Intuit Academy Tax Level 1 With complete solu on
New!! 2025/2026 100% verified correct
Below the line deduc ons include
Standard deduc on
Eligible educators can deduct up to _______ of qualified expenses paid during the tax year.
$250
Which of the following is an ineligible medical expense for HSA, Archer MSA, and MA MSA?
Breast enhancement
The net capital gain is taxed at _______ if the married filing jointly taxpayer income is less than
$80,800.
0%
To claim a child as a dependent, they must meet the qualifying child test or ________________.
qualifying rela ve test
Ordinary dividends are taxed at the same rate as __________ income tax rate.
ordinary
Distribu ons from HSA, Archer MSA, or MS MSA are non-taxable when
_________________________________________.
spent for qualified medical expenses of your dependent
Which residency status is used when an individual is neither a U.S. ci zen nor a resident alien
for tax purposes?
Non-resident alien
_____________ and ____________ are what taxpayers must know to calculate their tax
amount.
Taxable income and filing status
,For mortgages entered into a6er December 15, 2017, the amount of interest the taxpayer can
deduct is no more than ______________ of the debt used to buy, build, or substan ally
improve their principal home and a second home.
750,000
__________ reduce the amount of tax due.
Tax credits
Which form is for beneficiaries who get income from trusts and estates?
Form 1041
___________________ consists of both earned and unearned income that is used to calculate
the tax. It is generally less than adjusted gross income due to the deduc ons.
Taxable income
To sa sfy the Substan al Presence Test, how many minimum days (in the current year) must you
be physically present in the United States?
31
Complete the equa on. ___________ = Selling Price - Purchase Price
Capital Loss or Capital Gain
_________________ helps sole proprietorships calculate the profit or loss from a business while
also providing the IRS with your total business income and deduc ons.
Schedule C
What type of deduc on is a HSA contribu on?
Above-the-Line Deduc on Some of the common expenses on which Above-the-Line deduc ons
are available include:
Educator expenses
Early withdrawal penal es of saving accounts
Moving expenses
Business expenses
HSA contribu ons
Self-employment tax
Alimony payments
Tui on fees
Contribu ons to a tradi onal IRA
,Student loan interest deduc on
Health insurance premiums
Re rement account contribu on
As it applies to compensa on income, the general rule for sourcing wages and personal services
income is controlled by ________________________________.
where the service is performed The general rule for sourcing wages and personal services
income is controlled by where the service is performed. The residence of the recipient of the
service, the place of contrac ng, and the me and place of payment are irrelevant.
Which is considered non-taxable income?
military personnel allowances Payments received as a member of military service are generally
taxed as wages except for re rement pay, which is taxed as a pension. Allowances generally
aren't taxed.
______________ is used to offset income and payroll taxes for low-income workers and to
provide an incen ve to work.
Earned Income Tax Credit Earned Income Tax Credit is used to offset income and payroll taxes
for low-income workers and to provide an incen ve to work.
Which is a non-deduc ble business expense?
family vaca on Expenses done for personal and recrea onal purposes are personal expenses
and are non-deduc ble.
What amount of upper cap is applicable on business gi6s?
$25 The upper cap of $25 is applicable on business gi6s.
If yearly dividend amounts exceed __________, a Schedule B must be completed and aGached
to Form 1040.
$1500 If yearly dividend amounts exceed $1500, a Schedule B must be completed and aGached.
The are _________ filing statuses.
five There are five filing statuses.
Single
Married Filing Jointly
Married Filing Separately
Head of Household
Qualifying Widow(er)
, Taxpayers can claim a Child Tax Credit of up to __________ for each child under age 17 in
2021(2022).
$3,600.00 Taxpayers can claim a CTC of up to $3,600 for each child under age 17 in 2021(2022).
Since 2021, qualifying families may now receive up to $3,600 per child under the age of 5 and
$3,000 for those ages 6 to 17. That's up from $2,000 per child, provided families fall under
certain income thresholds (less than $150,000 for couples and $112,500 for single parents).
______________ includes supplemental income and loss.
Schedule E includes supplemental income and loss
Supplemental Income and Loss consists of:
Income or Loss from Rental Real Estate and Royal es
Income or Loss from Partnerships and S Corpora ons
Income or Loss from Estates and Trusts, and
Income or Loss from Real Estate Mortgage Investment Conduits (REMICs)
Payments and refundable credits are listed between what lines on Form 1040?
Lines 25 through 30 are payments and refundable credits.
A partnership files a tax return on ______________.
A partnership files a tax return on Form 1065.
Which of the following is not a requirement for S-Corpora on elec on?
Being an interna onal en ty is not a requirement for S-Corpora on elec on.
________________ generally have to make es mated tax payments if they expect to owe tax of
$500 or more when their return is filed.
Corpora ons generally have to make es mated tax payments if they expect to owe tax of $500
or more when their return is filed.
Which is not a nonrefundable tax credit? (Select all that apply)
Child and Dependent Care Credit Nonrefundable tax credits include:
Child Tax Credit/Credit for Other Dependents
Adop on Credit
Social Security benefits can be taxed to a maximum of ___________% based on the
beneficiary's annual income.
Up to 85% of your Social Security income is taxed if you receive income from other sources and
your combined income is more than a certain base amount.
