Intuit Academy Tax Level 1 Exam Questions Bank 2026: 150+
Questions, Answers, and Detailed Rationales for the
Bookkeeping Certification
Filing Status & Dependents
1. Which filing status generally results in the lowest tax rate?
• Answer: D. Married Filing Jointly
• Rationale: Married Filing Jointly (MFJ) has wider tax brackets and higher standard
deductions, which usually lowers the effective tax rate.
2. A taxpayer is unmarried, paid more than half the cost of keeping up a home,
and lived with their qualifying child all year. What is their filing status?
• Answer: C. Head of Household
• Rationale: Head of Household requires the taxpayer to be unmarried (or considered
unmarried), pay more than 50% of household costs, and have a qualifying person live
with them.
3. Which person can be claimed as a qualifying child?
• Answer: B. 18-year-old child who lived with taxpayer all year
• Rationale: A qualifying child must meet relationship, age (under 19, or under 24 if a
student), and residency (live more than half the year) tests.
4. A qualifying relative must:
• Answer: C. Have income below the limit
• Rationale: A qualifying relative must have a gross income below the IRS limit. The
taxpayer must also provide more than 50% of their support.
5. Which person is a dependent?
,• Answer: C. Taxpayer's parent supported by taxpayer
• Rationale: Parents can be claimed as qualifying relatives if the taxpayer provides
more than half of their support and the parent's income is below the annual limit.
6. For a taxpayer who is a dependent, which statement is true?
• Answer: C. Cannot claim personal exemption
• Rationale: Personal exemptions were eliminated by the Tax Cuts and Jobs Act.
Dependents may still have income and be eligible for the standard deduction.
7. Who signs a joint return?
• Answer: C. Both spouses
• Rationale: Both spouses must sign the joint return to be legally responsible for it.
8. Married Filing Separately usually results in:
• Answer: B. Higher taxes
• Rationale: The Married Filing Separately status has higher tax rates and limited
access to many credits, making it generally unfavorable.
9. What are the five filing statuses?
• Answer: Single, Married Filing Jointly, Married Filing Separately, Head of Household,
Qualifying Widow(er)
10. Qualifying Widow(er) requires:
• Answer: A. Child dependent
• Rationale: A qualifying widow(er) must have a dependent child and must not have
remarried within two years of the spouse's death.
11. Which residency status is used when an individual is neither a U.S. citizen
nor a resident alien for tax purposes?
• Answer: Non-resident alien
12. To satisfy the Substantial Presence Test, how many minimum days (in the
current year) must you be physically present in the United States?
• Answer: 31
Income, Adjustments, and Deductions
13. Which income is taxable?
, • Answer: C. Unemployment compensation
• Rationale: Unemployment compensation is taxable income and is reported on
Schedule 1.
14. Which is NOT taxable income?
• Answer: D. Child support received
• Rationale: Child support payments received are not taxable to the recipient and are
not deductible by the payer.
15. Where are wages reported on the tax return?
• Answer: C. Form 1040, Line 1
• Rationale: Wages from a W-2 are reported directly on Line 1 of Form 1040.
16. Which form reports interest income?
• Answer: B. 1099-INT
• Rationale: Financial institutions issue Form 1099-INT to report interest earned by a
taxpayer.
17. Which is an above-the-line adjustment?
• Answer: C. Student loan interest
• Rationale: Above-the-line adjustments, like student loan interest, are subtracted
from total income to calculate Adjusted Gross Income (AGI) on Schedule 1.
18. Standard deduction is best when:
• Answer: B. Itemized deductions are lower
• Rationale: Taxpayers should choose the larger of the standard deduction or their
total itemized deductions. If itemized are lower, the standard deduction is better.
19. Which document reports mortgage interest?
• Answer: B. 1098
• Rationale: Lenders issue Form 1098 to report the amount of mortgage interest a
taxpayer paid during the year.
20. Itemized deductions are claimed on:
• Answer: B. Schedule A
• Rationale: Schedule A is used to itemize deductions such as medical expenses, taxes,
interest, and charitable contributions.
