INTUIT TAX LEVEL 1 STUDY GUIDE QUESTIONS
WITH CORRECT ANSWERS 2026
Ford 1040, Line 1 - CORRECT ANSWER - Wages, salaries, tips, etc. Reflects income from form
W2.
Form 1040 Line 2B - CORRECT ANSWER - taxable interest; form 1099-INT
What is the child tax credit for each child under 17? - CORRECT ANSWER - $2000
Net capital losses over $3000 can be carried forward indefinitely until exhausted. - CORRECT
ANSWER - True
In 2021, Gustav bought a residential real estate property and rented it full time on November 1,
2021. What schedule should he include with Form 1040? - CORRECT ANSWER - Schedule 1;
Schedule E
Kahn received a Capital Gain Distribution reported on Form 1099-DIV, Box2a and also received a
1099B reporting long term capital gains. What should he do when preparing the Form 1040? -
CORRECT ANSWER - Attach a schedule D
Schedule 1 (Form 1040) - CORRECT ANSWER - additional income and adjustments to income
Schedule 2 (Form 1040) - CORRECT ANSWER - additional taxes
Schedule 3 (Form 1040) - CORRECT ANSWER - Additional Credits and Payments
Schedule A (Form 1040) - CORRECT ANSWER - itemized deductions
, Schedule B (Form 1040) - CORRECT ANSWER - Interest and Ordinary Dividends
Schedule D form 1040 - CORRECT ANSWER - Capital Gains and Losses
Schedule C (Form 1040) - CORRECT ANSWER - Profit or Loss from Business (Sole Proprietorship)
Schedule SE (Form 1040) - CORRECT ANSWER - self employment tax (SS tax)
Schedule E (Form 1040) - CORRECT ANSWER - Supplemental Income and Loss (From rental real
estate, royalties, partnerships, S corporations, estates, trusts, REMICs, etc.)
Schedule EIC (Form 1040) - CORRECT ANSWER - Earned Income Credit for a qualifying child
Schedule 8812 (Form 1040) - CORRECT ANSWER - Additional child tax credit; refundable credit
received if child tax credit is greater than total amount of income taxes owed
Three conditions to not pay estimated tax for current year - CORRECT ANSWER - 1. They had no
tax liability for prior year
2. They were a U.S citizen or resident alien for the whole year
3. Prior tax year covered 12 months
Form 2210 - CORRECT ANSWER - Underpayment of Estimated Tax by Individuals, Estates, and
Trusts
Linda, a US resident and sole proprietor, expects that she will owe $2500 and taxes for the
current year. According to the IRS guidelines, which is true about Linda's estimated tax
WITH CORRECT ANSWERS 2026
Ford 1040, Line 1 - CORRECT ANSWER - Wages, salaries, tips, etc. Reflects income from form
W2.
Form 1040 Line 2B - CORRECT ANSWER - taxable interest; form 1099-INT
What is the child tax credit for each child under 17? - CORRECT ANSWER - $2000
Net capital losses over $3000 can be carried forward indefinitely until exhausted. - CORRECT
ANSWER - True
In 2021, Gustav bought a residential real estate property and rented it full time on November 1,
2021. What schedule should he include with Form 1040? - CORRECT ANSWER - Schedule 1;
Schedule E
Kahn received a Capital Gain Distribution reported on Form 1099-DIV, Box2a and also received a
1099B reporting long term capital gains. What should he do when preparing the Form 1040? -
CORRECT ANSWER - Attach a schedule D
Schedule 1 (Form 1040) - CORRECT ANSWER - additional income and adjustments to income
Schedule 2 (Form 1040) - CORRECT ANSWER - additional taxes
Schedule 3 (Form 1040) - CORRECT ANSWER - Additional Credits and Payments
Schedule A (Form 1040) - CORRECT ANSWER - itemized deductions
, Schedule B (Form 1040) - CORRECT ANSWER - Interest and Ordinary Dividends
Schedule D form 1040 - CORRECT ANSWER - Capital Gains and Losses
Schedule C (Form 1040) - CORRECT ANSWER - Profit or Loss from Business (Sole Proprietorship)
Schedule SE (Form 1040) - CORRECT ANSWER - self employment tax (SS tax)
Schedule E (Form 1040) - CORRECT ANSWER - Supplemental Income and Loss (From rental real
estate, royalties, partnerships, S corporations, estates, trusts, REMICs, etc.)
Schedule EIC (Form 1040) - CORRECT ANSWER - Earned Income Credit for a qualifying child
Schedule 8812 (Form 1040) - CORRECT ANSWER - Additional child tax credit; refundable credit
received if child tax credit is greater than total amount of income taxes owed
Three conditions to not pay estimated tax for current year - CORRECT ANSWER - 1. They had no
tax liability for prior year
2. They were a U.S citizen or resident alien for the whole year
3. Prior tax year covered 12 months
Form 2210 - CORRECT ANSWER - Underpayment of Estimated Tax by Individuals, Estates, and
Trusts
Linda, a US resident and sole proprietor, expects that she will owe $2500 and taxes for the
current year. According to the IRS guidelines, which is true about Linda's estimated tax
