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Intuit Academy Tax Level 1 Exam
2026 – Complete Study Guide &
Practice Questions with
Rationales
Prepare for the Intuit Academy Tax Level 1 Exam with
practice questions, verified answers, and detailed
rationales. Covers federal individual tax return
fundamentals: filing status, dependents, W-2/1099
income, deductions, credits, self-employment, and
compliance. This 18-hour course prepares candidates for
TurboTax Tax Specialist roles. Updated for 2026 tax year.
Includes scenario-based questions for practical
application.
Question 1: Which of the following is a requirement to file as Head of Household?
A. Must be married as of the end of the tax year
B. Must pay more than half the cost of keeping up a home
C. Must have no dependents
D. Must have lived outside the United States for the entire year
Answer: B. Must pay more than half the cost of keeping up a home
Rationale: To qualify for Head of Household filing status, a taxpayer must be
unmarried or considered unmarried, must have paid more than half the cost of
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maintaining a household for the tax year, and must have a qualifying person who lived
with them for more than half the year.
Question 2: What is the standard deduction amount for a single taxpayer in tax year
2024?
A. $12,950
B. $13,850
C. $14,600
D. $15,200
Answer: C. $14,600
Rationale: For tax year 2024, the standard deduction for a single filer is $14,600. This
amount is adjusted annually for inflation by the IRS.
Question 3: Which form is used to report wage income from an employer?
A. Form 1099-INT
B. Form W-2
C. Form 1098
D. Form 1099-DIV
Answer: B. Form W-2
Rationale: Form W-2 is the Wage and Tax Statement provided by employers to report
wages paid and taxes withheld. Form 1099-INT reports interest income, Form 1098
reports mortgage interest, and Form 1099-DIV reports dividend income.
Question 4: At what age must an individual generally begin taking Required
Minimum Distributions from a traditional IRA?
A. 59 1/2
B. 65
C. 72
D. 73
Answer: D. 73
Rationale: Under the SECURE 2.0 Act, the Required Minimum Distribution age for
traditional IRAs is 73 for individuals who reach age 72 after December 31, 2022. The
age was previously 72 and before that 70 1/2.
Question 5: Which of the following is considered taxable income?
A. Child support payments received
B. Life insurance proceeds from a death benefit
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C. Interest earned on a savings account
D. Qualified Roth IRA distributions
Answer: C. Interest earned on a savings account
Rationale: Interest earned on a savings account is fully taxable as ordinary income.
Child support payments, life insurance death benefits, and qualified Roth IRA
distributions are generally not taxable.
Question 6: What is the maximum Earned Income Tax Credit for a taxpayer with three
or more qualifying children in 2024?
A. $3,995
B. $6,604
C. $7,430
D. $8,150
Answer: C. $7,430
Rationale: For tax year 2024, the maximum Earned Income Tax Credit for a taxpayer
with three or more qualifying children is $7,430. The credit amount varies based on
income and number of qualifying children.
Question 7: Which of the following best describes a qualifying child for dependency
purposes?
A. Must be related to the taxpayer and under age 19 or a full-time student under age
24
B. Must be a U.S. citizen regardless of residency
C. Must have gross income less than $5,000
D. Must live with the taxpayer for the entire tax year
Answer: A. Must be related to the taxpayer and under age 19 or a full-time
student under age 24
Rationale: A qualifying child must meet relationship, age, residency, and support tests.
The child must be under age 19 at year end or under age 24 if a full-time student, and
must have lived with the taxpayer for more than half the year.
Question 8: What is the additional standard deduction amount for a single taxpayer
who is age 65 or older in 2024?
A. $1,300
B. $1,550
C. $1,950
D. $2,100
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Answer: C. $1,950
Rationale: For tax year 2024, a single taxpayer who is age 65 or older may claim an
additional standard deduction of $1,950. Married taxpayers age 65 or older may claim
$1,550 each.
Question 9: Which of the following credits is refundable?
A. Lifetime Learning Credit
B. Child and Dependent Care Credit
C. American Opportunity Tax Credit
D. Adoption Credit
Answer: C. American Opportunity Tax Credit
Rationale: The American Opportunity Tax Credit is partially refundable, allowing
taxpayers to receive up to $1,000 as a refund even if they owe no tax. The Lifetime
Learning Credit, Child and Dependent Care Credit, and Adoption Credit are
nonrefundable.
Question 10: How long must a taxpayer keep records supporting a tax return claim
according to the general IRS recommendation?
A. 1 year
B. 3 years
C. 5 years
D. 7 years
Answer: B. 3 years
Rationale: The general IRS recommendation is to keep tax records for three years from
the date the return was filed or the due date, whichever is later. This corresponds to the
standard three-year statute of limitations for audits.
Question 11: Which of the following is an adjustment to income rather than an
itemized deduction?
A. Mortgage interest
B. State and local taxes
C. Student loan interest
D. Charitable contributions
Answer: C. Student loan interest
Rationale: Student loan interest is an adjustment to income, also known as an above-
the-line deduction, which reduces gross income to arrive at adjusted gross income.