21. Which income is reported on Schedule 1?
Questions, Answers, and Detailed Rationales for the
Bookkeeping Certification
Filing Status & Dependents
1. Which filing status generally results in the lowest tax rate?
• Answer: D. Married Filing Jointly
• Rationale: Married Filing Jointly (MFJ) has wider tax brackets and higher standard
deductions, which usually lowers the effective tax rate.
2. A taxpayer is unmarried, paid more than half the cost of keeping up a home,
and lived with their qualifying child all year. What is their filing status?
• Answer: C. Head of Household
• Rationale: Head of Household requires the taxpayer to be unmarried (or considered
unmarried), pay more than 50% of household costs, and have a qualifying person live
with them.
3. Which person can be claimed as a qualifying child?
• Answer: B. 18-year-old child who lived with taxpayer all year
• Rationale: A qualifying child must meet relationship, age (under 19, or under 24 if a
student), and residency (live more than half the year) tests.
4. A qualifying relative must:
• Answer: C. Have income below the limit
• Rationale: A qualifying relative must have a gross income below the IRS limit. The
taxpayer must also provide more than 50% of their support.
5. Which person is a dependent?
,• Answer: C. Taxpayer's parent supported by taxpayer
• Rationale: Parents can be claimed as qualifying relatives if the taxpayer provides
more than half of their support and the parent's income is below the annual limit.
6. For a taxpayer who is a dependent, which statement is true?
• Answer: C. Cannot claim personal exemption
• Rationale: Personal exemptions were eliminated by the Tax Cuts and Jobs Act.
Dependents may still have income and be eligible for the standard deduction.
7. Who signs a joint return?
• Answer: C. Both spouses
• Rationale: Both spouses must sign the joint return to be legally responsible for it.
8. Married Filing Separately usually results in:
• Answer: B. Higher taxes
• Rationale: The Married Filing Separately status has higher tax rates and limited
access to many credits, making it generally unfavorable.
9. What are the five filing statuses?
• Answer: Single, Married Filing Jointly, Married Filing Separately, Head of Household,
Qualifying Widow(er)
10. Qualifying Widow(er) requires:
• Answer: A. Child dependent
• Rationale: A qualifying widow(er) must have a dependent child and must not have
remarried within two years of the spouse's death.
11. Which residency status is used when an individual is neither a U.S. citizen
nor a resident alien for tax purposes?
• Answer: Non-resident alien
12. To satisfy the Substantial Presence Test, how many minimum days (in the
current year) must you be physically present in the United States?
• Answer: 31
Income, Adjustments, and Deductions
13. Which income is taxable?
, • Answer: C. Unemployment compensation
• Rationale: Unemployment compensation is taxable income and is reported on
Schedule 1.
14. Which is NOT taxable income?
• Answer: D. Child support received
• Rationale: Child support payments received are not taxable to the recipient and are
not deductible by the payer.
15. Where are wages reported on the tax return?
• Answer: C. Form 1040, Line 1
• Rationale: Wages from a W-2 are reported directly on Line 1 of Form 1040.
16. Which form reports interest income?
• Answer: B. 1099-INT
• Rationale: Financial institutions issue Form 1099-INT to report interest earned by a
taxpayer.
17. Which is an above-the-line adjustment?
• Answer: C. Student loan interest
• Rationale: Above-the-line adjustments, like student loan interest, are subtracted
from total income to calculate Adjusted Gross Income (AGI) on Schedule 1.
18. Standard deduction is best when:
• Answer: B. Itemized deductions are lower
• Rationale: Taxpayers should choose the larger of the standard deduction or their
total itemized deductions. If itemized are lower, the standard deduction is better.
19. Which document reports mortgage interest?
• Answer: B. 1098
• Rationale: Lenders issue Form 1098 to report the amount of mortgage interest a
taxpayer paid during the year.
20. Itemized deductions are claimed on:
• Answer: B. Schedule A
• Rationale: Schedule A is used to itemize deductions such as medical expenses, taxes,
interest, and charitable contributions.
21. Which income is reported on Schedule 1?
