INTUIT PRACTICE EXAM QUESTIONS
& ANSWERS(RATED A+)
Taxpayer A and Taxpayer B met in early December through an online app and decided
to get married on December 31, 2021.What is an acceptable filing status? -
ANSWERYes/True. Married Filing Jointly Yes/True. Married Filing Separately
A taxpayer needs assistance in determining their residency status for the current year
The taxpayer is not a U.S. citizen but is treated as a resident alien for tax purposes. Is
this statement true? - ANSWERYes/True. Since the taxpayer met the substantial
presence test, they would be considered a resident for the current year. Yes/True. Since
the taxpayer met the green card test, they would be considered a resident for the
current year.
Josephine is a Canadian citizen and resident. She is not a US citizen, but was
physically present in the USA for 170 days in the current year. She was in the USA for
30 days and 60 days in each of the previous two years. Will Josephine be considered a
citizen or resident of the USA when applying the substantial presence test in the current
year? - ANSWERYes/True. She will qualify as she meets the substantial presence test
with 190 days when applying the formula.
Is this a test that individual must satisfy to be considered a qualifying child of a
taxpayer? - ANSWERYes/True. Relationship test Yes/True. Support test
In the following scenario, is Form 1040 required to be filed for 2022? -
ANSWERYes/True. Taxpayer is single, has income of $6,000 and $300 of federal
income taxes withheld. They want to claim the refund.
Yes/True. Taxpayer is married filing jointly. Taxpayer has $80,000 in earned income
and spouse has net profits of $40,000 from their sole proprietorship.
Is the following statement correct about Form W-2? - ANSWERYes/True. Box 1
provides the total of how much you were paid in wages, tips, and other compensation.
Is the following statement correct when calculating the individual federal income tax
formula? - ANSWERYes/True. Taxpayers subtract Above Line Deductions from Gross
Income to determine Adjusted Gross Income. Yes/True. Taxpayers subtract Qualified
Business Income from Adjusted Gross Income to determine Taxable Income.
Taxpayer A is a student athlete in high school. They are being recruited by colleges to
play soccer at a Division I school and are popular on several social media platforms.
Taxpayer A provides social media advertisements for several businesses in the local
area. Below is additional information for their current year. *Taken as a dependent on
their parent's tax return
, *Earned income of $7,500 for social media advertisements for local car dealership,
restaurant, auto body shop and hair salon
*Has $1,000 of business expenses related to the social media advertisements
Is the following true about this scenario? - ANSWERYes/True. The taxpayer will need to
file Schedule C in their tax return. Yes/True. The taxpayer will have to pay self-
employment tax.
You are a 30 year old engineer working full-time. For the tax year 2022, you received
the following: *$35,000 Salary on W-2 *$500 Dividend Income *$200 Tax Exempt
Interest Income *$1,000 Municipal Bond Interest Income *Paid $7,000 in Real Estate
Taxes *Paid $2,500 for Home Mortgage Interest *Paid $1,000 in charitable contributions
*Paid $2,500 in medical expenses - ANSWERYes/True. Your taxable income is
$23,500.
Is the following statement true with regard to a taxpayer's foreign income? -
ANSWERYes/True. US citizens are subject to tax on all income, whether its generated
in the US or foreign countries. Yes/True. The US allows taxpayers meeting certain
criteria to annually exclude an annual amount of foreign earned income.
Is the following income considered non-taxable? - ANSWERYes/True. You received an
inheritance of $10,000 Yes/True. You receive a gift of $10,000
The taxpayer is a self-employed, cash-basis rideshare driver for Uber and Lyft. Should
the following be included on their Schedule C? - ANSWERYes/True. A cash tip from
their customer. Yes/True. A payment made to have their car detailed
A taxpayer has an upscale rideshare business. They earn a substantial amount of
income by driving high net worth individuals, executives of companies and politicians
around the city. Is this a business expense that can be deducted by the taxpayer? -
ANSWERYes/True. Interest charges of $900 for the loan on their Mercedes Sprinter.
Yes/True. Credit card processing fees so the clients can pay using their credit cards
instead of cash.
A taxpayer is a sole proprietor who sells insurance. The taxpayer files a Schedule C,
Profit/Loss from Business. Can the taxpayer deduct the following as a business
expense in the current year? - ANSWERYes/True. Taxpayer deducts 100% of meals
purchased from a restaurant for business purposes in 2022. Yes/True. Taxpayer
deducts 100% of meals purchased from a restaurant for business purposes in 2021.
A taxpayer is a Schedule C sole proprietor. The taxpayer has a Sprinter van that
transports company executives to the regional airport. Is this scenario correct regarding
a business deduction for the van? - ANSWERYes/True. The taxpayer can deduct a new
cell phone and the standard mileage rate for the van as a business expense. Yes/True.
The taxpayer can deduct the cost of oil changes and tires for the van as a business
expense in lieu of the standard mileage rate.
