INTUIT ACADEMY TAX LEVEL 1 PRACTICE EXAM QUESTIONS WITH CORRECT DETAILED ANSWERS | ALREADY GRADED A+<RECENT VERSION>

INTUIT ACADEMY TAX LEVEL 1 PRACTICE EXAM QUESTIONS WITH CORRECT DETAILED ANSWERS | ALREADY GRADED A+&lt;RECENT VERSION&gt; 1) What are the five individual tax filing statuses? - ANSWER 1. Single 2. Married filing jointly 3. Married filing separately 4. Head of household 5. Qualified widow or widower 2) What's the significance of a tax filing status? - ANSWER The taxpayer's tax filing status can significantly effect their tax bill and which tax forms they will need to fill out. 3) Who might use the "single" tax filing status? - ANSWER Unmarried people who do not qualify for another filing status 4) Who might use the "Married filing jointly" filing status? - ANSWER Most married couple 5) Who might use the "Married filing separately" status? - ANSWER Married high earners, people who think their spouses may be hiding income, or people whose spouses have tax liability 6) Who might use "Head of household" status? - ANSWER Unmarried people paying at least half the cost of housing and support for others 7) Who might use "Qualified widow or widower" filing status? - ANSWER People who lost a spouse and are supporting a child at home 8) Who is considered "unmarried" for head of household filing status? - ANSWER - People who are not legally married -People whose spouses did not live in the house for the last six months of the tax year (temporary absences do not count), they paid half the cost of keeping up the house, and the house was their child's primary home. -People who support a qualifying person in the household 9) What does cost of keeping up the house mean? - ANSWER The cost of keeping up a home includes paying property taxes, mortgage interest or rent, utilities, repairs and maintenance, property insurance, food, and other household expenses 10) Not everyone is required to file a return. - ANSWER True. 11) Filing requirements depend on the tax payer's - ANSWER Filing status Age Income 12) Filing Status - ANSWER Single Married Filing Jointly Married Filing Separately Head of Household Qualifying Surviving Spouse Dependent (less common) 13) Age range - ANSWER Taxpayers age on December 31st of the tax year- under OR at or above 65 14) Gross income - ANSWER Taxpayer's gross income for the tax year compared to IRS provided threshold. 15) Income less than threshold: - ANSWER Not required to file a return. 16) Income at/above threshold - ANSWER Must file a return. 17) Dependents claimed in someone else's return may still qualify to file a return. - ANSWER True 18) Even if the taxpayer is not required to file a return, they may still file a return that might bring a refund for any federal income tax withheld. - ANSWER True 19) When someone files - ANSWER They must choose a filing status. 20) If you were married at the end of the tax year you can choose - ANSWER Whether to file jointly or separately. 21) If one spouse chooses to file separately - ANSWER Both must file separately. 22) Married as of December 31st - ANSWER File as Married Filing Jointly or Married Filing Separately. 23) Filing Jointly may - ANSWER Get bigger tax breaks or pay less in taxes than if filing separately. 24) Single Filing Status - ANSWER Have never been married or has been divorced or legally separated under state law. 25) Single Filing Status (more) - ANSWER Widowed before January 1 of tax year and no qualifying child. Or do not qualify for any other filing status (like Head of Household). 26) Head of Household Status - ANSWER Paid more than half the cost of keeping up the home. Or considered unmarried. 27) Considered Unmarried - ANSWER If they file a separate return, paid more than half the cost of keeping up the home, their spouse did not live in their home during the last six months of the year. 28) Considered Unmarried (cont) - ANSWER Have a child, stepchild, or foster child whose main home was with them for more than half a year. Can claim the child as a qualifying dependent. 29) Qualifying Surviving Spouse Status - ANSWER Spouse passed away during the previous two years. Has a qualifying dependent. Hasn't remarried. Paid more than half the cost of keeping up the home during the tax year. 30) Qualifying Surviving Spouse files - ANSWER a joint return with deceased spouse (married filing jointly). 31) Head of Household. Even when not required to by the income threshold, fling a return may be beneficial for the taxpayer. - ANSWER True. 32) The taxpayer cannot claim any dependents - ANSWER if they or their spouse (fling jointly) can be claimed as a dependent on someone else's tax return for the current tax year 33) The taxpayer can claim any qualified dependents on their tax return if - ANSWER No one else can claim them as a dependent on their tax return for the current tax year. 34) Support - ANSWER Household expenses such as rent, groceries, utilities, clothing, in reimbursed medical fees, travel, and recreational expenses. 35) Qualifying child - ANSWER A child who is your child, stepchild, foster child, sibling, step sibling, half sibling, or descendant of any of these. 36) Possible dependent if the qualifying child was - ANSWER a citizen, national, or resident alien of the US, or a resident of Canada or Mexico. 37) You can NOT claim the child as dependent if - ANSWER They were NOT a citizen, national, or resident alien of the US, or a resident of Canada or Mexico. 38) Qualifying child qualifies you for the tax credit or credit for other dependents. - ANSWER If the child had a SSN, ITIN, or Adoption Taxpayer Identification Number (ATIN) issued on or before the date of your return (including extensions). 39) Can be a dependent if the qualifying child - ANSWER qualifies you for the tax credit or credit for other dependents.