2025 INTUIT ACADEMY TAX LEVEL 1 | 335
QUESTIONS | WITH ACCURATE SOLUTIONS,
GRADED A+
Below the line deductions include Answer - Standard deduction
Eligible educators can deduct up to _______ of qualified expenses paid during
the tax year. Answer - $250
Which of the following is an ineligible medical expense for HSA, Archer MSA,
and MA MSA? Answer - Breast enhancement
The net capital gain is taxed at _______ if the married filing jointly taxpayer
income is less than $80,800. Answer - 0%
To claim a child as a dependent, they must meet the qualifying child test or
________________. Answer - qualifying relative test
Ordinary dividends are taxed at the same rate as __________ income tax rate.
Answer - ordinary
,Distributions from HSA, Archer MSA, or MS MSA are non-taxable when
_________________________________________. Answer - spent for
qualified medical expenses of your dependent
Which residency status is used when an individual is neither a U.S. citizen nor a
resident alien for tax purposes? Answer - Non-resident alien
_____________ and ____________ are what taxpayers must know to calculate
their tax amount. Answer - Taxable income and filing status
For mortgages entered into after December 15, 2017, the 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.
Answer - 750,000
__________ reduce the amount of tax due. Answer - Tax credits
Which form is for beneficiaries who get income from trusts and estates?
Answer - Form 1041
___________________ consists of both earned and unearned income that is
used to calculate the tax. It is generally less than adjusted gross income due to
the deductions. Answer - Taxable income
To satisfy the Substantial Presence Test, how many minimum days (in the
current year) must you be physically present in the United States? Answer - 31
Complete the equation. ___________ = Selling Price - Purchase Price Answer -
Capital Loss or Capital Gain
,_________________ helps sole proprietorships calculate the profit or loss from
a business while also providing the IRS with your total business income and
deductions. Answer - Schedule C
What type of deduction is a HSA contribution? Answer - 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 sourcing wages and
personal services income is controlled by
________________________________. Answer - where the service is
performed The general rule for sourcing wages and personal services income is
controlled by where the service is performed. The residence of the recipient of
the service, the place of contracting, and the time and place of payment are
irrelevant.
, Which is considered non-taxable income? Answer - 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 taxes for low-income
workers and to provide an incentive to work. Answer - Earned Income Tax
Credit Earned Income Tax Credit is used to offset income and payroll taxes for
low-income workers and to provide an incentive to work.
Which is a non-deductible business expense? Answer - 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? Answer - $25 The
upper cap of $25 is applicable on business gifts.
If yearly dividend amounts exceed __________, a Schedule B must be
completed and attached to Form 1040. Answer - $1500 If yearly dividend
amounts exceed $1500, a Schedule B must be completed and attached.
The are _________ filing statuses. Answer - 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 __________ for each child under
age 17 in 2021(2022). Answer - $3,600.00 Taxpayers can claim a CTC of up to
QUESTIONS | WITH ACCURATE SOLUTIONS,
GRADED A+
Below the line deductions include Answer - Standard deduction
Eligible educators can deduct up to _______ of qualified expenses paid during
the tax year. Answer - $250
Which of the following is an ineligible medical expense for HSA, Archer MSA,
and MA MSA? Answer - Breast enhancement
The net capital gain is taxed at _______ if the married filing jointly taxpayer
income is less than $80,800. Answer - 0%
To claim a child as a dependent, they must meet the qualifying child test or
________________. Answer - qualifying relative test
Ordinary dividends are taxed at the same rate as __________ income tax rate.
Answer - ordinary
,Distributions from HSA, Archer MSA, or MS MSA are non-taxable when
_________________________________________. Answer - spent for
qualified medical expenses of your dependent
Which residency status is used when an individual is neither a U.S. citizen nor a
resident alien for tax purposes? Answer - Non-resident alien
_____________ and ____________ are what taxpayers must know to calculate
their tax amount. Answer - Taxable income and filing status
For mortgages entered into after December 15, 2017, the 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.
Answer - 750,000
__________ reduce the amount of tax due. Answer - Tax credits
Which form is for beneficiaries who get income from trusts and estates?
Answer - Form 1041
___________________ consists of both earned and unearned income that is
used to calculate the tax. It is generally less than adjusted gross income due to
the deductions. Answer - Taxable income
To satisfy the Substantial Presence Test, how many minimum days (in the
current year) must you be physically present in the United States? Answer - 31
Complete the equation. ___________ = Selling Price - Purchase Price Answer -
Capital Loss or Capital Gain
,_________________ helps sole proprietorships calculate the profit or loss from
a business while also providing the IRS with your total business income and
deductions. Answer - Schedule C
What type of deduction is a HSA contribution? Answer - 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 sourcing wages and
personal services income is controlled by
________________________________. Answer - where the service is
performed The general rule for sourcing wages and personal services income is
controlled by where the service is performed. The residence of the recipient of
the service, the place of contracting, and the time and place of payment are
irrelevant.
, Which is considered non-taxable income? Answer - 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 taxes for low-income
workers and to provide an incentive to work. Answer - Earned Income Tax
Credit Earned Income Tax Credit is used to offset income and payroll taxes for
low-income workers and to provide an incentive to work.
Which is a non-deductible business expense? Answer - 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? Answer - $25 The
upper cap of $25 is applicable on business gifts.
If yearly dividend amounts exceed __________, a Schedule B must be
completed and attached to Form 1040. Answer - $1500 If yearly dividend
amounts exceed $1500, a Schedule B must be completed and attached.
The are _________ filing statuses. Answer - 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 __________ for each child under
age 17 in 2021(2022). Answer - $3,600.00 Taxpayers can claim a CTC of up to
