1
INTUIT ACADEMY TAX LEVEL 1
QUESTIONS AND ANSWERS-2026 VERSION
Below the line deductions include -SOLUTION-Standard deduction
Eligible educators can deduct up to of qualified expenses paid
during the tax year. -SOLUTION-$250
Which of the following is an ineligible medical expense for HSA,
Archer MSA, and MA MSA? -SOLUTION-Breast enhancement
The net capital gain is taxed at if the married filing jointly taxpayer
income is less than
$80,800. -SOLUTION-0%
To claim a child as a dependent, they must meet the qualifying child test or
.
-SOLUTION-qualifying relative test
Ordinary dividends are taxed at the same rate as income tax rate.
-SOLUTION- ordinary
Distributions from HSA, Archer MSA, or MS MSA are non-taxable when
. -SOLUTION-spent for
qualified medical expenses of your dependent
Which residency status is used when an individual is neither a U.S.
citizen nor a resident alien for tax purposes? -SOLUTION-Non-resident
alien
and are what taxpayers must know to
calculate their tax amount. -SOLUTION-Taxable income and filing
status
For mortgages entered into after December 15, 2017, the amount of
interest the taxpayer can deduct is no more than of the debt used to
,2
buy, build, or substantially improve their principal home and a second
home. -SOLUTION-750,000
reduce the amount of tax due. -SOLUTION-Tax credits
Which form is for beneficiaries who get income from trusts and estates? -
SOLUTION-Form 1041
consists of both earned and unearned income that is
used to calculate the tax. It is generally less than adjusted gross income
due to the deductions. -SOLUTION-Taxable income
To satisfy the Substantial Presence Test, how many minimum days (in
the current year) must you be physically present in the United States? -
SOLUTION-31
,3
Complete the equation. = Selling Price - Purchase Price -
SOLUTION-Capital Loss or Capital Gain
helps sole proprietorships calculate the profit or loss
from a business while also providing the IRS with your total business
income and deductions. -SOLUTION-Schedule C
What type of deduction is a HSA contribution? -SOLUTION-Above-the-
Line Deduction Some of the common expenses on which Above-the-
Line deductions are available include:
Educator expenses
Early withdrawal penalties of
saving accounts Moving expenses
Business
expenses
HSA
contributions
Self-employment
tax Alimony
payments Tuition
fees
Contributions to a
traditional IRA Student
loan interest deduction
Health insurance
, 4
premiums Retirement
account contribution
As it applies to compensation income, the general rule for sourcing
wages and personal services income is controlled by . -SOLUTION-
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.
Which is considered non-taxable income? -SOLUTION-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.
is used to offset income and payroll taxes for low-
income workers and to provide an incentive to work. -SOLUTION-
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.
INTUIT ACADEMY TAX LEVEL 1
QUESTIONS AND ANSWERS-2026 VERSION
Below the line deductions include -SOLUTION-Standard deduction
Eligible educators can deduct up to of qualified expenses paid
during the tax year. -SOLUTION-$250
Which of the following is an ineligible medical expense for HSA,
Archer MSA, and MA MSA? -SOLUTION-Breast enhancement
The net capital gain is taxed at if the married filing jointly taxpayer
income is less than
$80,800. -SOLUTION-0%
To claim a child as a dependent, they must meet the qualifying child test or
.
-SOLUTION-qualifying relative test
Ordinary dividends are taxed at the same rate as income tax rate.
-SOLUTION- ordinary
Distributions from HSA, Archer MSA, or MS MSA are non-taxable when
. -SOLUTION-spent for
qualified medical expenses of your dependent
Which residency status is used when an individual is neither a U.S.
citizen nor a resident alien for tax purposes? -SOLUTION-Non-resident
alien
and are what taxpayers must know to
calculate their tax amount. -SOLUTION-Taxable income and filing
status
For mortgages entered into after December 15, 2017, the amount of
interest the taxpayer can deduct is no more than of the debt used to
,2
buy, build, or substantially improve their principal home and a second
home. -SOLUTION-750,000
reduce the amount of tax due. -SOLUTION-Tax credits
Which form is for beneficiaries who get income from trusts and estates? -
SOLUTION-Form 1041
consists of both earned and unearned income that is
used to calculate the tax. It is generally less than adjusted gross income
due to the deductions. -SOLUTION-Taxable income
To satisfy the Substantial Presence Test, how many minimum days (in
the current year) must you be physically present in the United States? -
SOLUTION-31
,3
Complete the equation. = Selling Price - Purchase Price -
SOLUTION-Capital Loss or Capital Gain
helps sole proprietorships calculate the profit or loss
from a business while also providing the IRS with your total business
income and deductions. -SOLUTION-Schedule C
What type of deduction is a HSA contribution? -SOLUTION-Above-the-
Line Deduction Some of the common expenses on which Above-the-
Line deductions are available include:
Educator expenses
Early withdrawal penalties of
saving accounts Moving expenses
Business
expenses
HSA
contributions
Self-employment
tax Alimony
payments Tuition
fees
Contributions to a
traditional IRA Student
loan interest deduction
Health insurance
, 4
premiums Retirement
account contribution
As it applies to compensation income, the general rule for sourcing
wages and personal services income is controlled by . -SOLUTION-
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.
Which is considered non-taxable income? -SOLUTION-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.
is used to offset income and payroll taxes for low-
income workers and to provide an incentive to work. -SOLUTION-
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.
