Tax Level 1: Intuit Academy Exam Questions and Answers
Comprehensive Resource To Help You Ace 2026-2027 Exams
Includes Frequently Tested Questions With ELABORATED
100% Correct COMPLETE SOLUTIONS
Guaranteed Pass First Attempt!! Current Update!!
1. Cruz is single with no dependents. After adding up all his income and
deductions, Cruz's federal tax liability is $1,657 for the current year. He had
$417 of income tax withholding from his wages on his Form W-2. His prior-
year tax liability was $2,400. He files his tax return on time. Is Cruz likely to
owe a penalty, and if so, which one? - Correct Answer: Underpayment
of estimated tax penalty.
2. Beulah is self-employed and reports her income on Schedule C. She is
required to make quarterly estimated tax payments totaling $8,000 for the
tax year in order to avoid an estimated tax penalty. She makes the following
payments:
First payment: Credit of $2,000 from her previous year's tax refund.
Second payment: $1,000 on April 20.
Third payment: $1,000 on May 31.
Fourth payment: $2,000 on August 15.
Fifth payment: $1,000 on October 15.
Sixth payment: $1,000 on December 30.
Which of the following statements is correct? - Correct Answer: She has
made timely estimated payments.
,3. Kyle and Jenna are married and file jointly. They both work full time for a
department store. They have a $1,500 balance due on their joint return and
want advice on how to prevent a balance due next year. What would help
them avoid balance due in future years? - Correct Answer: They need to
adjust their withholding using Form W-4, then give the form to their
employer.
4. Fatima has a full-time job, and she is also self-employed as a part time Uber
driver, which she does on weekends. She doesn't want to pay estimated
payments, so she increases her withholding at her regular job. She always
files her return on time. How much tax must she pay, in order to avoid an
estimated tax penalty when she files her return? - Correct Answer: She
will avoid the estimated tax penalty if she owes less than $1,000 in tax after
subtracting her withholding and credits, or if she paid at least 90% of the
tax for the current year, or 100% of the tax shown on the return for the
prior year, (whichever is smaller).correct
5. Elena is a self-employed bookkeeper. She reports her income on Schedule C.
Her business is profitable, and she is required to make estimated payments
throughout the year. When is her first estimated payment due? -
Correct Answer: April 15.
6. Which of the following payments may be subject to backup withholding? -
Correct Answer: Dividend payments.
7. Janet is unmarried and files single. This year, Janet earned $99,800 in
income from various income sources. The total tax liability shown on Janet's
prior-year return was $10,900. After estimating her allowable deductions
and credits, her expected tax liability for 2023 is $14,000. The tax expected
, to be withheld in 2023 from her wages is $11,100. She plans to file right on
April 15, 2024 the filing deadline, and pay any tax owed at the same time.
Will Janet be subject to an estimated tax penalty when she files her return?
- Correct Answer: Janet will not be subject to the estimated tax penalty
because she paid at least 100% of the tax shown on her return for the prior
year.
8. Which form should individual taxpayers use to figure their estimated tax? -
Correct Answer: Form 1040-ES.
9. Jaime expects to owe $1,500 in tax for 2023. Her tax liability for the prior
year was $0, because she did not work at all that year. Is Jaime required to
pay estimated taxes in 2023? - Correct Answer: Jaime is not required to
pay estimated tax for the year.
10.Bayard e-files his 2023 tax return on February 27, 2024. He has a balance
due of $950 on the return. How long can he wait to pay the amount owed
and not pay a late payment penalty? - Correct Answer: He has until the
original due date of the return (not including extensions) to pay the amount
owed and not pay a late payment penalty.
11.Rebekah filed a joint tax return with her new husband, Noah, and the entire
refund was applied to Noah's overdue student loans. What form should
Rebekah file, in order to receive her portion of the refund? - Correct
Answer: Form 8379.
12.Ursula and Patrick were married three years ago and they file jointly. Both
of them work. They are owed a refund on their joint return, but this year,
, their entire refund is offset against Patrick's past-due child support. Can
Ursula have any recourse to recover any of the refund? - Correct
Answer: Ursula can request injured spouse relief in order to recover her
portion of the refund.
13."Separation of liability" relief does NOT apply to taxpayers who are: -
Correct Answer: Married taxpayers who are living in the same household.
14.Miranda was married to Reese, but divorced him in 2023. They filed joint
returns in prior years and now the IRS is attempting to collect the tax from
Miranda. She believes that she might qualify for equitable relief. Which is
NOT a factor for the IRS to consider in determining whether to grant
equitable relief to Miranda? - Correct Answer: Miranda's prior-year AGI
was significantly higher than her current year's income.
15.Narissa is legally separated from her husband, Travis. She filed joint returns
with him in the past. Travis had a business that was audited, and he was
assessed a large amount of additional tax. Since they filed jointly, Narissa is
also jointly and severally liable for the tax. Narissa knew about the possible
understatement, but didn't question the items on the return because of
fear of retaliation. She now wants to apply for equitable relief. In order to
do so, what must be true? - Correct Answer: Narissa must show that it
would be unfair to hold her liable for the understatement of tax.
16.Aimee is a freelance editor who makes estimated tax payments on her self-
employment income. She and her husband, Enrique, have two children.
