Intuit Academy Tax Level 1 Questions and Answers (100% Correct Answers) Already Graded A+

What are the five individual tax filing statuses? [ Ans: ] 1. Single 2. Married filing jointly 3. Married filing separately 4. Head of household 5. Qualified widow or widower What's the significance of a tax filing status? [ Ans: ] The taxpayer's tax filing status can significantly effect their tax bill and which tax forms they will need to fill out. Who might use the "single" tax filing status? [ Ans: ] Unmarried people who do not qualify for another filing status Who might use the "Married filing jointly" filing status? [ Ans: ] Most married couple Who might use the "Married filing separately" status? [ Ans: ] Married high earners, people who think their spouses may be hiding income, or people whose spouses have tax liability Who might use "Head of household" status? [ Ans: ] Unmarried people paying at least half the cost of housing and support for others Who might use "Qualified widow or widower" filing status? [ Ans: ] People who lost a spouse and are supporting a child at home Who is considered "unmarried" for head of household filing status? [ Ans: ] - 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 What does cost of keeping up the house mean? [ Ans: ] 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 Who is a qualifying person for tax purposes? [ Ans: ] A child under 19 years of age; an adult under 24 years of age who is a student living at home for more than half the year; A parent who receives at least half their support from the taxpayer; and siblings and in-laws if the taxpayer provides at least half their support for the year. How does using "Head of household" tax filing status benefit the taxpayer? [ Ans: ] This filing status allows the taxpayer to access significant tax deductions and more favorable tax brackets than if they filed as single. When should taxpayer use the "Qualified widow or widower" tax filing status? [ Ans: ] The surviving spouse can file as "Married filing jointly" if their spouse died during the tax payer, and they can use "Qualified widow or widower" tax filing status for the next two years if they have a dependent child. What is one requirement for being able use "Qualified widow or widower" tax filing status? [ Ans: ] There must be a dependent child, and the surviving spouse must provide at least half the cost of keeping up the house during the tax year. What are some rules for using "Married filing jointly" tax filing status? [ Ans: ] - The couple have to be legally married through the la