Study Guide For Intuit Tax Academy Level 1: Questions
With Verified Solutions
Qualified Business Income (QBI) Right Ans - Income eligible for a 20%
deduction under tax law.
Self-Employment Tax Right Ans - Tax for self-employed individuals on net
earnings.
Schedule C Right Ans - Tax form for reporting profit or loss from business.
Capital Gain Right Ans - Profit from the sale of an asset or investment.
Capital Loss Carryover Right Ans - Loss that can be deducted in future tax
years.
Alimony Payments Right Ans - Payments made to a former spouse, taxable
under certain conditions.
Tax Exempt Interest Income Right Ans - Interest income not subject to
federal tax.
Early Withdrawal Penalty Right Ans - Fee for withdrawing funds from an
account prematurely.
Standard Deduction Right Ans - Fixed dollar amount reducing taxable
income.
Taxable Income Right Ans - Income subject to income tax after deductions.
Business Expense Deduction Right Ans - Costs subtracted from gross
income to reduce taxable income.
Interest Income Right Ans - Income earned from interest on savings or
investments.
Dependent Status Right Ans - Tax status based on another individual's tax
return.
,Self-Employment Tax Deduction Right Ans - Deduction for half of self-
employment tax paid.
Investment Transactions Right Ans - Buying or selling assets for profit or
loss.
Roth IRA Distribution Right Ans - Withdrawal from a Roth IRA, generally
tax-free.
Cash Basis Accounting Right Ans - Revenue recognized when received,
expenses when paid.
Taxable Gambling Winnings Right Ans - Winnings from gambling that must
be reported as income.
SEP IRA Contribution Right Ans - Retirement plan contribution for self-
employed individuals.
C Corporation Right Ans - Type of corporation taxed separately from its
owners.
Real Estate Taxes Right Ans - Taxes assessed on property owned by an
individual.
Charitable Contributions Right Ans - Donations made to qualified
organizations, potentially deductible.
Municipal Bond Interest Right Ans - Interest income from bonds issued by
local governments.
Tax Filing Requirements Right Ans - Criteria determining if a tax return
must be filed.
Credit Card Processing Fees Right Ans - Fees charged for processing credit
card transactions.
Employee Event Expenses Right Ans - Costs associated with events for
employees, often deductible.
, Interest Charges on Loans Right Ans - Costs incurred from borrowing
money, possibly deductible.
Below the line deductions Right Ans - standard deductions
Eligible educators can deduct up to _______ of qualified expenses paid during
the tax year. Right Ans - $250
Which of the following is an ineligible medical expense for HSA, Archer, MSA,
and MA MSA? Right Ans - Breast Enhancement
The net capital gain is taxed at ________ if the married filing jointly taxpayer
income is less than $80,000. Right Ans - 0%
To claim a child as a dependent, they must meet the qualifying child test or
Right Ans - Qualifying relative test
Ordinary dividends are taxed at the same rate as ____________ income tax rate.
Right Ans - ordinary
Distributions from HSA, Archer, MSA, or MS MSA are non-taxable when
_______________. Right Ans - Spent for qualified medical expenses of your
dependent
Which residency status is used when an individual is neither a U.S. citizen nor
a resident alien for tax purposes? Right Ans - Non-resident alien
________ and _______ are what taxpayers must know to calculate their tax
amount. Right Ans - Taxable income and filing status
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.
Right Ans - $750,000
_____________ reduce the amount of tax due. Right Ans - Tax credits
With Verified Solutions
Qualified Business Income (QBI) Right Ans - Income eligible for a 20%
deduction under tax law.
Self-Employment Tax Right Ans - Tax for self-employed individuals on net
earnings.
Schedule C Right Ans - Tax form for reporting profit or loss from business.
Capital Gain Right Ans - Profit from the sale of an asset or investment.
Capital Loss Carryover Right Ans - Loss that can be deducted in future tax
years.
Alimony Payments Right Ans - Payments made to a former spouse, taxable
under certain conditions.
Tax Exempt Interest Income Right Ans - Interest income not subject to
federal tax.
Early Withdrawal Penalty Right Ans - Fee for withdrawing funds from an
account prematurely.
Standard Deduction Right Ans - Fixed dollar amount reducing taxable
income.
Taxable Income Right Ans - Income subject to income tax after deductions.
Business Expense Deduction Right Ans - Costs subtracted from gross
income to reduce taxable income.
Interest Income Right Ans - Income earned from interest on savings or
investments.
Dependent Status Right Ans - Tax status based on another individual's tax
return.
,Self-Employment Tax Deduction Right Ans - Deduction for half of self-
employment tax paid.
Investment Transactions Right Ans - Buying or selling assets for profit or
loss.
Roth IRA Distribution Right Ans - Withdrawal from a Roth IRA, generally
tax-free.
Cash Basis Accounting Right Ans - Revenue recognized when received,
expenses when paid.
Taxable Gambling Winnings Right Ans - Winnings from gambling that must
be reported as income.
SEP IRA Contribution Right Ans - Retirement plan contribution for self-
employed individuals.
C Corporation Right Ans - Type of corporation taxed separately from its
owners.
Real Estate Taxes Right Ans - Taxes assessed on property owned by an
individual.
Charitable Contributions Right Ans - Donations made to qualified
organizations, potentially deductible.
Municipal Bond Interest Right Ans - Interest income from bonds issued by
local governments.
Tax Filing Requirements Right Ans - Criteria determining if a tax return
must be filed.
Credit Card Processing Fees Right Ans - Fees charged for processing credit
card transactions.
Employee Event Expenses Right Ans - Costs associated with events for
employees, often deductible.
, Interest Charges on Loans Right Ans - Costs incurred from borrowing
money, possibly deductible.
Below the line deductions Right Ans - standard deductions
Eligible educators can deduct up to _______ of qualified expenses paid during
the tax year. Right Ans - $250
Which of the following is an ineligible medical expense for HSA, Archer, MSA,
and MA MSA? Right Ans - Breast Enhancement
The net capital gain is taxed at ________ if the married filing jointly taxpayer
income is less than $80,000. Right Ans - 0%
To claim a child as a dependent, they must meet the qualifying child test or
Right Ans - Qualifying relative test
Ordinary dividends are taxed at the same rate as ____________ income tax rate.
Right Ans - ordinary
Distributions from HSA, Archer, MSA, or MS MSA are non-taxable when
_______________. Right Ans - Spent for qualified medical expenses of your
dependent
Which residency status is used when an individual is neither a U.S. citizen nor
a resident alien for tax purposes? Right Ans - Non-resident alien
________ and _______ are what taxpayers must know to calculate their tax
amount. Right Ans - Taxable income and filing status
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.
Right Ans - $750,000
_____________ reduce the amount of tax due. Right Ans - Tax credits
