Intuit Level 1 Tax Study Guide
1. Qualifying Child – Support (Benefits) Test
- Relationship: son, daughter, stepchild, sibling, or descendant.
- Age: under 19, under 24 if full-time student, or any age if permanently disabled.
- Residency: live with taxpayer > half the year.
- Support: child cannot provide more than 50% of own support.
- Joint Return: child cannot file jointly unless only to claim refund.
- Citizenship/Residency: must be U.S. citizen, resident, or national (or Canada/Mexico).
2. Schedule C & Self-Employed Health Insurance
Item Amount Notes
Schedule C Net Profit $50,000 Gross business income minus expenses
Self-Employed Health Insurance $12,000 Above-the-line deduction on Form 1040; not on Schedule C
3. Qualified Business Income (QBI) Deduction
Step Calculation Amount
Schedule C Net Profit Start $50,000
Less Half of SE Tax $50,000 x 7.65% $3,825
Adjusted QBI $50,000 - $3,825 $46,175
QBI Deduction (20%) 20% x $46,175 $9,235
4. Gambling Income & Losses
Item Amount Where Reported
Gambling Winnings $15,000 Form 1040 / Schedule 1
Gambling Losses (deductible) $15,000 max Schedule A, Itemized Deductions
Excess Losses $3,763 Not deductible; no carryforward
5. Qualifying Relative Test
Test Requirement
Not a qualifying child Must not be someone else's qualifying child
Relationship/Household Relative (e.g. parent, sibling, half-sibling, in-law) OR lived with taxpayer all year if unrelate
Gross Income < $5,200 (2024)
1. Qualifying Child – Support (Benefits) Test
- Relationship: son, daughter, stepchild, sibling, or descendant.
- Age: under 19, under 24 if full-time student, or any age if permanently disabled.
- Residency: live with taxpayer > half the year.
- Support: child cannot provide more than 50% of own support.
- Joint Return: child cannot file jointly unless only to claim refund.
- Citizenship/Residency: must be U.S. citizen, resident, or national (or Canada/Mexico).
2. Schedule C & Self-Employed Health Insurance
Item Amount Notes
Schedule C Net Profit $50,000 Gross business income minus expenses
Self-Employed Health Insurance $12,000 Above-the-line deduction on Form 1040; not on Schedule C
3. Qualified Business Income (QBI) Deduction
Step Calculation Amount
Schedule C Net Profit Start $50,000
Less Half of SE Tax $50,000 x 7.65% $3,825
Adjusted QBI $50,000 - $3,825 $46,175
QBI Deduction (20%) 20% x $46,175 $9,235
4. Gambling Income & Losses
Item Amount Where Reported
Gambling Winnings $15,000 Form 1040 / Schedule 1
Gambling Losses (deductible) $15,000 max Schedule A, Itemized Deductions
Excess Losses $3,763 Not deductible; no carryforward
5. Qualifying Relative Test
Test Requirement
Not a qualifying child Must not be someone else's qualifying child
Relationship/Household Relative (e.g. parent, sibling, half-sibling, in-law) OR lived with taxpayer all year if unrelate
Gross Income < $5,200 (2024)
