Intuit Academy 1 Continuation - Gross
Income Exam with Questions and
Correct Answers 2025
Sandeep, 70, and Mary, 67, are married. Sandeep's unmarried brother, John, lives with
them. Their daughter is a U.S. citizen who has been living and working abroad for many
years.
Based on this information, which option is correct? - CORRECT ANSWERS
Gross Income - CORRECT ANSWERS is the sum of the taxpayer's income earned in a
year, which may include salary, dividends, capital gains, interest income, royalties, rental
income, alimony, and retirement distributions.
Certain items subtracted from a taxpayer's gross income to calculate their AGI are referred
to as adjustments to income.
Adjusted gross income (AGI) - CORRECT ANSWERS is a figure that the Internal Revenue
Service uses to determine a taxpayer's income tax liability for the year. The IRS calculates
it by subtracting certain adjustments from gross income, such as educator expenses,
student loan interest, and other adjustments.
Common Transactions as Exclusions:
Some common transactions as exclusions or deductions from gross income are: -
CORRECT ANSWERS Educator expenses
Self-employment tax
Alimony payments
Early withdrawal penalty
Self-employed health insurance
Charitable contributions
Traditional IRA
Health savings account
Student loan interest
Jury duty
Alimony Payments - CORRECT ANSWERS Payment to Spouse
ex-spouse
, former spouse
legal separation instrument
What expenses qualify - CORRECT ANSWERS remarriage
death
court order
medical bills
housing costs
other expenses
person who is paying alimony will deduct to income
person who is receiving alimony will treat as a income
what information needed to complete the schedule 1 - CORRECT ANSWERS Exact
amount, Social Security number, date of divorce
Before December 31, 2018 - CORRECT ANSWERS Taxable consequences of alimony
applies to divorce decrees
Early withdrawal penalty - CORRECT ANSWERS early withdrawal, charged , maturity
date
expenses qualify : deduct penalties, drawing fundsdeferred interest .
How to report :
Interest income -form 1099-int
Deduction -form 1040 Schedule 1
Self-Employed Health Insurance - CORRECT ANSWERS Net profit on schedule c
Deduct the cost
Who is eligible?
Medical, dental, vision, Supplemental, Long term care
self-employed taxpayer, tax payer spouse, tax payer dependents
Other rules: can't
Deduct payments
Participate in health plan- employer, spouses of tax payer employer, employer's of tax
dependent
What is the limit:
net self employment profit
one-half of the self-employment tax
Income Inclusion - CORRECT ANSWERS Traditional IRA
HSA
Student Loan Interest-maximum $2500
Income Exam with Questions and
Correct Answers 2025
Sandeep, 70, and Mary, 67, are married. Sandeep's unmarried brother, John, lives with
them. Their daughter is a U.S. citizen who has been living and working abroad for many
years.
Based on this information, which option is correct? - CORRECT ANSWERS
Gross Income - CORRECT ANSWERS is the sum of the taxpayer's income earned in a
year, which may include salary, dividends, capital gains, interest income, royalties, rental
income, alimony, and retirement distributions.
Certain items subtracted from a taxpayer's gross income to calculate their AGI are referred
to as adjustments to income.
Adjusted gross income (AGI) - CORRECT ANSWERS is a figure that the Internal Revenue
Service uses to determine a taxpayer's income tax liability for the year. The IRS calculates
it by subtracting certain adjustments from gross income, such as educator expenses,
student loan interest, and other adjustments.
Common Transactions as Exclusions:
Some common transactions as exclusions or deductions from gross income are: -
CORRECT ANSWERS Educator expenses
Self-employment tax
Alimony payments
Early withdrawal penalty
Self-employed health insurance
Charitable contributions
Traditional IRA
Health savings account
Student loan interest
Jury duty
Alimony Payments - CORRECT ANSWERS Payment to Spouse
ex-spouse
, former spouse
legal separation instrument
What expenses qualify - CORRECT ANSWERS remarriage
death
court order
medical bills
housing costs
other expenses
person who is paying alimony will deduct to income
person who is receiving alimony will treat as a income
what information needed to complete the schedule 1 - CORRECT ANSWERS Exact
amount, Social Security number, date of divorce
Before December 31, 2018 - CORRECT ANSWERS Taxable consequences of alimony
applies to divorce decrees
Early withdrawal penalty - CORRECT ANSWERS early withdrawal, charged , maturity
date
expenses qualify : deduct penalties, drawing fundsdeferred interest .
How to report :
Interest income -form 1099-int
Deduction -form 1040 Schedule 1
Self-Employed Health Insurance - CORRECT ANSWERS Net profit on schedule c
Deduct the cost
Who is eligible?
Medical, dental, vision, Supplemental, Long term care
self-employed taxpayer, tax payer spouse, tax payer dependents
Other rules: can't
Deduct payments
Participate in health plan- employer, spouses of tax payer employer, employer's of tax
dependent
What is the limit:
net self employment profit
one-half of the self-employment tax
Income Inclusion - CORRECT ANSWERS Traditional IRA
HSA
Student Loan Interest-maximum $2500
