Page 1 of 109
Intuit Academy Tax Level 1 EXAM 2026-2027 COMPLETE
350 QUESTIONS AND VERIFIED SOLUTIONS LATEST
UPDATE THIS YEAR
QUESTION: As it applies to compensation income, the general rule for sourcing wages and
personal services income is controlled by ________________________________. - ANSWER-
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 contracting, and the time and place of payment are irrelevant.
QUESTION: Which is considered non-taxable income? - ANSWER-military personnel allowances
Payments received as a member of military service are generally taxed as wages except for
retirement pay, which is taxed as a pension. Allowances generally aren't taxed.
QUESTION: ______________ is used to offset income and payroll taxes for low-income workers
and to provide an incentive to work. - ANSWER-Earned Income Tax Credit Earned Income Tax
Credit is used to offset income and payroll taxes for low-income workers and to provide an
incentive to work.
,Page 2 of 109
QUESTION: Which is a non-deductible business expense? - ANSWER-family vacation Expenses
done for personal and recreational purposes are personal expenses and are non-deductible.
QUESTION: What amount of upper cap is applicable on business gifts? - ANSWER-$25 The
upper cap of $25 is applicable on business gifts.
QUESTION: If yearly dividend amounts exceed __________, a Schedule B must be completed
and attached to Form 1040. - ANSWER-$1500 If yearly dividend amounts exceed $1500, a
Schedule B must be completed and attached.
QUESTION: The are _________ filing statuses. - ANSWER-five There are five filing statuses.
Single
Married Filing Jointly
Married Filing Separately
Head of Household
Qualifying Widow(er)
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QUESTION: Taxpayers can claim a Child Tax Credit of up to __________ for each child under age
17 in 2021(2022). - ANSWER-$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).
QUESTION: ______________ includes supplemental income and loss. - ANSWER-Schedule E
includes supplemental income and loss
Supplemental Income and Loss consists of:
Income or Loss from Rental Real Estate and Royalties
Income or Loss from Partnerships and S Corporations
Income or Loss from Estates and Trusts, and
Income or Loss from Real Estate Mortgage Investment Conduits (REMICs)
Q;Below the line deductions include - ANSWER-Standard deduction
, Page 4 of 109
QUESTION: Eligible educators can deduct up to _______ of qualified expenses paid during the
tax year. - ANSWER-$250
QUESTION: Which of the following is an ineligible medical expense for HSA, Archer MSA, and
MA MSA? - ANSWER-Breast enhancement
QUESTION: The net capital gain is taxed at _______ if the married filing jointly taxpayer income
is less than $80,800. - ANSWER-0%
QUESTION: To claim a child as a dependent, they must meet the qualifying child test or
________________. - ANSWER-qualifying relative test
QUESTION: Ordinary dividends are taxed at the same rate as __________ income tax rate. -
ANSWER-ordinary
QUESTION: Distributions from HSA, Archer MSA, or MS MSA are non-taxable when
_________________________________________. - ANSWER-spent for qualified medical
expenses of your dependent
Intuit Academy Tax Level 1 EXAM 2026-2027 COMPLETE
350 QUESTIONS AND VERIFIED SOLUTIONS LATEST
UPDATE THIS YEAR
QUESTION: As it applies to compensation income, the general rule for sourcing wages and
personal services income is controlled by ________________________________. - ANSWER-
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 contracting, and the time and place of payment are irrelevant.
QUESTION: Which is considered non-taxable income? - ANSWER-military personnel allowances
Payments received as a member of military service are generally taxed as wages except for
retirement pay, which is taxed as a pension. Allowances generally aren't taxed.
QUESTION: ______________ is used to offset income and payroll taxes for low-income workers
and to provide an incentive to work. - ANSWER-Earned Income Tax Credit Earned Income Tax
Credit is used to offset income and payroll taxes for low-income workers and to provide an
incentive to work.
,Page 2 of 109
QUESTION: Which is a non-deductible business expense? - ANSWER-family vacation Expenses
done for personal and recreational purposes are personal expenses and are non-deductible.
QUESTION: What amount of upper cap is applicable on business gifts? - ANSWER-$25 The
upper cap of $25 is applicable on business gifts.
QUESTION: If yearly dividend amounts exceed __________, a Schedule B must be completed
and attached to Form 1040. - ANSWER-$1500 If yearly dividend amounts exceed $1500, a
Schedule B must be completed and attached.
QUESTION: The are _________ filing statuses. - ANSWER-five There are five filing statuses.
Single
Married Filing Jointly
Married Filing Separately
Head of Household
Qualifying Widow(er)
,Page 3 of 109
QUESTION: Taxpayers can claim a Child Tax Credit of up to __________ for each child under age
17 in 2021(2022). - ANSWER-$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).
QUESTION: ______________ includes supplemental income and loss. - ANSWER-Schedule E
includes supplemental income and loss
Supplemental Income and Loss consists of:
Income or Loss from Rental Real Estate and Royalties
Income or Loss from Partnerships and S Corporations
Income or Loss from Estates and Trusts, and
Income or Loss from Real Estate Mortgage Investment Conduits (REMICs)
Q;Below the line deductions include - ANSWER-Standard deduction
, Page 4 of 109
QUESTION: Eligible educators can deduct up to _______ of qualified expenses paid during the
tax year. - ANSWER-$250
QUESTION: Which of the following is an ineligible medical expense for HSA, Archer MSA, and
MA MSA? - ANSWER-Breast enhancement
QUESTION: The net capital gain is taxed at _______ if the married filing jointly taxpayer income
is less than $80,800. - ANSWER-0%
QUESTION: To claim a child as a dependent, they must meet the qualifying child test or
________________. - ANSWER-qualifying relative test
QUESTION: Ordinary dividends are taxed at the same rate as __________ income tax rate. -
ANSWER-ordinary
QUESTION: Distributions from HSA, Archer MSA, or MS MSA are non-taxable when
_________________________________________. - ANSWER-spent for qualified medical
expenses of your dependent
