Intuit Academy Tax Level 1 Test
(2026-2027)
** Final Exam Questions with 100% Correct
Answers | Grade A+
** Guaranteed Pass
** Updated | New Version
,Below the line deductions include Standard deduction
Eligible educators can deduct up to _______ of qualified $250
expenses paid during the tax year.
Which of the following is an ineligible medical expense for Breast enhancement
HSA, Archer MSA, and MA MSA?
The net capital gain is taxed at _______ if the married 0%
filing jointly taxpayer income is less than $80,800.
To claim a child as a dependent, they must meet the qualifying relative test
qualifying child test or ________________.
Ordinary dividends are taxed at the same rate as ordinary
__________ income tax rate.
Distributions from HSA, Archer MSA, or MS MSA are non- spent for qualified medical expenses of your dependent
taxable when
_________________________________________.
Which residency status is used when an individual is Non-resident alien
neither a U.S. citizen nor a resident alien for tax purposes?
_____________ and ____________ are what taxpayers Taxable income and filing status
must know to calculate their tax amount.
For mortgages entered into after December 15, 2017, the 750,000
amount of interest the taxpayer can deduct is no more
than ______________ of the debt used to buy, build, or
substantially improve their principal home and a second
home.
__________ reduce the amount of tax due. Tax credits
Which form is for beneficiaries who get income from trusts Form 1041
and estates?
___________________ consists of both earned and Taxable income
unearned income that is used to calculate the tax. It is
generally less than adjusted gross income due to the
deductions.
To satisfy the Substantial Presence Test, how many 31
minimum days (in the current year) must you be physically
present in the United States?
,Complete the equation. ___________ = Selling Price - Capital Loss or Capital Gain
Purchase Price
_________________ helps sole proprietorships calculate Schedule C
the profit or loss from a business while also providing the
IRS with your total business income and deductions.
What type of deduction is a HSA contribution? 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 premiums
Retirement account contribution
As it applies to compensation income, the general rule for where the service is performed The general rule for sourcing wages and personal
sourcing wages and personal services income is controlled services income is controlled by where the service is performed. The residence of
by ________________________________. the recipient of the service, the place of contracting, and the time and place of
payment are irrelevant.
Which is considered non-taxable income? 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 Earned Income Tax Credit Earned Income Tax Credit is used to offset income and
taxes for low-income workers and to provide an incentive payroll taxes for low-income workers and to provide an incentive to work.
to work.
Which is a non-deductible business expense? family vacation Expenses done for personal and recreational purposes are personal
expenses and are non-deductible.
What amount of upper cap is applicable on business gifts? $25 The upper cap of $25 is applicable on business gifts.
If yearly dividend amounts exceed __________, a $1500 If yearly dividend amounts exceed $1500, a Schedule B must be completed
Schedule B must be completed and attached to Form and attached.
1040.
The are _________ filing statuses. five There are five filing statuses.
Single
Married Filing Jointly
Married Filing Separately
Head of Household
Qualifying Widow(er)
Taxpayers can claim a Child Tax Credit of up to $3,600.00 Taxpayers can claim a CTC of up to $3,600 for each child under age 17
__________ for each child under age 17 in 2021(2022). in 2021(2022). Since 2021, qualifying families may now receive up to $3,600 per
child under the age of 5 and $3,000 for those ages 6 to 17. That's up from $2,000
per child, provided families fall under certain income thresholds (less than $150,000
for couples and $112,500 for single parents).
, ______________ includes supplemental income and loss. Schedule E includes supplemental income and loss
Supplemental Income and Loss consists of:
Income or Loss from Rental Real Estate and Royalties
Income or Loss from Partnerships and S Corporations
Income or Loss from Estates and Trusts, and
Income or Loss from Real Estate Mortgage Investment Conduits (REMICs)
Payments and refundable credits are listed between what Lines 25 through 30 are payments and refundable credits.
lines on Form 1040?
A partnership files a tax return on ______________. A partnership files a tax return on Form 1065.
Which of the following is not a requirement for S- Being an international entity is not a requirement for S-Corporation election.
Corporation election?
________________ generally have to make estimated tax Corporations generally have to make estimated tax payments if they expect to owe
payments if they expect to owe tax of $500 or more when tax of $500 or more when their return is filed.
their return is filed.
Which is not a nonrefundable tax credit? (Select all that Child and Dependent Care Credit Nonrefundable tax credits include:
apply) Child Tax Credit/Credit for Other Dependents
Adoption Credit
Social Security benefits can be taxed to a maximum of Up to 85% of your Social Security income is taxed if you receive income from other
___________% based on the beneficiary's annual income. sources and your combined income is more than a certain base amount.
Which factor does not limit QBI components of QBI reported on Schedule C
deduction?
Who cannot take the standard deduction? (select all that An individual filing as Married Filing Separately and the spouse itemizes An
apply) individual filing a return for a short tax year due to a change in the annual
accounting period A nonresident or dual-status alien during the year
What type of payment is not considered miscellaneous? employment wages Miscellaneous income can include payments in the form of
rents received, royalties, medical and health care, crop insurance proceeds, refund
or credits of state and local taxes, unemployment compensation, and prizes and
awards,
What dividend comes from mutual funds and real estate capital gain Capital gain distributions come from mutual funds and real estate
investment trusts (REITs)? investment trusts (REITs).