This year, they claimed the Child Tax Credit on their joint return. Enrique
owes past-due spousal and child support, so the IRS took the couple's entire
tax refund to pay his past-due debts. Aimee is not responsible for any of
Comprehensive Resource To Help You Ace 2026-2027 Exams
Includes Frequently Tested Questions With ELABORATED
100% Correct COMPLETE SOLUTIONS
Guaranteed Pass First Attempt!! Current Update!!
1. Cruz is single with no dependents. After adding up all his income and
deductions, Cruz's federal tax liability is $1,657 for the current year. He had
$417 of income tax withholding from his wages on his Form W-2. His prior-
year tax liability was $2,400. He files his tax return on time. Is Cruz likely to
owe a penalty, and if so, which one? - Correct Answer: Underpayment
of estimated tax penalty.
2. Beulah is self-employed and reports her income on Schedule C. She is
required to make quarterly estimated tax payments totaling $8,000 for the
tax year in order to avoid an estimated tax penalty. She makes the following
payments:
First payment: Credit of $2,000 from her previous year's tax refund.
Second payment: $1,000 on April 20.
Third payment: $1,000 on May 31.
Fourth payment: $2,000 on August 15.
Fifth payment: $1,000 on October 15.
Sixth payment: $1,000 on December 30.
Which of the following statements is correct? - Correct Answer: She has
made timely estimated payments.
,3. Kyle and Jenna are married and file jointly. They both work full time for a
department store. They have a $1,500 balance due on their joint return and
want advice on how to prevent a balance due next year. What would help
them avoid balance due in future years? - Correct Answer: They need to
adjust their withholding using Form W-4, then give the form to their
employer.
4. Fatima has a full-time job, and she is also self-employed as a part time Uber
driver, which she does on weekends. She doesn't want to pay estimated
payments, so she increases her withholding at her regular job. She always
files her return on time. How much tax must she pay, in order to avoid an
estimated tax penalty when she files her return? - Correct Answer: She
will avoid the estimated tax penalty if she owes less than $1,000 in tax after
subtracting her withholding and credits, or if she paid at least 90% of the
tax for the current year, or 100% of the tax shown on the return for the
prior year, (whichever is smaller).correct
5. Elena is a self-employed bookkeeper. She reports her income on Schedule C.
Her business is profitable, and she is required to make estimated payments
throughout the year. When is her first estimated payment due? -
Correct Answer: April 15.
6. Which of the following payments may be subject to backup withholding? -
Correct Answer: Dividend payments.
7. Janet is unmarried and files single. This year, Janet earned $99,800 in
income from various income sources. The total tax liability shown on Janet's
prior-year return was $10,900. After estimating her allowable deductions
and credits, her expected tax liability for 2023 is $14,000. The tax expected
, to be withheld in 2023 from her wages is $11,100. She plans to file right on
April 15, 2024 the filing deadline, and pay any tax owed at the same time.
Will Janet be subject to an estimated tax penalty when she files her return?
- Correct Answer: Janet will not be subject to the estimated tax penalty
because she paid at least 100% of the tax shown on her return for the prior
year.
8. Which form should individual taxpayers use to figure their estimated tax? -
Correct Answer: Form 1040-ES.
9. Jaime expects to owe $1,500 in tax for 2023. Her tax liability for the prior
year was $0, because she did not work at all that year. Is Jaime required to
pay estimated taxes in 2023? - Correct Answer: Jaime is not required to
pay estimated tax for the year.
10.Bayard e-files his 2023 tax return on February 27, 2024. He has a balance
due of $950 on the return. How long can he wait to pay the amount owed
and not pay a late payment penalty? - Correct Answer: He has until the
original due date of the return (not including extensions) to pay the amount
owed and not pay a late payment penalty.
11.Rebekah filed a joint tax return with her new husband, Noah, and the entire
refund was applied to Noah's overdue student loans. What form should
Rebekah file, in order to receive her portion of the refund? - Correct
Answer: Form 8379.
12.Ursula and Patrick were married three years ago and they file jointly. Both
of them work. They are owed a refund on their joint return, but this year,
, their entire refund is offset against Patrick's past-due child support. Can
Ursula have any recourse to recover any of the refund? - Correct
Answer: Ursula can request injured spouse relief in order to recover her
portion of the refund.
13."Separation of liability" relief does NOT apply to taxpayers who are: -
Correct Answer: Married taxpayers who are living in the same household.
14.Miranda was married to Reese, but divorced him in 2023. They filed joint
returns in prior years and now the IRS is attempting to collect the tax from
Miranda. She believes that she might qualify for equitable relief. Which is
NOT a factor for the IRS to consider in determining whether to grant
equitable relief to Miranda? - Correct Answer: Miranda's prior-year AGI
was significantly higher than her current year's income.
15.Narissa is legally separated from her husband, Travis. She filed joint returns
with him in the past. Travis had a business that was audited, and he was
assessed a large amount of additional tax. Since they filed jointly, Narissa is
also jointly and severally liable for the tax. Narissa knew about the possible
understatement, but didn't question the items on the return because of
fear of retaliation. She now wants to apply for equitable relief. In order to
do so, what must be true? - Correct Answer: Narissa must show that it
would be unfair to hold her liable for the understatement of tax.
16.Aimee is a freelance editor who makes estimated tax payments on her self-
employment income. She and her husband, Enrique, have two children.
This year, they claimed the Child Tax Credit on their joint return. Enrique
owes past-due spousal and child support, so the IRS took the couple's entire
tax refund to pay his past-due debts. Aimee is not responsible for any of
