# Tax Accounting and Finance Questions
Intuit Tax Preparer Final Exam 2025–
2026: Newly Updated Master Review,
over 400 Questions & Correct Answers
— A+ Grade
1. **The net capital gain is taxed at _______ if the married filing jointly taxpayer income
is less than $80,800.**
- 0%
2. **To claim a child as a dependent, they must meet the qualifying child test or
________________.**
- qualifying relative test
3. **Ordinary dividends are taxed at the same rate as __________ income tax rate.**
- ordinary
4. **Distributions from HSA, Archer MSA, or MS MSA are non-taxable when
_________________________________________.**
- spent for qualified medical expenses of your dependent
5. **Which residency status is used when an individual is neither a U.S. citizen nor a
resident alien for tax purposes?**
- Non-resident alien
,6. **_____________ and ____________ are what taxpayers must know to calculate
their tax amount.**
- Taxable income and filing status
7. **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
substantially improve their principal home and a second home.**
- 750,000
8. **__________ reduce the amount of tax due.**
- Tax credits
9. **Which form is for beneficiaries who get income from trusts and estates?**
- Form 1041
10. **___________________ consists of both earned and unearned income that is used
to calculate the tax. It is generally less than adjusted gross income due to the
deductions.**
- Taxable income
11. **To satisfy the Substantial Presence Test, how many minimum days (in the current
year) must you be physically present in the United States?**
- 31
12. **Complete the equation. ___________ = Selling Price - Purchase Price**
- Capital Loss or Capital Gain
13. **_________________ helps sole proprietorships calculate the profit or loss from a
business while also providing the IRS with your total business income and deductions.**
, - Schedule C
14. **What type of deduction is a HSA contribution?**
- Above-the-Line Deduction
Some of the common expenses on which Above-the-Line deductions are available
include:
- Educator expenses
- Early withdrawal penalties of saving accounts
- Moving expenses
- Business expenses
- HSA contributions
- Self-employment tax
- Alimony payments
- Tuition fees
- Contributions to a traditional IRA
- Student loan interest deduction
- Health insurance premiums
- Retirement account contribution
15. **As it applies to compensation income, the general rule for sourcing wages and
personal services income is controlled by ________________________________.**
- where the service is performed
The general rule for sourcing wages and personal services income is controlled by
where the service is performed. The residence of the recipient of the service, the place
of contracting, and the time and place of payment are irrelevant.
, 16. **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.
17. **______________ is used to offset income and payroll taxes for low-income
workers and to provide an incentive to work.**
- Earned Income Tax Credit
Earned Income Tax Credit is used to offset income and payroll taxes for low-income
workers and to provide an incentive to work.
18. **Which is a non-deductible business expense?**
- family vacation
Expenses done for personal and recreational purposes are personal expenses and
are non-deductible.
19. **What amount of upper cap is applicable on business gifts?**
- $25
The upper cap of $25 is applicable on business gifts.
20. **If yearly dividend amounts exceed __________, a Schedule B must be completed
and attached to Form 1040.**
- $1500
Intuit Tax Preparer Final Exam 2025–
2026: Newly Updated Master Review,
over 400 Questions & Correct Answers
— A+ Grade
1. **The net capital gain is taxed at _______ if the married filing jointly taxpayer income
is less than $80,800.**
- 0%
2. **To claim a child as a dependent, they must meet the qualifying child test or
________________.**
- qualifying relative test
3. **Ordinary dividends are taxed at the same rate as __________ income tax rate.**
- ordinary
4. **Distributions from HSA, Archer MSA, or MS MSA are non-taxable when
_________________________________________.**
- spent for qualified medical expenses of your dependent
5. **Which residency status is used when an individual is neither a U.S. citizen nor a
resident alien for tax purposes?**
- Non-resident alien
,6. **_____________ and ____________ are what taxpayers must know to calculate
their tax amount.**
- Taxable income and filing status
7. **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
substantially improve their principal home and a second home.**
- 750,000
8. **__________ reduce the amount of tax due.**
- Tax credits
9. **Which form is for beneficiaries who get income from trusts and estates?**
- Form 1041
10. **___________________ consists of both earned and unearned income that is used
to calculate the tax. It is generally less than adjusted gross income due to the
deductions.**
- Taxable income
11. **To satisfy the Substantial Presence Test, how many minimum days (in the current
year) must you be physically present in the United States?**
- 31
12. **Complete the equation. ___________ = Selling Price - Purchase Price**
- Capital Loss or Capital Gain
13. **_________________ helps sole proprietorships calculate the profit or loss from a
business while also providing the IRS with your total business income and deductions.**
, - Schedule C
14. **What type of deduction is a HSA contribution?**
- Above-the-Line Deduction
Some of the common expenses on which Above-the-Line deductions are available
include:
- Educator expenses
- Early withdrawal penalties of saving accounts
- Moving expenses
- Business expenses
- HSA contributions
- Self-employment tax
- Alimony payments
- Tuition fees
- Contributions to a traditional IRA
- Student loan interest deduction
- Health insurance premiums
- Retirement account contribution
15. **As it applies to compensation income, the general rule for sourcing wages and
personal services income is controlled by ________________________________.**
- where the service is performed
The general rule for sourcing wages and personal services income is controlled by
where the service is performed. The residence of the recipient of the service, the place
of contracting, and the time and place of payment are irrelevant.
, 16. **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.
17. **______________ is used to offset income and payroll taxes for low-income
workers and to provide an incentive to work.**
- Earned Income Tax Credit
Earned Income Tax Credit is used to offset income and payroll taxes for low-income
workers and to provide an incentive to work.
18. **Which is a non-deductible business expense?**
- family vacation
Expenses done for personal and recreational purposes are personal expenses and
are non-deductible.
19. **What amount of upper cap is applicable on business gifts?**
- $25
The upper cap of $25 is applicable on business gifts.
20. **If yearly dividend amounts exceed __________, a Schedule B must be completed
and attached to Form 1040.**
- $1500