Which is not considered a gambling winning? games of chance Gambling winnings include, but are not limited to, money or prizes
earned from:
Casino games
Slot machines
Keno
Poker tournaments
Lotteries
Sweepstakes
Raffles
Betting pools
Gameshows
Horse or dog races
Off-track betting
Bingo
(2026-2027)
** Final Exam Questions with 100% Correct
Answers | Grade A+
** Guaranteed Pass
** Updated | New Version
,Below the line deductions include Standard deduction
Eligible educators can deduct up to _______ of qualified $250
expenses paid during the tax year.
Which of the following is an ineligible medical expense for Breast enhancement
HSA, Archer MSA, and MA MSA?
The net capital gain is taxed at _______ if the married 0%
filing jointly taxpayer income is less than $80,800.
To claim a child as a dependent, they must meet the qualifying relative test
qualifying child test or ________________.
Ordinary dividends are taxed at the same rate as ordinary
__________ income tax rate.
Distributions from HSA, Archer MSA, or MS MSA are non- spent for qualified medical expenses of your dependent
taxable when
_________________________________________.
Which residency status is used when an individual is Non-resident alien
neither a U.S. citizen nor a resident alien for tax purposes?
_____________ and ____________ are what taxpayers Taxable income and filing status
must know to calculate their tax amount.
For mortgages entered into after December 15, 2017, the 750,000
amount of interest the taxpayer can deduct is no more
than ______________ of the debt used to buy, build, or
substantially improve their principal home and a second
home.
__________ reduce the amount of tax due. Tax credits
Which form is for beneficiaries who get income from trusts Form 1041
and estates?
___________________ consists of both earned and Taxable income
unearned income that is used to calculate the tax. It is
generally less than adjusted gross income due to the
deductions.
To satisfy the Substantial Presence Test, how many 31
minimum days (in the current year) must you be physically
present in the United States?
,Complete the equation. ___________ = Selling Price - Capital Loss or Capital Gain
Purchase Price
_________________ helps sole proprietorships calculate Schedule C
the profit or loss from a business while also providing the
IRS with your total business income and deductions.
What type of deduction is a HSA contribution? 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 premiums
Retirement account contribution
As it applies to compensation income, the general rule for where the service is performed The general rule for sourcing wages and personal
sourcing wages and personal services income is controlled services income is controlled by where the service is performed. The residence of
by ________________________________. the recipient of the service, the place of contracting, and the time and place of
payment are irrelevant.
Which is considered non-taxable income? 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 Earned Income Tax Credit Earned Income Tax Credit is used to offset income and
taxes for low-income workers and to provide an incentive payroll taxes for low-income workers and to provide an incentive to work.
to work.
Which is a non-deductible business expense? family vacation Expenses done for personal and recreational purposes are personal
expenses and are non-deductible.
What amount of upper cap is applicable on business gifts? $25 The upper cap of $25 is applicable on business gifts.
If yearly dividend amounts exceed __________, a $1500 If yearly dividend amounts exceed $1500, a Schedule B must be completed
Schedule B must be completed and attached to Form and attached.
1040.
The are _________ filing statuses. five There are five filing statuses.
Single
Married Filing Jointly
Married Filing Separately
Head of Household
Qualifying Widow(er)
Taxpayers can claim a Child Tax Credit of up to $3,600.00 Taxpayers can claim a CTC of up to $3,600 for each child under age 17
__________ for each child under age 17 in 2021(2022). in 2021(2022). Since 2021, qualifying families may now receive up to $3,600 per
child under the age of 5 and $3,000 for those ages 6 to 17. That's up from $2,000
per child, provided families fall under certain income thresholds (less than $150,000
for couples and $112,500 for single parents).
, ______________ includes supplemental income and loss. Schedule E includes supplemental income and loss
Supplemental Income and Loss consists of:
Income or Loss from Rental Real Estate and Royalties
Income or Loss from Partnerships and S Corporations
Income or Loss from Estates and Trusts, and
Income or Loss from Real Estate Mortgage Investment Conduits (REMICs)
Payments and refundable credits are listed between what Lines 25 through 30 are payments and refundable credits.
lines on Form 1040?
A partnership files a tax return on ______________. A partnership files a tax return on Form 1065.
Which of the following is not a requirement for S- Being an international entity is not a requirement for S-Corporation election.
Corporation election?
________________ generally have to make estimated tax Corporations generally have to make estimated tax payments if they expect to owe
payments if they expect to owe tax of $500 or more when tax of $500 or more when their return is filed.
their return is filed.
Which is not a nonrefundable tax credit? (Select all that Child and Dependent Care Credit Nonrefundable tax credits include:
apply) Child Tax Credit/Credit for Other Dependents
Adoption Credit
Social Security benefits can be taxed to a maximum of Up to 85% of your Social Security income is taxed if you receive income from other
___________% based on the beneficiary's annual income. sources and your combined income is more than a certain base amount.
Which factor does not limit QBI components of QBI reported on Schedule C
deduction?
Who cannot take the standard deduction? (select all that An individual filing as Married Filing Separately and the spouse itemizes An
apply) individual filing a return for a short tax year due to a change in the annual
accounting period A nonresident or dual-status alien during the year
What type of payment is not considered miscellaneous? employment wages Miscellaneous income can include payments in the form of
rents received, royalties, medical and health care, crop insurance proceeds, refund
or credits of state and local taxes, unemployment compensation, and prizes and
awards,
What dividend comes from mutual funds and real estate capital gain Capital gain distributions come from mutual funds and real estate
investment trusts (REITs)? investment trusts (REITs).
Which is not considered a gambling winning? games of chance Gambling winnings include, but are not limited to, money or prizes
earned from:
Casino games
Slot machines
Keno
Poker tournaments
Lotteries
Sweepstakes
Raffles
Betting pools
Gameshows
Horse or dog races
Off-track betting
Bingo
