Intuit Academy Tax Level 1 Questions with 100% Correct Verified Answers

Intuit Academy Tax Level 1 Questions with 100% Correct Verified Answers How does using "Head of household" tax filing status benefit the taxpayer? Correct Answer: 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? Correct Answer: 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? Correct Answer: 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? Correct Answer: - The couple have to be legally married through the last day of the tax year -If one of the spouse died during the tax year, the surviving spouse can use the "Married filing jointly" tax filing status b -When taxpayers file jointly, the IRS holds both taxpayers responsible for the taxes and any interest or penalties due How does using the "Qualified widow or widower" tax filing status benefit the taxpayer? Correct Answer: It lets the taxpayer file as if they were married and filing jointly, which allows them a much higher standard deduction and puts them in a better tax bracket then if they filed as a single. How does using "Married filing jointly" tax filing status benefit the taxpayer? Correct Answer: Tax payers who file as married filing jointly likely have a lower tax bill then those who file separately; their standard deduction would be higher; and they can take deductions and credits that generally are not available if they file separately. What are the five individual tax filing statuses? Correct Answer: 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? Correct Answer: 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? Correct Answer: Unmarried people who do not qualify for another filing status Who might use the "Married filing jointly" filing status? Correct Answer: Most married couple