Intuit Academy Tax Exam – Level 1 Practice Exam
Intuit Academy Tax Exam – Level 1 Practice Exam
Summarized Most-Tested Exam Coverage Areas
1. Filing status determination and qualifying person tests (single, MFJ, MFS, HOH,
QSS).
2. Gross income inclusions and exclusions, including wages, interest, dividends, and
fringe benefits.
3. Adjustments to income such as student loan interest, IRA contributions, and
educator expenses.
4. Standard deduction vs. itemized deductions, including medical, taxes, interest, and
charitable contributions.
5. Tax credits: EITC, Child Tax Credit, education credits, and dependent care credit.
6. Dependents: qualifying child and qualifying relative tests, age, residency, support,
and joint return rules.
7. Self-employment income, Schedule C basics, and self-employment tax.
8. Capital gains and losses, holding periods, and basis calculations.
, 9. Retirement income, distributions, and taxable Social Security benefits.
10. Estimated payments, withholding, filing requirements, and penalties.
250 Randomized Scenario-Based MCQs
1. A taxpayer who is 67 years old and legally blind files as single; what is the correct
additional standard deduction amount category she may claim?
A. No additional amount
B. One additional amount for age only
C. Two additional amounts, one for age and one for blindness
D. Three additional amounts
Answer: C
Rationale: Age and blindness each qualify for an additional standard deduction
amount, so both apply.
2. A taxpayer received $1,200 of taxable interest from a savings account and $400
from a municipal bond; how much interest is included in gross income?
A. $400
, B. $1,200
C. $1,600
D. $0
Answer: B
Rationale: Municipal bond interest is generally tax-exempt, while taxable savings
interest is included.
3. A taxpayer paid $2,000 in student loan interest and has MAGI below the phaseout;
what adjustment to income may be claimed?
A. $0
B. $1,000
C. $2,000
D. $2,500
**Answer: C**
*Rationale: Student loan interest is deductible up to $2,500 when income limits are
met.*
4. A single taxpayer with no dependents has $13,000 of wages; which filing
requirement statement is correct for the current tax year?
A. Must file because wages exceed the standard deduction
, B. Not required to file because gross income is below the filing threshold
C. Must file because wages exceed $400
D. Must file only if self-employment income exists
Answer: B
Rationale: A single taxpayer under 65 with gross income below the standard
deduction generally is not required to file.
5. A taxpayer claims a qualifying child for the Child Tax Credit; what is the maximum
credit per qualifying child under current law?
A. $500
B. $1,000
C. $2,000
D. $3,000
Answer: C
Rationale: The Child Tax Credit maximum is $2,000 per qualifying child under
current law.
6. A taxpayer sold stock held for 10 months at a $3,000 gain; how is the gain
characterized?
A. Long-term capital gain
Intuit Academy Tax Exam – Level 1 Practice Exam
Summarized Most-Tested Exam Coverage Areas
1. Filing status determination and qualifying person tests (single, MFJ, MFS, HOH,
QSS).
2. Gross income inclusions and exclusions, including wages, interest, dividends, and
fringe benefits.
3. Adjustments to income such as student loan interest, IRA contributions, and
educator expenses.
4. Standard deduction vs. itemized deductions, including medical, taxes, interest, and
charitable contributions.
5. Tax credits: EITC, Child Tax Credit, education credits, and dependent care credit.
6. Dependents: qualifying child and qualifying relative tests, age, residency, support,
and joint return rules.
7. Self-employment income, Schedule C basics, and self-employment tax.
8. Capital gains and losses, holding periods, and basis calculations.
, 9. Retirement income, distributions, and taxable Social Security benefits.
10. Estimated payments, withholding, filing requirements, and penalties.
250 Randomized Scenario-Based MCQs
1. A taxpayer who is 67 years old and legally blind files as single; what is the correct
additional standard deduction amount category she may claim?
A. No additional amount
B. One additional amount for age only
C. Two additional amounts, one for age and one for blindness
D. Three additional amounts
Answer: C
Rationale: Age and blindness each qualify for an additional standard deduction
amount, so both apply.
2. A taxpayer received $1,200 of taxable interest from a savings account and $400
from a municipal bond; how much interest is included in gross income?
A. $400
, B. $1,200
C. $1,600
D. $0
Answer: B
Rationale: Municipal bond interest is generally tax-exempt, while taxable savings
interest is included.
3. A taxpayer paid $2,000 in student loan interest and has MAGI below the phaseout;
what adjustment to income may be claimed?
A. $0
B. $1,000
C. $2,000
D. $2,500
**Answer: C**
*Rationale: Student loan interest is deductible up to $2,500 when income limits are
met.*
4. A single taxpayer with no dependents has $13,000 of wages; which filing
requirement statement is correct for the current tax year?
A. Must file because wages exceed the standard deduction
, B. Not required to file because gross income is below the filing threshold
C. Must file because wages exceed $400
D. Must file only if self-employment income exists
Answer: B
Rationale: A single taxpayer under 65 with gross income below the standard
deduction generally is not required to file.
5. A taxpayer claims a qualifying child for the Child Tax Credit; what is the maximum
credit per qualifying child under current law?
A. $500
B. $1,000
C. $2,000
D. $3,000
Answer: C
Rationale: The Child Tax Credit maximum is $2,000 per qualifying child under
current law.
6. A taxpayer sold stock held for 10 months at a $3,000 gain; how is the gain
characterized?
A. Long-term capital gain