& ANSWERS(RATED A+)
Taxpayer A and Taxpayer B met in early December through an online app and decided
to get married on December 31, 2021.What is an acceptable filing status? -
ANSWERYes/True. Married Filing Jointly Yes/True. Married Filing Separately
A taxpayer needs assistance in determining their residency status for the current year
The taxpayer is not a U.S. citizen but is treated as a resident alien for tax purposes. Is
this statement true? - ANSWERYes/True. Since the taxpayer met the substantial
presence test, they would be considered a resident for the current year. Yes/True. Since
the taxpayer met the green card test, they would be considered a resident for the
current year.
Josephine is a Canadian citizen and resident. She is not a US citizen, but was
physically present in the USA for 170 days in the current year. She was in the USA for
30 days and 60 days in each of the previous two years. Will Josephine be considered a
citizen or resident of the USA when applying the substantial presence test in the current
year? - ANSWERYes/True. She will qualify as she meets the substantial presence test
with 190 days when applying the formula.
Is this a test that individual must satisfy to be considered a qualifying child of a
taxpayer? - ANSWERYes/True. Relationship test Yes/True. Support test
In the following scenario, is Form 1040 required to be filed for 2022? -
ANSWERYes/True. Taxpayer is single, has income of $6,000 and $300 of federal
income taxes withheld. They want to claim the refund.
Yes/True. Taxpayer is married filing jointly. Taxpayer has $80,000 in earned income
and spouse has net profits of $40,000 from their sole proprietorship.
Is the following statement correct about Form W-2? - ANSWERYes/True. Box 1
provides the total of how much you were paid in wages, tips, and other compensation.
Is the following statement correct when calculating the individual federal income tax
formula? - ANSWERYes/True. Taxpayers subtract Above Line Deductions from Gross
Income to determine Adjusted Gross Income. Yes/True. Taxpayers subtract Qualified
Business Income from Adjusted Gross Income to determine Taxable Income.
Taxpayer A is a student athlete in high school. They are being recruited by colleges to
play soccer at a Division I school and are popular on several social media platforms.
Taxpayer A provides social media advertisements for several businesses in the local
area. Below is additional information for their current year. *Taken as a dependent on
their parent's tax return
, *Earned income of $7,500 for social media advertisements for local car dealership,
restaurant, auto body shop and hair salon
*Has $1,000 of business expenses related to the social media advertisements
Is the following true about this scenario? - ANSWERYes/True. The taxpayer will need to
file Schedule C in their tax return. Yes/True. The taxpayer will have to pay self-
employment tax.
You are a 30 year old engineer working full-time. For the tax year 2022, you received
the following: *$35,000 Salary on W-2 *$500 Dividend Income *$200 Tax Exempt
Interest Income *$1,000 Municipal Bond Interest Income *Paid $7,000 in Real Estate
Taxes *Paid $2,500 for Home Mortgage Interest *Paid $1,000 in charitable contributions
*Paid $2,500 in medical expenses - ANSWERYes/True. Your taxable income is
$23,500.
Is the following statement true with regard to a taxpayer's foreign income? -
ANSWERYes/True. US citizens are subject to tax on all income, whether its generated
in the US or foreign countries. Yes/True. The US allows taxpayers meeting certain
criteria to annually exclude an annual amount of foreign earned income.
Is the following income considered non-taxable? - ANSWERYes/True. You received an
inheritance of $10,000 Yes/True. You receive a gift of $10,000
The taxpayer is a self-employed, cash-basis rideshare driver for Uber and Lyft. Should
the following be included on their Schedule C? - ANSWERYes/True. A cash tip from
their customer. Yes/True. A payment made to have their car detailed
A taxpayer has an upscale rideshare business. They earn a substantial amount of
income by driving high net worth individuals, executives of companies and politicians
around the city. Is this a business expense that can be deducted by the taxpayer? -
ANSWERYes/True. Interest charges of $900 for the loan on their Mercedes Sprinter.
Yes/True. Credit card processing fees so the clients can pay using their credit cards
instead of cash.
A taxpayer is a sole proprietor who sells insurance. The taxpayer files a Schedule C,
Profit/Loss from Business. Can the taxpayer deduct the following as a business
expense in the current year? - ANSWERYes/True. Taxpayer deducts 100% of meals
purchased from a restaurant for business purposes in 2022. Yes/True. Taxpayer
deducts 100% of meals purchased from a restaurant for business purposes in 2021.
A taxpayer is a Schedule C sole proprietor. The taxpayer has a Sprinter van that
transports company executives to the regional airport. Is this scenario correct regarding
a business deduction for the van? - ANSWERYes/True. The taxpayer can deduct a new
cell phone and the standard mileage rate for the van as a business expense. Yes/True.
The taxpayer can deduct the cost of oil changes and tires for the van as a business
expense in lieu of the standard mileage rate.