Intuit Academy Tax Level 1 Exam
2026 – Complete Study Guide &
Practice Questions with
Rationales
Prepare for the Intuit Academy Tax Level 1 Exam with
practice questions, verified answers, and detailed
rationales. Covers federal individual tax return
fundamentals: filing status, dependents, W-2/1099
income, deductions, credits, self-employment, and
compliance. This 18-hour course prepares candidates for
TurboTax Tax Specialist roles. Updated for 2026 tax year.
Includes scenario-based questions for practical
application.
Question 1: Which of the following is a requirement to file as Head of Household?
A. Must be married as of the end of the tax year
B. Must pay more than half the cost of keeping up a home
C. Must have no dependents
D. Must have lived outside the United States for the entire year
Answer: B. Must pay more than half the cost of keeping up a home
Rationale: To qualify for Head of Household filing status, a taxpayer must be
unmarried or considered unmarried, must have paid more than half the cost of
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maintaining a household for the tax year, and must have a qualifying person who lived
with them for more than half the year.
Question 2: What is the standard deduction amount for a single taxpayer in tax year
2024?
A. $12,950
B. $13,850
C. $14,600
D. $15,200
Answer: C. $14,600
Rationale: For tax year 2024, the standard deduction for a single filer is $14,600. This
amount is adjusted annually for inflation by the IRS.
Question 3: Which form is used to report wage income from an employer?
A. Form 1099-INT
B. Form W-2
C. Form 1098
D. Form 1099-DIV
Answer: B. Form W-2
Rationale: Form W-2 is the Wage and Tax Statement provided by employers to report
wages paid and taxes withheld. Form 1099-INT reports interest income, Form 1098
reports mortgage interest, and Form 1099-DIV reports dividend income.
Question 4: At what age must an individual generally begin taking Required
Minimum Distributions from a traditional IRA?
A. 59 1/2
B. 65
C. 72
D. 73
Answer: D. 73
Rationale: Under the SECURE 2.0 Act, the Required Minimum Distribution age for
traditional IRAs is 73 for individuals who reach age 72 after December 31, 2022. The
age was previously 72 and before that 70 1/2.
Question 5: Which of the following is considered taxable income?
A. Child support payments received
B. Life insurance proceeds from a death benefit
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C. Interest earned on a savings account
D. Qualified Roth IRA distributions
Answer: C. Interest earned on a savings account
Rationale: Interest earned on a savings account is fully taxable as ordinary income.
Child support payments, life insurance death benefits, and qualified Roth IRA
distributions are generally not taxable.
Question 6: What is the maximum Earned Income Tax Credit for a taxpayer with three
or more qualifying children in 2024?
A. $3,995
B. $6,604
C. $7,430
D. $8,150
Answer: C. $7,430
Rationale: For tax year 2024, the maximum Earned Income Tax Credit for a taxpayer
with three or more qualifying children is $7,430. The credit amount varies based on
income and number of qualifying children.
Question 7: Which of the following best describes a qualifying child for dependency
purposes?
A. Must be related to the taxpayer and under age 19 or a full-time student under age
24
B. Must be a U.S. citizen regardless of residency
C. Must have gross income less than $5,000
D. Must live with the taxpayer for the entire tax year
Answer: A. Must be related to the taxpayer and under age 19 or a full-time
student under age 24
Rationale: A qualifying child must meet relationship, age, residency, and support tests.
The child must be under age 19 at year end or under age 24 if a full-time student, and
must have lived with the taxpayer for more than half the year.
Question 8: What is the additional standard deduction amount for a single taxpayer
who is age 65 or older in 2024?
A. $1,300
B. $1,550
C. $1,950
D. $2,100
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Answer: C. $1,950
Rationale: For tax year 2024, a single taxpayer who is age 65 or older may claim an
additional standard deduction of $1,950. Married taxpayers age 65 or older may claim
$1,550 each.
Question 9: Which of the following credits is refundable?
A. Lifetime Learning Credit
B. Child and Dependent Care Credit
C. American Opportunity Tax Credit
D. Adoption Credit
Answer: C. American Opportunity Tax Credit
Rationale: The American Opportunity Tax Credit is partially refundable, allowing
taxpayers to receive up to $1,000 as a refund even if they owe no tax. The Lifetime
Learning Credit, Child and Dependent Care Credit, and Adoption Credit are
nonrefundable.
Question 10: How long must a taxpayer keep records supporting a tax return claim
according to the general IRS recommendation?
A. 1 year
B. 3 years
C. 5 years
D. 7 years
Answer: B. 3 years
Rationale: The general IRS recommendation is to keep tax records for three years from
the date the return was filed or the due date, whichever is later. This corresponds to the
standard three-year statute of limitations for audits.
Question 11: Which of the following is an adjustment to income rather than an
itemized deduction?
A. Mortgage interest
B. State and local taxes
C. Student loan interest
D. Charitable contributions
Answer: C. Student loan interest
Rationale: Student loan interest is an adjustment to income, also known as an above-
the-line deduction, which reduces gross income to arrive at adjusted gross income.
