INTUIT ACADEMY TAX LEVEL 1 EXAM —
NEWEST UPDATED (2026-2027) COMPLETE
APPROVED INTUIT ACADEMY TAX LEVEL 1
FINAL EXAM |ORIGINAL PRACTICE
EXAMINATION | 200+ MULTIPLE-CHOICE
QUESTIONS| 100% VERIFIED ANSWERS|
DETAILED RATIONALES| GUARANTEED PASS
GRADE
1. What is the primary purpose of a Form W-2?
A. Report self-employment income
B. Report wages and certain employment-related information
C. Report investment gains
D. Report mortgage interest
Correct Answer: B. Report wages and certain employment-related
information
Rationale: Form W-2 reports an employee's wages, federal income-tax
withholding, Social Security and Medicare wages, and related
information to the employee and the IRS.
2. Which form is generally used to report interest income received
by a taxpayer?
A. Form 1099-INT
B. Form W-2
, C. Form 1098
D. Form 5498
Correct Answer: A. Form 1099-INT
Rationale: Form 1099-INT is generally used by payers to report
taxable interest paid during the year.
3. What does filing status primarily determine?
A. The taxpayer's Social Security number
B. The taxpayer's tax rate structure and standard deduction
C. The taxpayer's employer
D. The taxpayer's bank account
Correct Answer: B. The taxpayer's tax rate structure and standard
deduction
Rationale: Filing status affects applicable tax brackets, standard
deduction amounts, and eligibility for certain tax benefits.
4. Which taxpayer generally uses Single filing status?
A. A taxpayer who is unmarried and does not qualify for another
filing status
B. A married taxpayer filing jointly
C. A qualifying surviving spouse
D. A married taxpayer who elects to file separately
,Correct Answer: A. A taxpayer who is unmarried and does not qualify
for another filing status
Rationale: Single status generally applies to unmarried taxpayers who
do not qualify for another filing status.
5. What is the main difference between gross income and taxable
income?
A. Gross income is always lower
B. Taxable income reflects applicable adjustments and deductions
from income
C. Taxable income includes only wages
D. Gross income excludes investment income
Correct Answer: B. Taxable income reflects applicable adjustments
and deductions from income
Rationale: Taxable income is generally determined after applying
allowable adjustments and deductions to the taxpayer's income.
6. Which document commonly reports unemployment
compensation?
A. Form 1099-G
B. Form W-4
C. Form 1098-E
D. Form 5498
, Correct Answer: A. Form 1099-G
Rationale: Form 1099-G is commonly used to report certain
government payments, including unemployment compensation.
7. What is the purpose of Form W-4?
A. To report annual wages
B. To tell an employer how much federal income tax to withhold
C. To claim a tax refund
D. To report retirement distributions
Correct Answer: B. To tell an employer how much federal income tax
to withhold
Rationale: Employees complete Form W-4 so employers can determine
appropriate federal income-tax withholding from paychecks.
8. Which form is commonly associated with mortgage interest paid?
A. Form 1098
B. Form 1099-DIV
C. Form W-2
D. Form 1099-MISC
Correct Answer: A. Form 1098
Rationale: Mortgage lenders generally use Form 1098 to report
qualifying mortgage interest received from borrowers.
NEWEST UPDATED (2026-2027) COMPLETE
APPROVED INTUIT ACADEMY TAX LEVEL 1
FINAL EXAM |ORIGINAL PRACTICE
EXAMINATION | 200+ MULTIPLE-CHOICE
QUESTIONS| 100% VERIFIED ANSWERS|
DETAILED RATIONALES| GUARANTEED PASS
GRADE
1. What is the primary purpose of a Form W-2?
A. Report self-employment income
B. Report wages and certain employment-related information
C. Report investment gains
D. Report mortgage interest
Correct Answer: B. Report wages and certain employment-related
information
Rationale: Form W-2 reports an employee's wages, federal income-tax
withholding, Social Security and Medicare wages, and related
information to the employee and the IRS.
2. Which form is generally used to report interest income received
by a taxpayer?
A. Form 1099-INT
B. Form W-2
, C. Form 1098
D. Form 5498
Correct Answer: A. Form 1099-INT
Rationale: Form 1099-INT is generally used by payers to report
taxable interest paid during the year.
3. What does filing status primarily determine?
A. The taxpayer's Social Security number
B. The taxpayer's tax rate structure and standard deduction
C. The taxpayer's employer
D. The taxpayer's bank account
Correct Answer: B. The taxpayer's tax rate structure and standard
deduction
Rationale: Filing status affects applicable tax brackets, standard
deduction amounts, and eligibility for certain tax benefits.
4. Which taxpayer generally uses Single filing status?
A. A taxpayer who is unmarried and does not qualify for another
filing status
B. A married taxpayer filing jointly
C. A qualifying surviving spouse
D. A married taxpayer who elects to file separately
,Correct Answer: A. A taxpayer who is unmarried and does not qualify
for another filing status
Rationale: Single status generally applies to unmarried taxpayers who
do not qualify for another filing status.
5. What is the main difference between gross income and taxable
income?
A. Gross income is always lower
B. Taxable income reflects applicable adjustments and deductions
from income
C. Taxable income includes only wages
D. Gross income excludes investment income
Correct Answer: B. Taxable income reflects applicable adjustments
and deductions from income
Rationale: Taxable income is generally determined after applying
allowable adjustments and deductions to the taxpayer's income.
6. Which document commonly reports unemployment
compensation?
A. Form 1099-G
B. Form W-4
C. Form 1098-E
D. Form 5498
, Correct Answer: A. Form 1099-G
Rationale: Form 1099-G is commonly used to report certain
government payments, including unemployment compensation.
7. What is the purpose of Form W-4?
A. To report annual wages
B. To tell an employer how much federal income tax to withhold
C. To claim a tax refund
D. To report retirement distributions
Correct Answer: B. To tell an employer how much federal income tax
to withhold
Rationale: Employees complete Form W-4 so employers can determine
appropriate federal income-tax withholding from paychecks.
8. Which form is commonly associated with mortgage interest paid?
A. Form 1098
B. Form 1099-DIV
C. Form W-2
D. Form 1099-MISC
Correct Answer: A. Form 1098
Rationale: Mortgage lenders generally use Form 1098 to report
qualifying mortgage interest received from borrowers.
