INTUIT ACADEMY TAX LATEST
LEVEL 1
ANSWER ALL QUESTIONS IN THIS SECTION
QUESTION 1
The IRS requires you to keep detailed records of your gambling winnings and
losses as well as any related documents, including receipts, tickets, payment
slips, statements, and Form W-2G.
You must be able to _________________________.
Report your gambling winnings and gambling losses. You may be able to deduct
your losses if you have itemized deductions.
QUESTION 2
A sole proprietor provides legal services to over 40 clients. These clients
provided a 1099-misc to the sole proprietor at the end of the year. The sole
proprietor can claim tax deductions for a variety of work-related expenses.
What form must the sole proprietor complete with their federal income tax
return?
Schedule C
END OF
PAGE
1
, INTUIT ACADEMY TAX LATEST
LEVEL 1
QUESTION 3
Wes and Rahul are married. Wes is 48 years old, and Rahul is 65. Both make
a living from rental properties. On Form 1099-MISC which miscellaneous
income box should be checked?
Rents
Dividend Income
Dividends are distributions of property a corporation may pay the taxpayer if
they own stock in that corporation. Corporations pay most dividends in cash. For
dividends to fall in the qualified dividend category, they typically must be paid by
a U.S. corporation or a qualifying foreign corporation. Generally, the taxpayer
must also meet the holding period requirement.
Mutual funds and ETFs may have state or municipal bonds as holdings. These
bonds pay interest that's often exempt from federal income tax. When mutual funds
or ETFs distribute this interest, they usually do it through an interest dividend.
Form 1099-DIV Dividends and Distributions is the form financial institutions
typically use to report information to the taxpayer and the IRS about dividends and
certain other distributions.
QUESTION 4
END OF
PAGE
2
, INTUIT ACADEMY TAX LATEST
LEVEL 1
Taxable interest is taxed as ordinary income.
True
QUESTION 5
The tax rates for non-qualified dividends are the same as federal ordinary
income tax rates.
True
QUESTION 6
Dividends that meet the qualified requirements are subject to less beneficial
tax rates than their non-qualified counterparts.
False
QUESTION 7
The amount of a withdrawal penalty depends on many factors, including the
type of financial instrument involved.
True
END OF
PAGE
3
, INTUIT ACADEMY TAX LATEST
LEVEL 1
QUESTION 8
Mary has three savings accounts in three different banks. She earned the total
interest earned from all three accounts is $2200. Mary receives three Forms
1099-INT.
How should she report this interest income?
Mary lists each payer and amount on Schedule B and files it with her tax return.
QUESTION 9
Mary made a cash loan to her uncle. She holds a promissory note for that
loan. Her uncle pays her principal and interest each month. Mary got an
interest amount of $2,000 for this, but she didn't receive a Form 1099-INT.
How should she report this interest income?
Mary lists the amount on Schedule B and files it with her tax return.
QUESTION 10
END OF
PAGE
4
LEVEL 1
ANSWER ALL QUESTIONS IN THIS SECTION
QUESTION 1
The IRS requires you to keep detailed records of your gambling winnings and
losses as well as any related documents, including receipts, tickets, payment
slips, statements, and Form W-2G.
You must be able to _________________________.
Report your gambling winnings and gambling losses. You may be able to deduct
your losses if you have itemized deductions.
QUESTION 2
A sole proprietor provides legal services to over 40 clients. These clients
provided a 1099-misc to the sole proprietor at the end of the year. The sole
proprietor can claim tax deductions for a variety of work-related expenses.
What form must the sole proprietor complete with their federal income tax
return?
Schedule C
END OF
PAGE
1
, INTUIT ACADEMY TAX LATEST
LEVEL 1
QUESTION 3
Wes and Rahul are married. Wes is 48 years old, and Rahul is 65. Both make
a living from rental properties. On Form 1099-MISC which miscellaneous
income box should be checked?
Rents
Dividend Income
Dividends are distributions of property a corporation may pay the taxpayer if
they own stock in that corporation. Corporations pay most dividends in cash. For
dividends to fall in the qualified dividend category, they typically must be paid by
a U.S. corporation or a qualifying foreign corporation. Generally, the taxpayer
must also meet the holding period requirement.
Mutual funds and ETFs may have state or municipal bonds as holdings. These
bonds pay interest that's often exempt from federal income tax. When mutual funds
or ETFs distribute this interest, they usually do it through an interest dividend.
Form 1099-DIV Dividends and Distributions is the form financial institutions
typically use to report information to the taxpayer and the IRS about dividends and
certain other distributions.
QUESTION 4
END OF
PAGE
2
, INTUIT ACADEMY TAX LATEST
LEVEL 1
Taxable interest is taxed as ordinary income.
True
QUESTION 5
The tax rates for non-qualified dividends are the same as federal ordinary
income tax rates.
True
QUESTION 6
Dividends that meet the qualified requirements are subject to less beneficial
tax rates than their non-qualified counterparts.
False
QUESTION 7
The amount of a withdrawal penalty depends on many factors, including the
type of financial instrument involved.
True
END OF
PAGE
3
, INTUIT ACADEMY TAX LATEST
LEVEL 1
QUESTION 8
Mary has three savings accounts in three different banks. She earned the total
interest earned from all three accounts is $2200. Mary receives three Forms
1099-INT.
How should she report this interest income?
Mary lists each payer and amount on Schedule B and files it with her tax return.
QUESTION 9
Mary made a cash loan to her uncle. She holds a promissory note for that
loan. Her uncle pays her principal and interest each month. Mary got an
interest amount of $2,000 for this, but she didn't receive a Form 1099-INT.
How should she report this interest income?
Mary lists the amount on Schedule B and files it with her tax return.
QUESTION 10
END OF
PAGE
4
