aimed primarily at qualifying taxpayers with what type of income?
• Only gifts
• Only inheritances
■ Earned income, subject to eligibility rules
• Only municipal bond interest
12. Which schedule or form is associated with credits for qualifying children and other dependents?
• Schedule A
• Schedule D
• Form 4562
■ Schedule 8812
13. A retirement-account distribution may be reported on which information return?
■ Form 1099-R
• Form W-2
• Form 1099-G only
• Form 1099-K only
,14. Capital gain or loss is generally determined by comparing sale proceeds with what?
• Filing fee
■ Adjusted basis
• Payroll tax
• Standard deduction
15. Schedule D is primarily associated with which topic?
• Foreign accounts
• Payroll withholding
■ Capital gains and losses
• Self-employment tax
16. Which type of item may appear on Schedule 1?
• Only Social Security numbers
• Only mortgage principal
• Only sales tax receipts
■ Certain additional income and adjustments to income
1040 Income Credits & Payments
17. Whether Social Security benefits are taxable can depend on other income and filing circumstances.
■ True
• False
• Only occupation matters
• Only state residence matters
18. The standard deduction is generally considered after AGI when determining taxable income, subject to applicable
rules.
• It never affects taxable income
■ True
• False
• Only corporations may use it
19. Federal income tax withheld from wages is generally treated as what on the return?
• A credit that always creates a refund
• A capital gain
■ A payment toward tax liability
• A deduction from gross income
, 20. A refund generally occurs when allowable payments and refundable credits exceed what?
• Gross income
• Total deductions
• The standard deduction only
■ Total tax liability
21. A balance due may occur when total tax exceeds payments and allowable refundable credits.
■ True
• False
• Only if the taxpayer itemizes
• Only if there is no W-2
22. Which sequence best describes the basic federal income-tax calculation?
• Withholding → basis → AGI
■ Income → adjustments → AGI → deductions → taxable income
• Deductions → wages → AGI → payments
• Refund → gross income → credits
23. Why is accurate taxpayer identification information important?
• It determines occupation
• It eliminates filing requirements
■ It helps match the return and information documents to the correct taxpayer
• It replaces income records
24. For many dependent-related rules, residency during the tax year can be relevant.
• False
• Residency never matters
• Only foreign residency matters
■ True
25. When facts or documents are incomplete or inconsistent, a preparer should generally ask appropriate follow-up
questions.
■ True
• False
• Guess the missing facts
• Ignore conflicting documents
PRACTICE QUESTIONS | 2026 EDITION
Original practice questions aligned to Intuit Academy's current foundational federal tax topics. This is not official Intuit exam content and does not guarantee a
passing score.
Income Adjustments AGI Deductions Taxable Income
1. On December 31, which factor generally controls a taxpayer's filing status?
■ The taxpayer's marital and family situation at year-end
• The taxpayer's job title
• The taxpayer's bank balance
• The month the return is prepared
2. Which filing status may generally apply to an unmarried taxpayer who pays more than half the cost of keeping up a
home for a qualifying person?
• Corporate filing status
■ Head of Household
• Married Filing Separately
• Joint filing by default
3. What is the primary federal form used by most individual taxpayers to report income and calculate federal income tax?
• Form 1099-NEC
• Schedule C only
■ Form 1040
• Form W-2
4. Which document generally reports an employee's annual wages and federal income tax withholding?
• Form 1099-INT
• Form 1098
• Schedule K-1
■ Form W-2
5. Taxable interest is commonly reported to the taxpayer on which information return?
■ Form 1099-INT
• Form W-2
• Form 1099-R
• Form 1099-SA
6. Which form commonly reports dividends paid to an investor?
• Form 1099-SA
■ Form 1099-DIV
• Form 1099-NEC
• Form 1098-E
,7. Adjusted Gross Income is generally determined before subtracting which item?
• Taxable interest
• Total income adjustments
■ The standard or itemized deduction
• Wages
8. A taxpayer generally compares the standard deduction with what alternative?
• Payroll withholding
• Estimated payments
• Tax credits
■ Itemized deductions
Basic Individual Return Flow
Income
AGI → Deductions → Taxable Income → Tax
9. What is the basic distinction between a deduction and a tax credit?
■ A credit generally reduces tax while a deduction generally reduces taxable income
• They are always identical
• A deduction is a payment from the IRS
• A credit always increases AGI
10. Which factor can be relevant in determining whether a person qualifies as a dependent?
• Only whether the person has a bank account
■ Relationship, residency, support, and other applicable tests
• Only the person's favorite school
• Only the taxpayer's age
11. The Earned Income Tax Credit is aimed primarily at qualifying taxpayers with what type of income?
• Only gifts
• Only inheritances
■ Earned income, subject to eligibility rules
• Only municipal bond interest
12. Which schedule or form is associated with credits for qualifying children and other dependents?
• Schedule A
• Schedule D
• Form 4562
■ Schedule 8812
13. A retirement-account distribution may be reported on which information return?
■ Form 1099-R
• Form W-2
• Form 1099-G only
• Form 1099-K only
,14. Capital gain or loss is generally determined by comparing sale proceeds with what?
• Filing fee
■ Adjusted basis
• Payroll tax
• Standard deduction
15. Schedule D is primarily associated with which topic?
• Foreign accounts
• Payroll withholding
■ Capital gains and losses
• Self-employment tax
16. Which type of item may appear on Schedule 1?
• Only Social Security numbers
• Only mortgage principal
• Only sales tax receipts
■ Certain additional income and adjustments to income
1040 Income Credits & Payments
17. Whether Social Security benefits are taxable can depend on other income and filing circumstances.
■ True
• False
• Only occupation matters
• Only state residence matters
18. The standard deduction is generally considered after AGI when determining taxable income, subject to applicable
rules.
• It never affects taxable income
■ True
• False
• Only corporations may use it
19. Federal income tax withheld from wages is generally treated as what on the return?
• A credit that always creates a refund
• A capital gain
■ A payment toward tax liability
• A deduction from gross income
, 20. A refund generally occurs when allowable payments and refundable credits exceed what?
• Gross income
• Total deductions
• The standard deduction only
■ Total tax liability
21. A balance due may occur when total tax exceeds payments and allowable refundable credits.
■ True
• False
• Only if the taxpayer itemizes
• Only if there is no W-2
22. Which sequence best describes the basic federal income-tax calculation?
• Withholding → basis → AGI
■ Income → adjustments → AGI → deductions → taxable income
• Deductions → wages → AGI → payments
• Refund → gross income → credits
23. Why is accurate taxpayer identification information important?
• It determines occupation
• It eliminates filing requirements
■ It helps match the return and information documents to the correct taxpayer
• It replaces income records
24. For many dependent-related rules, residency during the tax year can be relevant.
• False
• Residency never matters
• Only foreign residency matters
■ True
25. When facts or documents are incomplete or inconsistent, a preparer should generally ask appropriate follow-up
questions.
■ True
• False
• Guess the missing facts
• Ignore conflicting documents
