Intuit Academy Tax Level 1 Exam Questions
With Correct Answers
Below |the |line |deductions |include
Standard |deduction
Eligible |educators |can |deduct |up |to |_______ |of |qualified |expenses |paid |during |the |tax |year.
$250
Which |of |the |following |is |an |ineligible |medical |expense |for |HSA, |Archer |MSA, |and |MA |MSA?
Breast |enhancement
The |net |capital |gain |is |taxed |at |_______ |if |the |married |filing |jointly |taxpayer |income |is |less |
than |$80,800.
0%
To |claim |a |child |as |a |dependent, |they |must |meet |the |qualifying |child |test |or |
________________.
qualifying |relative |test
Ordinary |dividends |are |taxed |at |the |same |rate |as |__________ |income |tax |rate.
ordinary
Distributions |from |HSA, |Archer |MSA, |or |MS |MSA |are |non-taxable |when |
_________________________________________.
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?
Non-resident |alien
_____________ |and |____________ |are |what |taxpayers |must |know |to |calculate |their |tax |
amount.
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.
750,000
__________ |reduce |the |amount |of |tax |due.
Tax |credits
Which |form |is |for |beneficiaries |who |get |income |from |trusts |and |estates?
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.
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?
31
Complete |the |equation. |___________ |= |Selling |Price |- |Purchase |Price
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.
Schedule |C
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 |sourcing |wages |and |personal |
services |income |is |controlled |by |________________________________.
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?
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.
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?
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 |Schedule |B |must |be |completed |and |
attached |to |Form |1040.
$1500 |If |yearly |dividend |amounts |exceed |$1500, |a |Schedule |B |must |be |completed |and |
attached.
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 |__________ |for |each |child |under |age |17 |in |
2021(2022).
$3,600.00 |Taxpayers |can |claim |a |CTC |of |up |to |$3,600 |for |each |child |under |age |17 |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 |on |Form |1040?
Lines |25 |through |30 |are |payments |and |refundable |credits.
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-Corporation |election?
Being |an |international |entity |is |not |a |requirement |for |S-Corporation |election.
________________ |generally |have |to |make |estimated |tax |payments |if |they |expect |to |owe |tax |
of |$500 |or |more |when |their |return |is |filed.
Corporations |generally |have |to |make |estimated |tax |payments |if |they |expect |to |owe |tax |of |
$500 |or |more |when |their |return |is |filed.
Which |is |not |a |nonrefundable |tax |credit? |(Select |all |that |apply)
Child |and |Dependent |Care |Credit |Nonrefundable |tax |credits |include:
Child |Tax |Credit/Credit |for |Other |Dependents
Adoption |Credit
Social |Security |benefits |can |be |taxed |to |a |maximum |of |___________% |based |on |the |
beneficiary's |annual |income.
With Correct Answers
Below |the |line |deductions |include
Standard |deduction
Eligible |educators |can |deduct |up |to |_______ |of |qualified |expenses |paid |during |the |tax |year.
$250
Which |of |the |following |is |an |ineligible |medical |expense |for |HSA, |Archer |MSA, |and |MA |MSA?
Breast |enhancement
The |net |capital |gain |is |taxed |at |_______ |if |the |married |filing |jointly |taxpayer |income |is |less |
than |$80,800.
0%
To |claim |a |child |as |a |dependent, |they |must |meet |the |qualifying |child |test |or |
________________.
qualifying |relative |test
Ordinary |dividends |are |taxed |at |the |same |rate |as |__________ |income |tax |rate.
ordinary
Distributions |from |HSA, |Archer |MSA, |or |MS |MSA |are |non-taxable |when |
_________________________________________.
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?
Non-resident |alien
_____________ |and |____________ |are |what |taxpayers |must |know |to |calculate |their |tax |
amount.
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.
750,000
__________ |reduce |the |amount |of |tax |due.
Tax |credits
Which |form |is |for |beneficiaries |who |get |income |from |trusts |and |estates?
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.
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?
31
Complete |the |equation. |___________ |= |Selling |Price |- |Purchase |Price
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.
Schedule |C
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 |sourcing |wages |and |personal |
services |income |is |controlled |by |________________________________.
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?
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.
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?
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 |Schedule |B |must |be |completed |and |
attached |to |Form |1040.
$1500 |If |yearly |dividend |amounts |exceed |$1500, |a |Schedule |B |must |be |completed |and |
attached.
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 |__________ |for |each |child |under |age |17 |in |
2021(2022).
$3,600.00 |Taxpayers |can |claim |a |CTC |of |up |to |$3,600 |for |each |child |under |age |17 |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 |on |Form |1040?
Lines |25 |through |30 |are |payments |and |refundable |credits.
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-Corporation |election?
Being |an |international |entity |is |not |a |requirement |for |S-Corporation |election.
________________ |generally |have |to |make |estimated |tax |payments |if |they |expect |to |owe |tax |
of |$500 |or |more |when |their |return |is |filed.
Corporations |generally |have |to |make |estimated |tax |payments |if |they |expect |to |owe |tax |of |
$500 |or |more |when |their |return |is |filed.
Which |is |not |a |nonrefundable |tax |credit? |(Select |all |that |apply)
Child |and |Dependent |Care |Credit |Nonrefundable |tax |credits |include:
Child |Tax |Credit/Credit |for |Other |Dependents
Adoption |Credit
Social |Security |benefits |can |be |taxed |to |a |maximum |of |___________% |based |on |the |
beneficiary's |annual |income.