New!! 2025/2026 100% verified correct
Below the line deduc ons include
Standard deduc on
Eligible educators can deduct up to _______ of qualified expenses paid during the tax year.
$250
Which of the following is an ineligible medical expense for HSA, Archer MSA, and MA MSA?
Breast enhancement
The net capital gain is taxed at _______ if the married filing jointly taxpayer income is less than
$80,800.
0%
To claim a child as a dependent, they must meet the qualifying child test or ________________.
qualifying rela ve test
Ordinary dividends are taxed at the same rate as __________ income tax rate.
ordinary
Distribu ons from HSA, Archer MSA, or MS MSA are non-taxable when
_________________________________________.
spent for qualified medical expenses of your dependent
Which residency status is used when an individual is neither a U.S. ci zen nor a resident alien
for tax purposes?
Non-resident alien
_____________ and ____________ are what taxpayers must know to calculate their tax
amount.
Taxable income and filing status
,For mortgages entered into a6er December 15, 2017, the amount of interest the taxpayer can
deduct is no more than ______________ of the debt used to buy, build, or substan ally
improve their principal home and a second home.
750,000
__________ reduce the amount of tax due.
Tax credits
Which form is for beneficiaries who get income from trusts and estates?
Form 1041
___________________ consists of both earned and unearned income that is used to calculate
the tax. It is generally less than adjusted gross income due to the deduc ons.
Taxable income
To sa sfy the Substan al Presence Test, how many minimum days (in the current year) must you
be physically present in the United States?
31
Complete the equa on. ___________ = Selling Price - Purchase Price
Capital Loss or Capital Gain
_________________ helps sole proprietorships calculate the profit or loss from a business while
also providing the IRS with your total business income and deduc ons.
Schedule C
What type of deduc on is a HSA contribu on?
Above-the-Line Deduc on Some of the common expenses on which Above-the-Line deduc ons
are available include:
Educator expenses
Early withdrawal penal es of saving accounts
Moving expenses
Business expenses
HSA contribu ons
Self-employment tax
Alimony payments
Tui on fees
Contribu ons to a tradi onal IRA
,Student loan interest deduc on
Health insurance premiums
Re rement account contribu on
As it applies to compensa on income, the general rule for sourcing wages and personal services
income is controlled by ________________________________.
where the service is performed The general rule for sourcing wages and personal services
income is controlled by where the service is performed. The residence of the recipient of the
service, the place of contrac ng, and the me and place of payment are irrelevant.
Which is considered non-taxable income?
military personnel allowances Payments received as a member of military service are generally
taxed as wages except for re rement pay, which is taxed as a pension. Allowances generally
aren't taxed.
______________ is used to offset income and payroll taxes for low-income workers and to
provide an incen ve to work.
Earned Income Tax Credit Earned Income Tax Credit is used to offset income and payroll taxes
for low-income workers and to provide an incen ve to work.
Which is a non-deduc ble business expense?
family vaca on Expenses done for personal and recrea onal purposes are personal expenses
and are non-deduc ble.
What amount of upper cap is applicable on business gi6s?
$25 The upper cap of $25 is applicable on business gi6s.
If yearly dividend amounts exceed __________, a Schedule B must be completed and aGached
to Form 1040.
$1500 If yearly dividend amounts exceed $1500, a Schedule B must be completed and aGached.
The are _________ filing statuses.
five There are five filing statuses.
Single
Married Filing Jointly
Married Filing Separately
Head of Household
Qualifying Widow(er)
, Taxpayers can claim a Child Tax Credit of up to __________ for each child under age 17 in
2021(2022).
$3,600.00 Taxpayers can claim a CTC of up to $3,600 for each child under age 17 in 2021(2022).
Since 2021, qualifying families may now receive up to $3,600 per child under the age of 5 and
$3,000 for those ages 6 to 17. That's up from $2,000 per child, provided families fall under
certain income thresholds (less than $150,000 for couples and $112,500 for single parents).
______________ includes supplemental income and loss.
Schedule E includes supplemental income and loss
Supplemental Income and Loss consists of:
Income or Loss from Rental Real Estate and Royal es
Income or Loss from Partnerships and S Corpora ons
Income or Loss from Estates and Trusts, and
Income or Loss from Real Estate Mortgage Investment Conduits (REMICs)
Payments and refundable credits are listed between what lines on Form 1040?
Lines 25 through 30 are payments and refundable credits.
A partnership files a tax return on ______________.
A partnership files a tax return on Form 1065.
Which of the following is not a requirement for S-Corpora on elec on?
Being an interna onal en ty is not a requirement for S-Corpora on elec on.
________________ generally have to make es mated tax payments if they expect to owe tax of
$500 or more when their return is filed.
Corpora ons generally have to make es mated tax payments if they expect to owe tax of $500
or more when their return is filed.
Which is not a nonrefundable tax credit? (Select all that apply)
Child and Dependent Care Credit Nonrefundable tax credits include:
Child Tax Credit/Credit for Other Dependents
Adop on Credit
Social Security benefits can be taxed to a maximum of ___________% based on the
beneficiary's annual income.
Up to 85% of your Social Security income is taxed if you receive income from other sources and
your combined income is more than a certain base amount.
